News Release
April 19, 2005

Canadian Grain Commission compensates producers owed money by Diversifoods, Inc. of Carmangay, Alberta

Winnipeg, April 19, 2005 - Eight western grain producers owed money by Diversifoods, Inc. of Carmangay, Alberta will receive compensation from the Canadian Grain Commission for claims totalling almost $99,000. Compensation will be paid from a $500,000 bond the company tendered as security when it was licensed by the CGC in November 2003.

While the company filed for bankruptcy in February 2005, the CGC responded to producer complaints of non-payment in autumn 2004 by auditing the company in October, realizing on the security posted and by not renewing the company's licence when it expired on October 31.

"This settlement shows the benefits for producers in selling their grain to CGC-licensed and bonded companies," said CGC Chief Commissioner Chris Hamblin.

Hamblin emphasized the importance of knowing and following the rules governing producer payment protection.

Grain companies licensed by the CGC are required to post security to cover their debts to farmers. Security coverage is limited. One of the limitations is the period of coverage following the delivery of grain to a licensee. If producers wait more than 90 days to get paid, they are not covered.

Under the Canada Grain Act and Regulations, the following grains are covered by security: barley, beans, buckwheat, canola, chick peas, corn, fababeans, flaxseed, lentils, mixed grain, mustard seed, oats, peas, rapeseed, rye, safflower seed, solin, soybeans, sunflower seed, triticale, and wheat.

Information about security and dealing with licensed companies is available by telephoning the CGC, toll free, at 1-800-853-6705 and on the Internet at www.grainscanada.gc.ca.

The CGC is the federal agency responsible for establishing and maintaining Canada's grain quality standards. Its programs result in shipments of grain that consistently meet contract specifications for quality, safety and quantity. The CGC regulates the grain industry to protect producers' rights and ensure the integrity of grain transactions.

Contact:
Regis Gosselin
Canadian Grain Commission
Telephone: (204) 983-2752
Email: rgosselin@grainscanada.gc.ca

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Canadian Grain Commission compensates producers owed money by Diversifoods, Inc. of Carmangay, Alberta

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