Thursday, May 25, 2023

Whiskey plant to boost grain demand

Whiskey plant to boost grain demand

Jan Westcott, president of Spirits Canada, said grain farmers in Essex County, Kent County, and Lambton County are well positioned to benefit from increased corn, wheat, and rye production and profits when Diageo opens its $245-million facility in St. Clair Township sometime in 2025.

Diageo announced plans for a 400 acre plant on Moore Line near Highway 40 about 15 months ago with the capacity to produce 10.5 million gallons annually for its Crown Royal Canadian Whisky brand.

Westcott said with all of that whisky on the horizon, local grain farmers will need to up their game to keep quenching the public’s thirst.

“We’re very proud of the fact that 100 per cent of the grain that we use to make whisky and our other spirits is grown by Ontario farmers. We’re lucky that we get the quality of grain that we need in the three counties,” said Westcott.

Westcott said the spirits industry in Ontario buys anywhere from 225,000 and 250,000 metric tonnes of grain a year.

The Diageo plant is the first commercial distillery built in Canada in more than 50 years.

Westcott said Crown has been distilled in Manitoba for the past 30-plus years after a plant in Waterloo burned down. That Manitoba demand will be returning to Ontario.

“That will drive up our grain purchases in Chatham-Kent and in Essex and hopefully will inspire more farmers to put corn and wheat and rye in the ground for us,” Westcott said.

 “The Grain Farmers of Ontario tells us that we’re already the fourth largest buyer of corn and I suspect that once the new Diageo distillery gets up and running we’ll be the third largest. We’re never going to be as big as the ethanol guys (Greenfield) or the feed lot guys.”

Westcott said he thinks the local grain farmers are up to the challenge.