Legumex Walker's Pacific Coast Canola Products Receive Non-GMO Project Verification
WINNIPEG, Oct. 8, 2013 /CNW/ - Legumex Walker Inc. (TSX: LWP) (the "Company") today announced that Pacific Coast Canola's (PCC) non-GMO products have received Non-GMO Project Verification. The Non-GMO Project offers North America's only independent verification for products made according to rigorous best practices for GMO (genetically modified organism) segregation and traceability.
"Our Non-GMO Project Verification gives us access to a rapidly growing market for higher-margin non-GMO canola products," said Joel Horn, President and Chief Executive Officer, Legumex Walker Inc. "According to the Non-GMO Project website, sales of all Non-GMO Project Verified products have gone from $0 in 2010, when the label was launched, to over $3.5 billion just three years later. The announcement earlier this year by Whole Foods Market that, by 2018, all products in its U.S. and Canadian stores must be labeled to indicate whether they contain GMOs, is evidence of the momentum in the non-GMO movement and underscores the importance of Non-GMO Project Verification for our non-GMO products."
"Growers are also excited about the growing demand for non-GMO and have begun committing acreage to non-GMO crops. PCC is very well positioned to take advantage of this opportunity and we are continuing to build up our inventory of non-GMO seed," said Matt Upmeyer, Chief Operating Officer of Pacific Coast Canola.
The PCC facility was purposefully designed and built to segregate and process GMO and non-GMO canola seed. In August, the PCC facility processed and in September, sold its first segregated run of non-GMO canola oil and meal.
Non-GMO Project Verified products must be produced in compliance with the Non-GMO Project Standard, which includes ongoing testing of all GMO risk ingredients, production facility inspections and an annual facility audit to ensure the highest standards for GMO avoidance are being maintained.
PCC Facility Production Update
Legumex Walker also announced that the PCC facility processed over 20,500 metric tons (MT) of canola seed for the month of September, or the equivalent of 63% of capacity. The facility operated at full capacity for extended periods during the month, during which the facility operated as designed. The PCC facility's expeller-press seed crushing technology is consistently extracting in excess of 92% of available oil (less than 8% residual oil in meal). PCC's canola products consistently exceed industry quality standards.
"The PCC facility is performing just as we expected - our customers are pleased with the quality of our products." said Mr. Upmeyer. "We continue to receive product certifications from customers, including some of the largest food processors in the country. Our book of business is growing to support full production capacity, which we expect to realize before year end. Crush margins have improved over the past several months and we are taking advantage by locking in those margins as we ramp up to full capacity."
About Pacific Coast Canola and the Pacific Coast Canola Processing Facility
Pacific Coast Canola, LLC operates the first and only commercial-scale canola crushing operation west of the Rocky Mountains and one of only two canola processing facilities in North America using expeller-press technology, which doesn't use solvents. Located in Warden, Washington, the PCC facility is well positioned to supply the expanding demand for canola products on the west coast of the United States. Warden is in the heart of a multi-state region that is ideal for canola production and well-served by rail and surface transportation routes. The plant has a processing capacity of 1,100 MT of canola seed per day, which represents approximately 137,000 MT of canola oil and 220,000 MT of canola meal per year.
Pacific Coast Canola is 85% owned by Legumex Walker and 15% by Glencore Grain Investment LLC.
About Legumex Walker Inc.
Legumex Walker is a growth-oriented processor and merchandiser of pulses (lentils, peas, beans and chickpeas), other special crops and canola products. The Company is one of the largest processors of pulses and other special crops in Canada. Legumex Walker has 14 processing facilities strategically located in key growing regions in the Canadian Prairie Provinces, the American Midwest, and China; a global sales, logistics, and distribution platform; and access to multimodal transportation capabilities. In addition, the Company has an 85 percent interest in Pacific Coast Canola, LLC, which operates the first and only commercial-scale canola oilseed processing facility west of the Rocky Mountains.
Cautionary Note on Forward-looking Statements
This press release contains certain forward-looking statements, including, but not limited to, those with respect to the expected growth of canola oil and meal sales by Pacific Coast Canola. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Pacific Coal Canola to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, and are based on the assumption that sales of canola oil and meal will continue to increase throughout the fourth quarter of 2013 to reach the PCC Plant's production capacity, that crush margins will continue at current levels and that Pacific Coast Canola will have access to rail and truck tanker cars to ship its production as required. Such risks and uncertainties include, among others, risks related to the operation of the PCC facility, risk that orders by customer orders for canola oil and meal will be less than anticipated, lack of availability of rail, port and other transportation services, risk that crush margins will not continue at levels currently experienced as a result of fluctuations in the price of canola seeds and canola oil and meal prices, failure of plant, equipment or processes, as well as those factors referred to in the section entitled "Risk Factors" in the Company's Management's Discussion and Analysis for the period ended December 31, 2012 and the Company's 2013 Annual Information Form, which are available on SEDAR at www.sedar.com and which should be reviewed in conjunction with this document. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements which only apply as of the date of this press release. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
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