Two area groups join efforts to attract soy processing facility

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Published on Friday, August 18, 2017

photo by John Dietz
This spring, Orville Berg planted soybeans on his land on the east side of Highway 5, between Erickson and Onanole. Berg is one of a growing number of farmers seeding soybeans. Statistics Canada reported that  Manitoba farmers continued their trend of planting more soybean acres, seeding 2.3 million acres in 2017, up 40.1 per cent compared with 2016. Westman Leadership Opportunities Group is hoping to make the industry even more beneficial to Manitoba farmers by attracting a world-class soy processing facility to the province.

By Kate Jackman-Atkinson
The Neepawa Banner

The race to attract a world-class soybean facility to Manitoba gained some momentum last month. NADCO, along with two other municipalities, have stepped forward to help attract a soybean facility to Manitoba. NADCO (Neepawa Area Development Corporation), which is made up of representatives from the Town of Neepawa and municipalities of North Cypress-Langford, Rosedale and Glenella-Lansdowne, formally joined the Westman Opportunities Leadership Group (WOLG) last month. 

WOLG is working to attract a world class soybean facility to Manitoba, ideally Westman, laying the ground work for an established player to actually build and operate the facility. Launched earlier this year, the volunteer-led group is being described as a proactive investment attraction process.
Joining WOLG’s 12 member board required an investment of $25,000.  “This gives NADCO a seat at the table,” said Town of Neepawa Economic Development Officer Marilyn Crewe, who has been selected as NADCO’s representative. She explained that involvement at the board level will give them direct contact with project development, including site selection. “It’s important for us to be part of it,” said Crewe. The investment, which effectively gives NADCO shares in WOLG, will be used for development costs, such as research and consultants’ fees.
The group is still in the research phase, determining not only the amenities available in various communities, but also projecting long-term crushing demand for this crop, which is growing in popularity.  The group will prepare a complete package, including recommended sites and plant specifics, to be presented to established companies in the industry. WOLG chair Ray Redern explains, “WOLG is a volunteer grassroots organization, and is not looking to build a plant – we are focused on attracting the right private sector investment, based upon the economic merits of it to the soy industry, to Manitoba agriculture, and ultimately, to all Manitoba communities.”
With soybean acres increasing across the province, providing a Canadian crushing option is very important. Over 1.6 million acres of soybeans were seeded in Manitoba in 2016, a significant increase over 2015 levels. Last year, Manitoba Agriculture was forecasting that if current trends continue, 3 million acres of the crop could be grown in the province by 2022. The plant would be advantageous to not only Manitoba soybean growers, but also those in eastern Saskatchewan.  Today, the crop is all exported to crushing plants in the U.S.
Seat at the table
While the group hopes to see a plant located somewhere in the province, they are focusing on the Westman area. Most of the growth in both soybean acres and hog production, which is the major consumer of soybean meal, is taking place in the western part of Manitoba. “We want to have a made in Canada option,” said Crewe, adding, that a plant located anywhere in Manitoba will have a positive impact on the Neepawa-area economy.
A Manitoba-based soybean plant won’t only help Manitoba farmers growing the crop, but will also help their suppliers, as well as hog producers, who use the meal as a feed source. Talking about spin-offs, “It’s quite an extensive list,” said Crewe.
While the investment doesn’t mean that the plant will be located in the Neepawa area, Crewe said that the town does have a number of amenities needed for a plant, including highway and rail access, water, hydro and natural gas. A 40 to 50 acre parcel of land that can be serviced with these utilities would be needed for such a facility. With NADCO, and not the individual municipalities, working with WOLG, the Neepawa area also has another attractive asset, a proven ability for area municipalities to work together. “Corporations like to see communities that can work together,” said Crewe.
Even if the work doesn’t result in a plant being located in the Neepawa area, Crewe said that being part of the process will give them information and experience they can apply to attracting other potential projects.
Along with NADCO, Russell-Binscarth and Carberry have also joined WOLG. “The community endorsement and financial support provided by these communities are welcome additions and clear signs of regional support to attract a soybean processing facility,” said Redfern, adding,  “In a very short while, we have mobilized significant community support. Russell–Binscarth, Carberry and the Neepawa Area Development Corporation joining our group demonstrates there is significant interest and willingness to do business together to attract a soybean facility.” Redfern added that to date, they have received funding commitments of nearly $150,000, which can be used to leverage additional support from more senior levels of government.
Stuart Olmstead, Carberry’s mayor and their representative on the WOLG board, said about their decision, “We have a track record of attracting major investment to our community that fits with its key strategic assets, namely high quality agricultural production supported by the additional resources of our aquifer… We look forward to working with the other communities that are involved in this process, and ultimately talking directly to companies about the benefits of establishing in Carberry.  The grass roots effort of WOLG with the community based process is the best way to attract this scale of major investment to Manitoba. Collectively we can make this happen by working hand in hand with our partners to benefit us all.”
The three new partners will join existing members, Brandon and Virden. As well, Redfern explained,“We have established an important long-term relationship with Brandon University and its Rural Development Institute (RDI) to support delivery of the project and bring their wide network of experts to validate the opportunity.  The significance cannot be understated, as they are providing ongoing support through RDI and providing leadership on the WOLG Board.”
Crewe said the group is working towards having the proposal package, including a recommended site, complete within about two years. “We want to be right,” she said, adding that they also don’t want to take too long and run the risk that a new plant is constructed elsewhere.