op, AGT to build C$360-mln Canadian canola crush plant

Ceres Global Ag

17/01/2022 16:52

By Rod Nickel
    WINNIPEG, Manitoba, Jan 17 (Reuters) - Federated
Co-operative Limited (FCL) and AGT Food and Ingredients said on
Monday that they have signed a memorandum of understanding to
build a C$360 million ($287.56 million) canola crush facility,
part of a larger plan that includes an FCL renewable diesel
plant near Regina, Saskatchewan.
    The announcement is the latest of a series of planned
expansions to Canadian canola crushing capacity, along with
Richardson International, Ceres Global Ag Corp  CRP.TO , Cargill
Inc  CARG.UL  and Viterra Inc. Canola hit record high prices
last year due to strong global demand for vegetable oil and a
Canadian drought that shrunk the harvest.
    The companies said they would form a joint venture, with
Saskatchewan-based FCL owning 51% and AGT 49%. 
    The plant will crush 1.1 million tonnes of canola annually
into oil and meal, with the oil supplying half of the feedstock
needed for FCL's planned 15,000 barrel per day renewable diesel
plant.
    They did not announce a timeline to build the crush plant.
    Fairfax Financial Holdings  FFH.TO , a Canadian holding
company, is the majority investor in AGT, a major exporter of
peas and lentils.



($1 = 1.2519 Canadian dollars)

 (Reporting by Rod Nickel in Winnipeg, Editing by Franklin Paul)
 ((rod.nickel@tr.com; Twitter: @RodNickel_Rtrs;
1-204-230-6043;))