Western Canada's ethanol and hog industry to compete for wheat this year
CANADA - The competition for wheat supplies between the ethanol industry and the hog industry in western Canada would be fierce this year with two large ethanol plants coming on-line, an analyst said.
10 May 2006
2 minute read
The competition is expected as both the hog industry and the ethanol sector prefer Canada Prairie Spring or winter wheats, said Glenn Lennox, a wheat analyst with the Market Analysis Branch of Agriculture and Agri-Food Canada.
Production of CPS wheat in Western Canada during the 2005-06 season totaled 1.42 million tonnes while winter wheat output in the same region was 469,000 tonnes, Lennox said.
During 2005-06 industrial wheat usage was at 160,000 tonnes, most being used by the ethanol industries. However, in 2006-07 with two new ethanol plants coming on-line in Western Canada, wheat usage is expected to top 400,000 tonnes.
Canada's hog industry consumes between 3.0 million to 4.0 million tonnes of wheat yearly, Lennox said.
