Ceres Global Ag cancels $350M US canola-crushing plant.

[beaverdam]

https://www.msn.com/en-ca/news/canada/ceres-cancels-350m-us-canola-crushing-plant-planned-for-saskatchewan/ar-AAYPlpM?ocid=msedgntp&cvid=d9af24e8e5c74bcd93c714ceddc3d89b

Must be having second thoughts about competing against plants coming into Regina???

[beaverdam]

Sad for us to see in SE Sask, as the closest crusher is about 3hr drive for us.

[bucket]

There is a few comments.

1. Remember the pasta plant announcement ?
2. Risks in growing canola are getting too large
3. Production has maybe peaked - peak canola?
4. If you took every acre of proposed and existing irrigation projects and put the acres to canola it wouldn't satisfy the recently announced crush plants. Therefore you are relying on dryland farmers and they are not supported.


These companies that made these announcements probably have government funding arrangements after the due diligence is done that allow them to reap a few bucks to help themselves to the trough, or this announcement may get the government to the table.

5. Look at what BHP just extracted from government and it was considered an agricultural announcement while it really wasn't. Potash has tripled in price and still extracting taxpayers dollars.

Farmers, don't pigeon hole these announcements, they are all part of a larger scheme where we are always left out. Providing cheap raw product on our dime while the other parts of the industry are government funded. And every announcement is somehow better for farmers yet it never seems to make its way back to the farm gate.

[dmlfarmer]

…Farmers, don't pigeon hole these announcements, they are all part of a larger scheme where we are always left out. Providing cheap raw product on our dime while the other parts of the industry are government funded. And every announcement is somehow better for farmers yet it never seems to make its way back to the farm gate.

What, you don’t believe in trickle down economic theory, the cornerstone of right wing economic policy?

[FarmJunkie]

What, you don’t believe in trickle down economic theory, the cornerstone of right wing economic policy?

Chuck 2 responds

[sumdumguy]

The business world is prolly scared to invest one more dollar in Kanukistan. Who knows who will be, “offended”.

[bucket]

I will say this.

If governments are going to support secondary industries like BHP, and various plants through Protein Industries Canada funding. And forget to help the farmer or rancher out., then it is just a matter of time before it all collapses.

Farmers start the whole process, without them , it fails through the whole system right to the grocery store.

Americans understand this and support farmers. Canadians do not except for Dairy.

[Taiga]

Bucket - you are bang on with #2 and #3.

[bucket]

Bucket - you are bang on with #2 and #3.

Thanks , I do alot of thinking about these types of things.

I just wish we had real actual farmers in government rather than the types that say " I am from a farm or my father farmed or my relatives farm"

That just doesn't qualify people to understand farming.

I could write a farm policy in three sentences and by the time the existing group in government from any political stripe were done with it it would be all phucked up.

No one watching herds disappear , but everyone will complain about the price of beef. Ranchers are struggling to stay afloat. Look at the recent announcement that if you have in excess of 2million in gross sales on a cattle ranch , you qualify for help from that spring storm and rightly so,,,,think about that,,,,,thats how tight it is on some of these farms. You can not entice young people to work for nothing. And yet many do for nothing more than the hardships they endure.

Meanwhile if a company wanted to put in a new slaughterhouse , the government would help fund it. Forgetting that we had one or two before.

[Rareearth]

Maybe no contractors available, or supply available of the processing equipment?
This would extend the construction and completion dates.

[jamesb]

In some ways I am not real surprised. Compared to the other companies that have announced projects, Ceres isn't a big outfit IMO. We do some business with them and they are growing. Kinda makes me wonder if they didn't bite on more they could chew and got a little ahead of themselves. They have been pretty competitive on canola basis seasonably and I expect that to continue.

[poorboy]

After the drought I think Ceres realized it was a terrible location.

On the edge of the canola growing region is not ideal, you want to be in the heart of it. Also not close enough to a big labor market.

Even the regina crushers are in the wrong place for canola supply. It must be that the location would fit well for providing bio diesel to the refinery.