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GrainCorp Vertically Expanding its Oilseed Business

As part of its strategy to increase production capacity and efficiency, GrainCorp Oils has invested approximately $80 million to upgrade and modernize its oil production and packaging systems and to extend its reach into value-added production, reports Farm Weekly. Under the plan, the company has upgraded its Melbourne food products packing plant, moved its spreads and commercial oil production out from Brisbane, and is upgrading the quality of its oil operation to produce refined food grade canola oil at its Numurkah, Victoria facility. In addition, as part of its $48 million investment into its Numurkah site, the plant’s canola seed crushing capacity will be expanded by 25% to 340,000 tons per year by 2017.

Within the past 25 years canola production in Australia grew from a negligible volume to 3 million tons being exported in 2014/15 generating $1.3 billion, and GrainCorp providing refined canola oil blends to a range of industries including infant formula producers and the nutritional powders market.

Aside from growing domestic demand, the company also expects Asian demand for refined edible oils to continue to climb thanks to recent free trade agreements expanding export options, and increasingly health-savvy consumers looking to buy healthier oils.

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