Cargill set to add 1m metric tons of additional canola crush capacity in Canada

By Jane Byrne contact

- Last updated on GMT

© GettyImages/SylvieBouchard
© GettyImages/SylvieBouchard

Related tags: Canola meal, Canada, crushing capacity

Cargill has announced plans to build a new canola processing facility in Saskatchewan, Canada, to support the growing global demand for canola products. The new facility, to be located in Regina, will have an annual production capacity of one million metric tons (MT) when online.

The agribusiness giant said it expects to begin construction on the crushing plant early next year. The build is set to cost US$350m.

The facility, which will be similar in design to Cargill’s existing Camrose, Alberta plant, is set to be operational in early 2024.

A spokesperson for Cargill told us end users of the canola products from this plant will be feed, food and fuel customers. "In terms of meal and oil output, percentages will reflect a typical split found at a facility like this with around 40% oil and 60% meal,​" he confirmed. 

And the facility will look to serve end users located in North America and globally, he added.

While generating around one million hours of employment throughout the construction phase, upon completion, Cargill expects the facility will need about 50 full-time employees.

“We are confident in the continued growth and competitiveness of the canola processing industry. Through these projects, we’re committed to providing a better, more efficient customer experience across our network,”​ said Jeff Vassart, president of Cargill Canada, in a release.

Also in the pipeline is the modernization of other Cargill run canola processing facilities in Canada. Those upgrades will take place over the next 12 months. One of those facilities is in Camrose, the other site is in Clavet, Saskatchewan. Cargill wants to boost volume and broaden capabilities at both locations. The spokesperson would not put a dollar value on those projects.

The Canola Council of Canada recently updated its canola meal feeding guide​ to include nutrient profile of canola meal obtained through a collection of meal samples from processors across Canada over a seven-year period, along with new data on protein degradation, fiber digestion and amino acid supply of canola meal in the rumen and its impact on milk production. The publication includes updated values of energy content and inclusion levels of canola meal in swine and poultry feeds as well. There is also data around the use of canola meal  in aquaculture diets.

US soy crush investment program

The Canadian canola projects will build on the work Cargill has done to date to modernize and expand capacity across its North American oilseeds network. 

In addition, last month saw Cargill announce a series of additional investment projects across its US soy crushing facilities, valued at US$475m. That program covers modernization and expansion projects at sites in seven US states. The aim is to improve the facilities’ operational efficiencies, while also increasing capacity—by 10% overall in capacity at its Cedar Rapids site, while doubling output in its Sidney, Ohio facility.

A Cargill spokesperson told us back then that there were a multitude of factors driving demand for soy in the US. As the US starts to rebuild after the COVID-19 pandemic, and food service rebounds slightly, there is greater demand for soy products and for soybean meal for livestock production. “We expect that to continue over time. In addition to the primary drivers in food, we also are aware of growth in demand for fats and oils to serve the renewable fuels sector, and that is part of the overall demand mix for soy in the US."

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