WINNIPEG, MANITOBA, CANADA — The Canadian Grain Commission (CGC) on Feb. 9 began consultations on its proposal to license feed mills in western Canada and to extend payment protection to grain producers who sell grain to feed mills.

The CGC is seeking input from feed mills, grain producers, producer groups, current licensees and industry stakeholders on its proposal to license feed mills and to assist in the development of licensing requirements for feed mills. The intent is to assess the feed mill industry in western Canada. Information collected will be considered when determining a threshold for commercial feed mills to be licensed.

Feed mills are currently exempted from licensing in the Canada Grain Regulations. Should feed mills be licensed, they could be subject to some of the same requirements as process elevators.

A feed mill is an operation where a process or a combination of processes is used to produce or manufacture feed for livestock or poultry consumption.

Feed mills who could be subject to licensing include on-farm feed mills or commercial feed mills who purchase grain from producers, to be used either on farm, sold to a livestock operation, or for resale.

These operations would be licensed and would be required to provide security as a condition of licensing. Payment protection would only apply to eligible deliveries for the 20 grains defined in the Canada Grain Regulations.

Relevant information, including a description of the issue and a full description of the proposal, are available on the CGC’s website, Information is also provided on the website on how stakeholders can comment on the proposal. Stakeholders have until April 9, to submit input.