Manitoba spends 'a whole lotta bread' to find new markets for cereal grains

Manitoba is putting $13 million to the development of a $102-million grain tech facility in Winnipeg's Exchange District that will connect Canadian cereals producers with new international partners.

"This is really about showcasing our ag industry at a time when Canada absolutely needs to diversify our trading partners," Premier Wab Kinew said at a news conference Thursday inside the Cereals Canada offices at 303 Main St.

"This is a good long-term investment in ensuring the backbone of our western Canadian economy, or Manitoba economy, is going to stay strong. We're looking for more places to do business."

Cereals Canada is taking the reins on developing the Global Agriculture Technology Exchange (GATE), which will have research and innovation space for specialty milling, a pilot bakery, pasta extrusion and training and office space.

"GATE will elevate the Canadian grain industry to new levels of excellence and global competitiveness by positioning itself as a world-class state-of-the-art facility," said Cereals Canada CEO Dean Dias.

"By providing global buyers with value-added technical knowledge and expertise, we will continue to maintain Canada's leadership as a trusted, consistent supplier of high-quality cereals."

The facility will bring clients from around the world to downtown Winnipeg to learn how they can use western Canadian grains "to make their bread, their granola bars, their ramen and so many other products," Kinew said.

"We heard about this project and we said, you know what, we need to get down there and we're going to bring a whole lotta bread.

"We're talking about investment in downtown and an investment in our ag industry. It sounds like a win-win to me."

Many questions about it remain unanswered, though.

It's not clear if the facility would be located within an existing building or a new one, and there is also no known timeline for its development, which is still far from raising the $102 million that is required.

"A piece of land" has been identified but no agreements have been signed, so it can't yet be identified, Dias said.

Aside from the Manitoba commitment, Cereals Canada has put in $5 million and farmers from Alberta, Saskatchewan, Manitoba, Ontario and Quebec have united to raise $13.5 million.

"We're still a long way from there but we are working on it," said Dias.

The federal government has not yet come to the table, and won't while in the midst of an election. But Kinew called Manitoba's contribution a signal "to whoever comes out of this election campaign, that province of Manitoba is serious."

He called Manitoba's $13 million "a down payment" if the federal government is willing to split the cost into thirds, with the other partner being the ag industry.

"This is a blueprint for how Manitoba and Canada are going to be able to get through these turbulent times," Kinew said, referring to U.S. tariffs and the trade war.

"It's by working together, it's by building on those areas where we're already strong, and it's be making sure that public investment is matching the private sector's enthusiasm and creativity."