The federal government is pumping almost 2 million dollars into oat variety development.

Public Safety minister Ralph Goodale has announced an investment of 1.98 million dollars for the Regina-based Prairie Oat Growers Association.

The funds will be used to improve oat varieties for the Canadian oat industry.

The goal is to develop new oat cultivars suited for production in Western Canada.

The project is designed to create oats to carry genetic resistance to major diseases, pests and changing climate conditions.

Canada produces about 3 million tons of high quality oats each year, and is the world’s largest exporter of oats.

About 90 percent of Canada’s oats is produced in Western Canada.

This week, Avena Foods of Regina received 1.8 million dollars in federal loans for construction of a gluten-free oat processing facility just south of the Queen City at Rowatt.

CEO Gord Flaten says the facility is being built to keep up with strong growing demand around the world for high quality oats.