Bio diesel plant for ND

[wedino]

This has to be good news for canola.

GRAND FORKS -- A $50 million biodiesel manufacturing plant to be built in North Dakota will use canola to make fuel, creating jobs as well as a new market for farmers, officials said Tuesday.

Full article -

http://www.bismarcktribune.com/articles/2005/03/23/news/topnews/top01.txt

[Vader]

How much of this canola will come from Canada? Is it the CWB's fault that this plant is not being built in Canada? The CWB is always being accused of standing in the way of value added processing and driving the industry into the US.

When will we build a 50million dollar biodiesel plant in Canada?

[wedino]

Vader, I have no idea how much canola will come from Canada. As far as I'm concerned it doesn't matter from where the canola comes, it only matters that canola is being consumed.

I'll leave it to others to answer your cwb questions. Last I heard canola was free from cwb.

[TOM4CWB]

Vader,

Since you brought the subject up, is the CWB planning to buy and sell Canola in the future?

[Vader]

It is strange how different the discussion is between canola and wheat and barley. With canola it is sufficient that it is being consumed. With wheat and barley many comments suggest that if it is not being processed in Canada that the CWB is doing something wrong.

Tom, I would welcome the opportunity for the CWB to market other crops. Don't get too excited it would not be mandated through the single desk. In fact you might not even know if the CWB were marketing other crops. There are times when the CWB offers cash bids for feed barley through the grain companies when sales values do not support the PRO and producers are not aware that that these stocks are for CWB sales.

[Everest]

Nice to see new processing in North America. I for one would prefer a Canola biodiesel plant being built in Canada. US import duties and BSE should teach us all a lesson in how fragile exports of primary production can be.

Questions:

1. Is there any difference between mandated bio-fuels in Canada vs the US?
2. Is there a difference is tax incentives of any kind between Canada and the US?
3. Do US tax incentives and mandates for bio-fuels dictate where the production must come from?

I don't know the answers to these questions. If someone does, it might help explain things, and give us targets to work on so that we can get this kind of thing here too.

Again Vader, I do prefer to see processing plants being built in Canada. I believe it would bring a greater assurance of available markets, not to mention the economic spinoffs we would get on this side of the border. The Federal Government and the canola industry in Canada should be making sure it is just as economically advantageous to have plants in Canada as anywhere else. What is the CWB doing to promote it this kind of value added activity in wheat and barley? And what is the CWB doing so that farmers can access US plants directly as we are free to do with canola, flax, pulses, sunflowers, oats, etc, etc, etc,.

[charliep]

Will have to get someone's help from Manitoba but my understanding is that St. Agathe is up and running (finally). There are others who are more aware but my understanding are still running as a single press/leaving more oil in to improve energy of meal. May also be targeting the lower end of the canola grade spectrum and using oil may as an energy enhancer in poultry rations. Again, am looking for help.

This is just to highlight there are other value added activities around canola in western Canada. There has also been good research around bio fuels at the University of Saskatchewan. The uses will be as an additive in diesel fuels to improve performance/reduce wear and for use in environmently sensitive areas (better to spill canola oil versus diesel fuel).

[wd9]

Maybe the Biodiesel Association of Canada could answer a few of these questions.

[parsley]

Everest,

1. I did hear on the radio this morning that the cost of oil = 10% oil costs and 90% tax.
-So I would think if not taxation now, that future taxation would be a worry for developers.

2. I would think that all elevators, all mills etc. designated as works for the general advantage by CWB legislation wcould be a worry factor for anyone investing.

3. Could the CWB adding canola to the single desk be a nightmare for developers?

Is the Canadian environment too all-round risky for investors?

Parsley

[Vader]

parsley, I think you are guilty of fearmongering. There is no indication that the CWB will be adding canola to the single desk. The current legislation requires that producers ask for a vote before any grain is added/removed from the CWB.

The Canadian environment is definintely not a barrier to value added. Rogers Flour is building a new plant in BC. They have identified a market and done their due diligence and determined that this is an attractive investment opportunity. This is a wheat flour mill and they will be buying wheat from the CWB. No problem!

Conversely a producer group built a Pasta plant just south of the Canadian border (due south of Regina I believe) two years ago. The operated for one year and then went broke.

Everything hinges on consumer demand and a sound business plan.