May 21, 2015

News Release

May 21, 2015

The owners of a Winnipeg feed mill will receive $1.1 million to install
two new infrared grain sorters, that identify and remove undesirable
grain kernels, significantly increasing the value of the final product,
Manitoba Agriculture, Food and Rural Development Minister Ron Kostyshyn
and Federal Minister of State (Finance) Kevin Sorenson, on behalf of
Agriculture Minister Gerry Ritz, announced today.

"This investment will help recapture more value from Manitoba's grains
and create new marketing opportunities," said Minister Kostyshyn. "The
damage caused by fusarium and ergot can be a significant cost for
Manitoba's farmers and across the entire industry. This new infrared
equipment is an innovative solution, with significant financial and
environmental benefits."

With the support of governments' $1.1-million investment, Standard
Nutrition Canada Co. will become the only company in the country using
infrared grain-sorting technology. This equipment removes grains
infected with fusarium head blight or ergot from crops before they are
made into animal feed. This increases the overall grade and quality of
grains, which allows sales into higher-value markets. It is expected
to increase the value of Manitoba grains by $4 million annually.

"Canadian enterprises are constantly working to improve the
competitiveness of the agricultural sector and create prosperity for
the entire value chain," said Minister of State Sorenson. "This new
equipment will open up new market opportunities for our hard-working

Standard Nutrition Canada Co. will be investing an additional $1.1
million in the project. The company currently has more than 90
full-time employees and expects to hire up to eight more as a result of
the new equipment.

"The sourcing of clean high-quality grain has become a major issue in
our region," said Jason McNaughton, president and general manager of
Standard Nutrition Canada Co. "In many cases these grains are shipped
to markets over long distances, which also decreases the margin
potential for our growers. This investment by our company and
governments is a key step in reclaiming the value of local crops while
maintaining the integrity of the food we produce."

In 2014, Manitoba wheat farmers lost an estimated $400 million in
revenue due to fusarium damage, a disease that also affects barley and
corn. The ergot fungus can become a major problem with wet growing
conditions. The toxins it produces cannot be removed during processing
and are dangerous for animals and humans if consumed. Currently,
grains infected with these diseases either sell at a greatly reduced
price or, in extreme cases, end up in landfills. This investment in a
more efficient sorting and cleaning process made possible with this
infrared technology will reduce grain waste by 24,000 tonnes every year in Manitoba.

The ministers noted this investment is part of the Grain Innovation
Hub, which was announced by the Canada and Manitoba governments in May 2014.
Its goal is to leverage $33 million in government and industry funding
to re-establish Manitoba as a leader in grain research, production and

This project was funded through Growing Forward 2's Growing Value
program. The federal and provincial governments are investing $176
million in Manitoba under Growing Forward 2, a five-year,
federal-provincial-territorial policy framework to advance the
agriculture industry, helping producers and processors become more
innovative and competitive in world markets.

For more information on Manitoba's agricultural programs and services,
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For more information about Standard Nutrition Canada Co. visit

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