Industry interest | While growing, soybean acres remain too small
There is little to no chance that a major agribusiness will build a soybean crushing plant on the Prairies, industry insiders say.
Manitoba’s soybean acres have surpassed Quebec, and the province’s farmers are expected to grow a million acres this year. These developments have prompted producers to speculate if a company such as Bunge, Archer Daniels Midland, Cargill or Richardson will invest in a processing plant or use an existing canola plant to crush beans.
But Michael Reimer, acting executive director of the Manitoba Pulse Growers Association, said the rumours are false.
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“I haven’t heard anybody say this is something that is on the horizon,” Reimer said.
“We’ve had people on our board talk to those guys (crushing industry reps) and they say it’s not happening.”
Manitoba’s soybean acreage has risen dramatically, going from almost nothing a decade ago to more than 800,000 last year. However, the scale of the crop remains marginal compared to acreage immediately south. Producers in North Dakota, South Dakota, Minnesota and Iowa planted 25 million acres of beans last year.
Reimer said the industry is unlikely to invest in a dedicated plant in Western Canada until Manitoba and Saskatchewan growers consistently produce three million acres.
Bunge’s 2010 announcement that it would double the capacity of its canola processing plant in Altona, Man., left producers wondering if the company would use the facility to crush soybeans.
George Wieler, operations manager for Delmar Commodities, said it is feasible to use a canola plant to crush beans, but converting from one oilseed to another isn’t simple.
“It’s not that easy to switch. You don’t just turn one dial and now you’re crushing soybeans,” he said.
“You’re processing two different commodities. The soybean you’re crushing for meal and canola you’re crushing for oil.”
Wieler said Bunge will not process soybeans at its Altona plant, based on conversations he’s had with company officials.
His said his company in Winkler and another in Steinbach will remain the only firms in Manitoba that process soybeans, although on a trivial scale.
“We’re small potatoes. The big processors, they probably spill more than we process.”
