The governments of Canada and Manitoba will invest up to $2.5 million cost-shared funding under the Canadian Agricultural Partnership program to support new technologies in Merit Functional Foods’ new state-of-the-art, 94,000-sq.-ft. plant protein production facility in Winnipeg, Manitoba.
“The development of the Merit Functional Foods facility will create new, immediate jobs helping our economy restart after the COVID-19 pandemic and support the Manitoba Protein Advantage Strategy,” said Agriculture and Resource Development Minister Blaine Pedersen. “This project will enhance Manitoba’s economy by providing economic opportunities for the agricultural industry including employment and contributing to the growth of Manitoba’s growing protein processing sector and further establish Manitoba as a Canadian leader in plant protein extraction.”
“Canada is a global leader in the production of plant-based proteins,” said Terry Duguid on behalf of Federal Agriculture and Agri-Food Minister Marie-Claude Bibeau. “Through this investment, as well as the previously announced, nearly $100 million in federal financing support to Merit Functional Foods, our government is truly committing to stay on the cutting-edge of agriculture innovation and sustainability. This new facility will not only add value to Canada’s pulses and oilseeds, but will create many additional jobs thereby supporting the local Manitoba economy.”
Merit Functional Foods is building a new processing facility in Winnipeg that will derive protein from both canola and peas resulting in up to 17,000 metric tonnes of canola being purchased from Manitoba producers in its first year of operation and 10,000 metric tons of peas at an estimated value of $14 million. In three years, Merit Functional Foods expects that amount to increase up to 35,000 metric tonnes of canola and 20,000 metric tons of peas valued at $28 million. In June 2020, the Government of Canada announced additional federal financing support of nearly $100 million for the new Merit Functional Foods plant.
Through the Canadian Agricultural Partnership, the governments of Canada and Manitoba will be providing Merit Functional Foods with up to $2.5 million for new equipment purchases that will support the transformation of raw inputs into value-added goods. This investment will bring new technology into the production process for Merit Functional Foods new plant protein processing facility allowing them to be competitive on the global market, and creating up to 85 local jobs as part of its Phase 1 project, growing to more than 200 jobs in future phases.
The five-year, $3-billion Canadian Agricultural Partnership includes $2 billion for cost-shared strategic initiatives delivered by the provinces and territories and $1 billion for federal programs and services. For more information, visit www.canada.ca/Agri-Partnership.
“We’re incredibly grateful for the provincial and federal support, which will help facilitate the rapid progression of our facility’s construction,” said Ryan Bracken, Merit Co-CEO. “It’s been just a bit over a year since we commissioned our project and we’re nearing an on-track completion for the end of the year. We’re proud to put Manitoba on the map as a leader in the plant-based protein movement.”
The Manitoba government will also be providing $1 million for cost-shared training activities, as well as an up to $4.5-million rebate over a maximum of 20 years to Merit Functional Foods through the Manitoba Works Capital Incentive (MWCI) Program. Cost-shared training activities will support the training of more than 100 new positions, and the training of five existing positions.
“The Manitoba Works Capital Incentive Program encourages new business investment, as well as existing business expansion by creating a competitive tax environment which will help diversify Manitoba’s economy and stimulate job creation,” said Economic Development and Training Minister Ralph Eichler. “This program will ensure Manitoba continues to be recognized as an attractive destination for private investment by companies from across the country and around the world.”
The province unveiled MWCI in May 2020 as a new approach to tax increment financing that rebates the incremental education property taxes generated by a project for a period of up to 20 years. Approved projects receive a tax rebate based on the difference between pre-development property tax revenue and the increased amount generated by the completed project. The program aims to encourage significant new business investment or existing business expansion.
