More than 300,000 metric tonnes of dry beans leave Hensall Co-op operations across Canada each year. Around 70 to 80 sea containers head out the door each day, shipping beans to customers in 40 countries, including the United States.
“Right now, we continue moving forward. The rest of our supply chain and end use customers, continue to be strong. Our dollar is favourable, so going into the U.S., that remains constant today, but it could change going forward,” said Brad Chandler, CEO of the Hensall Co-op.
Like many sectors, agriculture in the United States and Canada is highly intertwined. With livestock, grains, fertilizer, and machinery going back and forth over the border on a daily basis.
“There’s going to be impact. You know, because there’s going to be machinery dealerships, equipment fuels, things like that. There’s going to be some impact,” said Chandler.
But U.S. tariffs on Canadian agricultural products may create opportunities for businesses like the Hensall Co-op, said Chandler. Opportunities to explore and expand markets they currently don’t send Canadian beans to.
“If we lose some opportunity in the U.S., then we look to increase opportunities to other countries that are also being tariffed by the U.S. Maybe their business will want to increase with us,” he said.
At Goderich’s grain elevators, there’s optimism as well that more countries may look to Canada to supply them with grain and corn if the U.S. makes trade untenable.
“If there’s a business here at the Port of Goderich that is positioned to do more cargo, it is the grain business, because of some potential repositioning on supply lanes,” said Frank Hurkmans, president of the Goderich Port Management Corp.
Livestock producers may be more at risk, with so much of the processing of Canadian beef and pork happening in the United States.
“After COVID, it was a great opportunity to make investments in food processing plants to bring more of the processing back home. And really, nothing’s been done. So, these are the kind of ideas and concepts that the Conservative Party wants to do to make our agricultural sector more vibrant and independent, so that we’re processing our livestock here in Canada instead of in the United States and other places,” said Huron-Bruce MP Ben Lobb.
At the Hensall Co-op, while they are preparing to pivot if need be, they’ve already been told that some of their U.S. importers will pay the tariff and carry on bringing Canadian dry beans into America.
“They like our quality; they like our supply chain. It’s established. So, they’re going to pay the tariffs because there’s some established supply chains that have been there for many generations,” said Chandler.
While it’s unlikely every Canadian exporter will be so lucky, it’s some good news on a dark day for many.
