PEAT HARVESTING IN NW ALBERTA

Peat (sphagnum) is a naturally occurring renewable product that is widely available for harvest on boglands managed through provincial leases in Northern Alberta. As large-scale farms around the world work to reduce water consumption and increase the production of organically grown produce, peat has a big role to play in the future development of organic farming and water conservation.

The development of this industry should be studied in more detail so that the best opportunities can be identified and proponents of this type of business can be supported. Of note are the costs required for the purchase of specialized machinery and special attention to the business cycle that includes a multi-year harvesting and replanting schedule.

Global demand for peat is expected to continue to grow from the current value of $6.8 Billion per year to $10.5 Billion until 2027 the market levels off. This represents an annual market growth rate of 7.5%. As demand continues to increase, Northern Alberta peat producers would be well positioned to take advantage of the market opportunity.

Background

As the world looks to address issues connected to climate change and population growth, peat provides an alternative, or supplement to commercial fertilizers by conserving water and providing crops with the minerals that they need to grow. In this sense, peat is used in organic farming and consumers support an expansion of its use for growing plants in small and commercial gardens and greenhouses. Peat also has additional applications as an absorbent in oil and gas reclamation projects in relation to oil spills and other reclamation projects. It can also be used as an alternative type of bedding for livestock and other animals. Peatlands provide additional value as an option for carbon storage and sequestration as a living renewable resource on public lands.

HOW DO I HARVEST PEAT?

The preparation of a peat bog requires surface clearing and draining to allow the bog to dry. Over several months, sun and wind dry the surface of the peat bog. Fields are then harrowed to improve the drying process. After the peat is dry it is collected using a vacuum harvester and piled to reduce moisture absorption. The peat is then hauled to the processing plant for screening, packaging, and distribution.

According to the Pembina Institute, peatlands in the non-settled area of Alberta, on public lands cover over 117,000 square kilometers of land. (2001) With adequate stewardship of these lands, the sustainable development of peatlands could be a considerable boost to the regional economy as a major export to the United States. The current harvested area in Alberta is approximately 3,000 hectares representing only 2% of the total potential area of peat lands that could be harvested in Alberta.

Market Opportunity

Peat is a multi-billion-dollar horticultural industry in North America, with tremendous potential for development in Alberta and minimal competition within the province. The current total value of Alberta peat that reaches market is only $30 million per year based on an estimated value of $10,000 per hectare.

The market demand for peat continues to increase as an expansion in consumer preference for organic farming crops continues to grow. In addition to the increased emphasis on water conservation the growing regions in California, Oregon, Utah, Arizona, and Washington state are good target markets for Northwest Alberta peat that can be transported via rail, or truck to customers in these areas.

A lease area of 500 hectares (5 square kilometres) represents over $5 million dollars in value that could be realized. Alberta businesses may hold several 500-hectare leases, so the business potential for this opportunity is very favorable if an operator is interested in scaling-up to a much larger operation.

Northwestern Alberta Advantage

Northwestern Alberta has hundreds of thousands of acres of peat bog lands that can be harvested by obtaining a lease agreement from the province of Alberta provided that the lands are reclaimed and replanted as directed by the province. Provincial land lessees may harvest over a 15-year period with an option to renew it for an additional 10 years. Provincial land lease rates are exceptionally low, making it a very accessible business opportunity for businesses that may already have access to farm machinery.

Responsible management of peat lands includes reclaiming peat bogs after harvest by replanting them on the site from donor locations. Doing this ensures that peat is regrown and can continue to naturally filter the water while restoring the habitat for plants, fish, and other resident peat bog fauna.

Required Financial Investment

Peat production requires specialized equipment that can be paired with a farm tractor(s) for preparation, draining and drying of peat sites prior to harvesting. This equipment can then be used for reclamation and replanting of peat lands for the long-term management of peat bogs as a renewable resource.

Required equipment includes:

✔ High-capacity tractor

✔ Harrows for bog surface preparation

✔ Peat trailer for transport of peat

✔ Two-head vacuum peat harvester

POTENTIAL KNOCK-ON BENEFITS

✔ Storage yard and facilities for peat drying, processing, and packaging

✔ Spreader for the reclamation of peat lands

The actual cost of each item depends on the scale of the operation and how local processing and packaging is done on site. Equipment costs could range between $200,000 to $500,000 depending on the amount of equipment that may already be on hand.

Additional costs will include labour and the cost of applications for lease agreements for harvesting peat on public lands.

Example

Aurora Peat Products

Edmonton , Alberta aurorapeat.com

Peat harvesting in the REDI region would create production, harvesting and packaging jobs, but not on a large scale. Considering that a 500-hectare peat operation would produce $5 million in value, an average multiplier of 2.5 times would generate approximately $12.5 million in community benefits to the local economy. It is likely that this would translate into the purchase of machinery and equipment, housing, transportation, entertainment, personal and financial services that strengthen the base of the local economy.

It’s likely that several operators could begin peat harvesting operations throughout the REDI region as these opportunities continue to gain popularity and profitability in the future.

Aurora Peat Products has been in operation in one form or another operating during that time as Lakeland Pet Moss, Alaska Peat and currently as Aurora Innovations. Their harvesting operations are located 100km north of Edmonton but transported there for packaging and distribution.