There were blips, but Mervyn Simpson is surprised by how well the development of a $1.1 million feed processing plant came together at Shoal Lake, Man.
Simpson is a shareholder in the plant, which will create livestock feed ingredients using off-grade canola, as well as beans and peas. If all goes well, the plant could be in full production later this year.
“It’s quite interesting and it’s exciting to know we can do something like this in Shoal Lake,” said Simpson, who also farms in the area.
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The plant will operate under the name EXP Feeds Inc.
Simpson said building the plant was easier than some other projects because investors are a small, dedicated group of local farmers and businesspeople making decision-making easier.
He said it was a challenge to find someone knowledgeable about livestock feed ingredients to manage the plant.
At full production, the plant is expected to use more than 500,000 bushels of crop per year. About half will likely be canola. The balance will be beans and feed peas, Simpson said.
The plant owners want to include off-grade canola in the feed. The idea is to market those ingredients to other feed mills in Manitoba to incorporate into prepared livestock rations.
Simpson said they have found a niche where they will not compete directly with larger companies. But he recognizes the market they have targeted is “a tough one to break into.”
The venture opens a potential demand for off-grade canola from across the Prairies. Simpson said they are still trying to get a better idea of how much off-grade canola is available from last year.
“I know there wasn’t as much green canola as there was the previous year.”
A canola crop that has not ripened evenly can lead to green seed. Slightly heated canola could also result in the kind of off-grade seed sought by EXP Feeds.
