'We're itching to start': mighty $36m development to double factory site

A founding director, Peter Mac Smith said MSM Milling started in 1992 as a tiny venture with his brother and sister, Bob and Rachel.

It sat outside of Orange on their "Little Boree" family farm.

Surge ahead 32 years, a now-joint venture with the Manildra Group is a thriving enterprise dealing in all things canola, and it's in the midst of gearing up for multi-million dollar upgrades to meet global demand.

"You have to expand to keep up and continue growing your business, otherwise you lose your efficiencies and economies of scale with the natural increase in your cost base," Mr Mac Smith said.

"So, business wise, one of the big drivers of the decision is to keep our competitiveness by maintaining those scales.

"At the same time, we're seeing a large growth in demand for vegetable oils and not just for renewable fuels, but for everywhere that mineral oil has and still is being used.

"Fuel's the obvious one that everyone hears about, renewable diesel and sustainable aviation fuel, but there's a whole lot of other areas from chemicals and plastics that are starting to emerge as well."

Globally, production of canola sits around the 87-million tonnes mark, according to a report via the US Department of Agriculture's Oilseeds.

Depending on the season, Australian production ranges between three to six-million tonnes, with its value today sitting anywhere between $2-$4 billion in seed value alone.

This significant growth is part of why looming works to kick start the new Manildra-based plant holds a steep anticipation with its directors.

To be housed inside an industrial-style building, it will stand roughly 25-metres high, be more energy efficient, and use the industrial solvent, Hexane.

Brand new storm water systems, office spaces and an upgraded rail intake facility are also part of the plans.

It has a hopeful project completion date tabled for mid-2025.

Physically, Mr Mac Smith said the entire project will cover an area approximately twice the size of the existing space.

"Obviously, the addition of a lot more equipment is a big part of it," he said, "but we're waiting on a couple of other approvals before we can actually begin construction.

"It's a staged development as well, because that suited the timing of delivery of equipment and a whole range of other things, financing and everything else.

"So, we're itching to start, but we're having to be patient."

That composure could be likened to another type of patience surrounding vegetable oils, Aussie canola producers waiting for an invite to the renewable fuels party in an industry dominated by the US, Canada and Europe.

Mr Mac Smith said he's watched it grow abroad throughout his time in the business, quietly confident the market would open up to reach the Manildra doorstep soon enough.

To see another element finally arrive gives the canola producer more reassurance in light of the unfolding developments.

"There's been a very large biofuels industry in Europe and North America for many years, well over 20 years now," he said.

"But in Australia, we really haven't had the economies of scale, let's say, to have our own industry.

"That is beginning to emerge now."

Thinking back on it all, Mr Mac Smith laughed and said the then-to-now progress "feels busy" more than anything.

But it's because of the high work engagement and dedication MSM Milling has reached the position it's in.

Development applications, currently sitting with Cabonne Council either approved or pending, are valued at a prospective $35,710,151 budget.

"You're seeing it all grow into a successful business, which is obviously satisfying, but maybe you don't get the chance to reflect on it all while you're in the middle of it," Mr Mac Smith said.

"But one of the things you're most proud of is seeing the people, the fantastic people you've got to know through the business and are part of the business, do things that they probably thought they wouldn't be doing, either.

"That's a really big part of it, that joint success."

Mr Mac Smith said those involved with the major expansions are excited to keep growing business and boosting local employment opportunities as a result.

He said the upgrades will also lead to more options for local farmers and increased use of local support industries that the team "already use on a regular basis".

With the demand for canola oil and meal rising steadily on both domestic and international stages, his wish is for MSM Milling to hold a key role into the future of production as the industry unfolds.

"We hope to play our part in satisfying that demand for oil," he said, "from a changing economy wanting vegetable oils not only for food use, but to replace mineral oils in a wide range of uses, supplying canola meal to a wide range of livestock industries."