A corporation that helps companies get a toehold in the world of agricultural processing opened May 28.
Named AVAC, A Corporation Adding Value to Agri Products and Services in Alberta, the non-profit company was announced in December to speed up the province’s potential in developing processed foods and non-food products like pharmaceuticals, cosmetics or fibre.
Alberta Agriculture provided the corporation with $35 million.
It expects to serve mainly as a knowledge broker which can help pull together research and business acumen, says interim chief executive officer Ian Strang.
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“People will be able to tap into us and find out who is doing what,” said Strang.
The corporation is still preparing its program and in early fall its mandate will be ready. It can then start looking at proposals from potential clients.
“At that time we should able to be more specific about the type of programs and proposals that we can be involved in,” said Strang.
The new corporation will work with other groups to avoid duplication and will provide a networking service. It may also form partnerships, provide matching grants, help with research or provide contacts to get the businesses off the ground.
A good idea might start in someone’s kitchen but the person may not know how to take that product to the next stage and get it on the market. It may be a lack of business skills or uncertainty about where markets are or how to get financing, said Strang.
Alberta has been weak to develop this area and tends to focus on primary production, he added. There has not been enough money to build a business, provide expertise in marketing and development, and research new products.
“This is particularly true when you’re dealing with a small to medium size venture,” said Strang.
The province hopes to expand its $6 billion a year processing sector to $20 billion by 2005.
An eight member board has been named to oversee AVAC.
Board members are Bob Church of Church Livestock Consultants Ltd. Airdrie; Pat Durnin, chair of Agri Partners International and partner in Durnin Farms, Kathyrn: Aaron Falkenberg, poultry farmer, Sherwood Park; Ed Knash, Toronto Dominion Bank; Stephen Murgatroyd, executive director of Athabasca University; Bill Robinson, president, Manvest Inc., a Calgary venture capital company; Ken Stickland, president of Ken Agra Management, Edmonton; Ian Strang, Calgary businessperson and acting chief executive officer of AVAC.
