Grain and oilseed milling: 2024 FCC Food and Beverage Report

The following information is from the 2024 FCC Food and Beverage Report, which highlights the opportunities and challenges for Canadian food manufacturers by sector. To get the big picture read the full report.

Lower raw material costs and higher demand to increase profitability

The impact of the inflation-fueled sales boom in 2021 and 2022 was most evident in the grain and oilseed milling sector. In 2021, sales grew 38.9%, but sales measured in volumes only increased 5.0% (Figure 1). A similar phenomenon occurred in 2022. Last year, this trend reversed, with volumes increasing faster (12.6%) than sales (5.9%).

Looking to 2024, FCC Economics forecasts a decline in sales (-11.3%) due to lower commodity prices working their way through the supply chain, which will result in a much lower selling price for manufacturers. We forecast volumes to increase marginally (1.1%).

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