A new study says that Manitoba would be the right fit for a new soybean crushing facility.

The study funded by the Canada and Manitoba governments and industry partners found that the province has the right mix of production and market demand to support a soybean crushing facility.

"Canada is respected around the world for its high-quality, value-added agricultural products," said Agriculture Minister Gerry Ritz.  "By continuing to support innovation and market development, our Government is ensuring that the agriculture and agri-food industries are well-placed to take full advantage of new economic opportunities."

The growth of the province's soybean acreage and the demand for soybean meal in the western Canadian livestock industry would make the project economically valuable, said the report.

"This new opportunity for Manitoba's agricultural processing industry will have benefits for farmers and the provincial economy as a whole," said Manitoba Agriculture, Food and Rural Development Minister Ron Kostyshyn.  "Manitoba's soybean sector is now positioned to take the next step forward and this is an exciting time for the industry.  The prospect of this new facility should also help spur even more innovation and investment in our province."

Benefits of a new soybean crushing facility would include an expanded local market for soybean growers, the ability to avoid rail transportation, and a new, local protein feed source for livestock.

The economic benefits of such a facility is estimated at 190-million dollars per year, based on facility construction and job creation.

"We have an opportunity to provide more value to growers in Manitoba and it's always good to have an alternative market that doesn't rely on exports," said Kyle Friesen, chair of the Manitoba Pulse and Soybean Growers.  "We want to encourage local supply and demand to keep value-added processing in Manitoba to support jobs, the tax base and economic activity."

Manitoba currently produces 18 per cent of all soybeans grown in the country, more than 1.25 million acres. The study estimates that soybean acreage could quadruple in western Canada over the next decade.

With no large-scale soybean crushing facilities in western Canada, most of the soybeans grown in Manitoba are either shipped to the United States or China for processing.

While a location has not yet been selected, it's estimated that a new soybean crushing facility could be built in Manitoba within five to seven years.

Manitoba Pulse and Soybean Growers and Soy 20/20 partnered to conduct the study, which received funding through Growing Forward 2.