Omega-3 Flax Plant Will Use One Million Bu. of Flax

I was just browsing the Canola Guide (Feb. 07) The article on the Brandon flax processing plant (Brandon flax plant builds on health food hype) presents some good math for demand.

According to the article the plant will need 1 million bu of flax at full production. If demand grows to it's potential that number could increase 7 fold.

I did some quick number crunching:

• one million Bu of flax would be 40,000 to 50,000 acres


• Manitoba production has ranged from 278,000 to 418,000 acres between 01 and 05


• my calculator puts that at 10% or so of acres


• 7 times that number would take up more than 1/2 of Manitoba's acres (ok 70%)

A lot of factors will come into play before Omega-3 oil will spike up the flax market. But this shows potential to be a good price driver in the future.

http://www.shapefoods.com/default.html I just googled Shape food to look at there web site. I use to have a rule "If a company does not upkeep their website do not invest" Decide for yourself on this site.