Listen to this article
Estimated 4 minutes
The audio version of this article is generated by AI-based technology. Mispronunciations can occur. We are working with our partners to continually review and improve the results.
An organization that got its start in Prince Edward Island is getting a major financial boost from Ottawa to help grow Canada’s bio-based economy.
Natural Products Canada, which was founded in Charlottetown and now works with companies across the country, is receiving $50 million in federal funding to support startups and growing businesses that develop natural products.
Shelley King, founder and CEO of Natural Products Canada, said the funding announced Tuesday is significant for both P.E.I. and Canada as a whole.
“We are so excited. $50 million can go a long way to help small and medium enterprises in the Canadian bioeconomy,” King said. “It makes it even more special that it’s in Charlottetown, which is where we started Natural Products Canada 10 years ago.”
King said the organization’s core role is helping young companies develop bio-based products, that are “better for people, animals and the planet” and can replace petrochemical goods.
Shelley King, founder and CEO of Natural Products Canada, says the funding will help young companies across the country grow by investing directly in them so they can hire experienced management and scale up their products. (Connor Lamont/CBC)
Heath MacDonald, the federal Agriculture and Agri-Food Minister and the MP for P.E.I.’s Malpeque riding, said the $50-million investment will be used for two main purposes.
“One is for seed for startups and the second part is processing, where companies that want to increase their capacity here,” he said.
“It could be Prince Edward Island, or it could be anywhere in the country.”
MacDonald said the investment is part of the federal government’s broader national food security strategy, adding that NPC will “play a significant role” in that effort.
He said there is also potential for job creation, noting about one-third of the roughly 335 companies Natural Products Canada currently works with are from Atlantic Canada.
MacDonald said the organization is projecting about 550 jobs across the country by 2031 once the program is fully up and running, with about a third of those jobs expected to be in the Atlantic region.
King said Natural Products Canada is currently working with six companies on P.E.I. and has supported about 1,800 companies across Canada over the past decade.
She said the new money will be invested directly into companies that are trying to scale or bring in experienced management. Businesses can apply for support ranging from $150,000 up to $5 million, depending on their needs.
“Say you’re developing a food product and you’re doing [it] out of a kitchen or in a farmers’ market, and you need to go to the next step,” she said. “We would come and help you … scale your product.”
‘It can be the matter of making it or breaking it’
Crystal Read, senior vice-president of operations at Nature’s Crops International, which is a specialty oils supplier with operations in Kensington, P.E.I., said the funding could provide important support for startups and growing companies.
Crystal Read, senior vice-president of operations at Nature’s Crops International, encourages startups to reach out to Natural Products Canada for support. (Connor Lamont/CBC)
The company has previously worked with Natural Products Canada and received funding to investigate new product channels and revenue streams, and to gain value from byproducts at its processing facility.
“Natural Products Canada has done a lot for the local Island economy, the Atlantic Canadian economy and the Canadian economy as a whole,” Read said.
“So I think it will allow startups and new companies and existing companies to continue to grow and innovate.”
Read encouraged other startups to reach out to the organization for support.
“NPC has been extremely supportive of us and other companies in the region,” she said.
“It can be the matter of making it or breaking it, having that additional funding to help move the needle and push them forward.”