Learning More About KWS Hybrid Rye, Ep 2: The Push and Pull of the Market

Why It Matters

Understanding the evolving rye market helps Western Canadian growers mitigate price volatility and tap new revenue streams, while buyers like Skooler secure a diversified supply chain essential for feed, ethanol and cover‑crop applications.

Key Takeaways

• 2025 rye crop surged 30% acreage, near million‑ton harvest.
• Distilling demand fell over 50%, driving price collapse.
• Skooler pivots rye sales to feed, ethanol, cover crops.
• Growers urged to engage buyers, improve grain quality, marketing.
• AI tools like Grainfox streamline market data for rye decisions.

Summary

The video features Sean Haney interviewing Jason McGillry, trade unit manager for Specialty Grains Group at Skooler, discussing current dynamics of the KWS hybrid rye market from a buyer’s perspective.

McGillry explains that the 2025 crop was unusually large—about a million tons, up 30% in acreage and yields—yet demand from the North American distilling sector collapsed by more than half. He attributes the drop to waning consumer interest in whiskey, excess barrel inventories, and trade barriers that limited U.S. bourbon exports, pushing farmgate prices down for Western Canadian growers.

He cites the earlier “fire‑hose” period (2020‑2024) when distillers were scrambling for rye, even importing from Europe, and contrasts it with today’s diversification effort. Skooler is now marketing rye to cattle and hog feedlots, ethanol plants, and the U.S. cover‑crop market, while still serving flour mills. McGillry also recommends growers use AI platforms such as Grainfox to consolidate scattered market intelligence.

The shift signals that rye will remain a niche but increasingly multi‑use commodity. Growers must actively manage quality, maintain year‑round buyer relationships, and monitor acreage decisions as the market is expected to tighten again around 2027. Successful diversification could stabilize prices and provide a more resilient revenue stream for Western Canadian producers.

Original Description

A sharp correction in the rye market is forcing both buyers and growers to rethink how the crop fits into Western Canadian rotations.

In this second episode of the Learning more about KWS hybrid rye podcast, Shaun Haney of RealAgriculture speaks with Jason McGillivray, trade unit manager for the specialty grains group at Scoular, about shifting demand dynamics, pricing pressure, and new market opportunities for hybrid rye.

After several years of strong demand driven by the North American distilling industry, the rye market is facing some challenges. “We had a big crop… and now one of the biggest market drivers (rye for distilling) is down over 50 per cent,” says McGillivray pointing to a combination of overproduction, changing consumer alcohol trends, and trade disruptions impacting U.S. whiskey exports.

That demand drop, paired with a roughly 30 per cent increase in acreage and strong yields, has weighed heavily on prices over the past eight months. While McGillivray notes signs of stabilization, he expects recovery to take time as the distilling sector works through excess supply.

In response, Scoular and its partners are actively diversifying end-use markets. Increased movement into feedlots, ethanol production, and even the U.S. cover crop market is helping build alternative demand streams. “When you can get all of these things happening at once… that truly creates the liquidity and the movement… and ultimately supports the price,” he says.

For growers, McGillivray stresses the importance of engagement and planning in what remains a niche market. Forward contracting is available, but success depends on understanding grain quality, staying connected to buyers, and using available market intelligence tools.

Looking ahead, rye acres are expected to drop 25 to 30 per cent for the 2026 crop year. That pullback, combined with gradual demand recovery, could begin tightening supply into 2027—offering a potential path toward improved pricing, provided diversified demand continues to develop.

Website: https://www.realagriculture.com/

#rye #whiskey #farming #agriculture

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