Food And Drinks

Opinion: Regina economic system ripe for extra meals processing

By Frank C. Bonner

  1. Columnists

Regina’s food hub strategy focuses on adding value to our agricultural production rather than exporting raw commodities, write John Lee and Frank Hart.

Author of the article:

Tim Switzer

Publishing date:

Sep 17, 2020 • September 17, 2020 • 3 minute read • Join the conversation Economic Development Regina is banking on more food processing coming to southern Saskatchewan. Economic Development Regina is banking on more food processing coming to southern Saskatchewan. Photo by TROY FLEECE /Regina Leader-Post

From Regina’s very beginning, agriculture and food have been at the centre of our economy.

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Over the years, companies have come and gone, and others have sprung up in their place. Today, Seed Master and DOT, Precision ai, Degelman Industries, Rite Way Manufacturing, Brandt Group of Companies, Ralph MacKay Industries and others have made Regina an important centre for agricultural equipment manufacturing. Farm Credit Canada’s national headquarters in Regina, and the launch of the Conexus Ag Tech Venture Capital Fund are making Regina a growing centre for agriculture and food finance and venture capital investment.

Recently, Economic Development Regina launched a strategy to make the region a global agriculture and food hub. We’re building on a long history and a solid foundation of agricultural business.

Most Regina residents probably don’t know how big and important our agricultural and food sector really is. For example:

  • AGT Foods and Ingredients is one of the world’s largest suppliers of value-added pulses, staple foods and food ingredients;
  • Regina’s CanMar Foods is the largest processor of food-grade flax in North America;
  • O&T Farms is the global leader of land-based Omega-3 livestock feed ingredients.

Regina’s food hub strategy focuses on adding value to our agricultural production rather than exporting raw commodities. Historically, we’ve grown the commodity and shipped it to larger population centres for further processing.

We have an opportunity to change that historical role as global conditions shift in our favour:

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  • Climate change will likely result in a longer growing season for Western Canada;
  • Global population growth will add two billion more people by 2050, increasing demand for Saskatchewan-grown food and feed protein;
  • Processing is likely to move closer to sources of high-quality raw material; and
  • Food that comes from clean environments such as Saskatchewan and Western Canada, will enjoy market pricing premiums.

Western Canada’s plant protein opportunity is massive. Our farmers are among the best in the world and are early adopters of game-changing technology. Unfortunately, we leave much of the value of the seed we export locked in the seed while others do the processing — turning those seeds into ingredients that have triple the value of the raw seed we sold them. Today, we only process a small fraction of the plant protein produced here.

Regina is an ideally located for processing facilities. We have good east, west and south transportation links, with the CN/AGT Chuka Creek intermodal port, the CP-supported Global Transportation Hub and the Regina bypass.

Moreover, Regina is a source of agri-food innovation. AGT Foods’ high-value ingredients are being used in products like Beyond Meat. Precision AI, a company that grew out of the Conexus tech incubator, has just begun a $26-million program to develop drones that apply crop nutrients and crop protection. This technology has the potential to save farmers over $50 per seeded acre. DOT technologies, another Regina innovator, is a world leader in fully autonomous farm equipment.

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EDR’s food processing strategy dovetails with Saskatchewan’s 2030 Plan for Growth, which calls for the province to double value-added food processing revenue in just over 10 years.

Another growth plan goal — a $4-billion project to greatly increase the amount of irrigable land in the province — will help provide the infrastructure to cope with climate change related weather extremes. This project will also help stabilize and diversify crop yields and protect land from flooding.

EDR’s food hub strategy doesn’t end at the city limits. We will not be successful unless we demonstrate that our strengths extend throughout Saskatchewan. Regina’s opportunities are equally important to neighbouring cities such as Moose Jaw, Weyburn, Estevan, Swift Current and Yorkton.

None of this will be possible without support at all levels. We government, business and community leaders must embrace and vigorously pursue these opportunities. We have an amazing future ahead of us. However, competition from other jurisdictions will be intense. Global companies will be interested in giving Saskatchewan a serious look as a place to invest. Winning the location decision will mean stretching our thinking and capabilities and incentives to compete with other jurisdictions. However, we have much to offer and now is the time to take advantage of the global trends that are in our favour.

Frank Hart is chair and John Lee is president and CEO of Economic Development Regina.

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