INDUSTRY NEWS: US finds salmonella in Canada canola meal from ADM

By Rod Nickel

WINNIPEG, Manitoba, Dec 22 (Reuters) - The U.S. Food and Drug Administration has placed shipping restrictions against a Canadian crushing plant owned by ADM Agri-Industries due to the presence of salmonella bacteria in canola meal, according to FDA records.

The restrictions, which allow the FDA to detain shipments without examining them, are the latest against several Canadian crushers this year, a trend that has caused crushing volume to fall and canola futures to weaken.

ADM Agri-Industries is a wholly owned subsidiary of Archer Daniels Midland Co (ADM.N). The FDA placed restrictions on its plant in Windsor, Ontario, on Dec. 18, according to FDA records and ADM.

Three plants owned by Bunge (BG.N) remain on the list as well, along with one owned by Viterra (VT.TO).

ADM immediately closed its Windsor plant and cleaned it extensively after the FDA imposed restrictions, said company spokesman Roman Blahoski. It has since resumed crushing but is not shipping to the United States, he said.

"As an industry, we are working with the FDA to resolve the issue," he said. "The company expects to resume shipping to the United States once it meets all FDA protocols."

Canadian meal shipments to the United States, its top export market, are down sharply this year because of the FDA's zero tolerance for salmonella.

Canada is the world's top exporter of canola. Its meal is used as a protein source in feed for livestock, especially U.S. dairy cattle.

The FDA has a strict policy for salmonella because of widespread food-borne illness this year in the United States. The canola industry argues that meal should not receive the same scrutiny as human food.

The restrictions do not affect ADM's canola crushing plants in Lloydminster, Alberta, and Watson, Saskatchewan.

The canola industry had been feeling "cautiously optimistic" about shipments to the U.S., said Canola Council of Canada President JoAnne Buth earlier in the day. The FDA had earlier this month removed restrictions against a Cargill [CARG.UL] crushing plant.

ADM shares on the New York Stock Exchange ended little changed on Tuesday, up one U.S. cent.

The news of ADM's restrictions broke just as trading at the ICE Canada canola futures market was closing. Benchmark March canola settled down 1 percent.

Less supply of canola meal could be bullish for U.S. soy meal, which is also used as a protein source for livestock.

Source: Reuters