YORKTON, Sask. — Two major Yorkton agri-food processors say tariffs have not yet directly disrupted their core businesses, but ongoing trade tensions are increasing costs, complicating planning and creating concerns about future growth.
Both Grain Millers Canada and TA Foods rely heavily on export markets, particularly the United States, where much of their production is sold.
"Our raw ag commodities and our finished food products, so far, knock on wood, are not impacted by the tariffs in either direction," said Grain Millers Canada president Terry Tyson.
The Yorkton oat processor ships about 85 per cent of its finished products into the U.S. market, making the prospect of expanded tariffs a significant concern.
"What keeps us up at night is the possibility of escalation," Tyson said.
TA Foods owner Mike Popowich said his company, which processes flax seed grown across the Prairies, has also largely avoided direct tariff impacts because, he said, Canadian flax remains covered under the Canada-United States-Mexico Agreement.
"We haven't been directly affected by tariffs for most of our business," Popowich said.
TA Foods processes flax products used in human food, pet food and industrial applications, with products exported to roughly 26 countries.
While the tariffs themselves have had limited direct effects, both companies said the broader trade environment has forced them to spend more time preparing for potential changes.
For Popowich, that has meant placing greater emphasis on contracts with customers and ensuring responsibilities are clearly defined if new tariffs are introduced.
"It has certainly become a focus between us and our customers on making sure we understand the way the contracts are written and who would be responsible for those tariffs," he said.
Tyson said the situation is also affecting longer-term business decisions.
Grain Millers is continuing to invest in value-added processing projects in Yorkton, but future growth plans have become more challenging to evaluate.
"The five-year planning horizon becomes a lot more puzzling," he said.
The company's North American footprint means future investment decisions could become more complicated if tariffs expand to include agricultural products such as oats.
"If the trade war persists, and especially if it expands to include oat products being tariffed, that could have that impact," Tyson said.
Beyond trade concerns, both companies point to rising operating costs as a growing challenge.
Tyson said tariffs affecting steel products have increased the cost of maintaining equipment and infrastructure used in the milling industry.
"Those things wear out. You've got to replace them, and there's really no way around it," he said.
For TA Foods, transportation costs are currently having a greater impact than tariffs.
"The biggest problem that we have right now is the fuel costs," Popowich said.
Higher diesel prices have substantially increased freight costs for shipments moving throughout Canada and into export markets, he said.
Both business leaders said those added expenses eventually make their way through the supply chain.
"There isn't a lot of room to absorb those additional costs," Tyson said. "Ultimately they hit consumers on store shelves."
Popowich echoed that concern, noting higher ingredient and transportation costs can ultimately affect products ranging from breads to other food items purchased by consumers.
"It goes right into the cost of everything really fast," he said.
Despite the challenges, both companies remain committed to Yorkton and Saskatchewan agriculture.
Tyson said Grain Millers continues to stress the importance of maintaining an integrated North American market and supporting Canadian oat producers.
"We're in it for the long haul," he said. "We need Canadian farmers. This is where the oats are grown."
As trade tensions continue, both companies say they are watching closely while looking for ways to protect their businesses, customers and supply chains from future disruptions.
