Market Utilization Report

ONTARIO’S GRAIN MARKETS 2019-2023

Ontario’s Grain Markets 3 Grain farming is an important economic driver for Ontario. On average, Ontario produces 15.6 million metric tonnes of barley, corn, oats, soybeans, and wheat across more than 6 million acres of farmland. This agricultural production generates over $27 billion in economic output and supports more than 90,000 jobs across the province. Understanding end-use markets for Ontario barley, corn, oats, soybeans and wheat is vital for advancing targeted market development, innovation and advocacy efforts. This report, assessing the domestic and export utilization of Ontario grown grains from 2019-2023, was completed to help industry, government, farmers, and other stakeholders better understand key markets, uses and opportunities for Ontario grains and oilseeds. It is a summary of insights from a proprietary study developed for Grain Farmers of Ontario by Euromonitor International in 2025. The study’s insights were produced through analysis of publicly available data from Statistics Canada and the Ontario Ministry of Agriculture, Food and Agribusiness, and primary data captured through interviews with industry experts across the value chain. Interviews were conducted with grain handlers, traders, buyers, and processors, as well as representatives from the seed and livestock industries, who provided insight into current grain utilization, shipping patterns, and trends specific to grain that is grown in Ontario. The data presented in this report has been calculated based on a four-year average and incorporates a newly introduced methodology compared to the report released in 2020. The demand breakdown in this report represents usage within the crop year only and excludes any carryover from previous production. Percentages shown reflect in-year market utilization and should not be directly compared to total crop production or planted acreage, as carryover stocks are omitted. For this report, domestic use refers to use within Ontario, and total demand refers to domestic use plus exports. CONTENTS Barley ...............................4 Corn .................................. 6 Oats ..................................8 Soybeans........................... 10 Wheat ................................ 12 All crops ............................ 14

Almost all barley grown in Ontario is consumed domestically, with 56% of the crop being directed toward the livestock feed market. Livestock producers use barley as a high-energy feed grain due to its digestibility and nutrient content. The next largest use of the crop is processing for pet food and human consumption, which combined account for 42% of market use. Although these are distinct processing segments, available data do not separately quantify pet food and human consumption. Stakeholders do report, however, that pet food processing is likely the larger for the two segments. In pet food applications, fibre content of barley supports digestive health in dogs and cats. Although human consumption represents a smaller share of the market, food applications include a variety of processed barley products such as de-hulled, pearled, toasted and flaked barley, which, for human consumption, are valued for their nutritional benefits, including high levels of dietary fibre, vitamins, and minerals. A small amount of barley grown in Ontario is used for seed (2%). Only very small amounts of barley grown in Ontario are exported (under 1%). BARLEY Barley production in Ontario is relatively small when compared to other grain commodities grown in the province. On average, 111,000 metric tonnes are produced on 77,000 acres each year.

Seed 2% Ontario’s Grain Markets 5 Domestic 100% Animal Feed 56% Human and Pet Food 42%

Ontario is Canada’s largest grain corn-producing province, accounting for over 60% of Canada’s total corn production on average. Corn is primarily used domestically, accounting for 89% of total demand. Forty per cent of the total demand is destined for animal feed, providing a high-energy source of readily available calories for livestock, including swine, poultry, and beef and dairy cattle. Ethanol distillation accounts for 34% of corn demand and produces fuel, livestock feed, beverages, and bioproducts. During distillation, corn starch is converted into alcohol while about one third of each bushel returns to the food system as high protein distillers’ grains for livestock feed. Ontario produces both fuel grade ethanol to reduce transport emissions and high purity ethanol for beverage, chemical, and pharmaceutical uses. Corn oil is also produced and used in renewable fuels or feed. Demand in this sector remains steady year over year. Grain corn for human consumption represents 15% of the market. Significant applications include sweeteners, starches, citric acids, biogums and spirits, including Canadian whisky. Ontario exports roughly 11% of its corn production to several key international markets, including Ireland, Spain, the United Kingdom, and the United States. Note: This report focuses on grain corn. Other corn crops like sweet corn (marketed as a fresh vegetable for direct human consumption), popcorn, and silage corn are excluded. CORN Grain corn is Ontario’s second largest crop in terms of acreage and is the largest volume crop in Ontario. On average, 9.17 million metric tonnes are grown on 2.16 million acres of land across Ontario.

Ontario’s Grain Markets 7 Export 11% Domestic 89% Food for human consumption 15% Ethanol and Distiller’s Grains 34% Animal feed 40% Poultry 14% Swine 10% Dairy 6% Beef 10% Ireland 4% Spain 3% UK 1% US 1% Other 2%

Most Ontario oats are grown in Northern and Eastern Ontario, where the climatic conditions are ideal for producing high-quality oats suitable for the milling industry. Domestic usage accounts for the largest market for Ontario oats, consuming 71% of the demand. Within the domestic market segment, human consumption accounts for the largest share, representing 31% of total use. Oats in Ontario are commonly processed into flakes and flours, which are key ingredients in breakfast cereals, cereal bars, and a variety of other food products. As a versatile feed option, 19% of domestically grown oats are used in general livestock animal feed, while an additional 18% are directed toward pet and horse feed. Oats offer a balanced content of protein, fibre, and energy. Twenty-nine per cent of Ontario’s oats are exported, with the majority destined for the United States. OATS Oat production in Ontario is relatively small compared to other grains grown in the province. On average 104,000 metric tonnes are produced on 80,500 acres each year.

Ontario’s Grain Markets Export 29% Domestic 71% Animal feed 19% Food for human consumption 31% Pet and Horse feed 18% Seed 3% USA 25% Other 4% 9

Ontario is Canada’s largest soy-producing province, accounting for over 60% of Canada’s total soy production on average. Ontario produces both specialty-grade and crush-grade soybeans. Specialtygrade soybeans are grown for specific food end-uses such as soy milk, tofu, natto, miso, soy sauce, and tempeh. These varieties are primarily exported and, in most cases, produced under non-GMO, identity-preserved (IP) systems. Crush-grade soybeans are typically used for oil and meal extraction in domestic and international markets. Domestic crushing accounts for 41% of total soybean demand. Of this, 31% is processed into soybean meal used in animal feed and 10% is processed into soybean oil and other food ingredients. Soybean oil serves multiple sectors, including food service, food manufacturing, and industrial applications such as biodiesel. Soybeans are one of Ontario’s leading agricultural exports, with 53% of total production shipped internationally. Crush-grade soybeans account for 34% of total export volume, with major destinations including Belgium, Italy, and Iran. Specialty-grade soybeans make up the remaining 19%, these are largely exported to Asian markets such as Japan, China, Indonesia, and Vietnam. SOYBEANS Soybeans are Ontario’s largest crop in terms of acreage and is the second largest crop by volume. On average, 3.9 million metric tonnes are grown on 2.9 million acres of land across Ontario.

On-farm use 3% Ontario’s Grain Markets 11 Export 53% Domestic 47% Soybean Crush 41% Seed 3% Netherlands 3% Iran 4% Italy 6% Belgium 8% UK 2% Other 11% Japan 4% China 3% Indonesia 2% Vietnam 2% US 2% Other 6% Specialty-grade Soybeans Crush-grade Soybeans Poultry 8% Swine 10% Dairy 11% Beef 1% Soybean Meal 31% Soybean Oil and Food Ingredients 10%

Ontario is Eastern Canada’s largest wheat-producing province, accounting for about 8% of Canada’s total wheat production and more than 80% of its winter wheat production. Ontario grows several classes of winter and spring wheat, led overwhelmingly by soft red winter wheat, which accounts for 80% of production and is used mainly for cookies, crackers, pastries, cakes, coatings and in flour blends. Smaller volumes of soft white winter, hard red winter, and hard red spring wheat make up the remaining production and are used in products such as cakes, cereals, breads, noodles, pasta, and pizza dough. Fifty-four per cent of the wheat grown in Ontario is utilized domestically. The majority is directed toward milling for use in food products (25%), supplying ingredients for a wide range of baked goods and processed foods, while 27% is used in animal feed. An additional 2% is retained for seed. Exports account for the remaining 46% of Ontario’s wheat demand. The United States is the largest export destination, purchasing about 20% of total wheat output. However, markets such as Mexico, Nigeria, Brazil, and the Dominican Republic have become increasingly important in recent years, reflecting the global demand for high-quality Ontario wheat. Quebec accounts for around 10% of the total demand for Ontario wheat, which supports both milling and feed markets beyond Ontario’s borders. Wheat exports and domestic feed use fluctuate significantly from year to year, largely influenced by crop quality, production volumes and market prices. Note: For the purpose of this report, Quebec has been included as part of the export market. WHEAT Wheat is Ontario’s third-largest crop in terms of acreage and volume. On average, 2.35 million metric tonnes are grown annually on just over one million acres of land.

Dominican Republic 2% Other 2% Seed 2% Ontario’s Grain Markets 13 Export 46% Domestic 54% Wheat milling 25% Animal feed 27% US 20% Quebec 10% Mexico 6% Nigeria 3% Brazil 3% Poultry 10% Swine 10% Dairy 3% Beef 1%

Seed 2% Export 28% Domestic 72% ALL CROPS Human and Pet food 34% Animal feed 29% Ethanol and Distiller’s Grains 7% Europe and United Kingdom 12% North America 8% East and Southeast Asia 4% Other 4% Ontario’s Grain Markets 14

Data for this report was provided by Euromonitor International under contract with Grain Farmers of Ontario. Permission to publish analyses derived from this data was granted by Euromonitor International. The data is provided without any warranties or representations, express or implied, regarding its accuracy or completeness by either Euromonitor International or Grain Farmers of Ontario. Any reliance on such material is at the user’s own risk. For more information on the market utilization of Ontario grains, contact the Grain Farmers of Ontario Market Development and Sustainability Team at marketdev@gfo.ca. Grain Farmers of Ontario. (2025). Ontario’s grain markets. www.gfo.ca Ontario’s Grain Markets 15

Grain Farmers of Ontario 679 Southgate Drive Guelph, ON N1G 4S2 Tel: 1-800-265-0550 www.gfo.ca

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