Grain Farmers of Ontario CEO Barry Senft says it will be the first lab of it's kind in Ontario.
GFO has signed a joint venture agreement with SGS Canada to develop the Ontario Grains Laboratory.
The new lab will be housed in SGS's existing testing facility in Guelph.
It will provide full analytical testing for cereal crops and will offer full commercial services for Ontario, Canadian and North American millers and processors.
GFO is putting money into the lab's development.
IN return, the organisation will get a credit for services at the lab to be used for their annual Ontario Wheat Quality scoop and other market development and research projects.
The Ontario Grains Laboratory in Guelph is expected to be fully operational this spring.