Grainswest - Tech 2025

Tech 2025 Grains West 24 FEATURE W hen it comes to hot Canadian commodities, flour takes the cake. Over the last several years, domestic demand for flour and baked goods has steadily grown. As factors such as immigration, higher personal incomes and the evolution of consumer tastes drive this trend, the industry hopes a healthy appetite for flour will be baked into our economy for years to come. “Population growth is a fundamental driver of increased domestic demand for Canadian flour,” said Olivier Lavigne-Lacroix, president of the Canadian National Millers Association. “As Canadians become more health conscious, there’s growing interest in the natural nutrients found in wheat. At the same time, higher disposable incomes have enabled consumers to explore premium and niche baking products, contributing to the growth of the flour market.” The COVID-19 pandemic sparked a significant increase in home cooking and baking as consumers spent more time at home. “Also, with higher immigration, ethnic communities in Canada are using our flour for chapatis [Indian flatbread] and Asian noodles, and durum wheat is highly regarded for pasta,” said Martin Barnett, executive director of the Baking Association of Canada (BAC). NUMBERS TELL THE STORY The numbers look good for the Canadian flour sector. Canadian flour production has increased by 2.8 per cent, from 2,451,268 metric tonnes in 2019 to 2,519,915 metric tonnes in 2023, noted Leif Carlson, director, Market Intelligence and Trade Policy at Cereals Canada. “Demand is forecast to continue to grow for wheat flour and baked goods at an annual rate of around 1.3 to 1.6 per cent.” While Carlson also points to increased population as a factor, he sees efforts by industry as a key driver. “Work done by the Canadian Wheat Nutrition Initiative (CWNI) and their ‘ What About Wheat? ’ campaign promotes the health and nutritional benefits of wheat in a way that is accessible and understood by consumers in Canada,” he said. Of course, farmers, millers and bakers are aware of the T-word these days, and it’s not toast. “Our research shows that it is simply too early to measure the direct impact of tariffs,” said Lavigne- Lacroix. “Many millers are still assessing By Geoff Geddes • Photo by iStock FLOUR POWER DOMESTIC DEMAND ON THE RISE