Agriculture in Saskatchewan Value Added Opportunities Presented by - - PowerPoint PPT Presentation

Agriculture in Saskatchewan

Value Added Opportunities

Presented by the Saskatchewan Ministry of Agriculture

Zafer Bashi– Provincial Specialist, Agribusiness

Agriculture in Saskatchewan

Saskatchewan …

• Has 42% of Canada’s agricultural land

= 18.2 M hectares

• Is home to 37,000 farms; average

farm size is 586 hectares

• Is Canada’s top agri-food exporter
• Agri-food exports reached a record

$15.3 billion in 2015, accounting for nearly half of all provincial exports

• Has 1/3 of Canada’s cow herd
• Significant exports to 15 countries

Saskatchewan: Feeding the world

Top Five Export Markets: 1.The United States - $4.0 billion 2.China - $2.4 billion 3.India - $1.5 billion 4.Japan - $882 million 5.Mexico - $626 million

We grow a diversity of crops …

Quinoa Hemp Canaryseed Flax Pulses Superfruits Canola, mustard Cereals

Data source: Statistics Canada

Hay and field crops 0% Total wheat (20) 30% Oats 5% Barley 9% Total corn (20) 5% Canola (rapeseed) 25% Soybeans 5% Dry field peas 3% Lentils 3% Alfalfa and alfalfa mixtures 15%

Farmland distribution in Canada

Definition of value added agriculture?

• Any activity that increases the value of

Saskatchewan grown products above commodity price levels

• 1. Saskatchewan grown products include food, feed,

livestock and bio-products

• 2. Requires modification (transformation) of raw

commodity, not simply cleaning and bagging

• 3. Results in quantifiable economic impact (contribution

to GDP, retail / export focused)

6

Opportunities in Value Added

• Pea processing for starch and protein fractions
• Cereal processing for flour or malt
• Livestock processing, beef, hogs, lamb
• Oilseed processing for canola vegetable oil, mustard
• Other crops, potatoes, berries, carrots
• Food manufacturing ingredients

Example - Pea Processing in Saskatchewan

Advantages …

• Close to source

– Large quantity of high quality pea supply available – Minimizes delays due to regulations and logistics – Shortens time between procurement and processing – More profitable as closer to North American markets

• Province has low taxes and a business-friendly

environment

• Research support: including scientists working

in pulse ingredient fractionation, isolates and their diverse uses (from health, to pet food, to industrial applications)

• Timing is right to invest in pea processing in

Saskatchewan

• Existing pea processing competition is minimal,

especially for wet processing

Pea Processing Opportunity

• Pea ingredients include:

– Proteins (isolates and concentrates) ~24 g/100 g – Soluble and insoluble fibre ~17 g/100 g – Starches and sugars ~25 g / 100 g – Antioxidants, vitamins and minerals – (low in oils ~ 1.3 g / 100 g)

• Many uses:

– Beverage formulations, health drinks – Snacks – Protein supplements – Non-meat protein option – Pet food – Starches (flour) for noodles – Starches for industrial uses (mining, oil and gas drilling) – Fibres for functional foods – Non-gluten, non-soy

Value Added Support Services

• Saskatchewan provides support services for new investors to

build, acquire or invest in value added processing in the province.

• The Value Added Team will assist you in ensuring you find a

good site and work with you to obtain all the information and costing services you need, including Water, Rail, Roads, Power, Natural Gas, Environment etc. to build your plant

• We can facilitate meetings with existing companies who may

be interested in partnerships and joint operations.

• We can facilitate timely one on one meetings with the Crown

Corporations who deliver these services

Priority zones for development:

Considerations for development include:

• Main CP and CN rail lines
• Access to main highway for truck

transport, access to Global Transportation Hub

• Proximity to a population base; labour
• Proximity to water source (potable

and/or non-potable; sewer)

• Proximity to main SaskPower or

TransGas source

• Location of potential competitors
• If there is already an established

processor

• If within a municipality that welcomes

processors (and provides tax exemptions)

• Proximity to commodity source being

used

Saskatchewan. Endless Opportunity www.saskatchewan.ca

World top rapeseed producers (2013)

Canola Production Globally

2 4 6 8 10 12 14 16 18 20 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Million Metric Tons Saskatchewan Canada

Canola Production in Saskatchewan and Canada

Canola Production in Canada & SK

Crushed in SK 54% Crushed

• ut of

SK 46% Saskatchewan 2014 Crushed in Canada 47% Crushed

• ut of

Canada 53% Canada 2014

Canola Crushed Locally vs. Exported

Canola Production and Processing in Canada and SK

225 236

124

271 71

80

107 18 13 32 463 612 608 328 172 334 429 478 521 420

Canola Production in Crop Districts (thousand tons)

Richardson 840,000 ton/yr Louis Dreyfus 850,000 ton/yr Cargill 1 MM Ton/yr Virtex 30,000-35,000 Ton/yr Specialty non GMO, cold pressed oil Bungee 500,000 Ton/yr ADM 840,000 MM Tonne/yr 60% from Saskatchewan Milligan 60,000 Ton/yr