May 16, 2024

Canada's Oat Industry: Dominating Global Exports and Supplying Premium Markets

In 2022, oats ranked as the 905th most traded product globally, underscoring their niche yet significant role in international trade. Leading the market, Canada exported oats worth $464 million, followed by Australia ($182 million), the United Kingdom ($78.2 million), Sweden ($76.9 million), and Finland ($64 million). Canada’s oat exports were predominantly directed to the United States ($442 million), with smaller markets in China ($6.41 million), Japan ($5.29 million), South Korea ($4.94 million), and Peru ($2.17 million).

Canada, the world's largest exporter of high-quality oats, annually produces about four million tonnes, with Saskatchewan alone contributing over 50% of this output. This robust production supports three primary markets: milling oats for human consumption, performance oats for high-end horse feed, and high-yielding feed oat varieties for livestock.

Despite the diversification into premium markets, a significant portion of Canadian oats remains within the domestic feed market. These oats are primarily produced and consumed on farms, with a small fraction entering the Canadian racehorse market. The North American feed market significantly influences oat prices, especially in years of abundant supply.

Performance oats, or "pony oats," represent the pinnacle of oat production quality. These oats, destined for premium horse feed markets, must meet stringent buyer specifications, typically aligning with the No. 1 grade standards of the Canadian Grain Commission. These specifications include plumpness, bright color, and heavy test weight.

Performance oats are usually shipped in bulk or bagged form. The bagged oats undergo double re-cleaning and clipping processes to enhance bushel weight, generating by-products such as weed seeds, dust, and small oats. These by-products are also marketed, demonstrating the industry's comprehensive utilization of oat harvests.

Canada’s dominance in the oat export market reflects its commitment to quality and diverse applications, from human consumption to specialized animal feeds. This versatility, coupled with substantial production capacity, positions Canada as a critical player in meeting global oat demand.
Canada's Oat Industry: Dominating Global Exports and Supplying Premium Markets

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