Ceres Global Ag Corp. announced today that it is suspending its planned canola crush facility at Northgate, Sask. The company said its decision to pause the project is due to many factors including inflation resulting in higher costs and changing macroeconomic conditions.
According to Ceres, they have taken “the step of terminating an equipment design and supply contract relating to the Project, in order to reduce project-related contract liabilities.” This will have impact on expenditures, with a fourth quarter impairment charge due to costs from the project so far. This will be reported in the company’s Q4 earnings and year-end results. Ceres estimates the impairment will be in the range of $25 to $30 million.
Ceres says they will continue to explore opportunities in canola crushing in the future, but does not guarantee a project will come to pass or would be similar to this project.
Ceres Global Ag Corp. is based in Minneapolis, Minn. and operates 13 locations in Saskatchewan, Manitoba, Ontario and Minnesota.