April 11, 2008

Mustard Capital wins top Saskatchewan award

Source: Leader Post, Regina, SK

Mustard Capital Inc. of Gravelbourg is the 2008 winner of the Saskatchewan Economic Development Association's award of excellence for outstanding economic development initiative.

The award, which was presented at SEDA's annual awards in Saskatoon earlier this month, is for an agency that has "successfully advanced the community, regional or provincial economy through an economic development initiative."

Mustard Capital Inc. (MCI) is a community-owned venture operating in the world's leading mustard production area of south-central Saskatchewan.

"It's nice to be recognized,'' said Tom Halpenny, CEO of Mustard Capital. "There's a lot of work that goes into developing a venture like this ... Everyone can look back and be proud of the work that they've done.''

Begun in September 2007, Mustard Capital is a dry mustard milling facility that provides processed, high-quality yellow, oriental and brown mustard ingredients to markets around the world.

Halpenny said 90 per cent of the company's production is exported, with about 60 per cent destined for the U.S. market. About $1 million was invested in an existing facility, which now has production capacity of 4,000 to 5,000 tonnes annually.

"There have been some challenges in the form of high commodity prices and wildly fluctuating currency values,'' Halpenny said, adding that currency hedging and careful management have enabled MCI to weather the market volatility.

The plant has 10 employees, including eight full-time, and operates 16 to 20 hours a day. "We've had a fairly good response globally ... We're feeling quite pleased with how successful we've been."

Halpenny said MCI is looking to expand production at the existing facility by 30 to 60 per cent this year, with the view to building a brand new plant in the next year or two.

"We do have a phased expansion plan,'' Halpenny said. "Phase three is when we would look at a stand-alone large facility."

Mustard Capital Inc. was the brainchild of the Gravelbourg Economic Development Committee nearly seven years ago.

Financial contributions from the Red Coat REDA, Advancing Canadian Agriculture and Agri-Food Saskatchewan (ACAAFS) program, the Town of Gravelbourg, community members, private investors, shareholders and various government agencies helped ensure the project's success.

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