Creating Opportunities Consultations Report

Adding Value in Rural and Northern Manitoba

AGRICULTURE

OPPORTUNITIES

Manitoba’s agri-food semi-processed or processed exports increased by 134 per cent between 1995 and 2004. The total 2004 value was $1.643 billion. Adding value to agricultural commodities needs to continue to be a priority for Manitoba. Increased value-added, marketing and promotion will improve our rural and northern economies as well as our urban economy. Value chains that connect producers with local markets promote sustainability and food security.

Rural Manitobans want to add value to our agricultural commodities. Producers and communities want to play an active role in processing products, so they can share in the economic benefits.

Creating Opportunities participants identified several key areas as important to the future of agriculture in Manitoba, including development of new industries or expansion of existing industries such as:

nutraceuticals and functional foods
horticulture
livestock production and meat processing
organic agriculture
aquaculture
niche and non-traditional commodities
native plant production and processing

Participants also mentioned a number of tools to help businesses and communities with marketing and promotion of opportunities:

cooperatives
value chains
support for existing supply management systems
MAFRI GO Teams (extension services, business development and community development)
Regional Development Corporations
Community Futures Development Corporations
Community Development Corporations

CHALLENGES

Financial – Family farm operators struggling with low returns, ﬁnd it difﬁcult to invest in new opportunities. Manitoba producers and processors are being forced to be more competitive in the marketplace. While agricultural production is growing as a result of industrialization and technological advancements, producers ﬁnd input costs are increasing
and net farm incomes are decreasing.
Human Resources – There is a need for trained personnel to support specialized processing industries such as abattoirs. There is also a shortage of skilled and unskilled labour in some rural communities.
Community Capacity – Manitobans are not taking full advantage of the opportunities that exist for non-traditional agricultural production and processing. They indicated a need to develop stronger community visions for the future.
Infrastructure – Other jurisdictions are using or considering a value chain approach to secure and maintain markets and margins. There is some concern about the lack of meat processing capacity, (especially for beef) and associated facilities.
Regulations – There is a desire for input into regulatory processes and support in meeting regulatory requirements. Organic producers and processors are limited by the lack of regulations at a national level.
Other Barriers – There is a need for marketing training, so producers can explore opportunities to promote their produce directly to consumers. Lack of awareness of Manitoba products (branding) limits our agricultural industry in competing more effectively with other jurisdictions. There is also a need for more education on cooperative models to encourage producers to consider investing in them.

RECOMMENDATIONS

Governments and communities should co-operate with producers and processors, to encourage and support several initiatives to:

Develop and commercialize new agricultural manufacturing, processing and service opportunities to bring new research projects to market.
Research and develop new industrial opportunities with particular focus on underused agricultural products such as biomass materials.
Develop a value chain strategy that emphasizes:
- organizational models, such as co-ops, to allow producers to capture greater profits in the supply chain
- increased and enhanced value-added opportunities, profitability and a fair return for Manitoba producers and processors.
Encourage co-operation between producers, researchers, and industry to explore and develop new opportunities, and provide the workforce with the necessary skills to adapt to the new economy.
Market Manitoba products by branding and promoting products to both local and external markets, and increasing marketing training for rural entrepreneurs.
Develop national organic standards in co-operation with the Canadian Food Inspection Agency.
Develop truth in labelling laws and regulations with the
federal government.
Work with Manitoba Labour and Immigration to address the human resource needs in the agriculture sector by linking labour demands with under and unemployed skilled immigrants in Winnipeg and off-shore recruitment through Manitoba’s Provincial Nominee Program.

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