Rye export interest picking up


Junior Member
Domestic demand for Canadian rye has been flat for the last five to 10 years, but strong export interest for the commodity is seen to be keeping the industry afloat.

Local demand hasn't been more than steady because as the Canadian population ages, they seem to be drinking less beer and liquor, said John Pauch, a coarse grains analyst with Agriculture and Agri-Food Canada in Winnipeg.

Canadian livestock producers are also using less rye in feed rations than they used to, as they lean more toward barley, wheat, corn and oats for those needs, he said.

"If you can get a better price for rye industrially then it makes more sense to use it for that and then use cheaper coarse grains for feed," Pauch said.

However, total usage of Canadian rye and average prices have managed to go up because of strong export demand, as Canada is the No. 1 exporter of rye in the world, he said.

Canada's two biggest rye export customers are the U.S. and Japan. Both countries mainly use the grain for distilling alcohol.

More at http://www.farms.com/news/rye-export-interest-picking-up-53192.aspx