ADM Agri-Industries, a subsidiary of U.S. agrifood company Archer Daniels Midland, said March 21 it will double seed receiving and storage capacity at its canola-processing plant in Lloydminster, Alberta.
The expansion is the most recent in a series of moves by crushers that reflects strong demand for the oilseed, which is Canada’s second-biggest crop after spring wheat.
ADM rivals Cargill Inc., Richardson International Ltd. and Louis Dreyfus all have added canola-crushing capacity in the past two years, while Bunge Ltd. is planning to expand a plant in Manitoba.
Canola, a variant of rapeseed, is crushed mainly for the vegetable oil market. Canada’s crushing capacity has expanded rapidly to about 8.2 million tonnes, and is on pace for a record crush of more than six million tonnes in 2010-11.
ADM expects to begin work in spring for completion in the fourth quarter this year. The project will add five storage bins and a second receiving system that will reduce unloading times for farmers, the company said.