February 2, 2004

 

 

Manitoba's Lone Soybean Processor Says Expansion Planned

 

Manitoba soybean processor Delmar Commodities Inc. will expand capacity sooner than expected because of strong demand for soymeal and soyoil domestically and from the U.S., a company official said.

 

Company president and owner Martin Harder confirmed that a second line will be added to the facility, located just south of Carman, Manitoba, about an hour drive southwest of Winnipeg by September 2004.

 

The move would essentially double the plant's capacity. The facility now can crush 100 metric tons of soybeans a day.

 

Delmar Commodities is the only soybean crusher in Manitoba and accounts for 100% of the soybeans processed in the province, Harder said.

 

"The expansion will come a bit sooner than expected," Harder said. "The demand is there, and we feel we can make it work."

 

Most of the demand for the facility's soymeal has been from the domestic market while the soyoil was being absorbed both locally and by U.S. outlets, Harder said.

 

"We've run into a few problems with moving soyoil to the U.S. during the winter, but we are in the process of correcting that situation," he said. "If the soyoil is not degummed and is moved during the cold, the oil becomes too thick which results in it not flowing properly."

 

No word was available Friday on where and exactly how much product was being shipped. But Harder said the company was only scratching the surface of all the potential outlets for the processor's products. "Right now, the driving force has been the meal demand, but we are also managing to work soyoil into the mix," Harder said.

 

Most of the soybeans being crushed at the facility are coming from local producers, but Harder said some purchases have also been made from the trade.

 

Soybean acreage in Manitoba in spring 2004 was expected to climb well above 400,000 acres, which would well up from 220,000 acres seeded in 2003 and 130,000 in 2002.