CARGILL TO BUILD $53.6-MILLION CANOLA CRUSHING PLANT NEAR SASKATOON

Released on March 6, 1995

Premier Roy Romanow and Economic Development Minister Dwain
Lingenfelter today joined with the president of Cargill Limited, Kerry
Hawkins, to announce that Cargill has selected Saskatchewan as the site
for its new $53.6-million canola crushing plant.

The plant will be built three km north of Clavet in the Rural
Municipality of Blucher, east of Saskatoon. It will be Cargill's first
canola crushing plant in North America and the largest facility of its
kind in Canada. The plant will run 24 hours a day and will have the
capacity to crush 2,000 tonnes of canola daily.

"We're very pleased to be coming to Saskatchewan and we believe we have
chosen the best possible location for our plant," Hawkins said. "It's
right in the heart of canola country and the site has good access to
transportation routes, including both major rail lines."

The provincial government will provide Cargill with $3.9 million to
help with capital costs. In return, Cargill is waiving the $4.9
million in tax credits for manufacturing and processing investments
that it is eligible for under the province's new budget measures.

The Saskatoon Regional Economic Development Authority worked with the
R.M. of Blucher to ensure the necessary infrastructure was in place.

Romanow said the plant is a welcome addition to the local economy and
good news for all of Saskatchewan.

"This is a major project that will have important ramifications for our
economy in general," Romanow said. "Most importantly, it's in keeping
with my government's number one priority to encourage and support job
creation in and by the private sector."

Hawkins said 50 full-time jobs will be created at the plant and another
100 for truckers who haul canola to the site. There will be about 436
person-years of employment during construction and up to 435
person-years of employment in construction spin-offs. As well, there
could be up to 400 other permanent spin-off jobs in the province.

"This plant will also strengthen our efforts to diversify our
agricultural industry and to increase manufacturing and export sales,"
Lingenfelter said. "Canola is rapidly becoming one of the top cash
crops in this province and we want to take advantage of that. One of
the goals under our Partnership for Renewal economic strategy has been
to increase our value-added processing so we can grow our manufacturing
base and keep jobs at home."

Romanow said the significance of this project doesn't end with the
canola crushing plant. Cargill plans to increase capacity at the plant
to 2,500 tonnes per day and would like to add a multi-million dollar
refinery within three to five years. The expansion would create an
additional 75 direct jobs.

Construction on the canola crushing plant is expected to begin in early
spring and to be finished in time for the plant to process the 1996
crop.

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For more information, contact:

Tom Douglas Barb Isman John Hyshka
Economic Development Cargill Ltd. Saskatoon REDA
Regina Winnipeg Saskatoon
Phone: 787-8178 Phone: 947-6252 Phone: 664-0720