RED DEER, Alta. – Spinning straw into gold takes more than a few magic words.
A group called Agrafibre Industries Inc. wants to process fescue straw into particle board suitable for making shelving, drawers or furniture.
The technology is ready, but selling the idea to investors and finding somebody to buy the boards are major hurdles, said Wes Anderson one of the people involved in the project.
“It’s hard to go from meetings in the curling rink to actually building a plant,” said Anderson.
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He discussed the good and bad aspects of ventures like his at a recent Alberta Agriculture meeting on agricultural processing.
Agrafibre wants to produce 68 million sq. feet of fibreboard out of fescue straw grown each year in the northern Peace River District. They would make 4 x 8 foot (1.2 x 2.4 metre) boards, 3/4 of an inch (19 millimetres) thick. Plans are to build the plant about 100 kilometres north of Grande Prairie, Alta.
Sauder Industries Limited, Canada’s largest distributor of particle board, agreed to market the product.
Finding such a partner is key, said Anderson.
Another challenge is finding raw material. Creeping red fescue straw grows in abundance in the Peace River region where a number of farmers grow it for seed. Farmers must receive a fair price for the straw and manufacturers want it as cheaply as possible so they can make a profit as well.
Agrafibre plans to use the Daprona Systems process which started in Sweden. It involves chopping straw into fine pieces, adding resin and setting it with heat.
Keep in mind
Anderson said while the technology to make the product is ready there are other considerations.
- Getting money to start is difficult because many investors are reluctant to finance a new and different business.
- Deciding how big the company should be.
- The manufacturer must be able to sell the product, especially if it is a new product entering a mature business like fibreboard made from wood.
- Obtaining proper staff and support. A number of people competent in a variety of areas are required. People who understand financing, marketing or production need to be matched.
- There must be guaranteed supply. The fibre plant must run year round to be profitable.
- Dealing with risk must be considered including taking into account the vagaries of the fibre industry. The panel business is cyclical with peaks of high prices and valleys where the bottom seems to fall out of the market.
