Canadian Oats, Corn Lead Capacity Growth

WINNIPEG - Jul 30/02 - SNS -- Primary processing has undergone substantial growth in recent years, with rapid expansion in facilities dedicated to oats and corn leading the growth, notes Stan Spak, an Agriculture Canada Market Analyst here.

In a review of this sector of the Canadian agriculture scene, Spak said primary processing capacity has risen 14% during the past 5 years. That capacity, currently estimated at 16 million metric tons (MT) per year, represents about 25% of Canada's total grains, oilseeds, pulse and special crops production.

Spak said in his report that most of Canada's oat processing capacity is in western Canada. That capacity increased by about 47% during the last 5 years, and is now estimated at 2,260 MT per day. The bulk of the increase is attributed to an expansion at the Can-Oat Mill in Portage la Prairie, Manitoba which more than doubled its daily capacity to 910 MT per day. With that expansion, western Canada's share of oat processing capacity increased from 69% to 80%.

Over 40% of Canada's oat processing capacity is controlled by U.S. interests. Canadian oat product (grain equivalent) exports to the U.S. increased from 22,000 MT in 1991-1992 to 231,000 MT in 2000-2001.

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