Pacific Coast Canola expands agreement with CHS, Inc.

Legumex Walker, Inc. has announced that its 85%-owned subsidiary, Pacific Coast Canola (PCC), has expanded its previously existing agreement with CHS, Inc., for the procurement of canola oilseed and off-take of canola meal to include the sales of canola oil products produced at the PCC canola processing facility in Warden, Wash. The facility, which is the first commercial-scale canola processing operation west of the Rocky Mountains and the largest expeller-pressed canola processing facility in North America, is scheduled to commence start-up operations in the first quarter of 2013.

“Through this expanded agreement, PCC will have access to some of the world’s largest food processors and distributors, to which CHS currently markets a variety of soy-based oils, said Joel Horn, president and chief executive officer of Legumex Walker, Inc. “PCC’s marketing personnel will work side-by-side with CHS’s existing merchandising team to market and sell our expeller-pressed canola oil to CHS customers. Moreover, with our CHS agreement now covering canola oil sales in addition to oilseed procurement and canola meal sales, we will have enhanced visibility into the overall edible-oil market, which should strengthen our ability to more effectively manage our positions.”

“We have seen a marked increase in the demand for canola oil from our customer base as food processors respond to changing consumer preferences and government bans on trans-fat oils,” said Gary Anderson, senior vice president, Processing and Food Ingredients, CHS Inc. “Building on the strength of our existing partnership, the expansion of our agreement with PCC allows us to now offer canola oil alongside our soy-based oils to meet our customers’ refined-oil needs. We look forward to working with the PCC team to capitalize on what is expected to be very healthy growth in the use of canola oil going forward.”

CHS Inc. is a global agribusiness owned by farmers, ranchers and cooperatives across the United States and is diversified in energy, grains and foods. It offers a broad portfolio of soy products, including soy oils and soy flour for both food and industrial applications, PlastiSoy™ expoxized oils, soy isolates and soy concentrates.

PCC is constructing its first canola processing plant in Warden with a nominal capacity to crush 1,100 metric tonnes (MT) of canola seed per day. The facility will produce refined, bleached and deodorized expeller-pressed canola oil. PCC is well positioned to supply the expanding demand for canola products on the west coast of the United States. Warden is in the heart of a multi-state region that is ideal for canola production and well-served by rail and surface transportation routes. The plant has a design output capacity of 142,500 MT (approximately 314,000,000 pounds) of canola oil and 227,000 MT of canola meal per year.

PCC is 85 percent owned by Legumex Walker and 15 percent by Glencore Grain Investment LLC.

Legumex Walker is a processor and merchandiser of pulses (lentils, peas, beans and chickpeas), other special crops and canola products in Canada, with 11 processing facilities strategically located in key growing regions in the Canadian prairie provinces, the American midwest and China. It has a global sales, logistics and distribution platform and access to multimodal transportation capabilities.