It’s no secret the canola crush plant trade has been increasing in Western Canada, and as the biofuel trade continues its climb, it’s one thing we will doubtless proceed to see.
Brian Voth, founding father of IntelliFarm, says that as demand rises throughout the market — and he’ll argue demand is rarely a nasty factor — it begs the query: can supply sustain to this impossibly tight stability sheet?
“With Richardson in Yorkton, and now Bunge in Altona planning a small expansion as well, you’re going to be looking at adding a million and a half to two million tonnes of crush capacity over the next three years, give or take. As long as the export market continues the way it has been, it’s great for canola, but we almost start to question, as we’re going to get to a point where the demand is just going to exceed the supply side, because we can’t physically grow enough?”
Acreage or yields will want to improve — and with a dry outlook throughout the Prairies but once more, extraordinary yield numbers could possibly be robust to obtain. (Though, we’re holding out hope.)
“If the average yields all of a sudden take a jump of a couple of bushels an acre, it would be no problem, but it seems like yields have been generally — and this is just overall as a Canada average — yields have been relatively flat, since we took that big jump in 2016. It’s great from a canola farmer’s perspective. There’s never a bad situation when there’s more demand added, I don’t think, but it’s going to be more of a matter of can we fill it from a supply side when they are up and running.”
Need to hear extra? Hear to Voth’s full dialogue on the t0pic throughout this Q&A!
Associated: Richardson to double annual canola crush capability at Yorkton plant