The official opening of Rogers Foods’ new flour mill in Chilliwack, B.C., is good news for Canada’s wheat and flour industry.
Our story about the mill is on page 102.
The last few years have been rough for millers across North America. The popularity of low-carb diets such as the Atkins plan cut into consumption of flour-based food.
Per capita flour consumption in Canada fell by two percent in 2004 and six percent in 2003.
American flour consumption had consecutive drops of almost three percent in 2004 and 2003.
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In the United States, population growth hasn’t made up for the reduced per capita consumption. Overall flour use has been declining since hitting a peak in 2000. Last year, U.S. domestic flour use dropped to about 17.7 million tonnes, down about one million tonnes from 2000.
In 2004, U.S. millers processed 23.55 million tonnes of wheat, down from 25.72 million in 2000.
After significant expansion in the 1990s, the early years of the new century have been a time of consolidation in the U.S. milling industry.
Given the U.S. experience, the opening of the Rogers mill and the experience of the Canadian industry generally must be viewed as positive.
Investment in Canadian wheat and durum milling has also been high since the early 1990s, with capacity climbing by 31 percent versus 14 percent in the U.S. At the same time capacity use has been higher in Canada than in the U.S.
Canadian flour mill capacity has reached 10,300 tonnes per day, compared to the U.S. capacity of 67,700 tonnes per day.
It is surprising to note that on a per capita basis, Canada’s milling industry is bigger than the U.S. industry.
On the export side, Canada’s milling industry has also made strides.
According to Canadian Grain Commission statistics, Canada exported 284,000 tonnes of wheat flour in the 2003-04 crop year, compared to 244,485 in 2000-01. Of course, the U.S. is the leading destination for Canadian flour.
While the Canadian industry has been doing comparatively well, the declining flour consumption problem across North America must have been a worry.
But there is better news on that front.
Fewer people report being on a low-carb diet this year compared to last. Also, the public’s understanding of the nutritional science behind the diets is becoming more sophisticated. People are not simply cutting bread; they are switching to whole grain bread.
The American Bakers Association and American Millers’ Association have launched a promotional campaign called Grains for Life, trumpeting the message that grain food is healthy.
The job was made a bit easier when the U.S. Department of Agriculture introduced its new dietary guidelines in January.
In its balanced approach to food intake and exercise, it called for three servings of whole grains each day, which is about two servings more than what Americans typically eat.
Canada’s new food guide also emphasizes consumption of whole grains. The milling and baking industries celebrated the guidelines and are retooling their product line to feature more whole grain products.
They hope it gives them the tools needed to stop declining flour consumption. If it succeeds, that should help to keep Canada’s milling industry healthy.
