April 26, 2021

Cargill to build new canola plant in Saskatchewan, Canada to meet demand

Cargill is set to construct a US$350 million canola plant in Regina, Saskatchewan, Canada to benefit from increased global demand for oilseeds, Reuters reported.

The new plant has the capacity to crush 1 million tonnes of canola per year, and is expected to start operations by early 2024.

The company said it will modernise its Camrose, Alberta, and Clavet, Saskatchewan canola crush facilities to boost volume.

Canola futures reached record highs this week and soybeans have also hit multi-year highs as demand for canola to be processed into livestock feed and vegetable oil surpass current supplies.

Jeff Vassart, President of Cargill's Canadian unit, said there will be increased demand globally such as to China, plus growing demand for renewable diesel. The new factory will also produce renewable diesel from canola and soybeans to fulfil Canadian government mandates for cleaner burning fuel.

In March, competitor Richardson International said it aims to double its canola-crushing capacity at its Yorkton, Saskatchewan plant. Cargill also said it will expand its US soybean crushing capacity.

Vassart said Canada will be able to produce enough Canola to meet demand, as farmers increase yields and expand plantings. He said Canada may export less canola seed if production does not increase enough.

- Reuters