Statement on Middleton Grain Centre

The following is a statement released today by Agriculture and Marketing Minister Ed Lorraine on plans to close the Middleton Grain Centre on July 31, 1998:

Much attention has been focused on the announcement to close the Middleton Grain Centre. In response, I want to clarify the process that has taken place to date and encourage all parties to continue discussions to ensure the needs of both East Coast Commodities Inc. and producers are met.

In August 1997, the government privatized the province's grain and forage facilities at Steam Mill (near Kentville), Bayhead (near Tatamagouche) and Middleton at the request of industry groups representing grain and forage producers, the Nova Scotia Grain and Forage Commission, the Nova Scotia Grain Marketing Board and the Nova Scotia Forage Council. The decision to privatize was not taken lightly and followed more than a year of consultations with grain and forage producers in the province. We needed their support to move forward.

It was evident to all parties that the facilities needed a progressive plan if they were to be viable for the future. Operating as public facilities, the centres collectively cost taxpayers more than $1.6 million from 1993 to 1997. The best course of action was to put the future of the operations in the hands of the people who knew the industry --grain and forage producers.

Through privatization, a Grain and Forage Producers' Trust and a producer-controlled corporation, East Coast Commodities Inc., were established. East Coast Commodities is responsible for the day-to-day operations of the facilities under the direction of a board of directors comprising producers from grain and forage industry organizations.

From the outset, the intention was that actions taken by East Coast Commodities would be based on sound business decisions, which is the case with the Middleton Grain Centre. The Middleton Grain Centre would have to handle more than 3,600 tonnes of grain to be commercially viable. Last year, the centre handled 1,014 tonnes from Annapolis County, resulting in a $50,000 loss. The centre has, in fact, consistently lost money over the past 14 years.

I and staff of the Nova Scotia Department of Agriculture and Marketing have met with a group of concerned producers in Annapolis County and East Coast Commodities to discuss options for minimizing the impact on producers using the centre. East Coast Commodities has stated publicly it is willing to "bend over backwards" to address the concerns of affected producers. I understand the corporation is already taking steps to improve the delivery and loading out capacity at the Steam Mill facility, which will serve Nova Scotia producers more efficiently and effectively.

The department understands the concerns of the producers. But a business decision has been made and reaffirmed by East Coast Commodities. I am hopeful a satisfactory conclusion can be reached and I encourage producers to work with East Coast Commodities to find a reasonable solution to their concerns.