ALBERTA GROWN AND PROCESSED
BY EMILY R. JOHNSON • PHOTO COURTESY OF THE TOWN OF WESTLOCK
Alberta farmers typically see their products shipped far away to be processed while the province loses the value-added margin. This is changing as rural communities work to keep more food processing at home. Such development gives farmers expanded market options and shorter hauls.
Canada’s Premier Food Corridor (CPFC) in southern Alberta and the Westlock Economic Region (WER) are two initiatives that lead the way. Both are intended to create opportunities for value-added agriculture that benefit local farmers, processors and communities. As global demand and investor interest grow, these collaborations build momentum.
BUILDING CANADA’S PREMIER FOOD CORRIDOR
Southern Alberta is a well-equipped agri-food processing hub. It builds on its strong yields, reliable irrigation, export-ready crops and transportation infrastructure. CPFC launched in 2018 as a joint effort by five municipalities: the City of Lethbridge, Lethbridge County, the Town of Taber, the Municipal District of Taber and the Town of Coaldale. All realized they could better capture investment opportunities as a team. “It was about having the belief that when Coaldale wins, the whole corridor wins, and so does the province,” said Sandra Dufresne, cluster development manager for the CPFC.
In 2023, the corridor secured funding from the five municipalities, the Government of Alberta and PrairiesCan, a federal government department that works to grow and diversify the Prairie economy. This allowed CPFC to hire staff, build a marketing strategy and attend investment-focused events and tradeshows.
CPFC is exploring investment proposals for renewable energy and greenhouse projects as well as alternative uses for sugar beets and food processing waste. The region grows more than 65 crops that often leave the province in raw form. “We want to change that,” said Dufresne. “If we can attract or expand processors here in southern Alberta, we keep more of that value close to home.”
THE SOUTHERN PROPOSITION
Recent announcements have raised the CPFC’s profile with investors and farmers. McCain Foods, one of three major potato processors in the corridor, will double the size of its facility in Lethbridge County. It’s the company’s largest global investment to date. As well, NewCold will build a $220 million state-of-the-art cold storage warehouse. It’s a welcome infrastructure upgrade for the region’s frozen food industry. Both projects reflect the corridor’s business-friendly qualities and the ability of municipal and provincial governments to move quickly on regulatory approvals.
This speedy process is a big advantage on the global stage, said Rick Christiaanse, CEO of Invest Alberta, which bills itself as: “The province’s lead investment attraction organization.” “In Alberta, we can get things done relatively quickly. The speed at which Alberta and Coaldale could move impressed NewCold. It took just six weeks. Investors, especially in Asia, are often surprised as many western jurisdictions take a substantial amount of time to move projects forward.”
Of course, such growth poses challenges. Water is a big concern for new and expanding food processors. “Processing food is highly water intensive, and we’re in a pretty serious drought cycle,” said Dufresne. “But irrigation expansion is underway. Reservoirs are being upgraded, and we’re working closely with the government to ensure we have the water available to attract global companies and meet demand.” To be completed by 2028, the St. Mary River Irrigation District Chin Reservoir Expansion Project will expand irrigation by 400,000 acres and allow growth of additional high-value crops.
Additional infrastructure work includes transport projects. To improve shipping times and access to export hubs, the Province has twinned Highway 3 through the corridor. “Global processors need reliable transportation infrastructure, especially rail,” said Dufresne. “They need assurance their products can move seamlessly throughout Canada, to ports and border crossings.”
About 90 per cent of products processed in Alberta are exported to the U.S. It’s both a strength and vulnerability, this necessitates diversification. “We’re now being much more intentional about exploring other markets,” added Dufresne.
NORTHERN AMBITIONS
In the north, the Westlock Economic Region (WER) also works hard to attract agri-food investment. “We started from scratch with no clear strategy, no defined target, just the understanding agriculture is our core strength,” said Murtaza Jamaly. A town councillor for Westlock, he helped launch the initiative.
The WER is a collaboration between the Town of Westlock, County of Westlock and the Village of Clyde. With agriculture identified as the region’s best path forward, the group built a plan to raise its profile and attract investment. “If we’re serious about economic development, we need to do it collectively,” said Jamaly.
The region has launched several initiatives, including the Port of Westlock project, which aims to improve rail access and logistics infrastructure. It has welcomed new value-added processing operations such as Milwest Distillery and Spirits. “There are real cost savings when you can grow, process and move product all in one region,” said Jamaly. “Dairy, grain and honey are commodities grown and produced in our backyard.”
The region’s geography is also a plus. Located at the crossroads of two major highways, Westlock offers strong connections to domestic and international markets. It also has access to ample power, water, gas and fibre optic infrastructure. “We’re well situated compared to many communities who may not be as export-ready,” said Jamaly.
WER representatives attend tradeshows to create investor awareness. “So, when an investor is looking for that next spot, they know we are open for business and ready to accept that investment,” said Jamaly. Additionally, he said the aim is to build long-term momentum. “This becomes the catalyst for all kinds of economic development in the area. We’re laying the groundwork for what this region will look like in 10, 20, 30 years.
“We believe investment will follow where it makes the most sense,” he said. “In a place that’s as far west and as close to tidewater as you can go while being in an agriculturally rich area.”
THE BIG PICTURE
Regional efforts such as CPFC and WER are key pieces of the Province’s broader economic diversification plan. “In the last five years, Alberta has attracted $28 billion in investment and created more than 36,000 new jobs—none of them in oil and gas—which highlights the diversification of the Alberta economy happening in real time,” said Christiaanse. “Agri-food is a big part of that shift.”
The Province is backing this vision with infrastructure and programs such as the Alberta Agri-Processing Investment Tax Credit and agri-food hubs such as the Alberta Food Centre in Leduc. The facility helps companies scale up, commercialize new products and improve existing ones. “Leduc is one of 22 research and innovation facilities across Alberta helping agricultural processors move forward,” said Christiaanse. “It’s moving technology and production in new directions while connecting with the academic sector for innovation and tapping into Alberta’s deep agricultural expertise.”
Food and beverage processing is Canada’s largest manufacturing sector and growing quickly. Expansion of local food processing presents opportunities for farmers to supply specialty markets and even create partnerships for on-farm trials and collaborations. Such new investment boosts employment, infrastructure and economic activity in rural Alberta.
“Innovation in agri-food is an important part of the evolution and diversification of our economy,” said Christiaanse. “This core sector … supports the resilience of this province and will always be important to our continued success.”
It requires consistent funding and long-term vision. Newman said short-term grants make it difficult to retain skilled staff or plan with confidence. “It’s hard to attract people when you can’t promise you’ll still be funded next year,” he said. “We need long-term commitment from funders.”
Such support, he emphasized, allows associations to build trust with farmers. With it, researchers and association staff can focus on projects that matter.
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