Another funding commitment has been made towards a multi-million-dollar capital campaign by Cereals Canada.
Cereals Canada says it is hoping to break ground this year on the construction of a new building in downtown Winnipeg. The organization says it is nearing the end of its lease in a building that is no longer able to meet its current and future goals.
Their lease expires on March 31, 2027, and with this date now just over two years away, it says a new home is needed to continue to build on the vital work being done to advance the Canadian grains value chain.
The state-of-the-art, purpose-built facility will house laboratories, a flour mill, and end-product assessment areas, along with educational training facilities to support and train global customers about the quality, functionality, safety, and sustainability of Canadian grains.
Construction of the new building in downtown Winnipeg is projected to cost approximately $100 million and includes estimated development, land, and fit-out costs for a new building, equipment as well as soft costs of design, engineering, and architecture.
Cereals Canada says the Global Agriculture Technology Exchange (GATE), as the building will be called, is being purposefully designed to help the industry grow and thrive in domestic and international markets well into the future.
In February, the GATE capital campaign announced a funding commitment from the Quebec Grain Producers/ Producteurs de grains du Québec (PGQ). This marks the fifth producer organization to commit funds to the project.
"I am pleased to announce that the Producteurs de grains du Québec have committed $111,028 in funding for the GATE Project," says Christian Overbeek, President of PGQ. "PGQ is happy to participate in this flagship project, which will make a significant contribution to the cereals sector, both in the west and east of Canada."
William van Tassel is a Director with PGQ. He says the reason why they are helping fund this project is because of the work that Cereals Canada does for PGQ.
"Many things that Cereals Canada does, we don't do," explains van Tassel. "We don't have the capacity to do it, like market development, market access, international trade. So, Cereals Canada does that for us. So, that's the reason why we're funding this project."
According to van Tassel, around 90 per cent of wheat in Canada is exported. He notes if you do not have good export markets, the prices will drop, which is why he says GATE will benefit farmers in his province.
"I think it's a very important project what's coming on," adds van Tassel. "We back it very much because we find it very important."
In September, Alberta Grains, Saskatchewan Wheat Development Commission, Manitoba Crop Alliance, and Grain Farmers of Ontario made funding announcements for the project. Together with Cereals Canada, the organizations have pledged $18.5 million to GATE.
With a preliminary cost estimate of approximately $100 million, GATE will provide the tools necessary to allow Cereals Canada to maintain the globally recognized, best-in-class expertise needed to support today's global markets and ensure end-user success while exploring new opportunities to diversify markets for Canadian wheat, barley, and oats.
"This project is driven by ambition and a vision for the Canadian cereals industry to grow and thrive in domestic and international markets now and in the future," says JoAnne Buth, GATE capital campaign chair. "We are grateful to the Quebec Grain Producers for their support in helping to bring this vision to life. Canadian farmers from coast to coast are at the heart of what we do."
Bolstered by support from producer groups, a press release states that the GATE capital campaign is targeting contributions from industry groups, agribusinesses, and individuals, and support from the three levels of government.