Canadian Grain Commission revokes licences of Sask. grain handler

Sask. oat farmers taking company to court WATCH: A group of farmers are taking a company to court over what they allege are voided contracts for gluten free oats.

The Canadian Grain Commission (CGC) says it has revoked licences of Saskatchewan grain handler Purely Canada Foods Corp.

According to the CGC, the company’s grain dealer licence and primary elevator licences at Avonlea, Kindersley and Lajord, Sask. were all revoked as of 11:59 p.m. Aug. 27.

“If this company owes you money for grain deliveries, contact our Safeguards for Grain Farmers Program immediately. If you do business with this company after August 27, 2024, you will not be protected by security under the Canada Grain Act,” the federal government said online.

In January, a group of 27 Saskatchewan oat farmers said they had lost millions of dollars after claiming the company voided their contract for gluten free oats.

A representative of the group told CTV News that after months of no communication with the company they found out their contract was being dropped by Purely Canada Foods because of a force majeure for various reasons on their part.

A force majeure clause removes liability in contracts because of catastrophic unforeseen events or circumstances.

The group said it was seeking nearly $60 million after learning the contracts had been voided.

Purely Canada Foods CEO Tyler West told CTV News that a specialized third party processor who was supposed to convert the gluten free oats to sale-ready condition experienced significant equipment failure and equipment commissioning problems that forced the decision of a force majeure.

The handler also operates in Alberta southeast of Edmonton and holds offices in Saskatoon, Kansas City and Blenheim, Ont., according to a map on its website.

CTV News has reached out to the CGC and Purely Canada Foods for comment and is awaiting a response.

--More details to come when available.

--With files from John Flatters.