A multimillion-dollar expansion to a mustard facility in Bow Island, Alta., has resulted in new access to markets in Japan and South Korea.
G.S. Dunn Ltd. is investing approximately $30 million to expand its 22-acre mustard milling facility, aided by a $3.1 million Agri-Processing Investment Tax Credit from the provincial government.
The facility brings in mustard seed from farmers, packages it for sale and sends it to 110 countries.
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“The Alberta tax credit allowed us to add the milling operation to our facility where it did not exist before,” said David Shields, plant manager for G.S. Dunn Bow Island operations in an announcement video about the investment.
“Now, we are able to mill our products here in Alberta, closer to the source where it is growing. The process was very smooth. Working with the government, it helped us navigate some of the regulatory aspects of it. It helped us with our increase in the workforce and the ability to accommodate the staff here, with our infrastructure.”
The project has created 34 new jobs, and the expansion will also increase the facility’s purchasing power of raw mustard seed from $13 million to $44 million, with all seed coming from 300 rotated producers in southern Alberta and Saskatchewan.
“Investors continue to choose Alberta as a place to establish roots, grow and expand because it makes good business sense,” RJ Sigurdson, Alberta minister of agriculture and irrigation, said in a press release.
“The (tax credit) is just one of the ways our government commits to creating ideal conditions for businesses while attracting investment, diversifying the economy and creating more jobs for Albertans.”
The Bow Island expansion is the second phase of G.S. Dunn’s value-added mustard milling project. Since its initial expansion into Alberta, the company has increased capacity by more than 200 per cent. The current phase has increased processing capacity by approximately 70 per cent compared to pre-expansion levels.
“We are proud to announce the successful completion of our new mustard mill in Bow Island,” said Daniel Bouillon, chief financial officer for G.S. Dunn Ltd.
“This state-of-the-art facility stands as a testament to the collaborative efforts of the provincial government, the Town of Bow Island, local construction firms and our dedicated workforce at G.S. Dunn. We look forward to continuing to strengthen the agri-processing industry in southern Alberta together with our local mustard grower partners.”
The APITC program provides a 12 per cent non-refundable, non-transferable tax credit when businesses invest $10 million or more in a project to build or expand a value-added agri-processing facility in Alberta.
The program is open to any food manufacturers and bio processors that add value to commodities such as grain or meat or turn agricultural byproducts into new consumer or industrial goods. Up to $175 million in tax credits is available for each project.
G.S. Dunn has more than 150 years of experience and provides more than 250 value-added milled mustard products, making it the largest supplier in the world.
