SASKATOON – Cargill’s new canola crushing and refining plant planned for Western Canada will increase this country’s crushing capacity by at least 20 percent.
Barb Isman, vice-president of corporate affairs for Cargill Canada in Winnipeg, says the new plant will take in 1,500 to 2,000 tonnes of seed a day for an annual crush of about 500,000 tonnes.
Industry observers say the maximum capacity at the new plant would be around 650,000 tonnes.
Canada’s total crushing capacity stands at about 2.2 million tonnes divided between four major players: Canamera Foods, ADM, Canbra Foods and CIC Canola Canada Industries Ltd., who acquired the Northern Lite plant in Sexsmith, Alta. from the Alberta government earlier this year to augment their Aurora plant in Red Deer.
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Isman said Cargill made the decision to build the plant to take advantage of strong global demand for canola.
Canada’s sharp rise in canola acreage and production in the past two years, also colored the multi-national’s decision to build, she said.
Lyndon Peters, oilseeds analyst with the Grain Policy Directorate in Winnipeg, said current expansions at Canamera and Canbra will push Canadian crushing capacity to between 2.5 and 2.6 million tonnes. Cargill’s plant will put capacity past the three-million-tonne mark.
The way he reads the market, Peters said Cargill’s news is positive. “It strengthens the base of demand for canola.”
With strong ties to its parent company in the United States, Peters expects Cargill will look on the U.S. as its main market for oil.
Isman said Cargill is planning on breaking ground for the new plant in the spring of 1995 and have it completed by the fall of 1996, so they’ll be buying 1996 crop canola.
She said the company will announce the location of the new plant within the next two months.
