Louis Dreyfus Canada assumes full ownership of
Yorkton, SK canola crushing facility
YORKTON, Sask., April 26, 2013 -- Louis Dreyfus Canada Ltd. (“Louis Dreyfus Canada”) today announced it has purchased the minority ownership interest in its Yorkton, Sask. canola crushing facility that had been held by affiliates of Mitsui & Co., Ltd. (“Mitsui”). The deal took effect on March 29, 2013. Louis Dreyfus Canada now owns 100% of the facility. Louis Dreyfus Canada and Mitsui determined, after a review of the Yorkton investment, that this transaction best served the interests of both companies as they continue and further develop their commercial relationships.
According to Brian Conn, Louis Dreyfus Canada’s Vice-President, Oilseeds, the company anticipates a seamless transition for customers and suppliers.
“For canola growers dealing with the facility, it will be business as usual,” said Conn. “There will be no personnel changes at the facility as a result of the transaction and we will continue to provide a high level of service to our growers.”
The facility opened in 2010 with a rated crushing capacity of 2,500 tonnes per day. This summer and fall, Louis Dreyfus Canada will make a significant capital investment to increase capacity to 3,000 tonnes per day, making the Yorkton facility one of the highest-capacity canola crushing plants in North America. Based on the 13.3 million tonnes of canola seed grown in Canada in 2012, the expanded facility will be able to crush approximately 8% of the country’s canola seed production under one roof
Conn stated that the purchase and the planned expansion demonstrate Louis Dreyfus Canada’s commitment to and confidence in the canola industry.
“Global demand for Canada’s healthy, versatile canola oil continues to grow,” said Conn. “Having a larger facility will allow for a deeper relationship with canola growers, as we work together to meet this demand and bring greater value to our customers around the world.”
About Louis Dreyfus Commodities
Louis Dreyfus Canada Ltd. is a member of the Louis Dreyfus Commodities Group of companies. Louis Dreyfus Commodities has a highly diversified agricultural business in North America and operates in the cotton, grains, oilseeds, sugar, rice, freight, coffee, and juice markets. With over 2,000 employees, Louis Dreyfus Commodities North American operations include 9 agricultural processing plants and over 30 logistics assets including 6 grains/oilseeds export elevators, 10 interior grains/oilseeds elevators and 20 cotton warehouses.
The Louis Dreyfus Commodities Group is a global merchandiser of commodities, a major asset owner and a processor of agricultural goods. With more than 160 years of experience, the Group’s portfolio has grown to include Oilseeds, Grains, Feed, Rice, Freight, Finance, Juice, Cotton, Coffee, Sugar, Metals, Dairy and Fertilizers & Inputs. Structured as a matrix organization of 6 geographical regions and 13 business lines or ‘platforms’, Louis Dreyfus Commodities is present in more than 90 countries and employs more than 38,000 people at peak season. For more information, visit www.ldcommodities.com.
Corn basis levels were strong for the week as river terminals needed spot supplies while they continued to catch up on shipments to the Gulf after barges were stalled due to high water and treacherous conditions on various sections of the rivers prior to last week. Conditions on the rivers improved last week as the Upper Mississippi, Illinois and Lower Ohio Rivers saw falling water levels after reaching a crest late in the week. On the upper Illinois River, Marseilles Lock reopened on May 15 with the Coast Guard imposing restrictions for barge traffic as repairs continue on the gates. The Mississippi River was expected to crest in St. Louis Wednesday with the lower Mississippi expecting to crest by the weekend. USDA reported total corn inspections through the week ending May 16 were up 17% from the prior week, but nearly 50% below the total last year at this time.