Milligan BioFuels enters receivership

Off-quality canola processor Milligan BioFuels (Bio-Tech) of Foam Lake, Sask., has closed its doors.

The well known buyer of heated, green otherwise damaged canola has laid off its staff and is referring producers and creditors that have existing business with the company to call Calgary’s Hardie and Kelly for information.

Milligan is one of the oldest prairie processors of its type. Started by farmers with the assistance of Agriculture Canada and the University of Saskatchewan, the area is in the heart of the traditional canola country in Western Canada.

Capable of producing more than 20 million litres of biodiesel annually, using more than 50,000 tonnes of canola, the company has long been the buyer of last resort for many producers across Western Canada.

The business employed about 45 people in its Foam Lake operations, as well as having sales staff in other locations, including a Red Deere, Alta., office.

One of the founders of the biofuels business is local farmer Zenneth Faye. Commenting on an ethanol startup operation for Saskatchewan, using barley as a feedstock, he said last August that the biofuels business is currently challenging.

Faye, a former executive manager of the Milligan Biofuels biodiesel plant said, “Both ethanol and biodiesel have been feeling the pinch along with the petroleum industry with the drop in the price of oil.”

Both producers and creditors can reach Hardie and Kelly at 403-777-9999.


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