Senwes investigates viability of oilseed crushing plant
FMCG SUPPLIER NEWS
Business Day - Feb 20th, 08:45
Agribusiness firm Senwes, along with an international partner, Bunge, on Friday announced plans to investigate the viability of an oilseed crushing plant — a move that would create an alternative higher value market for farmers.
Such a plant would change the face of the oilseed industry, creating an alternative market for cooking oil, animal feed, fertiliser and also for bio-pesticides.
While most farmers planted oilseeds for crop rotation, the crushing plant could lead to high demand for oilseeds crops and to their being regularly planted by farmers.
The Competition Commission approved a joint-venture agreement between global agribusiness and food company Bunge Europe and Senwes in September to develop grain and oilseed operations in SA.
François Strydom, Senwes MD, said the large-scale oilseed crushing plant would respond to a growing protein and vegetable oil market in the country.
The project would expand the existing Bunge-Senwes joint venture, already working in the wheat and yellow maize commodity trading markets.
"The project will focus strongly on local sourcing of oilseeds, which will provide a profitable crop alternative for local (farmers)," he said.
Bunge EMEA CE Jean-Louis Gourbin said in a statement from Geneva that both parties were confident they would "deliver benefits quickly and over the long term for all the players of this new South African food and feed chain, from farmers to final consumers".
The investigation will also determine the most suitable town where the envisaged state-of-the-art, low-cost crushing plant would be located. But Mr Strydom hinted it will be close to the oilseeds production area, customers and processors’ facilities, making the Free State and North West the natural contenders.
These provinces plant most oilseeds such as sorghum, sunflower and groundnuts.
Mr Gourbin said the plant would crush 2000 tons a day or 660000 tons a year, with the ability to expand to 3000 tons a day.
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