View the most recent version.

Highlights

Trend to purchasing more feed grains direct from farmers and grain dealers

There has been a steady and significant annual increase in total feed grain purchases direct from farmers and grain dealers since 2003/2004. In the last complete crop year, 2005/2006, about 872 thousand metric tonnes of feed grains were purchased direct by feed mills.

Direct wheat purchases comprised 311 thousand tonnes, followed closely by barley at 308 thousand tonnes. There were 164 thousand tonnes of corn purchased, including 128 thousand tonnes of imported corn. Peas represented 50 thousand tonnes while oats comprised 27 thousand tonnes. In addition, some of these feed mills also purchased grain from licensed grain companies. Grain products were excluded from the survey.

More imported corn, less feed wheat and peas purchased direct early in 2006/2007

In the August to December period of the current 2006/2007 crop year, total direct feed grain purchases declined marginally over the same five months a year earlier and there were less feed grains purchased domestically. There was a surge in the purchases of imported corn by feed mills although overall corn imports to western Canada remained stable.

Feed wheat purchases plunged with large drops in wheat bought from Saskatchewan and, to a lesser extent, from the other western provinces. The quality of the wheat crop produced was better in 2006 than in the previous two years, limiting availability of feed wheat and increasing its cost early in the crop year.

Overall direct barley purchases were fairly stable with a shift to more direct purchases from Saskatchewan and less from Manitoba. There was more corn purchased from Manitoba farmers and grain dealers, the result of abundant supplies from the near-record 2006 crop.

Total direct oat purchases by feed mills rose marginally as larger purchases from Manitoba more than offset lower purchases from the rest of the western provinces. In Manitoba, oat supplies were back to normal after the 2005 crop failure. The highest prices in several years reduced demand.

Feed pea purchases fell 44% over the same period a year earlier with the largest drop seen in purchases of Alberta peas. Strong demand and high prices from the edible market may have encouraged farmers to deliver their peas for food instead of feed and prompted feed mills to substitute less costly inputs.