Grain Export Risk Survey: From AIRM Consulting Ltd / Canada Grains Council |
Overview:
· This survey is anonymous.
· The purpose is to better understand grain export risk on MRLs (maximum residue limits) and other factors in order to help provide possible insurance solutions to these risks.
· If you have additional comments as you go through the survey, there is a box at the end to write them down. We would value them.
· Thank you for your participation.
Additional background / optional reading:
All grain exports face numerous challenges and risks in global trade. The export risk or global trade risk can be defined as the risk that cargos exported to international markets are rejected, for example, due to sanitary/phytosanitary issues such as exceeding MRLs, or due to credit, financial, or other certification issues.
While the main focus of this survey is MRL-related export risk for Canadian grain, its questions also cover some other export risks such as excess contaminant levels for pests (bugs, beetles), weed seeds, fungus/diseases such as blackleg in canola, fusarium in wheat or other foreign material in grain. Also, there could be non-GM crop exports that contain the low-level presence of GM crops.
MRLs represent the maximum traces of pesticide residues that could remain on a crop when a pesticide is used according to the label. While residue levels on Canadian grain exports are compliant with Canada’s MRLs and are often zero, in some cases they could exceed the MRLs set by importing countries. That could happen if the importing country’s MRLs are lower, or set at zero, or set at the limit of detection (for example, because the importing country has not yet completed a risk assessment). Exports could be rejected or restricted in these cases.
· This survey is anonymous.
· The purpose is to better understand grain export risk on MRLs (maximum residue limits) and other factors in order to help provide possible insurance solutions to these risks.
· If you have additional comments as you go through the survey, there is a box at the end to write them down. We would value them.
· Thank you for your participation.
Additional background / optional reading:
All grain exports face numerous challenges and risks in global trade. The export risk or global trade risk can be defined as the risk that cargos exported to international markets are rejected, for example, due to sanitary/phytosanitary issues such as exceeding MRLs, or due to credit, financial, or other certification issues.
While the main focus of this survey is MRL-related export risk for Canadian grain, its questions also cover some other export risks such as excess contaminant levels for pests (bugs, beetles), weed seeds, fungus/diseases such as blackleg in canola, fusarium in wheat or other foreign material in grain. Also, there could be non-GM crop exports that contain the low-level presence of GM crops.
MRLs represent the maximum traces of pesticide residues that could remain on a crop when a pesticide is used according to the label. While residue levels on Canadian grain exports are compliant with Canada’s MRLs and are often zero, in some cases they could exceed the MRLs set by importing countries. That could happen if the importing country’s MRLs are lower, or set at zero, or set at the limit of detection (for example, because the importing country has not yet completed a risk assessment). Exports could be rejected or restricted in these cases.
This initiative by the Canada Grains Council, through AIRM consulting, aims to describe and define the export risk, leading to the potential establishment of a new risk financing/transfer product that will help the sector manage the risk of unpredictable regulatory non-compliances and rejections in the export markets.