Construction of a new facility to process gluten-free oats will begin this spring south of Regina.
Avena Foods Ltd. announced last week it would build a mill at Rowatt, next door to the pulse facility it obtained after buying Best Cooking Pulses about two years ago.
Avena’s current mill in Regina will continue to operate as well.
The Rowatt mill is expected to open in 2021, more than doubling Avena’s current production capacity.
Chief executive officer Gord Flaten said he couldn’t comment on capacity more than that, but he did say the company would spend more than $20 million on the mill.
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He said Avena buys from several dozen farmers, who receive a premium price for identity preserved, gluten-free and sometimes organic oats.
The build will “allow us to buy more and expand the list of farmer customers,” he said. “We are interested in hearing from potential customers.”
Production contracts for this summer will help fill the new facility’s needs for next year. Right now most of the growers are in Saskatchewan but there are some in other provinces.
Flaten said the construction stems from consumer and customer demand.
“People know that oats are healthy,” he said.
Aside from gluten-free, Flaten said Avena facilities are allergen-free and operate under a Start Clean, Stay Clean purity protocol.
“We are about a lot of other food safety benefits,” he said. “We control any contamination … right from the seed to the trucks.”
Consumers also want to know where their food comes from and Avena’s IP system provides that.
The oat beverage market is expanding quickly, offering oat growers even more opportunities.
Avena, as a food ingredient supplier, does not make beverages and other oat products.
About 18 months ago it sold its Only Oats line of oatmeal and other products to WestOak Naturals, which also uses the purity protocol.
