Saskatchewan, a central agricultural hub in Canada, is particularly notable, contributing more than 50% of the country's oat production. This substantial output underlines the province's pivotal role in supporting both domestic and international oat markets. In 2022, oats ranked as the 176th most exported product in Canada, with primary export destinations including the United States ($442M), China ($6.41M), Japan ($5.29M), South Korea ($4.94M), and Peru ($2.17M). This extensive export network highlights the global demand for Canadian oats.
Canadian oats cater to three primary markets: milling oats for human consumption, performance or pony oats for high-end race or competitive horses, and high-yielding feed oat varieties. Within the domestic market, about four percent of oats are designated for human consumption, while another four percent serve as seed. The United States has been the largest importer of oats over the past five years, accounting for 59% of global oat imports. A remarkable 83% of Canadian oat exports are directed to the US, representing a market share of 97%.
One of the unique aspects of the Canadian oats market is the production of performance oats, colloquially known as "pony oats." These high-quality oats are tailored for premium horse feed markets and are typically purchased based on stringent buyer specifications. These specifications often align with the No. 1 grade set by the Canadian Grain Commission, requiring oats that are consistently plump, bright-colored, and of heavy test weight. Performance oats are usually shipped in raw bulk or bagged form, with bagged products undergoing a process of double re-cleaning and clipping to increase bushel weight before bagging. This meticulous process not only ensures the highest quality but also generates by-products such as screenings of weed seeds, dust, and small oats, which grain companies can market further.
The meticulous care in producing and processing oats, coupled with Canada's robust agricultural infrastructure, has cemented its reputation as a top-tier oat supplier. This reputation is reflected in the steady demand from international markets, particularly from the United States, which relies heavily on Canadian oats for both human consumption and specialized animal feed. As global demand for high-quality oats continues to grow, Canada is well-positioned to maintain and expand its leadership in this vital agricultural sector.
Canada's Dominance in the Global Oats Market
