La Caisse presents its strategy for the Québec agri-food sector

Caisse de dépôt et placement du Québec (la Caisse) today presented its strategy for Québec’s agri-food sector. It also announced the creation of a $125-million fund to invest in every segment of the sector’s value chain, targeting both companies seeking to accelerate their growth and farmers who operate family businesses, and their successors.

Investments and support across the entire value chain

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. 

The sector’s value chain in Québec consists of three main segments: agricultural production, food processing, and food distribution and marketing.

Québec’s food production is diversified and of high quality. The sector features several areas of excellence, including the production of maple syrup, pork, veal, milk, dairy products, grain, fruit and vegetables. In addition, Québec boasts a network of dynamic food processing entrepreneurs in every region, representing some 2,200 businesses, 90% of which are SMEs. Québec also counts international leaders in processing and marketing (Agropur, Saputo, Olymel, etc.) that contribute to the globalization of the industry.

A changing global market with opportunities for Québec

Between now and 2050, the expected growth in the world’s population will require an almost 70% increase in food production. At the same time, the agri-food industry is going global, with complex supply chains designed to meet growing consumer demand for healthy, fresh and affordable food all year round.

Entrepreneurs in the agri-food sector are working to become better integrated into the value chain, both upstream and downstream, to keep their product offering safe, protect themselves against fluctuating commodity prices, withstand environmental changes, take on technological challenges, improve the traceability of raw materials, and know their customers, while maintaining their value and their flexibility.

A global strategy for more impact

La Caisse has been investing in agri-food processing and distribution/marketing for many years. The strategy presented today 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.

Creation of the Fonds agroalimentaire CDPQ

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 following table:

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.