The article discusses how Canada is struggling to build up its domestic processing capacity for plant-based milk and ingredients, despite being one of the world’s largest producers of oats and soy. The federal government has invested millions in innovation superclusters to entice global ingredient manufacturers to build processing plants in Western Canada. However, many companies, including Danone, choose to process their products in the US or other countries due to logistical and environmental considerations.
Danone is launching a new line of plant-based milk, Silk, which will be made in the US. The article suggests that this decision reflects the company’s strategy to produce close to its largest consumer base. However, Bill Greuel, CEO of Protein Industries Canada, argues that it makes more sense to process crops into ingredients close to the fields, rather than relying on international supply chains.
The article concludes by highlighting the challenges facing Canada in building up its domestic processing capacity for plant-based milk and ingredients. While there are opportunities for growth, companies must balance logistical considerations with environmental concerns and consumer demand.
Some possible implications of this trend include:
- Lost economic opportunities: By not building up its domestic processing capacity, Canada is missing out on the opportunity to create jobs and stimulate local economies.
- Increased reliance on international supply chains: This can make Canadian companies vulnerable to disruptions in global trade and supply chains.
- Environmental concerns: Transportation of crops and ingredients over long distances can lead to increased greenhouse gas emissions and other environmental impacts.
To address these challenges, the federal government and industry stakeholders may need to work together to create a more favorable business environment for companies that choose to process their products in Canada. This could involve investing in infrastructure, providing tax incentives or other forms of support, and promoting Canadian brands and products to consumers.