Cargill says planned opening of new Regina canola crush plant faces another delay

TROY FLEECE /Regina Leader-Post Jeff Vassart, president of Cargill Canada; speaks during a ceremonial groundbreaking event for a Cargill canola processing facility on July 19, 2022 in Regina.

Nykole King

Regina Leader-Post

Agriculture processor Cargill Limited has pushed back the opening of its new Regina-based canola crushing plant until spring 2026, according to the company.

The $350-million canola processing project, located at the Global Transportation Hub west of Regina, had been slated to open before the end of 2025. That was already a revised timeline from its earlier estimate to be operational by early 2024 after initial construction began in 2022.

A company spokesperson confirmed the latest delay to the Regina Leader-Post. In a separate email on Thursday, Cargill president Jeff Vassart emphasized that the company “remains fully committed to our investment in Regina.”

“Like many large capital projects, the construction timeline has been influenced by a range of factors, including weather, equipment lead times and construction logistics,” Vassart said. “Construction is progressing well, and we remain focused on completing the project safely.”

The plant is designed to process canola seed into canola oil and meal, with a production capacity of one million metric tonnes. It’s expected to employ approximately 50 full-time workers.

Plans for other Regina canola crush facilities have been placed in limbo this year. In January, Federated Co-operatives Limited (FCL) paused its joint venture with AGT Foods for a renewable diesel facility and canola crush plant.

Viterra, acquired by U.S.-based Bunge Limited in July, also had plans to build a canola crush plant in Regina but a springtime report from the U.S. Department of Agriculture said those plans were “unlikely to go ahead.

The Canadian canola industry was sent reeling in March when China introduced a 100 per cent tariff on canola oil and meal imports. Premier Scott Moe described it as “likely the most urgent and most significant tariff impacting the Saskatchewan economy today.” China then slapped a 75.8 per cent tariff on canola seed in August, hitting many Saskatchewan farmers at harvest.

China is traditionally one of Canada’s largest canola trade partners, along with the U.S.

Asked what Cargill sees that its competitors don’t in the canola market, Vassart reiterated its support for the nation’s agriculture industry.

“This project reflects Cargill’s long-term commitment to Canadian agriculture,” he said in the prepared statement. “We believe Canadian agriculture will continue to play an important role in the global food system, and we’re backing that belief with an investment that strengthens domestic processing capacity and supports grower success for years to come.”

nyking@postmedia.com

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