Despite fluctuating fertilizer prices and a U.S. economic crisis affecting other agri-businesses, an organic alfalfa milling plant’s biggest challenge is finding enough supply to meet demand.
“There’s not enough organic product to supply the marketplace,” said Doug Will, general manager of the Western Alfalfa Milling Co. Ltd. in Norquay, Sask.
He said alfalfa pellet markets have softened in recent months after increasing steadily over the last five years. His plant had strong sales of 14 million pounds of certified organic product in 2008, with 16 million lb. projected for the coming year.
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“As commercial fertilizer has doubled and tripled, the economics of organics have become more positive,” Will said.
Alfalfa is valued as a green manure or natural fertilizer, but the economics did not support its commercial release until recent years. A strong organic movement has also helped make alfalfa a paying proposition as fertilizer.
“There are few options for organic so there is still good potential for us.”
The company’s premium Alfalfa Green pellet product is three to four percent nitrogen, up to 3.5 percent potassium, 0.3 to .04 percent phosphorus, with small amounts of manganese, iron, boron, copper and zinc. As fertilizer or organic soil amendment product the company recommends applications of one tonne per acre, incorporated into the top 15 to 20 centimetres of soil.
As a soil remediation product, the company markets the pellets to the oil and gas and mining industry, as well as to municipal utilities and environmental service companies. In those applications rates of one to four tonnes per acre are common when dealing with eroded, acidic, alkalinic, solzonetzic, chernozemic or compacted soils.
The pellets are also sold as livestock feed.
As the economy slows, Western Alfalfa is taking a cautious approach by scrutinizing new clients and not extending credit beyond 30 days.
It plans to continue to promote its products at major organic shows in the United States and work with organizations such as Agriculture Canada to compile research on its products.
The company will target marketing and investment in research and development, but Will said the company is small and can only do so much with the staff and resources it has.
“We haven’t been pushed too hard on other market uses as we are having a hard time supplying our customer base,” he said.
“It’s a good problem to have.”
He said the company has a strong future in the fertilizer and reclamation business that could one day exceed the feed side. It is tapping into its use in remediating the soil in the oil industry and has explored fractionating the juices from alfalfa for pharmaceutical and nutraceutical products.
Like other dehydration plants, the mill’s main export markets are alfalfa pellets for livestock feed.
Western Alfalfa cash rents land and has contracts with local growers to harvest 20,000 acres of alfalfa, which it hopes will rise in coming years.
The mill’s certified organic products are sold in North America for lawn and home gardens, field crop fertilizers and organic livestock feed.
Will bought the mill with three partners in 2000.
