"This is a sector with strong growth potential for Québec. It has all that's needed to succeed, both at home and in global markets, which are becoming increasingly competitive. For la Caisse, it's important that both today's farmers and their successors, as well as companies in the processing, distribution and marketing segments, be well positioned to compete and face the challenges in this sector," said Christian Dubé, Executive Vice-President, Québec at la Caisse.
"As we have done in other industries, la Caisse plans to support promising projects in Québec's agri-food sector, using a variety of approaches," added Mr. Dubé. "This plan is fully aligned with la Caisse's business strategy in Québec. Agri-food is a complex, diverse and cutting-edge sector that requires a long-term, viable business environment tailored to its distinctive features, particularly to foster development, innovation and business transfers to the next generation."
The agri-food sector generates substantial economic activity in Québec. Each year it adds close to $22 billion to Québec's GDP. The sector accounts for approximately 500,000 jobs, and exports more than $7.5 billion of its production.
La Caisse has been investing in agri-food processing and distribution/marketing for many years. The strategy presented now aims to maximize la Caisse's impact and expand its presence throughout the value chain and among all types of businesses and of projects by covering the entire agri-food sector.
This strategy is built on four pillars:
- Supporting young farmers and entrepreneurs who want to take over a business or create new market leaders;
- Backing owners and the family-farm model in the production segment;
- Reinforcing technological transition by improving access to modern equipment;
- Supporting growth and the expansion of operations in regional and international markets in industries where they are competitive.
To further support projects in the agri-food sector, la Caisse has announced the creation of the Fonds agroalimentaire CDPQ. This $125-million fund will be used to make direct investments (between $1 million and $30 million) in every segment of the value chain, with farmers and in projects and SMEs.
Specific criteria and targeted investment amounts vary for each segment in the value chain, as shown in the table available on the Caisse's website.
Investments in the agri-food sector will also be made through funds, in partnership with those active in the industry and other experts in targeted markets (between $5 million and $30 million). The Fund will target investments meeting certain criteria, including:
- A well-structured business plan;
- A well-established management team to provide farmers and entrepreneurs with proper support and structure;
- A transition and succession plan;
- A solid performance track record and growth strategy;
- An investment structure positioning la Caisse as a long-term partner for sustainable businesses and projects.
www.cdpq.com