Producers who were not paid for grain delivered to Global Food and Ingredients Inc. will not receive full compensation from the Canadian Grain Commission’s payment protection program. The company’s security was not adequate to cover all of the unpaid grain.
Following a review of individual producer claims by the Canadian Grain Commission, 29 eligible claims were identified totalling $2.661 million. The company had only $2 million in security available so individual payments will be prorated. Producers will receive 75 per cent compensation for their eligible claims. The Canadian Grain Commission says cheques have been mailed to producers.
In addition to this compensation, the Canadian Grain Commission says it is working with the receiver to realize on proceeds from the sale of the company’s grain inventory. Holders of outstanding primary elevator receipts may receive a portion of these funds at a later date.
Global Food and Ingredients bought pulse crops and other specialty crops operating from facilities at Lajord, Sedley and Zealandia, Saskatchewan. GFI acquired the three pulse and specialty crop facilities from Canpulse Foods which went insolvent and also left unpaid producers.
Licenses for GFI were revoked on May 15.