The feed industry is concentrated in the Prairies, Ontario and Quebec, with the majority of forage processing being centered in Saskatchewan and Alberta. The industry has evolved over the last 100 years to provide high-quality products to serve the needs of the domestic livestock industry. The Canadian feed industry's total sales represent over $3.5 billion.

The Animal Nutrition Association of Canada (ANAC) estimates that there are approximately 9,000 people employed in the feed industry and that the total estimated commercial production of complete feeds, supplements and premixes in Canada is 15 million tonnes. ANAC also estimates that the total complete feed equivalent required to feed all livestock in Canada is 25 to 27 million metric tonnes. ANAC approximates that 50 per cent of the overall complete feed volume in Canada is manufactured by non-commercial on-farm mixing establishments.

There are approximately 450 commercial feed manufacturing establishments in Canada, with approximately 22 per cent located in the Prairies. These operations vary in size and capacity from relatively small mills to larger more sophisticated operations. Annual sales by these firms range from $1million to $150 million.

Two forage processing industries, alfalfa dehydration and hay compaction, contribute to sustaining a dynamic forage sector in Canada. These industries are highly export oriented. The Saskatchewan Dehydrators Association (SDA) estimates that there are approximately 30 alfalfa processing plants in Canada, which together market approximately $76.6 million of processed alfalfa annually. The Canadian alfalfa industry produces 322,000 tonnes of alfalfa pellets and 169,000 tonnes of alfalfa cubes annually. According to the Saskatchewan Dehydrators Association (SDA), more than 80 per cent of Canadian processed alfalfa products are exported. The main destinations of these exports are Japan, South Korea, Taiwan, Morocco, the United States and the European Union.

Key Sector Trends

Key trends in the industry include:

• An expanding livestock industry driving demand for feed;
• Expanding markets for alternative protein sources for feed due to continuing concerns for animal health;
• Growth potential for processed forages, such as compressed hay, due to Asian interest in long-fibre material; and
• Opportunity for alternative feeds, such as peas, due to the large and rapidly livestock industries in Asia.
• Increased meat consumption. The Food and Agriculture Organization (FAO) forecasts meat consumption in the developed world to increase by about 15 million tonnes over the 20-year period, from 1995 to 2015, compared to 75 million tonnes for the developing world in the same time frame. As demand for meat increases, consumption of grain for animal feed rises.

Saskatchewan Sector

In the Saskatchewan feed industry, there has been a shift at the large-scale manufacturing feed mills from independent to corporate ownership.

Some of the main feed processors in the province include the following:

Saskatchewan Feed Processors

Source: Manufacturer's Guide, Industry and Resources, 2004

As part of the feed industry, there are many other processors in the province that do some of the primary processing of the ingredients used in the feed mills to process the complete pre-mixed animal feed. In addition, there are many integrated feed mills located on beef feedlots, in pork operations and on poultry farms that all produce their own feed by buying all the raw ingredients and mixing the feed themselves on-site. These processors include, but are not limited to, the following companies:

Saskatchewan Feed Ingredient Processors

(Source: Saskatchewan Agriculture and Food)

Another area of the Saskatchewan feed industry that has developed is alfalfa dehydrating. It is estimated that the majority of sales for alfalfa processors come from exporting, with the largest export market being Japan.

Other export markets of significance include South Korea, Taiwan, Morocco, the United States and the European Union. There currently are six alfalfa processors in Saskatchewan, most of which are located in the northern part of the province.

Saskatchewan Alfalfa Processors

(Source: Saskatchewan Agriculture and Food; Industry and Resources)

Also, there is at least one processor in the province that is processing various types of grain screenings into a high-quality pelleted livestock feed. This plant is located in the Wilkie area.