Cargill’s announcement of a new crushing plant at Cam-rose is great news for canola growers, but growing domestic demand presents a challenge.
After the big jump in canola processing at the start of the decade in Saskatchewan, led by Cargill, Louis Dreyfus and Richardson, a new round of expansion is in full swing.
In addition to Cargill’s Camrose plant, which will have an 850,000 tonne capacity, Bunge is doubling the size of its plants in Altona, Man., and Fort Saskatchewan, Alta., adding a total of 900,000 tonnes of crush capacity.
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China purchased just over 20 million tonnes of wheat, corn, barley and sorghum last year, that is well below the 60 million tonnes purchased in 2021-22.
Also, Richardson has announced a 25 percent expansion to its Yorkton, Sask. plant, adding another 160,000 tonnes of crush capacity.
There is also a new crushing plant under construction in Washington state and one recently opened in Minnesota just south of Manitoba. Both will take Canadian canola.
These projects will cause domestic demand to jump by about two million tonnes even as export demand for seed remains strong.
Can growers increase production without creating a disease problem with the potential to kill the golden goose?
Seeded area grew to 21.3 million acres this year, almost double the amount 10 years ago.
Disease this summer was a bigger problem than normal on that record area.
The weather was nearly ideal for disease development, but shortened rotations also played a part.
How far can producers push their rotations?
Western Producer reporters Robert Arnason and Barb Glen are researching whether there are limits to canola production in Canada. Look for a special report in November.
