Monsanto to expand Canadian seed facility

The southern Alberta facility where Monsanto Canada processes its hybrid canola seed varieties is up for a $14 million overhaul.

The seed and ag chemical company on Wednesday announced major expansions and upgrades for its Lethbridge seed manufacturing plant, which by next fall is expected to handle seed cleaning for all Monsantos North American hybrid canola seed production.

Monsantos Winnipeg-based Canadian arm plans a new "state of the art" seed cleaning plant and expanded bulk storage at Lethbridge, where staff currently oversee production of over 10,000 acres of branded hybrid canola seed production across the provinces southern cropland.

Construction is expected to start in early September for completion in August next year.

"Our canola hybrid production volume has increased at a rapid pace and our current facility is not adequate to support our expected continued growth in this segment of our business," Ryan Baldwin, president of Monsanto Canadas seed and traits business, said in a release.

"By bringing everything under one roof, we will gain efficiencies and enhance our quality control."

The new seed cleaning plant, for example, is expected to eliminate the need to use outside seed cleaners, the company said.

Monsanto expects significant growth in its canola business in coming years, driven by its DeKalb hybrids and "the future pipeline of traits we expect to deliver to canola growers over the next five to 10 years," Baldwin said.

Wednesdays announcement follows Monsantos investments last year in its other Prairie canola facilities, which included its new plant breeding centre in Winnipeg and expansion of its crop technology research centre in Saskatoon.

The new Lethbridge infrastructure, the company said, supports an annual research and development spend of over $20 million a year on canola.

Apart from its Genuity trait business and DeKalb hybrids, Monsantos canola program is also focused on developing a germplasm and agronomic trait package that includes genetics for yield, nitrogen use efficiency and drought tolerance.