Miller Magazine Issue: 112 April 2019
CANADA 109 APRIL 2019 Pulse production in Canada has grown rapidly in the past decade. Canadian pulse farmers seed an average of 3.5 million hectares of pulses per year. In 2016, Canadian pulse production hit a record high of 8.4 million tonnes. More than 85% of Canada’s pulse pro- duction is exported to feed the world. FOOD PROCESSING INDUSTRY The food processing industry is one of the largest manufacturing industries in Canada, providing employment for over a quarter of a million Canadians and producing shipments worth $112.6 billion in 2017. It accounts for 17% of total manufacturing shipments and 2% of the national Gross Domestic Product (GDP). The food pro- cessing industry is an integral part of the Canadian food supply chain as it purchases about 42% of the Canadian agricultural production and sells over 70% of its output to Canadian retailers and foodser- vice providers. The demand for organic, healthy, and natural products market in Canada is growing. There are excellent prospects for products with organic or natural ingredients, consumer-ready processed foods and beverages, and organic, fresh fruits and vegetables. Canadian he- alth-conscious consumer are continuously looking for products that are: all natural; no artificial colors; low sugar/sugar free; no artificial flavors; and low fat/fat free. CANADA’S GRAIN MILLING INDUSTRY Flour mills were operating in Canada more than 100 years earlier. The grandfather of all Canadian milling wheats was introduced to Canada in 1851. Some of Canada’s largest modern grain mills are operating at or near locations where mills have operated for more than 100 years. According to the Canadian National Millers Associa- tion (CNMA), Canada has approximately 55 commercial wheat and oat mills situated from Pacific to Atlantic coasts. Commercial scale wheat and oat mills operate in 8 of Canada’s 13 provinces and territories. Total milling capacity is shared about equally between eastern and western Canada. The majority of whe- at milling capacity is in the east in close proximity to larger urban centres. The majority of oat milling capacity is situated in the Prairie provinces. Canadian mills grind over 3.5 million tons of wheat, oats and barley each year. Canadian mills export wheat flour, semolina and other milled grain products to over 30 countries. Canadian milling companies have free trade access to all of Canada, the United States and Mexico under the terms of the North American Free Trade Ag- reement. Although the United States is Canada’s largest export market for milled grain products, over 30 countries import whe- at flour and other milled grain products from Canada each year. Capital investment in Canadian grain milling facilities is approxi- mately $1.5 billion. 20% of Canada’s grain mills are less than 15 years old. Canadian wheat mills process approximately 3.1 million tons of Canadian wheat annually. The majority of eas- tern Canadian wheat processed is grown in Ontario, but milling wheat is also produced in Quebec and Atlantic provinces. Total flour and other milled wheat products destined for human consumption are about 2.4 million tons annually. The balance of production is sold as “millfeeds” (by-product) destined for manufac- turing of animal feeds and pet foods. Small quantities of wheat flour are used for non-food industrial further processing. Canadian oat mills process approximately 600,000 tons of mil- ling quality oats annually. This Canadian sub-sector relies heavily on the United States market and holds a disproportionate share of total North American oat milling capacity, having expanded considerably in the past 15 years. The Canadian cereal grainmilling industry employs approximately 1,400 production workers and an additional 500 persons in other capacities. The milling industry has undergone extensive moderniza- tion and significant capacity expansion between the mid1990s and 2018. The capacity expansion has been market-driven, closely trac- king population growth. Current replacement cost of all wheat and oat milling establishments is estimated to be between $1.5 billion and $2.0 billion. Rerefences: Agriculture and Agri-Food Canada Cereals Canada Pulse Canada Canadian National Millers Association (CNMA) www.export.gov
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