U.S. bioproduct registry | U.S. policy helps but Canadians want similar plan here
Canadians who produce bioproducts, whether it be canola oil lubricants or construction materials made from hemp, are advised to register for a U.S. government program called BioPreferred.
An agri-technology expert in Ontario says it represents a tremendous opportunity for Canada’s bio-economy.
In February, U.S. president Barack Obama urged federal agencies to buy bioproducts such as lubricants, paints, soaps and building materials as part of the U.S. Department of Agriculture BioPreferred program.
In early April, U.S. agriculture secretary Tom Vilsack expanded on this directive, announcing new categories of BioPreferred products.
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“There are now more than 10,000 products qualifying for preferred procurement under USDA’s BioPreferred program,” Vilsack said in a news release.
“Including previously designated items, these 13 additional biobased product categories will help feed the president’s initiative by offering even more products with federal procurement preference.”
The new categories include floor coverings, wood and concrete stains and asphalt removers.
Besides being a procurement policy, the USDA BioPreferred program also administers a voluntary labelling program so companies can differentiate their biobased products in the market.
The government created BioPreferred in the 2002 farm bill, but Obama’s actions signal his administration wants to fully implement the program to promote the U.S. bio-economy and increase energy security.
Gord Surgeoner, president of Ontario Agri-Food Technologies, a non-profit focused on creating a prosperous and sustainable agriculture sector, agreed that the U.S. government is serious about the bio-economy.
“Bioproducts create a lot of jobs,” he said, adding that the U.S. government spends $50 billion annually on procurement.
Surgeoner said Canadian companies will also benefit because BioPreferred doesn’t stop at the U.S. border.
“Any Canadian company can apply and be on the BioPreferred list and not be discriminated against, under the NAFTA (North American Free Trade Agreement) rules.”
Surgeoner may see BioPreferred as an opportunity for Canada, but Stan Blade, chief executive officer of Alberta Innovates Bio Solutions, a publicly funded corporation that supports bioresearch, isn’t so sure.
Several Canadian companies, including Alberta firms, have registered for the program. However, Canada’s biocompanies, which produce fibre matting, geo-textiles and insulation, could be left in the dust because Canada’s government doesn’t have a similar program.
“Canada is not there,” he said.
“Ag Canada has been given the responsibility to develop a national bioproducts strategy, (but) truthfully, it’s like an afterthought.”
Blade said the U.S. military has its own bioprocurement policy and some European Union countries, such as France, also have programs.
Surgeoner agreed that Canada’s biosector needs certification so that companies can promote and sell bioproducts both domestically and out of the country.
However, he doesn’t want to the federal government to “reinvent the wheel.”
“In my opinion, we should just work off the U.S. system,” he said.
“I think it’s very important (to) have a third party verification. And in my opinion, the USDA is as good as anybody in the world…. If I’m sending (a product) to Korea, I want to have a USDA as a third party verifier. But I would also like to (have) a Canada brand and have a big maple leaf on it…. That’s something that Canada needs to do.”
While the U.S. government is a robust advocate of the bio-economy, Canadian policy makers and the public might not be ready to support a preferential procurement program. Blade said policy makers might assume government agencies will be “forced to accept poor performance at maybe higher price.”
However, he said that’s not true.
“That is absolutely a misconception. They (bioproducts) can compete. And the standards are so rigorous…. (It) has to be equal to or a level above the performance of (conventional) products in the marketplace.”
Despite its exceptional oil wealth, Alberta has placed a “big bet” on developing its bio-economy, Blade said.
According to its website, Alberta Innovates Bio Solutions invested $56 million in more than 100 projects in 2011. It has invested money to study agricultural feedstocks and funded a University of Alberta led project called the bioconversion network.
“Can you produce some interesting starches and sugars from triticale? We’re doing the same thing in some of the oilseed crops,” Blade said.
Other groups are working on other steps in the value chain.
“Taking those feedstocks, tearing them apart and putting them into the kind of molecules that people are going to pay for.”
Manitoba is also betting on the potential of the bioeconomy. Last year it released its bioproducts strategy, which committed $20 million to support the industry over a decade.
“Speaking from an Alberta example, we’ve been very clear that we want to develop this part of industry, both for agriculture and forestry,” Blade said.
“We have a significant amount of biomass being produced…. We think we can change the value of those by applying some technology.”
