Agrifood giant Archer Daniels Midland plans to start work this spring doubling storage capacity and “receiving capabilities” at its Lloydminster, Alta. canola crushing plant.
The project involves five new storage bins and a second receiving system, “which is expected to significantly reduce unloading times for area farmers,” the company’s ADM Agri-Industries arm said in a release Monday.
The second receiving system, including additional conveyors and other equipment, is expected to double the plant’s crop intake rate and cut farmers’ wait times in half, said J.P. Montalvo, commercial manager at the Lloydminster facility. And when the new storage bins are added, the Lloydminster plant will have total seed storage capacity of 100,000 tonnes, he said.
The expansion work is expected to begin this spring, pending permit approvals, and is expected to be completed in the fourth quarter of this year, the company said.
“As area farmers continue to produce higher canola yields, they expect fast, efficient and predictable receiving facilities,” Montalvo said in the release.
The expansion, he said, “will help ensure we are the destination of choice for (farmers’) canola crop.”
ADM Agri-Industries last August announced it would also build a second unloading bay — that is, where farmers unload canola into the plant’s receiving system — and double grading capacity at the Lloydminster plant. That work was completed during the fourth quarter of 2010.
The Illinois-based multinational said in August its decision followed a survey of area farmers, which the company said “indicated that farmers were concerned about the amount of time they spent waiting to unload.”
The Agri-Industries division said last summer it was also “evaluating additional capital projects” at Lloydminster, such as a proposal for a 265 million-litre per year biodiesel facility, and an expansion of the plant’s railcar shipping capacity — plus the now-confirmed storage and receiving projects.
Apart from its deliveries from area growers, the Lloydminster plant sources canola from ADM elevators at Carberry, Man., about 50 km east of Brandon, and at Watson, Sask., about 40 km east of Humboldt.
Much of the Lloydminster plant’s oil output is destined for export to Asia for food applications, and to Europe for use as biodiesel feedstock. Its canola meal byproduct is “used principally for livestock feed.”