Prairie soybean plant unlikely

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Published: April 5, 2013

While growers in Manitoba are expected to dedicate one million acres to soybeans this year, their production will be small compared to that of American farmers.   |  File photo

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.”

About the author

Robert Arnason

Robert Arnason

Reporter

Robert Arnason is a reporter with The Western Producer and Glacier Farm Media. Since 2008, he has authored nearly 5,000 articles on anything and everything related to Canadian agriculture. He didn’t grow up on a farm, but Robert spent hundreds of days on his uncle’s cattle and grain farm in Manitoba. Robert started his journalism career in Winnipeg as a freelancer, then worked as a reporter and editor at newspapers in Nipawin, Saskatchewan and Fernie, BC. Robert has a degree in civil engineering from the University of Manitoba and a diploma in LSJF – Long Suffering Jets’ Fan.

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