Success Stories

The Mustard Capital of the World
Mustard Capital Inc.

That is the heady title that a new company in southern Saskatchewan wants bestowed on its area of the province. Establishing and marketing that image is but one third of Mustard Capital Incorporated’s (MCI) business plan.

MCI is the result of a market study and business plan instigated by 57 investors from the Gravelbourg, Lafleche, Mossbank and Assiniboia areas who saw great potential for a mustard seed processing operation. Investor capital for the study was matched by a grant from the Agriculture Council of Saskatchewan through Agriculture and Agri-Food Canada’s Advancing Canadian Agriculture and Agri-Food Saskatchewan (ACAAFS) program.

Based on the strengths of the geographic and economic region, three mustard processes were identified as front-runners: milling; crushing; and, as Mustard Capital Incorporated’s Acting CEO, Tom Halpenny, explains, ag-tourism: “(Besides our operation) there is a local group pursuing a business plan to focus on gourmet mustard production. All of these activities lend momentum towards critical mass for the area to start promoting a tourism aspect.”

Investors established their MCI according to business plan recommendations for an integrated economic model incorporating all three identified opportunities. While more complex, the integrated model was considered significantly less risky than basing a business on a single product for a single market. “We could see the opportunities, and we wanted to go ‘full bore’ with a big, permanent processing plant,” recalls Louis Stringer, former President of MCI, “but we did realize that we’d be chancing it. We decided we would be better off growing progressively – perfecting our products and trying out the markets.”

In lieu of building, the company rented 3000 unused square feet at Gravelbourg’s historic educational facility, Le College Mathieu. Equipment was brought in from Kansas and as far as Poland. An experienced miller recruited from Hamilton, Ontario provided the expertise for set-up and adjustments.

MCI launched into milling and crushing for flour, oil and bran production. By fall of 2007, the first batches of yellow, oriental and brown mustard products were packaged, labeled and shipped to areas of North and South America, Europe, Middle East and Asia.

Some oil has been sold for industrial use, but the majority of MCI’s products are food ingredients. Mustard bran is used as a filler or thickener in sauces. Mustard flour adds taste to sauces, mayonnaise and salad dressings; acts as an emulsifier, holding oil and water in suspension and keeping sauces from separating; is used to add texture and additional protein to sausages and other processed meat products; and even heightens the flavour in unlikely recipes, such as chocolate cake.

To satisfy alternative markets, MCI has gained Kosher certification, is pursuing organic certification and, because market research showed an opportunity to promote food safety protocols in select foreign markets, has moved to secure quality assurance accreditations. The company will continue to investigate value-adding business opportunities for integration. “The business plan does include eventual advancement into biofuels,” says Halpenny, “but economics will dictate our expansion. MCI adopted a ‘grow as we go’ strategy. When we achieve success in marketing, we will progress to our next stage of development.”

The company is communicating with the Saskatchewan Mustard Development Commission (SMDC) to advance market development efforts, and has established direct contracts with farmers, who can benefit from competitive pricing and reduced transportation costs. “Farmers have been encouraging and supportive,” acknowledges Halpenny, “They like to see value-adding and other options in the community.”

As mustard ag-tourism can only follow on the heels of the community’s collective
mustard successes, MCI expects every new product will bring southern Saskatchewan a little closer to being the “Mustard Capital of the World.”

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