02-05-2025
Viterra's Regina canola crusher plans 'unlikely' to proceed: U.S. report
The construction of yet another canola crush plant that was planned for Regina is 'unlikely to go ahead,' states a report from the U.S. Department of Agriculture.
The report, publicly available on the department's Foreign Agriculture Service website, describes Viterra's plans for a new plant in the city as 'in limbo as of 2024' after U.S.-based Bunge's multibillion-dollar acquisition.
'It is under review, but industry contacts say plant construction is unlikely to go ahead,' states the report, dated March 31, 2025.
Canola crushing is the process of extracting oil from the seeds.
In January, Bunge received approval from the Canadian government to acquire Regina-based Viterra, formerly the Saskatchewan Wheat Pool.
'With our announced business combination with Bunge, our team remains focused on regulatory approvals and integration planning to ensure a smooth transition for our customers across our complementary asset network,' Viterra said via email after the Leader-Post asked directly if the project was under review and whether construction would go ahead.
Canola is one of Saskatchewan's top exports but the sector faces growing fears due in part to 100-per-cent tariffs recently imposed by China.
'Domestic crush capacity expanded because of a desire to diversify away from the volatile Chinese market demand for canola seed …,' reads the U.S. report.
The report — titled Canada: Oilseeds and Products Annual — notes that crush capacity growth has fallen short of projections.
When Viterra first announced plans for a new world-class Regina crushing plant back in 2021, projections indicated there could be 59-per-cent growth in crush capacity by 2025, the report says.
Once Cargill completes its new facility in Regina later this year, the national canola crush capacity is estimated to be 14.46-million metric tons (MMT), notes the report, explaining that would constitute a 28-per-cent national increase.
'The volume of canola processed, as well as the volume exported (as seed, oil, or meal), is highly dependent on the evolution of several economic and political variables such as the future of state, provincial, and federal (U.S. and Canadian) market incentives for renewable fuels,' states the report.
'Processors monitor the crush spread (the difference between the value of canola seed and its byproducts of oil and meal), to gauge of the potential profit margin for canola processors. Processors might also look at economic and political risk indicators of export markets.'
Earlier this year, Federated Co-operatives Limited (FCL) announced that plans for a renewable diesel facility and joint-venture canola crush plant — two main projects associated with its proposed Integrated Agriculture Complex in Regina — were being 'paused for the foreseeable future.'
The company attributed the decision to 'regulatory and political uncertainty, potential shifts in low-carbon public policy and escalating costs.'
FCL CEO Heather Ryan said the company made the decision after taking a look at the cost analysis of the project using recent data.
'Quite honestly, there was a lot of escalating cost with respect to this magnitude of a project that played a large part in our decision as well,' Ryan told the Leader-Post in January.
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