Agricultural and ingredients firm Cargill has said earnings for its first quarter shot up, benefiting from a "new level of market volatility".
Cargill, which is privately held, said net earnings reached $917m for the 2008 first quarter ended August 31 2007, up 83 percent from $500m last year.
The firm today highlighted its focus on canola expansion, following the announcement in August this year that it would build a second canola processing plant in Canada in a move to meet growing demand for tans fat-free oil. The new plant will be located adjacent to Cargill's existing operation in Clavet, Saskatchewan, and is expected to double the firm's oilseed processing capacity to 1.5m tons annually.
Cargill said the added crush capacity is supported by strong demand for high oleic canola oil in addition to growing demand for generic canola oils. Cargill's capacity expansion, which is due to be completed by November 2008, positions Canada as a world leader in the supply of 'high quality' vegetable oil, said the firm.
