CGC changes shrinkage deductions

by World Grain Staff
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WINNIPEG, MANITOBA, CANADA — The Canadian Grain Commission (CGC) announced on March 2 that the maximum shrinkage allowance is fixed at zero at licensed process and transfer elevators effective March 19. This means that licensed process and transfer elevators may not make a shrinkage deduction from deliveries of grain.

"This change is good news for Canadian grain producers," said Chief Commissioner Elwin Hermanson. "They can now expect consistent deductions when they deliver their grain to any type of elevator licensed by the Canadian Grain Commission."

Comprehensive shrinkage is the loss in weight of grain during the handling or treatment of grain. Currently, the maximum shrinkage allowance is fixed at zero for licensed primary and terminal elevators. But based on consultations with producers and industry stakeholders, the Canadian Grain Commission proposed to amend the Canada Grain Regulations so that licensed process and transfer elevators would also be subject to a maximum allowance of zero.

The Canada Grain Act authorizes the CGC to regulate the maximum shrinkage allowances at elevators. The Canada Grain Act does not give the commission the authority to regulate shrinkage for grain dealers.
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