An economic development group says Virden area is well situated as a potential site for a value-added agricultural industry.
A world class soybean processing plant is being considered for the Westman region.
The Westman Opportunities Leadership Group (WOLG) is in the early stages of a feasibility study to present a case for a crushing plant.
The Leadership Group is comprised of volunteers from regional business, farm and civic leaders.
Ray Redfern, Chair of WOLG explained the explosion of soybean growing into the western prairies as a driving factor.
“In 2016 over 1.7 million acres of soybeans were planted in Manitoba, with huge increase taking place in Western Manitoba. In 2011 soybeans accounted for only about 5% of the planted acreage, today it’s widespread and growing.”
While Redfern says it’s early in the process, he explains another driver is a waiting market for the soymeal product.
HyLife, Canada’s leading pork producer, with its head office in La Broquerie, Manitoba, has a reputation for exceptional pork products with world-wide markets into Japan, China and Russia.
Redfern points out, HyLife plans to increase production in their Neepawa processing plant by 45% or $95 million.
The Brandon Maple Leaf plant is also looking for more hogs to process.
A saving in freight alone – currently $38/Tonne to haul to and from the nearest processor at Volga, South Dakota, could give both soybean producers and hog producers a slight, but important edge.
Margins are tight for the hog industry and Redfern predicts a possible 25% to 50% increase in profit margins for pork production.
He further points to long-term sustainability of both industries (meat industry and pulse growers).
No small undertaking, the kind of plant the group is hoping for is projected to cost $35 to $50 million for construction alone.
To build and operate such a plant would require the deep pockets and expertise of an established processor, Redfer says.
The attraction
All part of the attraction process, railway and highway access as well as heavy power lines, already in place to serve the oil industry, make Virden a clear candidate for a soybean processing plant.
Ed Brethour, Virden’s Economic Development Officer is part of a municipal interest group from the RMs of Wallace-Woodworth, Sifton and Pipestone – all part of WOGL.
“Being able to get in and out of the community, whether it’s by rail or truck is a big thing,” says Brethour of a crushing facility.
“I think the idea is to demonstrate that Western Manitoba is the best place to build,” he adds.
“No matter where it goes, it’s going to benefit the farmers. The decision on the site will be made by which ever company comes forward.”
This initiative is building on the findings of the Manitoba Soybean Crush Feasibility Study commissioned by Soy 20/20, as a press release explains.
WOLG, in partnership with the Brandon Economic Development Corporation, engaged the services of EcDev Solutions to conduct preliminary project work.
This preliminary work is aimed at establishing project leadership, building a detailed work plan to identify potential opportunity and to finding more funding for the efforts.
Initial funding for the preliminary work, slated for completion by Jan. 31, 2017, was provided by the Brandon Economic Development Corporation, with project oversight provided by WOLG.
A recent press release says The Westman Opportunities Leadership Group’s efforts to attract a world-class soybean processing plant to Westman has gained further momentum with a $25,000 funding commitment from the City of Brandon.
Ensuring a steady source of soybeans for a crushing plant is a critical factor.
The crop that was originally only found in the Red River Valley has jumped in popularity with new strains that can grow well throughout Westman and eastern Saskatchewan.
Redfern is optimistic acres can increase, noting all it takes is for a producer who planted a single soybean field last year, to plant two fields this year; and for a curious neighbour to decide to give soybeans a try.
What does concern him, is to see the entire region pull together.
Countries like China are seeking protein from hogs. That market is likely to grow throughout the next decade.
The next big soymeal plant to be built will become a major player and Redfern doesn’t want Westman to miss what he terms, “a golden opportunity”.
“Discussions are underway with industry associations and other regional governments to confirm their support,” stated Redfern.
“We soon will be formalizing discussions with the Province to do the same. We are a volunteer grassroots organization, and are not looking to build a plant – we want to attract the right private sector investment to do that, based upon the economic merits of the industry and the Region.”
