Oat price system called dysfunctional

Feb 24, 2023

Oat growers are going to whipsaw crop production again this spring, slashing acres in response to the plunge in profitability.

That’s going to set up better pricing times for farmers, says analyst Randy Strychar of oatinformation.com, but is yet another symptom of a deeply dysfunctional oats pricing system.

“We have to change the pricing model. We have to get rid of the unpredictability,” said Strychar to Manitoba oat growers at CropConnect.

“We have to get this more aligned with where the supply and the demand is in the food sector, not the feed sector. That’s a whole different price dynamic.”

Oats have booming demand in the human food industry. Oat-based breakfast bars are popular. Oatmeal, Cheerios, oat bars and other oat-based products continue to benefit from a health halo that keeps the crop shining in the public eye.

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