Prairie oats growers are looking forward to added competition for their crop with the expansion of Popowich Milling in Yorkton, Sask.
The Popowich business was bought earlier this year by Grain Millers, Inc., which plans to expand the capacity of the Yorkton facility by at least 60,000 tonnes annually.
Grain Millers is a major supplier of processed oat products in North America. The company’s investment in Saskatchewan is viewed as another vote of confidence in prairie oats production.
“It’s another big industry player in our area which is going to be excellent for growers here,” said Jack Shymko, president of the Prairie Oat Growers Association.
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“More competition is great. I’m very excited about this.”
The expansion is being done in phases. When the entire plan is completed in 2003 or 2004, the Yorkton plant will be able to supply 90,000 tonnes of processed oats a year. The expansion will at least triple the capacity of the Yorkton facility, which will continue to operate under the name Popowich Milling.
Grain Millers president Steve Eilertson said the Yorkton facility is located in a prime growing region.
Eilertson said he is confident enough oats are grown in the region to accommodate the plant’s expansion.
“This one has the opportunity to become one of the most competitive oat mills in Canada and North America.”
Whenever possible, the company wants to deal directly with growers when buying oats for its Yorkton facility, according to Rick Schwein, president of Grain Millers (Canada), Inc. That will provide opportunities to talk with growers about the quality and varieties of oats needed.
Schwein anticipates that in coming years food manufacturers are going to be increasingly specific about the varieties they want.
The Prairies are viewed as a dependable source of quality oats for human consumption. General Mills and Quaker Oats are among the major United States food makers that have looked north for that supply.
Oats production in the U.S. continues to decline as government subsidies favour production of other crops. Schwein described the U.S. decline in oats production as dramatic and said it is at its lowest level since the American Civil War.
