WINNIPEG (Reuters) — Louis Dreyfus Commodities will expand its Canadian canola crushing plant capacity by 20 percent, adding to a rapid industry expansion to produce vegetable oil.
Several of the company’s rivals have already announced expansions at their own crush plants in Canada as farm production increases.
Dreyfus will start increasing capacity at its plant in Yorkton, Sask., this summer to eventually reach 3,000 tonnes per day, up from the current 2,500 tonnes, according to a statement posted on its website today. The canola plant will be one of North America’s largest.
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Global demand for vegetable oil from canola continues to grow, making the expansion necessary, said Brian Conn, the company’s vice-president of oilseeds in Canada. Canola crushing also produces meal, a less valuable animal feed product.
Richardson International Ltd. has announced expansions at both of its Canadian canola plants, including the one in Yorkton, while Bunge Ltd. and Archer Daniels Midland Co. are also expanding in Canada.
Cargill Ltd. is building a new canola crusher near Camrose.
Louis Dreyfus also said it had bought Mitsui & Co Ltd.’s minority interest in the Yorkton plant, giving it full ownership.
