Louis Dreyfus Commodities plans to expand its Saskatchewan canola crushing plant capacity by 20 per cent, adding to a rapid industry expansion to produce vegetable oil.
Several of the company’s rivals have already announced expansions at their own crush plants in Canada, the world’s biggest grower and exporter of canola, as farm output increases.
Dreyfus will start increasing capacity at the Yorkton, Sask. plant this summer to eventually reach 3,000 tonnes per day, up from the current 2,500 tonnes, according to a statement posted on its website Friday.
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The expanded canola plant will be one of North America’s largest.
Global demand for vegetable oil from canola continues to grow, making the expansion necessary, said Brian Conn, vice-president of oilseeds for the company in Canada. Canola crushing also produces meal, a less valuable animal feed product.
Winnipeg agrifood firm Richardson International has recently announced expansions at both of its Canadian canola plants, including its own Yorkton site, while Bunge and Archer Daniels Midland are also expanding their plants in Canada.
U.S. agrifood firm Cargill is also building a new canola crusher, near Camrose, Alta.
Louis Dreyfus also announced Friday that it had bought back Japanese commodity trading firm Mitsui’s 40 per cent interest in the Yorkton plant effective March 29, again giving Dreyfus full ownership.
Terms of the deal were not disclosed. Mitsui came on board as Dreyfus’ minority partner in the plant in late 2007, during its construction.
At the time, the two companies said their combined investment in the plant would be over US$120 million. — Reuters, with files from AGCanada.com Network staff
