CWB opens grain testing lab in Saskatoon

The Canadian Wheat Board (CWB) has opened its first laboratory for testing and grading Prairie grain, a move expected to save farmers money while improving quality control and customer service.

The lab, located in Innovation Place at the University of Saskatchewan, adds to the CWB's ability to meet its grading and testing needs, especially before grain reaches ports or North American destinations.

Farmers, through the CWB, currently spend more than C$500,000 a year on third-party grain testing for marketing purposes. In the first 18 months of operation, the lab is expected to save over 10 percent of that cost, or between C$50,000 and C$100,000. Savings will grow as the volume of testing required by grain customers increases.

No change in Canadian Grain Commission (CGC) services is expected, as the CGC will continue to conduct official inspections and guarantees of grain grade and quality.

The initial capital outlay for the CWB lab was about C$150,000. Saskatoon was chosen because of its central location in the Prairie grain-growing region.

An increasing customer focus on specific quality factors and food safety is one reason that opening this lab makes sense for farmers, said Michael Lackmanec, the CWB's director of marketing strategy.

As customer demand for quality and food safety assurances increases, the number of tests required for the CWB to market Prairie farmers' grain is also growing, said Lackmanec.

Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. One of Canada's biggest exporters, the Winnipeg-based organisation sells grain to over 70 countries and returns all sales revenue, less marketing costs, to farmers.

US$1 = C$1.03589 (Oct 19)