Richardson International Ltd's CAD170-million (US$165 million) canola plant in Yorkton, Saskatchewan, which was opened three weeks ago, currently crushes about 1,200 tonnes per day of the oilseed into oil for the edible oil market and meal for livestock feed.

 

That's about 50% of its full production capacity, which the plant aims to reach early next year, said Pat Van Osch, Richardson's vice-president and general manager of oilseed processing, on Tuesday (Jun 22).

 

Richardson, which is privately held, held its delayed official opening on Tuesday. The company is Canada's No. 2 grain handler and one of its top canola crushers along with Cargill Inc, Archer Daniels Midland Co, Louis Dreyfus, Bunge Ltd and Viterra.

 

Louis Dreyfus opened its own Yorkton plant earlier this year, ensuring there is stiff competition for the canola that farmers in Saskatchewan usually grow in abundance.

 

This year, record rains left behind Canada's biggest unplanted area in 39 years, up to 12.5 million acres, with eastern Saskatchewan the hardest-hit region.

 

Canada is the world's top exporter of canola, a variant of rapeseed.

 

Farmers likely managed to plant about 15 million acres of canola despite the rain, and could harvest 10 million tonnes, down 15% from last year's crop.

 

With crop-handling facilities across Western Canada, Richardson is poised to gather adequate supplies, albeit within a bigger radius than planned, Van Osch said.

 

Canadian and US food manufacturers look to be the plant's long-term buyers of canola oil, he added.