SASKATOON — Louis Dreyfus Co.’s announcement that it is building a pea protein isolate plant in Saskatchewan should help restore Canada’s recently tarnished reputation, says an industry official.
The industry suffered a setback when Merit Functional Foods, a pea and canola protein manufacturing plant in Winnipeg, was placed into receivership last year.
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“On a global basis, people were very aware that it happened in Canada,” said Bill Greuel, chief executive officer of Protein Industries Canada.
It was a black eye for Canada’s plant protein industry, which is why the Louis Dreyfus “bellwether statement” was so timely and important.
“It’s very, very positive for the sector, and I think it’s going to allay some of the fears that other companies have had about investing in Western Canada because of some of the issues and challenges we’ve seen with Merit Functional Foods,” said Greuel.
In fact, he believes more announcements will soon follow.
“We’ve had conversations with a number of companies that are looking at additional facilities in Manitoba, Saskatchewan and Alberta,” he said.
“I do truly believe that we’ll see additional announcements, if not soon, then within this calendar year.”
Greuel attributed the renewed interest in capital investment to a turnaround in fortunes for an industry that has suffered a series of setbacks.
One of the big momentum swings came late last year when U.S. regulators decided to investigate China’s dumping of subsidized pea protein in the American market.
That cheap product was squeezing margins for North American manufacturers and contributing to plant closures, they contend.
Louis Dreyfus is building its new pea protein isolate plant at the site of its existing industrial complex in Yorkton, Sask.
“The investment announced today is an important step in the group’s global growth strategy, as part of our plans to diversify revenue through value-added products,” chief executive officer Michael Gelchie said in a news release.
“In this case, addressing growing demand for high-quality, nutritious and sustainable plant-based alternatives.”
The plant will be built next to the company’s canola crushing facility, which is in the midst of a large expansion announced in April 2023. That project will more than double the facility’s annual crush capacity to more than two million tonnes.
The company declined to provide details on the scope of the project — how much it will cost or what its annual capacity will be — saying those details are private and confidential.
All that is known is that it is expected to be ready by the end of 2025 and will employ approximately 60 people.
According to the press release, the plant will produce a pea protein isolate that is “well-suited for dairy alternatives.”
“Pea protein demand continues to grow due to its non-allergen and non-GMO status and its sustainability and versatility across many food applications,” stated LDC’s head of plant protein, Thibaut Ferte.
The company said in an email that it will distribute its pea and non-GMO soy isolates to customers worldwide.
Greuel said his best estimate is that there is about 500,000 tonnes of existing pea processing capacity in Western Canada.
He assumes, given the company involved and the number of employees, that the LDC plant will be sizeable.
“It will be a significant addition to the ecosystem, there’s no question,” said Greuel.
“It confirms what we’ve suspected, which is Canada is a good place for ingredient manufacturing and a good place for building out value-added agriculture.”
