‘Significant challenges’ on Prairie horizon

Hey there, time traveller!
This article was published 06/02/2024 (590 days ago), so information in it may no longer be current.

Government has set lofty goals for plant-based protein production in Manitoba, but the industry bears several challenges while anticipating increased demand, according to new reports.

Severe labour shortages, changes in skilled workers’ needs and inadequate social infrastructure top the list of problems the prairies plant-based protein industry faces, says the Smart Prosperity Institute.

The University of Ottawa-based think tank partnered with the Future Skills Centre (Toronto) on three reports detailing plant-based protein industries in Manitoba and Saskatchewan.

Research began in September 2022, interviewing industry stakeholders, analyzing data and mapping out the supply chain from farm to grocery store. The partners released three reports Tuesday morning.

“There are significant challenges,” said Nicholas Renzetti, a Smart Prosperity Institute research associate who co-authored the reports.

“Some of the concern that we have is that the large investments… in Manitoba and in Saskatchewan, such as the Roquette plant in Portage la Prairie, will not be able to operate at the full scale and scope that we want them to.”

Protein Industries Canada has a goal of scaling Canada’s plant-based protein sector to a $25-billion industry.

It’s in the realm of possibility, Renzetti said. However, labour shortages are holding back growth in the agricultural and agri-food sectors, researchers found.

Labour shortages caused 48 per cent of agribusinesses to turn down sales or contracts and 41 per cent to lessen their service offerings in 2022, a Canadian Federation for Independent Businesses study found.

Government stakeholders said a majority of Manitoba labour shortages — 60 per cent — are concentrated in roles offering less than $20 per hour, the Smart Prosperity Institute underlined.

“Severe labour challenges… can lead companies to hire ‘anyone with a pulse.’”

General farm workers, agriculture managers, mechanical assemblers and inspectors, food science researchers and sales representatives are among the occupations the Smart Prosperity Institute expects to be in demand in coming years.

“There’s a bit more of a challenge to get highly skilled labour into rural areas,” said Daryl Domitruk, executive director of the Manitoba Pulse & Soybean Growers.

Additionally, employers now require different skills of their workers, including technological know-how.

“Traditionally, (staff are) drawn from local labour pools, but increasingly, we’re looking beyond local areas,” Domitruk said, echoing the Smart Prosperity Institute’s findings about a lack of adequate infrastructure for employees.

There’s a need for more housing, child care and transportation, he added. There’s also a need for strong supply chains.

“The farmer is the first one to take a risk in that whole supply chain,” Domitruk said. “They want to see… a well-oiled supply chain.”

Manitoba’s production of plant-based proteins has grown in recent years.

Roquette’s $600-million processing facility, which opened in 2021, has stabilized pea farming in the province, Domitruk said. Over the last 20 years, the province has added roughly 1.5 million acres of soybean crop, he added.

The increase was due to a genetic variant allowing soybeans to grow in Manitoba. Also, farmers could see the crops’ profitability.

Global demand for soybean oil and protein is “strong,” Domitruk noted, adding the plant-based protein sector on the Prairies has “a very strong growth potential.”

As the world’s population grows, so will demand for protein, he said. The global population is projected to reach 9.7 billion by 2050.

However, government and industry must address ongoing challenges to keep the Prairies competitive, the Smart Prosperity Institute’s reports state.

The think tank offered many recommendations on mitigating labour shortages, including: modifying the temporary foreign worker visa to allow for greater flexibility; better positioning training programs for existing workers around planting season; and expanding the federal Agri-Food pilot program.

The institute recommended increasing sector awareness — such as engaging students with the plant-based protein industry — and strengthening government policy around supporting sector businesses.

ProteinMB, an industry-led organization, is developing a team, model and network to “identify and mobilize around the protein industry’s biggest challenges to growth,” managing director Jillian Einarson wrote in a statement.

In April, ProteinMB expects to release a partnership model to facilitate addressing challenges.

France-based Roquette is “convinced about the strong long-term potential of this market,” James Bozikis, head of communications, wrote in an email.

The pea protein market has slowed in recent months, however, he noted.

“We expect the market to begin to rebound this year and we strongly believe that the market for pea protein will continue to grow over the next decade.”

The province released its Manitoba Protein Advantage Strategy in 2019. It set a goal of attracting $1.5-billion worth of investments and 1,550 jobs to the protein industry by 2025.

Since 2019, Manitoba has noted investment of $823.5 million and 912 jobs added, according to the province’s protein advantage website.

gabrielle.piche@winnipegfreepress.com