Alltech, the U.S.-based firm that has wholly owned Masterfeeds since 2015, announced Tuesday it will merge Masterfeeds’ 15 Canadian feed mills into a new North American animal feed business that also includes Alltech’s Hubbard Feeds and its 18 U.S. mills, plus ADM’s 11 U.S. mills.

“We’re evolving with purpose to offer an industry-leading range of products and solutions for livestock, equine, backyard and leisure animals,” Alltech and ADM said in a joint statement Tuesday.

The two companies expect to close the deal and formally launch the as-yet-unnamed joint venture sometime in the first quarter of the new year. No financial details were released Tuesday.

Alltech will be the majority owner of the new firm, which they said will be “governed by a board with equal representation from each parent company.”

The deal will not include any of ADM’s Canadian locations, nor its U.S. premix and additive businesses. The Reuters news service reported Tuesday the deal will also not include ADM’s mills in Mexico.

Nor will the deal include Alltech’s Ridley block and feed ingredient businesses or specialty ingredients business. All those business units, however, are expected to serve as suppliers to the joint venture.

Masterfeeds began in 1929 as Master Feeds, the commercial feed division of Toronto Elevators Ltd., which merged into Maple Leaf Mills in 1961. U.S. ag co-operative Ag Processing Inc. (AGP) took over Masterfeeds in a joint venture with ADM in 1991, then bought full control in 2001.

Alltech became a minority partner in Masterfeeds in 2015 when it bought control of feed firm Ridley Inc., then bought full control of Masterfeeds later that year.

Masterfeeds, headquartered at London, Ont., with a regional office in Winnipeg, also holds feed analysis firm Stratford Agri Analysis and the feed and tack retail chain Cowtown, which has four stores in Saskatchewan and one at Brandon, Man. Alltech hasn’t yet said whether those businesses go into the new joint venture.

The companies also didn’t say Tuesday whether the combination will involve any job cuts or site closures, but said the new j.v. “will offer an opportunity to align their complementary North American feed strengths, including the expertise of their teams, extensive manufacturing capabilities, deep experience in nutrition science, and well-recognized and respected existing product portfolios.”

The new business, they said, “is going to be able to offer even more: broader capabilities, more products, and new innovative solutions, all delivered with the relationships and service our customers have come to expect.”

Reuters, in its report Tuesday, noted ADM has been in cost-cutting mode since early this year and its nutrition business has fallen short of revenue targets.

“ADM has historically grown its animal feed business through acquisition, but the returns have not worked out so far,” Morningstar analyst Seth Goldstein told Reuters. “It makes sense for ADM to look for these kind of partnerships that could add value to its business.”

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Ynsect breeds mealworms that produce proteins for aquaculture, livestock, pet food, fertilizers and human nutrition.

The company signed the U.S. agreement with flour milling company Ardent Mills to build a factory next to one of its U.S. Midwest sites — yet to be determined — by the end of 2023.

The two new sites will cost at least 100 million euros (about C$144.2 million) each and output should eventually rise to about 200,000 tonnes of insect-based ingredients per year, Ynsect CEO Antoine Hubert told Reuters.

Ardent Mills, a joint venture between ConAgra Foods, Cargill and CHS Inc., would supply milling byproducts to feed the insects.

In Mexico, Ynsect teamed up with food and general services provider Corporativo Kosmos. The factory would be located near Mexico City and export to the U.S. market.

“The U.S. market is strategic for us, it is the first market in the world for pet food, pork and poultry feed, fertilizers and on sports and human nutrition they largely stand out,” said Hubert.

Ynsect entered the U.S. market in late 2021 through a deal with Pure Simple to supply premium food for dogs. In March it purchased mealworm producer Jord Producers, allowing it to enter the fast-growing backyard chicken feed sector.

The company is discussing about 10 other deals in Europe, the Middle East and Asia and expects additional agreements next year.

“In 2023 we estimate that we should have additional financing for Ynsect because today we don’t have the means to finance new projects,” Hubert said.

Ynsect built what it says will be the world’s largest vertical farm in Amiens, northern France, which started earlier this year.

Ynsect has so far raised about US$450 million, mainly used to build its giga-farm in Amiens and for its recent acquisitions, which also include the takeover of Dutch firm Protifarm last year.

It is considering a stock market listing in appropriate conditions.

“It would make a lot of sense on many aspects including reinforcing our credibility towards other industrial partners,” Hubert said.

— Sybille de La Hamaide is a Reuters commodities correspondent in Paris.

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Bill Krueger, president of The Andersons’ trade and processing arm, said in a release Nov. 1 it had bought the Prairie company for an undisclosed amount, its goal being “to expand our pet food ingredient portfolio and our physical presence in the central northern region of the U.S. and Canada.”

Bridge Agri Partners will continue to work under its existing name as a wholly-owned subsidiary of The Andersons, the companies said,

Ohio-based The Andersons said the deal “further supports (its) strategy to expand in its core grain and fertilizer businesses, including premium products focused on food and feed.”

“Having worked with The Andersons for many years, I look forward to being part of the larger organization,” Bridge Agri Partners president Darwin Rusu said in the same release. “Combining the market knowledge and supply chain expertise of our two companies will enhance the value we provide to current and new customers.”

Bridge Agri Partners, on its website, describes itself as a unit “created to redefine the commodities marketing process (with) a small, dedicated professional marketing team.”

Apart from its Lethbridge office, Bridge Agri Partners operates a grain handling site in south-central Manitoba, at Katrime, about 45 km northwest of Portage la Prairie. It also has a U.S. facility at Shelby, Montana, about 60 km south of the Canada-U.S. border crossing at Coutts, Alta.

The Katrime facility is built around a former Manitoba Pool Elevators site divested in 2001 during the formation of Agricore United (now part of Viterra).

The Andersons’ other assets in the Canadian market include the former Thompsons grain business in Ontario, two elevators and a grading lab in northeastern Saskatchewan and a southern Manitoba elevator at Darlingford, about 20 km west of Morden. — Glacier FarmMedia Network

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Scoular Canada on Wednesday announced the opening of its “high-speed” flax line at Richardson, Sask., where it already processes and cleans lentils, peas and canary seed.

The company broke ground on the flax operation last winter as part of a $10 million investment at the site, which also included the recent addition of another pulse crop cleaning line.

“High-speed” refers to the “industry-leading” rate at which the plant can clean flax to the “high purity standards our customers require,” Jeff Vipond, Scoular Canada’s general manager for pulses, seeds, distilling and milling, said via email Wednesday.

That processing rate, he said, “will substantially increase our ability to grow our volumes into the high-quality ingredient space.”

The plant will produce whole and milled flax in the brown and golden categories for use in breads, cereal, bars, snacks and pastas as well as oils, supplements, pet foods and livestock feeds.

The flax plant “incorporates technology that enables it to deliver some of the highest-purity flax available on the market,” Scoular said Wednesday in a release, noting the plant is certified to Global Food Safety Initiative standards and has organic certification also.

Putting up the flax operation at Richardson was a matter of efficiency, Vipond said, as it allows the company to “leverage key personnel and a strong grower base across both sites.”

This week’s opening “coincides with a strong flax market and record-high prices for Canada,” Scoular said, as drought in North America, tight supplies worldwide and demand for pet food and flax oil have supported farmgate prices. Consumer awareness of flax as a non-GMO source of omega-3 fatty acids and fibre, meanwhile, has lifted demand.

Omaha-based Scoular dates back to 1892 but has been in Canada since 2015, when it took over the pulse and special crops division of Legumex Walker.

Its space in Canada remains mainly in the West, where it has offices at Calgary and Saskatoon, processing plants at Winkler and St. Jean Baptiste, Man. and Saskatoon and Tisdale, Sask., and grain handling sites at Brooksby, Sask. and Petersfield, Man. plus a transload site near Calgary. In the East, it has two warehouses in southwestern Ontario and one in New Brunswick.

The company in 2020 expanded its Winkler sunflower plant when it moved its Winnipeg birdseed operations there. That year it also stepped out of the Prairie edible bean business, selling the former Roy Legumex processing plants at Plum Coulee and Morden, Man. to a Michigan bean grower co-operative. — Glacier FarmMedia Network

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Loki, an Alaskan malamute dog in Ontario, Canada, did not have his usual Royal Canin kibble in the food bowl.

North American pet owners are struggling to track down certain foods from major retailers like Amazon.com, Target Corp and PetSmart as the sector grapples with increased demand and strains on the supply chain.

Costs for pet food ingredients have climbed 8 percent to 20 percent since the pandemic began, according to U.S. industry group the Pet Food Institute, outpacing a 5.4 percent jump in consumer prices in the 12 months through June.

Higher prices of basic foodstuffs such as corn, soy and meat, on top of rising transportation and labor costs, are affecting all food supplies – both for animals and people – as the U.S. economy picks up steam.

“The pet supply chain isn’t that different from the food supply chain,” said Coye Nokes, partner at OC&C Strategy Consultants. “That has obviously been really stressed by COVID – whether it’s the ingredients, raw materials, processing or downtime at different facilities.”

Prices for U.S. corn and soybeans, key ingredients in many pet foods, reached eight-year highs this spring, pinching manufacturers that use the crops.

Pet food makers are also facing increased competition for animal- and plant-based oils because more of those are going into renewable fuel supplies, according to the Pet Food Institute.

“Unprecedented price increases for ingredients and equipment jeopardize U.S. pet food makers’ ability to plan and execute strategies that will ensure America’s dog and cat food bowls are filled,” the institute warned U.S. agriculture officials in a June letter.

Supply constraints are taking pet owners by surprise, and there are many more owners since the pandemic began. About 12.6 million U.S. households indicated they acquired a new pet from March to December 2020, according to the American Pet Products Association.

In New Orleans, Aura Bishop, 39, searched local stores for weeks to find her cat Astra’s favorite treats, made by Mars Petcare. The company, the world’s biggest pet food producer, declined to comment.

The shortages were an inconvenience for the writer and actress, who said Astra helped her cope with anxiety and depression during the pandemic.

“I wish she was less of a finicky eater and would eat other flavours,” Bishop said. “It does feel a little silly to go on this quest to find specific flavours of kibble and treats.”

Extra work for charities

Limited supplies have made extra work for animal charities like the South Shore Pet Food Pantry near Boston.

Cofounder Kristen Clancy said she reviews online wish lists for pet food on sites like Amazon and Target about every two weeks, instead of every two to three months previously, because products are more frequently sold out. She updates the lists manually to provide alterative items for donors to buy.

Over the U.S. Independence Day holiday weekend, Clancy said she updated all the items on her Target list because they were not available.

“It can be time consuming because we’re looking for substitutions that are beneficial for the animals but are also cost effective for the people who are making a donation,” she said.

Target declined to comment.

Amazon said pet food manufacturers are prioritizing top-selling items over niche products because of increased demand. Pet treats and food brands that focus on health and wellness are popular as more people treat their animals as family, according to the company.

Shopping patterns change

Retailers are working with suppliers to keep pace with customers’ demand and changes in shopping patterns so they do not lose business.

U.S. consumers spent nearly $26 billion on pet food from July 2020 to July 2021, up 4.7% from a year earlier and 7.8% from two years earlier, according to NielsenIQ.

Supply shortages reduced online retailer Chewy’s net sales by $40 million in the quarter that ended May 2, but they were still up 31.7% from a year earlier at $2.1 billion, the company said.

Operating profits for General Mills’ pet division rose 6% to $415 million in the fiscal year ended May 30 as bigger net sales trumped higher input costs. The company, which sells Blue Buffalo pet food, recently bought Tyson Foods’ pet treats business for $1.2 billion.

“Everything is doing well, because there’s more pets and more premiumization, but you’re seeing people switch faster than we’ve ever seen,” said Bethany Quam, president of General Mills’ pet segment, about changes in where people shop.

In Ontario, Mariella Garcia, 20, said she came up empty in June when she searched Amazon and PetSmart websites for a Royal Canin dog food made by Mars. At the time, COVID-19 restrictions prevented her from entering retail pet stores to shop for her dog Loki, named after the Marvel comic character.

“I was just in shock,” Garcia said. “It’s usually always in stock.”

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The food was found to have potentially unsafe levels of aflatoxins, a byproduct of mould, and the company is expanding its voluntary recall of pet foods issued on Dec. 30.

“As of January 11, 2021, FDA is aware of more than 70 pets that have died and more than 80 pets that are sick after eating Sportmix pet food,” the agency said.

Aflatoxin can grow on corn and other grains used in pet foods, according to the FDA. At high levels, it can cause illness and death.

The Evansville, Indiana-based company, which has been family-owned since 1926, said in a statement that until recently it has never had a product recall.

The product recall includes Midwestern brands Sportmix, Pro Pac Originals, Splash, Sportstrail and Nunn Better dry dog and cat foods produced at its Oklahoma factory, the company said.

“We continue a thorough review of our facilities and practices in full co-operation with FDA in an effort to better serve our customers and pet parents who have put their trust in us,” the company said.

The FDA said that the actual number of dead and sickened animals might not be reflected in its count.

The agency said it “continues to work with veterinarians and state partners to follow up on suspected cases of aflatoxin poisoning.”

Symptoms of aflatoxin poisoning include sluggishness, loss of appetite and vomiting, the FDA said.

— Reporting for Reuters by Rich McKay in Atlanta.

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Mississauga-based Dane Creek Capital Corp., the 70 per cent controlling shareholder in United Raw Pet Foods, announced Thursday that United Raw has bought Tollden Farms of Kemptville, Ont.

Financial terms weren’t disclosed for the deal, other than that it was an all-cash sale with a purchase price representing 1.1 times trailing 12-month revenues.

Annette McAleer, who with husband Kevin founded Tollden Farms in 2002, will stay on as head of Tollden and become a “key member” of the Dane Creek team, the company said.

“Over the last several weeks we have witnessed a dramatic shift in consumer buying habits, many of which we believe will outlast the current health crisis being faced by Canadians,” Dane Creek CEO said in a release Thursday.

“While we are not naive about the long-term impact on the overall Canadian economy, we also believe that the sudden and significant growth in the ‘stay at home economy’ witnessed recently will outlast the current economic turmoil and benefit the pet industry specifically.”

Tollden’s frozen raw pet foods use “only human-grade meat and vegetables” and are sold in three formats: meat and vegetable blends; meat and botanical blends; and “DIY” meat and vegetable ingredients for pet owners looking to customize an animal’s diet.

The deal for Tollden follows United Raw’s acquisitions of Edmonton-based Mountain Dog Enterprises in 2017 and of three companies — Pets 4 Life and Naturawls Pet Products, both of St. Thomas, Ont., and Saskatoon-based Natural Chow Pet Food Corp. — in 2018.

United Raw in 2018 also bought a minority stake in a New York company, Pet Plate, a direct-to-consumer maker of lightly cooked pet food based in the U.S.

“Conventional wisdom would suggest that as we acquire these raw pet food manufacturers, we consolidate operations,” Warren said, but “if anything, the current health crisis supports our model of maintaining smaller regional manufacturing facilities across the country which are capable of making two or more of our brands.”

Freezer capacity in pet specialty retail stores has “grown dramatically,” Dane Creek said, adding that many “raw-focused” retailers have reported “record” sales in the first quarter of 2020 and are now looking for “more brand, format and price options.”

Annette McAleer, in the same release, said she and her husband believe the deal with United Raw “is the best way for us to take Tollden Farms from a top regional raw pet food to a national leader.” — Glacier FarmMedia Network

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The sun is almost up, a cascade of violet and rose in the eastern sky, enough light for me to feel Jake and I will be safe despite the coyotes that live nearby. As I toss Jake’s tennis ball down the lane a few minutes later, I start thinking about his breakfast. I’ve been thinking about dog diets a lot for the past six months, ever since he went on a diet. Jake is what’s called “an easy keeper.” When Dave asked me to explain the term, I ended up telling him the story of my first pony, a fat Appaloosa gelding who got fatter just by looking at the grass growing on the far side of the fence. So an “easy keeper” requires fewer calories than the norm. Tough luck, Jake! Jake too has been neutered, and that slows his metabolism somewhat, our vet explained six months ago when we first discussed his solid shape. What we needed to do was reduce his calories.

Since then, Jakie has dropped 25 pounds, and I am learning about caloric density in foods. His fave snacks are now carrot bits and blueberries, bell peppers and snap peas. Same as mine — except that I get chocolate on demand as well. Fortunately, he loves them all — or else his appetite makes them all equally appealing — and we always have plenty of fruits and vegetables on hand, including, especially in winter, the crucifers — broccoli, cauliflower, brussels sprouts and all the cabbagey cousins. For some reason I had always thought that the crucifers were on the forbidden list for dogs (that list also includes grapes, onions and chocolate). But no, says my vet/animal nutritionist, although large amounts of cabbage can produce gas in dogs. So when I roast some winter veggies, including cauliflower and peppers — Jake gets some too, although his will not be dressed in olive oil. Extra calories, right?

I plan to cook all Jake’s meals eventually and eliminate our reliance on processed dog food. A dog’s diet can be pretty simple, and I’d rather not feed our retriever the pulses included in some brands that studies have linked to heart disease in some breeds, including retrievers. So it will be grains — millet, brown rice, quinoa, oatmeal, and whole grain breads and pasta — lean roasted chicken or fish, yogurt, bits of cheese, and fruits and vegetables. That’s a tidy overlap with how Dave and I mostly eat and Jake will also get a vitamin and mineral supplement.

The production of commercial dog food (“kibble”) in North America began about 100 years ago. Before that, dogs ate much as their human companions did. It didn’t take long before pet food companies began to make noises about the unwholesomeness of table scraps as dog food. It was a marketing ploy. My vet/animal nutritionist assures me that Jake will thrive on home-cooked meals, just like we do. In fact, the biggest challenge will be to not overfeed him, as home-cooked food is more calorie dense than most kibble and canned dog foods. So Jake will have to get used to eating less. Except, of course, for the vegetables and fruit I feed him for added vitamins, variety, fibre, bulk and — yes, admit it, good taste. All the same reasons we humans love our vegetables! So first we eat — but before we eat, we feed our animals. Then we can talk more about what to feed Jake and his canine cousins.

Roasted Winter Vegetables

I particularly like these vegetables as a contrast to tender stews or braises. If you are feeding your dog and counting calories on Fido’s behalf, you may wish to roast a separate pan of vegetables without oil or onions/garlic for your mutt. Cut everything into similar sizes to ensure even cooking.

• 3 carrots, peeled and sliced
• 1/2 onion, sliced
• 1 head garlic, peeled, cloves left whole
• 1/4 head cauliflower, cut into florets
• 12 brussels sprouts, halved
• 1 bell pepper, diced
• Yellow or white turnip, peeled and diced (optional)
• Olive oil to taste
• Salt and pepper to taste

Toss all the ingredients in a large bowl, then spread evenly on a parchment-lined baking sheet. Roast uncovered at 375 F for 30-40 minutes or until tender, stirring several times.

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“Regular processors aren’t buying as many low-grade lentils, so guys are tired of sitting on them. So you’re starting to see them come to the feed market,” said Jay Harris of JGL Commodities in Moose Jaw.

Feed lentils have been going for 10 to 12 cents/lb., with feed peas and other feed proteins at roughly the same price, Harris said.

That compares to food lentils selling largely in the mid- to high teens per pound, according to data from Prairie Ag Hotwire.

Green peas are selling for $11-$12 per bushel, with yellow peas at $6.25-$7.25. Feed peas per bushel range from $3.40 to $6.95 in Saskatchewan, $7.25 in Manitoba and $6.40-$7.50 in Alberta.

Depending on the size of the chickpeas, prices are in the low to mid-20 cents range per pound.

On the pet food market, chickpea prices are normally better than feed prices, Harris said. However, the large supply of chickpeas has been more than enough to supply that market.

Although JGL Commodities deals with the domestic markets, Harris commented on the export market.

“There’s always an export market for low-grade lentils. If lentils are high-priced, you’re going to see more feed lentils and low-grade lentils be exported. But, because the value is low enough, you’re not seeing as many.”

— Glen Hallick writes for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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