Big boost for canola plant

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This article was published 14/10/2010 (5661 days ago), so information in it may no longer be current.

The southern Manitoba economy received a big shot in the arm with Bunge North America’s announcement that it plans to more than double production capacity at its Altona canola processing plant.

A spokeswoman for the St. Louis-based agri-food giant said Wednesday it plans to increase capacity to 2,500 tonnes a day from 1,100 tonnes as part of a multi-year expansion of its four western Canadian processing plants.

Deb Seidel said if the project receives the necessary internal and external approvals, and the company is confident it will, the expansion should be completed in time for the 2012 grain harvest.

Seidel refused to reveal the cost of the Altona project, which also includes the installation of a new deodorizer to further process the canola oil produced at the facility.

Winkler-based agriculture commentator Harry Siemens said he’s been told the early estimate was that it would cost $80 million to $100 million. However, no one from the company or town would confirm that figure.

Altona Mayor Melvin Klassen said Bunge (pronounced BUN-GEE) officials told town councillors the company hasn’t determined the final cost or how many new jobs will be created. The plant employs about 75 people, most of whom are from Altona and other nearby communities.

“I’m sure it won’t mean a doubling of the manpower,” Klassen said. “But for sure there will be some new jobs.”

He said the expansion will not only create new jobs at the Bunge plant, but also new construction jobs for the area and an increased demand for locally grown canola seed.

“So it’s tremendous news for Altona and the surrounding community.”

He said the announcement also shows Bunge is committed to maintaining the plant in the community for the long term.

“That to me is very important,” he said, noting the plant has changed hands four or five times since it was founded by a group of local producers in the mid-1940s. So there have been fears off and on over the years that it might one day be closed.

Susan Yakabowich, general manager of the Altona and District Chamber of Commerce, said chamber officials are also thrilled with Bunge’s plan.

“Altona has seen a lot of growth in many areas, and this is another indication of how well our community is doing,” Yakabowich said. “And it’s also very promising for the long-term future of the plant.”

Bunge, which acquired the Altona plant in 2002, owns an even bigger canola processing plant in Harrowby, Man. Seidel said the multi-year expansion program will affect all four of the company’s processing plants in Western Canada — it also has plants in Nipawin, Sask. and Fort Saskatchewan, Alta. — but plans for the other three facilities have not yet been finalized.

She said the Harrowby plant currently has production capacity of about 1,450 tonnes per day.

Rick Watson, Bunge’s country manager in Canada, said the Altona plant was a logical choice for expansion.

“Canola is an attractive crop to the Canadian farmer and both acreage and yields will increase especially around Altona, making it a logical first place to expand our Canadian operations,” Watson said. “From Altona, we can serve most of Bunge’s oil packaging plants and major food manufacturers as well as efficiently transport meal to key dairy states in the upper Midwest.”

Bunge North America, the North American operating arm of Bunge Limited, is a vertically integrated food and feed ingredient company, supplying raw and processed agricultural commodities and specialized food ingredients to a wide range of customers in the livestock, poultry, food processor, foodservice and bakery industries.

murray.mcneill@freepress.mb.ca

Plant began its life

as a Prairie co-op

Some information about the Bunge canola processing plant in Altona:

 

— Began as a locally owned co-op in 1946.

— Originally was used to process sunflower seeds. Over the years, soybeans and safflower were also added to the crushing process. Soybean and sunflower seed crushing were discontinued in 1979 and 1995, respectively.

— Today, it crushes canola, specialty varieties of canola, and flax.

— While most of their products are exported to Eastern Canada and the United States, a small portion of Bunge’s oil and meal is distributed for local commercial use. Several companies in Winnipeg use canola oil for potato-chip manufacturing. Likewise, various food companies use the oil for salad dressings, mayonnaise and margarine. The canola meal is shipped to local and global farmers alike to be used as a high-protein additive in animal feed.

— The flax oil is used in the production of industrial goods such as paint and lubricants, given that the oil is not fit for human consumption.

 

— Source: Altona & District Chamber of Commerce