The following notes represent a consolidated record of all group discussions held in Winnipeg on January 26, 2006 for economic development practitioners and February 21, 2006 for industries and community organizations. The final Creating Opportunities report reflects the input received at these and other consultations held throughout Manitoba.

Opportunities | Supports | Entrepreneurship

OPPORTUNITIES

A number of value-added opportunities exist in Manitoba.

What opportunities exist for value-added business in this area?

• Need to explore ways of adding value to Manitoba products; for example, no beef should leave Manitoba that is not wrapped in plastic.
• Identify demand for valuable and niche products.
• Tourism can benefit from:
  • Foreign dollars
  • Redevelopment of abandoned rail lines as trails.
  • Winter activities such as cross country skiing.
  • Organized tours of farms and historic sites, showing how we produce food, or highlighting our unique Manitoban and Canadian lifestyle.
  • Expansion of agri-tourism market
  • Culinary tourism, featuring local dishes and ingredients such as saskatoons or organic food (eco-tourism).
  • Development of more accommodations
  • Collaborative packaging
  • Development of hunting co-operatives
  • Further development to fill seasonal gaps.
• Energy production opportunities include:
  • Wind power on individual farms, under local rather than out-of-province ownership.
  • Bio-diesel production from animal waste.
  • Uses for glycerin (byproduct of bio-diesel).
  • Biomass from agricultural byproducts can be used for heating.
  • Cellulose ethanol
  • In-stream generators to harness the flow of water.
  • Methane from landfills, using cover for landfills that can reduce odours and create methane.
  • Methane from anaerobic digestion in lagoons.
  • Co-generation of heat and electricity.
  • Alternative fuels as opportunity for producers to be self sufficient.
  • Innovative power generation methods with reduced production costs.
• Manitoba needs more slaughter capacity, provincially inspected.
• Marketing beef - local shops, niche markets, organic and natural.
• Need more business ideas to improve efficiency of producers, which could lead to more grain processing opportunities.
• Processing meat byproducts for pet food and pet toys.
• Crops research and development
• Canola seed for bird seed.
• Oats and other grains as a replacement for rice.
• Pedigreed seed opportunities in IP production.
• Add value to grains for human consumption, market directly to Winnipeg.
• Dehydrated potatoes, capturing value from off grade product.
• New foods, working at Food Development Centre (FDC).
• Hemp plants, tied secondary processing and manufacturing.
• Hay for export.
• Greenhouses, possibly passive solar greenhouses using technology from China.
• Fruit industry is new and unique in our province, with continued development of the Saskatoon industry – huge potential for local and overseas markets, need to do processing here and not just send out berries in bulk.
• Straw housing – affordable and reliable.
• Lamb production and marketing
• Goat milk, soap and wool.
• Wool for insulation
• Use of lower quality foods for sheep.
• Aquaculture, perhaps making use of canola as feed.
• Manitoba fish products such as pickerel, northern pike, whitefish are available in limited supply, challenge is how to sell locally.
• Markets for underused species such as mullet and suckers.
• Moving fish to market quickly and in various ways, to increase return after processing.
• Organic flax oil
• Organics are value-added, with much of the market in Manitoba from imports.
• Non-timber forest products
• Nutrition-based opportunities:
  • Identify preserved products.
  • Experience local, whole foods.
  • Link producers with consumers – local food and local consumption.
  • Northern food production
• Composting and vermiculture for export and education.
• Manufacturing from recycled materials, especially those that do not currently have a market.
• Health-related opportunities:
  • Elder care
  • Child care
  • Start locally and build outward.
• Fibre products have absorptive properties, potential environmental applications.
• Clothing and cosmetics opportunities
• Steel processing and attached industry in Selkirk.
• Nanotechnology
• Art and artistic lifestyles
• Evolving funeral and cemetery industry.
• Ways to address affordable housing.
• Need to learn how to market experience.
• Consumers are interested in local products.
• Find out what people want, then develop it and sell to them.
• Young people are interested in food safety – need to build links between agricultural products and personal health, educate people and promote the benefit of reduced public health costs.
• Opportunities for business development around recycled products.
• Opportunities to keep products domestic.
• Spinoff opportunities for service sector, supporting major industries.
• Need to identify component aspects and the benefit and value, not just a bulk product.
• Co-operatives provide opportunity for locally driven initiatives with collective marketing and advertising, appropriate pricing, standards and accreditation.
• Producer groups to raise money for research to access matching funding.

What is preventing the area from taking advantage of these opportunities?

• Lack of capital, working capital
• Individuals do not have the capital to invest in basic research and feasibility studies.
• Large investors are looking for patents and large scale processing and manufacturing.
• High risk projects limit movement and access to money.
• Investors lack confidence in Manitoba investment funds.
• Lack of process or mechanism for getting investment dollars to the producers and businesses with ideas.
• Public perception of farmers – why invest in a money-losing industry?
• Province needs to look at and fund programs for funding opportunities.
• Access to markets, such as giant retailers.
• Need partnerships with “big boys” to produce in Manitoba.
• Need to bring all players together, to develop a strategic plan for industry – a difficult process, but Quebec may be a good model.
• Lack of bookends – commitment from producers as well as clearly identified markets and consumer needs.
• Need to connect producers with consumers.
• Producers could use a tax credit.
• Duty free manufacturing zones in the U.S.A. may be a model for a value-added tax free zone – when product is sent, a tax credit is given.
• Need to drive profitability – low profitability doesn’t justify risk.
• Need incentives to invest in local value-added.
• Lack of investment capital in rural Manitoba.
• Need to look for markets, then package for the markets that are identified – this would result in entrepreneurial commitment.
• International trade policies
• Advertising is expensive.
• Currently we export outside of province to buyers who process the product and sell it back to us – we consume our own products.
• Need to market Manitoba products to Manitobans.
• For some markets, such as organic foods, it is important that a product can be traced back to source, so we should be able to do so.
• Need to look at more co-operative marketing programs.
• Co-operatives need support as they form and grow - the individuals who come together may not have business backgrounds.
• Vary levels of commitment to a project, depending on market prices for commodities.
• Competition for skilled labour, tradespeople; could be opportunities to build products in Manitoba due to our “availability,” or for small manufacturing.
• Need more access to farm labour, there aren’t enough people to fill the current need.
• Reaching agricultural producers with entrepreneurship training.
• Education on moving an idea or project ahead, who to work with and how.
• Need to streamline immigration process.
• Limitations to infrastructure, which can include roads, natural gas, Internet, doctors, social facilities and rail lines.
• Strategic placement of infrastructure.
• Infrastructure; waste could be dealt with by using smaller scale, on-farm methods.
• Perception that we can’t do it here, that rural is dying, there are too many “bugs”; internal attitude.
• Barriers to entrepreneurship include the participation rate of women, who are not being promoted or inspired.
• Barriers to women include safety and health concerns, transportation, lack of “can do” confidence.
• Lack of community partnerships; communities don’t work together on initiatives such as tourism packaging.
• Lack of access to promotion dollars is a barrier to tourism.
• Co-ordination of economic development organizations.
• Compared to the U.S.A. and Europe, support in Manitoba doesn’t promote the development of opportunities.
• Manitoba places too much emphasis on export – we need to look at being more self-sustaining and to look at domestic markets for providing products being used.
• Need successful branding
• Growing animosity between eastern and western nations; political differences make it difficult to develop commodities specific to them.
• Government policies related to price predictability of bio-diesel, ethanol and electricity.
• Indirect impact of other governments’ economic development initiatives.
• Universities need to teach value-added; agricultural diploma program has some business development and planning.
• Need to attract people to postsecondary agriculture programs.
• There is a limited knowledge of agriculture even among rural students.
• Need to get students to think beyond the traditional roles and careers in agriculture.
• Support is needed to develop new educational programs and then market these programs to potential students.
• Recycling in rural areas is becoming a problem due to cost; cardboard is being recaptured but there is no market for reprocessing.
• Government regulations, such as standards in the tourism industry, are a barrier that holds up projects.
• Lack of federal processing and regulation controls limits value-added products – may be able to sell in one area but not in another.
• Need standardization of controls across the country.
• Need to re-evaluate regulations that affect rural Manitoba.
• Regulations make it difficult to break into huge buyers.
• Sometimes facilities have high standard, but there is no accreditation for it through the Canadian Food Inspection Agency.
• Territoriality between hospitals, districts, etc.
• Re-assessment of farm buildings used as commercial accommodations.
• Need interdepartmental task force to look at streamlining systems.
• Barrier in the north – access and winter roads, employment insurance and social assistance disincentives.
• Bio-diesel issues with “level playing field” due to incentives in other jurisdictions.
• Limitations to the sheep industry, including lack of federal slaughter capacity, uncertain future,and lack of access to information, technology, financing, market and information.
• Small farms need additional support.
• Projects die.

SUPPORTS

Communities, industry and government can support value-added development in a number of ways.

What can the community and industry do to promote and support the development of value-added opportunities?

• Strategic planning at the municipal level:
  • Plan for development, long term stability.
  • Plan for the long term first, then the short term.
  • Include young people in the process, ask them what they see for the future of their community.
  • Town hall meetings to get ideas out there and to get more ideas.
  • Identify community strengths and weaknesses.
  • Identify markets, resources, opportunities.
• Create a value-added network for ideas, information exchange, town hall meetings.
• Create a mentoring network for entrepreneurs to:
  • Share successes and failures
  • Create value chain strategies
  • Identify what’s holding industries back.
  • Support business development
  • Identify helpful resources
  • Map resources and assistance
• Need to encourage all sectors to look at long term planning.
• Five-year agreement with Agri-Food Research & Development Initiative (ARDI).
• Need the right infrastructure to support new initiatives.
• Need community infrastructure to attract people to rural communities and retain or attract back youth, including health care, schools and recreation.
• Need to fix old infrastructure then develop new to attract business and settlement.
• Broadband in rural areas
• Three-phase power to all areas.
• Encourage geothermal heating.
• Address road restrictions to make them practical for shipping and transport needs.
• Zoning that makes it easier for industry to come in.
• Tax incentives
• Create more enabling taxation laws.
• Ensure that current financial incentives are being used to their full potential.
• Direct dollars to where the bulk of the population is located.
• Create system that enables regular individuals to invest to smaller investment directly.
• Be more pro-active and less reactive.
• Commodity and champion promotion and support.
• Government can assist in establishing partnerships.
• Co-op marketing, multiple producers under one brand name or a grower groups such as has been formed for saskatoons.
• Non-profits get the ball rolling, provide support to initiatives, with flexible policies to do feasibility studies, business plans, etc.
• Non-profits can help provide access to business information and intelligence.
• Put information into the hands of the community.
• More acceptance of smaller businesses.
• Government needs to support the “small opportunities,” provide tax breaks and incentives for small and V.A. businesses.
• A flexible business incubation service is needed to meet the needs of individual businesses.
• Government lessening regulations
• Need more responsive government programs.
• Provincial contact as a liaison when pursuing a project, such as a MAFRI conduit to government to provide information and assist with jumping through hoops.
• Product development needs to happen more quickly.
• Need to streamline approval processes.
• Need to address industrial issues, such as odour, water and air quality.
• Find more champions and leaders to take on issues by engaging communities.
• Support value-added activities outside of the traditional product lines, with educational component and marketing.
• Teach children about our community, perhaps by developing community programs for schools.
• Teach courses in everything, including civics, business education, etc.
• Encourage an agriculture and community focus through Junior Achievement.

Which government activities would be the most effective in supporting value-added development?

• Align government policy with value-added.
• Supporting the economic base of rural Manitoba.
• A new commitment to rural community economic development (CED).
• Supporting the co-op model.
• Investment in technology, research and development.
• Increasing awareness of innovative business models.
• Make program supports flexible, to accommodate a variety of business models.
• Broaden definitions of “farmer” and “businessperson.”
• Farm income diversification and farm diversification should both contribute to package of enterprise.
• Examine the difference between expenditures and investments.
• Go beyond agriculture.
• Infrastructure development, including technology and transport infrastructure.
• Help communities repair old infrastructure.
• Make business development easier by having hydro, roads, etc. to doorstep of business as incentive to locate there.
• Immigration initiatives, promotion of immigration to rural areas that fits the need for trained labour.
• Provide more access to migrant labour, review regulations, encourage sharing of migrant labourers between several farms.
• Streamline the regulatory process, especially when multiple departments are involved.
• Provide access to capital by being creative in providing capital and capital expertise, and working with incentives in venture capital.
• Investment incentives for products that provide health benefits.
• Government funding for investment in processing equipment.
• Incentives for use of byproducts.
• Use federal cash advance program for business funding.
• Guarantee loans.
• Encourage community development corporations (CDCs) to match funding for development.
• Tax credits or incentives for the development of rural business.
• Tax incentives for pedigreed seed.
• Tax cuts
• Encourage on-farm bio-diesel.
• Provide a sheep specialist for sheep industry.
• Balance food safety, regulations and business growth.
• Support unique business in obtaining insurance when they can’t find anyone to underwrite businesses they don’t understand.
• Public liability insurance for rural businesses.
• Supply government expertise in trade deals in order to supply product to other countries.
• Trade missions need to focus on opportunities other than just agriculture.
• Market identification and development
• Partnership opportunities with markets, encouraging new businesses to market specifically.
• Additional incentives for new businesses.
• Flow-through shares for agri-ventures.
• More effective use of resources.
• Protect water resources.

ENTREPRENEURSHIP

Entrepreneurship drives value-added development and innovation.

What specific efforts or programs are currently being pursued in this region to support entrepreneurial development?

• CDCs
• Canadian Agricultural Skills Service (CASS)
• Organic Food Council of Manitoba (OFCM) organic directory.
• Food Development Centre (FDC)
• Fort Whyte Centre has young entrepreneurs project on honey and bison, organizing youth in co-operatives.
• Canada Futures Development Corporation (CFDC) funds and CDCs Community Works Loans (CWL).
• Internet webpage
• Advocating “hands off” approach to regulating seasonal signs.
• Sheep strategic plan and value chain.
• Working co-operatively with Saskatchewan and Alberta to bring market for fruit industry and learn from others.
• Flax Council of Canada, Canola Council of Canada, etc, are marketing, promoting and matching needs.
• Co-operatives provide access to large urban market for sale to niche markets.
• Immigration-related policies
• Financial requirements that don’t limit programs to large farms.
• Infrastructure to encourage people to move to and stay in rural Manitoba.
• Continued delivery of education programs into rural areas.
• More encouragement and supports
• A tenacious, driven attitude
• Identify barriers and ways around them.
• Junior Achievement (JA) – possibly encouraging more linkages to agri-business opportunities.
• 4-H – could encourage even more.
• Agriculture in the Classroom – limited current programming but has possibilities.
• University of Manitoba (UM) – limited, perception that younger students don’t necessarily have the entrepreneurial spirit, creating school programs allowing students to invest in community could assist in creating this spirit.
• UM has business courses – scholarships.
• Asper School of Business does more.
• Red River College (RRC) Agribusiness Certificate.
• Assiniboine Community College (ACC) programs.

How can entrepreneurial development be better supported?

• “Value-added” needs to be defined and understood.
• Identifying market opportunities within Manitoba, connecting rural with urban.
• Simplifying provincial processes, such as licensing and regulation.
• Entrepreneurial training in schools.
• Basic, solid education that addresses current deficiencies.
• Not just teaching entrepreneurship; have kids engaged in community activities.
• Subsidized education and tuition.
• More RRC and ACC programs in rural communities to save students money.
• Funding for trade development
• Partnerships with other industry or small business to train, use expertise, pass it on.
• Connect with knowledge that exists in rural areas.
• Succession planning is needed.
• JA
• Help with business plan development and providing access to consultation services.
• Qualifications for apprenticeships can be too high, creating a barrier and discriminating against small and rural businesses.
• Youth training in the north.
• Leadership development
• Mentoring
• Training and work ethic that addresses the questions, “why would I do it?” and “why in rural Manitoba?” – grow or teach the courage, passion.
• Reduce risks through insurance or benefits.
• Find out how we create entrepreneurs out of existing producers.
• Find out how to develop entrepreneurs without financial incentives.
• More recognition and appreciation for hard work, inventiveness, etc.
• Deliver programs to average people.
• Provide relatively easy access to capital.
• Find those who want to invest.
• When farm producers are struggling to maintain, a loan of less than $10,000 is not sufficient to start a new enterprise.
• Low interest loans
• Forgivable loans for industries fulfilling contract to remain in rural area.
• Zero subsidies to entrepreneurs
• Need less formal intermediary financial structure.
• Government financing to competing business is a detriment to true entrepreneurs.
• Need a balance between financial institution involvement versus high risk investments.
• Tax credit for sustainability and/or growth.
• Subsidies encouraging farming for programs, not for product.
• Find more oil.
• Potato industry can be supported with more market research, co-ordinated market intelligence and co-operative sharing.
• Canola industry needs market development and research.
• Seed industry needs innovative means of financing (including joint arrangement with agri-business), more use of the new generation of co-op legislation, knowledge from other jurisdictions and new business structures.