Corn is currently the most important feedstock for ethanol production in Canada, just as it is in the U.S. However, that is changing with the increased expansion of ethanol production in western Canada where wheat is the primary feedstock. It is typically lower grades of wheat, (i.e., those that do not meet the higher standards required of milling wheat) that provide the main feedstock for ethanol production in western Canada. As Canada’s ethanol industry continues to grow, Canadian farmers will be looking to incorporate higher yielding wheat varieties into their crop rotations, and plant breeders will be focused on developing higher yielding varieties of wheat for the non-milling market.
Currently, about 1.0 Mt of corn and 0.5 Mt of wheat are used to produce 0.6 GL of ethanol annually in Canada. The annual production of ethanol yields about 0.3 Mt of DDGS. Assuming that Canada meets it production target of 2.74 GL of ethanol by the year 2010, approximately 4.6 Mt of corn and 2.3 Mt of wheat will be required, which in turn will yield about 2.1 Mt of DDGS.
Regardless of how much corn and wheat Canadian farmers choose to produce for the fuel ethanol market, or canola and soybeans for the biodiesel market, increased supplies of DDGS and protein meal will have an affect on the animal feed market. However, it is too early to determine with any accuracy what effect future expansions in the biofuels sector will have on the human food market, as biofuels compete for limited resources.