Material Insights · Understanding the Material World

Oats: Extraction

Why oats love cool, damp summers and poor soils

What this tab covers How it is mined, drilled or grown, and processed into a tradeable form: the main methods compared, their unit economics, by-products, and the companies that do this work globally and in India.

Oats prefer cool, moist summers and tolerate poor, acid soils. They grow across the Canadian prairies, Russia, northern and central Europe and southern Australia. Most are sown in spring and combine-harvested in late summer. Millers want heavy, bright grain. They remove the inedible hull, then kiln the groats to stop rancidity and steam and roll them into flakes. Lower grades go to feed. Oats are also a rotation crop that breaks disease cycles for wheat and barley.

Oats are a cool-season cereal grown mainly in Canada, Russia, the EU (Poland, Finland, Spain, Sweden), Australia, the UK and South America. There are two main routes: high-yield mechanised farms producing milling-quality oats for food companies, and lower-yield extensive systems where oats are mainly a feed or rotation crop. The milling route adds dehulling and kilning. World area has fallen since the mid-twentieth century as horses left farms and farmers switched to higher-value crops: output was 39.9 Mt in 1990 and 22.4 Mt in 2024 (FAOSTAT).

Methods compared

MethodShare of supplyTypical scaleRecovery / efficiencyBy-productsUnit cost
Mechanised milling-oat production (Canada, Nordics, Poland, UK, Australia)Canada 15.0%, Poland 7.2%, Australia 5.9%, Finland 5.5% of world output in 2024 (FAOSTAT)Canada harvested 0.99 million ha in 2024 (FAOSTAT); 3.92 Mt crop in 2025/26 (USDA)Yields 2024: Finland 3.72 t/ha, Canada 3.38 t/ha, Poland 3.12 t/ha, Australia 1.77 t/ha (FAOSTAT)straw; hulls (biomass fuel, fibre)indicative (basis: USDA average farm price): US $3.35/bu in 2024/25 and $3.23/bu in 2025/26, about $223-231/t; production cost not found in sources used
Extensive feed and rotation oats (Russia, Argentina, Brazil, China)Russia 13.4% of world output in 2024 (FAOSTAT)Russia harvested 1.6 million ha in 2024 (FAOSTAT)Russia 1.88 t/ha in 2024 (FAOSTAT)straw, grazingn/a
Milling: dehulling, kilning and flakingfood, seed and industrial use was 31.6% of world use in 2025/26 (USDA PSD)n/a milling yield not found in sources usedhulls (fibre and biomass fuel), oat brann/a

How each method works

Mechanised milling-oat production (Canada, Nordics, Poland, UK, Australia)

Large farms grow named milling varieties, often under contract with millers, with fertiliser and fungicide programmes to hit quality specs. Grain is cleaned and tested for weight and purity, then sold to millers or exporters. Canada's prairie farms supply US mills by rail.

Premium for quality, but weather at harvest can downgrade a whole crop to feed, and contamination limits gluten-free supply.

FAOSTAT 2024; USDA PSD and WASDE, October 2026 Extensive feed and rotation oats (Russia, Argentina, Brazil, China)

Oats are sown as a break crop in grain rotations or on marginal land, with low fertiliser and little crop protection. The grain is fed on the farm or sold locally to feed mills and horse owners. Some fields are grazed or cut green for fodder, and only small volumes reach export markets.

Cheap and soil-friendly, but low yields and quality limit its value outside feed.

FAOSTAT 2024 Milling: dehulling, kilning and flaking

Cleaned oats are dehulled by impact hullers to give groats. Groats are kiln-dried with steam and heat to inactivate lipase and stop rancidity, then cut, rolled into flakes or ground into flour and bran. Oat-drink makers then hydrolyse oat base with enzymes.

Adds value and health claims, but needs high-grade grain and dedicated lines for gluten-free products.

USDA PSD, October 2026; process description qualitative Unit economics are indicative ranges from the sources named; costs vary widely by deposit, region and year.

Who does it: global

CompanyCountryActivityVolumeYearSource
PepsiCo (Quaker Oats) Oat purchase volumes not published USlargest branded oat food makernot published 2025not available
Richardson International Private company; volumes not published Canadagrain handling and oat millingnot published 2025not available
Grain Millers Inc. Private company; volumes not published US/Canadaoat millingnot published 2025not available
Oatly Volume not found in sources checked Swedenoat drinksnot published 2025not available
Canadian oat farmers (aggregate)Canadalargest exporter3.92 Mt produced; 1.50 Mt exported 2025/26USDA PSD, October 2026
EU oat farmers (aggregate; Poland, Finland, Spain, Sweden)EUlargest producing bloc8.92 Mt produced 2025/26USDA PSD, October 2026

Who does it: India

CompanyCountryActivityVolumeYearSource
Marico (Saffola Oats) Volume not found in sources checked Indiabranded oatsnot published FY2026not available
PepsiCo India (Quaker) Volume not found in sources checked Indiabranded oatsnot published FY2026not available
Indian importers (aggregate)Indiaimports of grain oats0.075 Mt imported 2025/26USDA PSD, October 2026

India grows oats mainly as green winter fodder, not for grain, so USDA records no grain production and about 75 kt of imports in 2025/26, mostly from Australia and Canada for packaged breakfast oats. Branded oats are a small urban health-food market led by Quaker, Saffola and others.