Australia’s GrainCorp is investing $125 million to restructure its oil processing operations as demand for canola-based products continues to increase. The group plans to shift its processing centers closer to southern-based canola producers through expanding its canola crushing plant in northern Victoria and an oil refining plant in Melbourne, and closing its Murarrie site in Brisbane in 2016. The majority of the oil produced at GrainCorp’s Melbourne site is canola-based, and after a dry end to Australia’s winter cropping season led to lower canola yields and a harvest closer to 3 million tons rather than the usual 4 million tons, the company will be forced to source its canola from farther distances.
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