Groundbreaking set for new Canola plant

OKLAHOMA CITY (AP) _ A groundbreaking is planned next week in Okeene for a new canola processing plant that its investors hope will spur continued growth of the crop in Oklahoma. <br/><br/>Blaine County

Monday, September 19th 2005, 1:16 pm

By: News On 6

OKLAHOMA CITY (AP) _ A groundbreaking is planned next week in Okeene for a new canola processing plant that its investors hope will spur continued growth of the crop in Oklahoma.

Blaine County farmer Wayne Janzen and a few silent partners are investing more than $400,000 in the plant, which will be built at Okeene's industrial park. The company _ Prairie Gold Oil Seeds, LLC _ will house between eight and 10 full-time employees and will sell the oil abstracted from harvested canola seeds, as well as the remaining meal.

Janzen estimates his company will process between 8,000 and 10,000 acres from the state's upcoming winter canola crop _ or roughly one-fifth of the 50,000 acres Boyles projects will be planted.

``We're setting this company up conservatively based on the acreage that is being planned,'' Janzen said. ``But everything is set up so we can scale up rapidly.''

Oklahoma State University agronomist Mark Boyles said the idea of growing canola is taking root among some Oklahoma farmers.

``It's gonna grow,'' Boyles said of Oklahoma's canola production. ``How fast? I can't really say. I just know there's a lot of interest. It's not our intent to use canola as an alternative crop, though, but rather as a rotation crop to improve the quality and cleanliness of Oklahoma grown wheat.''

Canola production steadily has increased since OSU kicked off its ``Okanola Project'' three years ago exclusively in Oklahoma's northwest region. Farmers planted 800 acres of canola in 2003, and more than 20,000 acres in 2004.

Numbers are expected to more than double in 2005-2006.

Canola crops also are being introduced for the first time in southwest Oklahoma, where 40-acre test fields will be planted in 13 different counties.

Okeene City Manager Steve Dungan is convinced the plant soon will double in size. His confidence led to a $40,000 investment in the company from a Rural Economic Action Plan city grant.

The initial benefit for Okeene is obvious. Okeene sells its own electricity.

``So we'll make money off the electricity needed to run that plant,'' Dungan said. ``Plus, I just think it's a good fit for the two companies we already have in our industrial park.''

The industrial park houses a pig feed mill and a dog food plant. Both companies can utilize the oil and meal from the canola seed.

Matt Dixon, owner of Mountain Country Foods Oklahoma, already is sold on the economics associated with the new plant.

``I've already committed to buy the canola oil out of that plant for my needs,'' Dixon said. ``I currently import my oil from Canada.''

Dixon estimates he will save $2,500 a month in transportation costs alone by dealing with Janzen's plant.

The thought of a canola processing plant in Oklahoma also is tantalizing to Tommy Johnson, CEO of Earth Biofuels in Dallas.

Johnson's company also imports canola oil from Canada before processing it into biodiesel. In addition, his company plans to open another plant in Durant by the end of October.

For Johnson, the timing is perfect.

``Any time you can contract with someone in your region that means you'll get a savings in fuel costs,'' Johnson said. ``And that's a savings we can pass on to our customer.''