Western Canada, and Saskatchewan in particular, has long been known as a world leader in mustard seed production.
Now, the mustard capital of the world is adding value to that crop at a new dry milling facility in Gravelbourg, Sask.
Mustard Capital Inc. will mill yellow, brown and oriental mustard into a wide range of products such as flour, bran and oil.
Test runs were scheduled to begin July 9, followed by tote-size runs by the end of the month.
Kirk Clements, secretary of MCI, has been involved in the project from the first day as Gravelbourg’s economic development officer. He said the entire region has worked to make the plant a reality and it intends to keep it locally controlled.
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That’s why the mill will first operate in what Clements calls a Phase 1 facility. The idea is to start operating and build enough equity to move into a permanent plant.
Too many other projects have started out big and been forced to either close or sell, Clements said.
“The Phase 1 facility is going to be in operation for a couple of years,” he said. “There are some compromises. It won’t have all the equipment of a full mill.
“It’s not the full miller’s dream.”
MCI will contract directly with farmers to purchase its supply.
Clements said the plant will be able to process about 15,000 tonnes a year with 21 people working in three shifts.
MCI is only the second dry mustard miller in Canada. G.S. Dunn in Hamilton, Ont., is a dominant marketer in the world.
Clements said Gravelbourg’s advantage is that the product is close to the processing plant and doesn’t need to be handled as much.
“We can provide a lot more detail into where the product is coming from,” he added, which fits into the increasing market for identity preserved product.
Financing for the project is from a security offering under exemption from the securities division of the Saskatchewan Financial Services Commission.
Local people provided most of the money for the business plan, engineering and market development.
Clements said MCI could “go the full route” through the commission when it is ready to raise the capital necessary to proceed with Phase 2.
The company is wary of taking on debt and hopes to make enough money in the next couple of years of operation to pay for its move into the permanent facility. That would also ensure continuing local ownership and control, Clements said.
The total cost of the full-scale project is estimated at $7.5 million. The milling equipment has already been bought and will simply move from the Phase 1 facility to the permanent plant.
Clements said they were fortunate to pick up fairly new equipment at a good price and not have to finance it.
“The technology has been proven at POS Plant,” he said, referring to the pilot plant in Saskatoon that helps people and companies test their food products on a large scale.
MCI is working with several companies on products it might market including Peacock Industries, which is developing a mustard-based biopesticide. Mustard oil can also be used to produce biodiesel.
