Canola crushing plants the tip of the iceberg

Source: Saskatchewan Agriculture and Food

The past-president of the Saskatchewan Canola Growers Association says the recent announcement of two canola crushing plants being constructed in Saskatchewan is a boon to both the canola industry and the future of biodiesel in Canada.

Brad Hanmer greeted the news that James Richardson International (JRI) and Louis Dreyfus plan to build crushing plants in Yorkton with something just short of jubilation.

“I am just absolutely delighted that this is happening,” he said. “To see this kind of investment in our industry and in Saskatchewan and, more importantly, in a crop that I believe is the future for us here on the farm – I’m just ecstatic.”

The two plants combined will have the ability to crush over 1.5 million tonnes of canola per year; something Hanmer says will help boost canola prices.

“We grow around seven million metric tonnes of canola a year. These plants are going to take a huge chunk out of that. Right now, we crush half and export half of the canola we grow. Having this kind of crush capacity on line will change that,” said Hanmer.

“Once you put bricks and mortar in the ground, you have to keep these plants full. So we are going to see some appreciation of prices at a local level just on that front alone.”

Hanmer says market factors beyond Saskatchewan’s borders are driving demand, as American and European demand for biodiesel adds to existing demand for canola oil within the food industry.

“The world is absolutely hungry for vegetable oil,” he stated. “Biodiesel is playing a huge role in that, but also the healthy aspects of canola oil are really starting to take hold.”

Biodiesel is where Hanmer’s infectious enthusiasm for the future of canola really starts to kick in.

“We in Canada have a window of opportunity that is narrowing, and that’s for us to have a biodiesel industry here. We need to catch up to the rest of the world to put a renewable fuel strategy in place, like the Americans, like Europe,” he said.

“Every other major agricultural jurisdiction in the world has got a plan in place to integrate biodiesel and ethanol into the fuel system. We don’t here in Canada yet.”

Hanmer is encouraged by the new possibilities the increased crushing capacity will bring to the province, and more specifically to canola producers.

“We’ve got a bright, bright future here to be the world’s leader in canola processing technology, as well as the hub of the canola industry for the world,” he stated. “This announcement in Yorkton is absolutely fantastic, but it is the tip of the iceberg for reinventing our vision for agriculture. I can’t tell you how exciting it is to be a part of that right now.”

Winnipeg-based JRI says construction of its plant will be completed by mid-2008. Construction on the Louis Dreyfus plant will begin this month, and it is also expected to be operational in 2008.

For more information, contact

Brad Hanmer, Past-President
Saskatchewan Canola Growers Association
Phone: (306) 668-2380
Website: www.canola-council.org