Two agricultural business enterprises, Cargill and Viterra, have announced plans for new canola processing facilities in Regina to support the growing global demand for canola products. Cargill expects to begin construction on a $350 million project, which will have a similar design to Cargill’s existing Camrose facility, early next year with plans to be operational by early 2024.
Viterra has announced its intent to build a world class canola crushing facility in Regina and is in the feasibility stage to finalize the plant’s capabilities and design, with an initial targeted annual crush capacity of 2.5 million metric tonnes, which would make it the world’s largest integrated canola crush facility.
Cargill will also update and modernize its canola facilities in Camrose and Clavet over the next 12 months to increase volume and broaden capabilities at both locations.
“We are confident in the continued growth and competitiveness of the canola processing industry and look forward to helping farmers access increasing market demand,” said Jeff Vassart, president of Cargill Canada.
“Through these projects, we’re committed to providing a better, more efficient customer experience across our network, making it easier to do business with Cargill.”
The new Cargill facility is projected to have an annual production capacity of 1 million metric tonnes and will provide a consistent and fast point of delivery for farmers and end users. This investment will generate approximately 1 million hours of employment throughout the construction phase.
The Regina, Camrose and Clavet projects build upon Cargill’s work to modernize and expand capacity across its North American oilseeds network. In March, Cargill announced a series of other projects across its U.S. soy processing facilities, valued at $475 million dollars.
“Viterra is a large global player in the oilseed crushing industry, with quality assets throughout our agriculture network,” said David Mattiske, CEO of Viterra.
“Over the years we have made a number of strategic investments in Canada and we are excited at the potential opportunity to further enhance our processing business. We look forward to leveraging our expertise at this new state of the art facility and connecting our customers to additional opportunities within our supply chain.”
Oilseed crush demand is expected to continue strengthening in the long term, given continued demand growth for canola oil in food usage, as well as increases in meal consumption in animal feed markets. Additionally, this plant will play a key role in supplying the feed stock required for renewable fuel production. The additional production is vital to support the Federal Government’s intended Clean Fuel Standard, which aims to help reduce Canada’s greenhouse gas emissions.
Completion of the Viterra project in Regina is subject to successful negotiation and finalization of various permits, licensing, agreements with third parties and final approvals both internally and externally. The plant is targeted to be operational in late 2024.
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