The federal government is investing $50 million in Natural Products Canada to help Canadian food and biotechnology companies commercialize new products, expand manufacturing and strengthen domestic supply chains.
The funding, provided through the Strategic Response Fund, will support a $94.8-million project led by the Charlottetown-based national innovation network.
The federal government estimates the project will create more than 550 jobs and contribute more than $1.8 billion to Canada’s gross domestic product.
New fund to support processing capacity
Natural Products Canada plans to establish a Capacity Building Fund to support investments in food manufacturing and processing.
The fund is intended to increase domestic production, improve supply-chain resilience and strengthen food security as Canadian businesses contend with shifting trade relationships, climate change and global economic uncertainty.
Natural Products Canada is a not-for-profit organization that connects food and bio-based companies with funding, investors, technical expertise and strategic partners.
Industry Minister Mélanie Joly said the investment is intended to help Canadian technologies move from development into commercial production.
“Our investment in Natural Products Canada will help turn Canadian innovation into Canadian solutions by accelerating the commercialization of homegrown agri-food and bio-based technologies,” Joly said in a release.
She said the project is also expected to create jobs and improve Canada’s ability to produce food and other essential products domestically.
Related Stories:
Part of national food strategy
The funding is part of the federal government’s National Food Security Strategy, a $3-billion plan announced in June.
The strategy is aimed at increasing domestic food production, improving access to affordable and nutritious food and supporting Canadian companies developing sustainable agricultural technologies.
Agriculture and Agri-Food Minister Heath MacDonald announced the investment Tuesday in Charlottetown on Joly’s behalf.
“Farmers and agri-food businesses are key to a stronger Canadian economy and a more secure food supply,” MacDonald said.
He said investments in innovation are intended to support producers and processors while helping keep food affordable.
Organization has worked with 1,800 companies
Natural Products Canada was established in 2015 and has worked with more than 1,800 early-stage Canadian businesses.
The organization says it has directly invested in more than 100 companies, which later attracted $622 million in additional capital and contributed an estimated $900 million to the Canadian economy.
Chief executive officer Shelley King said the latest funding will allow the organization to continue evaluating and investing in Canadian natural and bio-based companies.
“Canada’s economic security depends on building a strong, domestic base of natural and bio-based innovators, and that is exactly what NPC exists to do,” King said.
Natural Products Canada previously received about $25 million in federal funding in 2021 toward projects with total costs of approximately $52 million.
Charlottetown organization highlighted
Charlottetown MP Sean Casey said the funding recognizes Prince Edward Island’s role in agriculture and food innovation.
“This investment will help Canadian innovators bring new agri-food and bio-based technologies to market, create good jobs, strengthen our food supply chains and support economic growth here at home,” Casey said.
The Strategic Response Fund supports business-led projects and innovation networks involving companies, universities and research institutions.
Natural Products Canada will distribute funding to participating companies and project partners across the country.