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Background:
Flax Canada (FC) 2015 is
structured as an economic development strategy based on creating
sustainable value from enhanced flax acreage (approximately 2 ½ x that
currently) and from the development and commercialization of novel flax
products into existing and new markets. Many of the commercial
opportunities that have been identified by FC 2015 will be based in
rural communities and/or will have strong linkages with producers. For
example, commercial plants are being targeted for development under the
fiber and industrial pillars while new identity preserved flax with
novel traits for human and animal health applications will be grown
under closed loop systems with the producer as the key player in the
value chain. We anticipate that the success of FC 2015 will have a
major impact on rural revitalization and directly contribute significant
new jobs and infrastructure support.
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VISION: Canada is
recognized as the global leader in the development and
commercialization of human and animal based health, animal feed,
fiber and industrial products from flax. |
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GOAL: The goal of
Flax Canada 2015 is to develop flax into a 5 to 6 million acre
crop yielding a farm gate value of $1.5 billion (from current
estimates of $350 to $500 million). FC 2015 will deliver an
overall societal benefit to Canada of $15 billion through health,
wellness and environmental sustainability. |
Flax presents significant
growth and development opportunities - to become the bio-economy crop
for Canada in the 2lst century, to contribute to the health and wellness
of Canadians, and to environmental sustainability, and to create new
economic value and jobs in Canada. Through FC 2015, this vision and
mission will be realized.
Objective:
The overall objective of
activities in Phase I of FC 2015 is to strengthen Canada’s leadership
position in flax research, product development and commercialization in
the areas of health, wellness and the environment. Significant
stakeholder consultations, research and market assessment and commercial
feasibility studies have led FC 2105 to identify key opportunities
achievable over the short, medium and longer term.
Over the next 10 years FC 2015
will deliver benefits in four industry product destination pillars:
- Human Health
- Animal Health and
Productivity
- Fiber
- Industrial Uses
A fifth pillar, Breeding and
Production, underlies the four industry pillars as a critical element in
our plan. Significant emphasis will be placed upon strengthening
production and plant breeding efforts, integral components necessary for
success.
Individual sector specific
strategies have been developed and will be implemented under each of the
industry product destination pillars. Each pillar strategy has its own
business model focused upon developing the opportunities that will
create significant and sustainable value - value of which will be
realized by the Canadian industry throughout several global markets.
Activities and
Opportunity Identification:
FC 2015 received support under
the Phase I Brokerage Program of the Agricultural Policy Framework to
develop an overall strategic plan for flax based on establishing
linkages between researchers, industry, the health care community and
government.
FC 2015 Phase 1 activities began
on October 1, 2004. The focus of all activities has been on developing
new lines of business for higher-value flax based products and processes
through total utilization of flax in four key areas: 1) human health
(including functional foods and natural health products); 2) animal
productivity and nutrition; 3) fiber; and 4) industrial uses.
A Steering Committee of industry
and government professionals, in addition to active working groups, has
developed innovative, compelling strategies in the four industry pillar
areas and a comprehensive plant breeding and production management
strategy to support industry pillar goals. Additionally, significant in
kind and cash support has been provided by our Working Group members and
our industrial partners. We have successfully leveraged research
dollars for most of the studies being undertaken by FC 2015. In fact,
we believe that for ever dollar contributed by Agriculture and Agri-Food
Canada to this initiative, we have been able to match it (both in kind
and cash) at least by 2-3 times this amount.
A summary table (Appendix
A) provides brief overviews by pillar:
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Overview - Working Groups
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Overall Goals
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Market Definition and Scope
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Short Term Opportunities -
(Initiate 2006 - 2007)
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Medium & Long Term
Opportunities - (Initiate 2007 -2008)
Pillar Strategic Plans
Establish five action
oriented Working Groups to address the sectors that will drive Flax
Canada 2015 vision.
Complete the development of
five sector strategic plans which will deliver on economic impact of
$1.5 billion per year based on the Canadian Flax Crop.
Several projects were undertaken
in order to identify the key opportunity areas for each of the pillars
over the short, medium and long term.
Comprehensive strategic plans
for each pillar were developed following extensive market and economic
assessment, research and stakeholder consultation.
Flax Industry Strategic Plan
– Overview
Establish an umbrella
strategic plan for FC 2015 that will deliver economic impact and value
throughout the value chain in Canada. The strategic plan will address
key sector priorities and appropriate implementation action plan with
milestones to deliver the vision.
A Flax Industry Strategic Plan
and Pillar specific implementation plans were developed.
Branding
Develop Flax Canada Branding
strategy to establish the image of Canadian flax and its advantage.
Develop the plan with milestone with resources to deliver the branding
strategy.
FC 2015 convened one major
consultation with stakeholder groups on January 25, 2005 to discuss a
Branding Strategy for flax. In addition, significant consultation and
informal interviews were undertaken. The stakeholders represented
primarily the flax based functional foods and natural health products (FFN)
sector as it was felt that this market would be affected the most
significantly by any attempts FC 2015 made to “brand” flax.
A unified image or ‘brand’
promise would be of interest to companies and may assist in marketing
especially if the brand carries a government endorsement. There are
challenges to be addressed in order to develop an effective brand
strategy for flax including diverse target markets, the lack of industry
player collaboration and the varied levels of sophistication (and hence
assurance of quality) that exist in the industry. The concerns that
were raised included:
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More and more companies are
moving to individual ingredient branding (examples in flax include
Bioriginal’s BakOmega, Pizzey’s Fibregard) as a way to distinguish
themselves from their competitors in similar product categories.
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What would it cost to develop
the Flax Canada brand, who would pay for it, maintain and enforce it?
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What impact would a bad
impression of one product cause for flax products coming from Canada?
Upon deliberation of this issue
by the FCSC, it is recommended that the promotional materials developed
by Agriculture and Agri-Food Canada under a “National Branding Strategy”
should be utilized for flax. The very professional packages were
developed following significant consultation with stakeholders
(“Feasibility Study on Creating a Cultural Brand for the Functional Food
and Nutraceutical Industry”) and can be customized to flax. Also, the
brand promise levers Canada’s international reputation and focuses on
trust, commitment, excellence and customer service.
By working with Agriculture and
Agri-Food Canada Branding team, we believe that an effective brand
package focused upon flax can be developed. The purpose of the branding
strategy would be to segregate Canadian Flax from other global flax
commodity sources and to raise the bar for our competitors. It is to
build, sustain and defend (from competitors) the new value created for
Canadian flax — both nationally and globally.
Future Directions
Communication Strategy
Ag-West Bio has overseen the
development of communication materials for FC 2015 Phase 1 including a
website (www.flax2015.ca)
as well as a logo for FC 2015. They also organized the launch of FC
2015 which occurred in October, 2005 and was attended by close to eighty
individuals. Radio and television coverage was extensive following the
event.
Other information dissemination
activities that have been coordinated by Kelley Fitzpatrick,
Coordinator, Flax Canada 2015, have been focused towards the food
industry, health care professionals, the medical community and
consumers:
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WorldNutra Conference, October
2005, Anaheim CA (www.worldnutra.com)
symposium - Flax Bioactives for Human Health: A Unique Symposium.
This very successful symposium attracted close to 100 attendees. The
cutting edge science that was presented supports a role for flaxseed
and flax oil bioactives in the prevention and treatment of several
chronic diseases including cardiovascular disease (through reductions
in serum lipid levels and positive changes in inflammatory biomarker
levels), breast and prostate cancer and hypertension.
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The Flax Canada Coordinator
has given over fifty invited presentations to the industry, research
and health care community since the inception of the initiative.
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Since October 2005, over 40
informational ‘bulletins’ have been circulated to an extensive list of
flax stakeholders.
Each of the FC 2015 pillars
has developed their own communications strategies which are described
in their individual strategic plans.
Appendix:
Appendix A. Phase 1 – Flax Canada 2015
Initiative - Summary and Opportunity Identification
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Human
Health Pillar |
Animal
Health and Productivity Pillar |
Industrial Uses Pillar |
Fiber
Pillar |
Production and Breeding Pillar |
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Working Group Members |
John Oliver, CHAIR
Maple Leaf Bioconcepts
Scientific Advisors
Dr. Grant Pierce
National Centre for Agri-Food Research
in Medicine
Dr. Diane Morris
MainStream Nutrition
Dr. Sheila Innis
University of British Columbia
Dr. James Friel
University of Manitoba
Dr. Pete Desai
Desai and Desai Canada
Jerome Konescni
Bioriginal Food & Science
Dr. Alister Muir
Saskatoon Research Centre, AAFC
Dr. Lilian Thompson
University of Toronto
Dr. Mohammad Mogadasian
University of Manitoba
Dr. Eric Murphy
UD State University
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Barry Hall, CHAIR
President, Flax Council of Canada
Dr. Murray Drew
Department of Animal & Poultry Science,
University of Saskatchewan
Dr. Scott Duguid
Morden Research Station, AAFC
Darrell Embury
Nutritionist, Max Pro Feeds Ltd.
Dr. Steven Leeson
Department of Animal and Poultry
Science, University of Guelph
Dr. Greg Page
Fish Nutrition Research Scientist, Maple
Leaf Foods
Dr. John Patience
Prairie Swine Centre
Dr. Helene Petit
Dairy and Swine Research and
Development Centre, AAFC
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Ron Kehrig, CHAIR
BioProducts and BioProcesses
Ag-West Bio Inc.
Dr. Abdul Jalil - FCSC Lead
Director, Agriculture Research Branch,
SAFRR
Gerald Comeau
Cannalin Industries Ltd.
Kingsley, New Brunswick
Dr. Scott Duguid
Morden Research Station, AAFC
Ken Friesen
TARKET, Calgary
Royal Hinther
Head, Business Development
Plant Biotechnology Institute, NRC
Dr. Martin Reaney
Department of Food Science and
Microbiology, USK
Allen Sturko
Life Sciences, Manitoba Energy, Science
and Technology
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Linda Braun, CHAIR
Executive Director, SK FLAX
John Christensen
Bioproducts Consultant
Dr. Scott Duguid
Morden Research Station, AAFC
Joseph Hogue
Schweitzer-Mauduit
Dr. Satya Panigrahi
College of Engineering, USK
Dr. Ted Pidgeon
Life Science Investment, AAFC
Alvin Ulrich
Biolin Research
Wade Chute
Alberta Research Council
Eric Laugier
Sanelink Corp., Montreal
Trevor Kloeck
Alberta Agriculture
Keith Watson
Manitoba Agriculture, Food and Rural
Initiatives |
Dr Scott Duguid, CHAIR
Morden Research Station, AAFC
Dr. Daryl Domitruk — FCSC Lead
Manitoba Agriculture, Food and Rural
Initiatives
Dr. Veronique Barthett
Oilseed Research, Canadian Grain
Commission
Dr. Sylvie Cloutier
Cereal Research Centre, AAFC
Dr. Axel Diederichsen
Saskatoon Research Centre, AAFC
Dr. Paul Dribnenki
AgriCore United
Corrin Harris
Saskatchewan AFRR
Dr. Hair Nair
Bioriginal Food & Science Corp
Rob Park
Manitoba Agriculture, Food and Rural
Initiatives
Dr. Khalid Rashid
Morden Research Station, AAFC
Dr. Gordon Rowland
Crop Development Center, USK |
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# Meetings |
Over eighty individual. |
Three in person as a committee.
Seventy individual |
Two in person as a committee.
Five by teleconference.
Twenty individual. |
Six in person as a committee.
Five by teleconference.
Forty individual. |
Two in person as a committee.
Four by teleconference.
Fifteen individual. |
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In Kind and $ Contribution |
$20,900 |
$24,650 |
$20,600 |
$95,300 |
$43,400 |
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Overall Goals |
To market flax as a major component in a
human health strategy as part of the Canadian health care agenda
through a comprehensive focus upon clinical research (cardiovascular
disease, type 2 diabetes, cancer) and communications. To strengthen
industry competitiveness through functional food and ingredient
development, resolution of regulatory issues, and communication,
promotion and education. |
To develop/evaluate potential of new
flaxseed, lipid feed ingredient products and novel processing
techniques for commercial aquafeed, swine, poultry, dairy and beef
cattle applications - five new flax-based feeds and/or feed
ingredients, leading to more efficient production, efficacy and
safety of animals combined with healthier food products for human
market. |
To create new economic value in Canada
for flax in industrial product areas by increasing linseed oil usage
in linoleum (“Green” building products) and PVC applications; and
support the development and commercialization of linseed based
oleochemical intermediate feedstocks. |
To develop five new, unique flax straw,
fiber and shive based commercially viable product applications
through establishment of a fiber processing industry producing
fibers suitable for use in paper, composites and textiles; long line
fiber flax based products, the development of a fiber based consumer
products manufacturing industry in western Canada. |
To contribute to the stability and
competitiveness of flax production in Canada. To contribute to the
development of improved products for human health, animal health,
industrial uses and fiber, by developing higher quality flax
varieties which reduce risk through genetic resistance to biotic and
abiotic stresses. |
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Market Definition and Scope |
•
Flax offers a plethora of healthy
bioactives in the whole seed for functional food, natural health
product (FFN) and ingredients.
•
World consumption of FFN and ingredients
growing. By 2010, FF sales will account for 5.2% of total food
sales in US. Plant oil supplements (inc. flax oil) grew at 32% in
2003.
•
US Flax mass market in 2003 - $13.5M USD
(51% growth-2002).
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Flaxseed - vegetarian source of omega 3
fatty acids, fewer taste and stability issues than fish oil.
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Intensified interest by consumers and
coverage provided by the media, improved sensors profiles.
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Increasing focus on addition of “good”
oils to food products.
•
In US, health claims and in Canada,
omega 3 nutrient content claims significantly impacting growth.
•
In US - foods fortified with omega 3 –
70% growth over 2004, 109 new market entrants up until May 31, 2005
(compared with 170 for the whole of last year). |
•
Aquaculture - growing 8-10% per year.
Shortage in protein and lipid - partially met by flax - 30,000
tonnes flax protein concentrate = 175,000 tonnes flaxseed.
•
Flax oil diet for Atlantic salmon could
create a sustainable increased value of $75-110 million.
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Swine - alternative ingredients sought
for productivity, omega-3 fatty acid (FA) enrichment. Potential as
Antibiotic Growth Promoters (AGP). 5% inclusion of flax in sow
diets - represents a domestic market of about 90,000 tonnes of seed
(l% inclusion rate) to almost half a million tonnes of seed (5%
inclusion rate) - value at farm gate ca. C$ 34.4 M to C$ 95.5M.
•
Significant increase in n-3 enriched
food products and increasing awareness and interest of consumers.
•
Poultry - ground flax can = l0% of hen’s
feed ration.
•
Omega-3 eggs represented 15% of the egg
market in Canada in 2004. Global demand for poultry increasing -
overall growth in global poultry production of 20% between
2005-2010.
•
Beef - global demand for beef stable -
overall growth = 1.6% between 2005-2010 - limited growth = search
for value-added opportunities. In theory - flax could be used to 1)
stimulate immune system - decrease need for antibiotics and reduce
mastitis; and 2) increase resistance to stress. |
• Flax oil = sustainable,
biodegradable and renewable source of industrial feedstock and
chemicals - two distinct oil profiles - both very high PUFA:
Linoleic (Solin and Linola) and very high alphalinolenic acid (ALA)
content.
• Linoleum market growth - potential
to increase with the “Green Buildings” trend. All new federal and
provincial government buildings (AB, BC) must be “green”.
• Linoleum addresses public health
issues - (anti-septic and anti-bacterial surface properties) for
public buildings, schools, health care facilities.
• High value, high functioning
bio-plastics (medical and under-hood automotive uses). If flax oil
used in 5% of the polyurethane market, potential market = 500,000
tonnes of oil.
• Use of a “Bio-Refinery” - little
constraining IP for flax. |
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Environmental - greenhouse gas reduction
(GHG), health/air quality concerns, consumer preferences (recycle,
natural, reduced resource demand).
•
Market Requirements - increased
population leading to increased global demand for fiber and shive
for production of consumer products (i.e. pulp/paper, textiles,
plastic composites).
•
Increase in human and animal flax seed
utilization = increase need for straw management.
•
Creation of rural opportunity (creation
of wealth).
•
Producers could realize from $8 per
tonne for straw from residue to ca. to $75 per tonne for managed
straw.
•
Fiber brokers would buy estimated 15,000
to 50,000 (as quality improves) tonnes fiber (from retted flax
straw) immediately to meet global demand.
•
Flax fiber has advantages for non-wovens
- strength, rigidity, wicking, absorbency, durability, and acoustic
properties - process is largely mechanical, very product specific.
•
Flax fiber is cost competitive to glass
fibers for use in plastic reinforcements. |
Achieving the goals and deliverables in
FC 2015 pillars requires the introduction into Canadian flax seed
and straw of a number of end-use attributes in flax crops produced
in reliable quantities under profitable and sustainable primary
production systems.
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Short Term Opportunities (initiate
2006-2007) |
1. Obtain health care professional and
medical community support to assist marketing efforts of the
benefits of flax. Establish clinical assessment in humans of flax
bioactives, novel flax products in cardiovascular disease through
clinical intervention studies and randomized, blinded, crossover
metabolic trials.
2. Obtain Generally Recognized as Safe
(GRAS) status for seed and oil in the United States. |
1. Aquaculture: develop and evaluate
flax oil based fish feed ingredients. Evaluate processed novel flax
based fish feed ingredients.
2. Assist industry with the development
of omega 3 enriched fish products for human consumption.
3. Swine: communicate results of
digestibility and productivity trials to industry to increase usage
of flax in feed rations.
4. Assist industry with the development
of omega 3 enriched pork products fur human consumption.
5. Evaluate the efficacy of flax and
flax fractions as replacement for antibiotics in swine diets. |
1. In association with industry, generic
marketing and promotion activities for the use of linoleum for
“green buildings” and other environmental areas.
2. In association with industry,
marketing of linseed oil in plastics and resin applications.
3. Develop knowledge base in linseed
olechemical research and applied engineering focused on current and
future industrial applications.
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1. Develop a processing system and a
grading system for flax fiber.
2. Establish one or more new markets for
flax shives (e.g. animal bedding).
3. Improve awareness of the importance
of better in field flax straw management to access markets for fiber
applications.
4. Apply better in-field management to
produce higher quality flax straw that can be processed into higher
end use fiber and shive products.
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Develop funding mechanisms to accelerate
flax breeding, genomic and crop management research.
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Medium & Long Term Opportunities
(initiate 2007-2008) |
1. Establish clinical assessment in
humans of flax bioactives, novel flax products in diabetes and
cancer through clinical intervention studies and randomized,
blinded, cross-over metabolic trials.
2. Assist industry with development
novel ‘proprietary’ (patentable, trade secrets) products.
3. Minimum one clinical trial in
humans/product to determine efficacy of new flax functional food
product.
4. Conferences and/or workshops (health,
food science, industry and market trends).
5. Secure endorsement of health
associations and recommendations by dieticians and health
professionals.
6. Secure funding from health funders (CIHR,
NSERC, others) for Flax Clinical Research Program.
7. Petition Health Canada for
product-specific risk reduction health claim(s).
8. Petition U.S. Food and Drug
Administration for Qualified Health Claim. |
1. Poultry: assist industry in the
development of flax based feed ingredient that result in increased
productivity for poultry and ornega-3 fatty acid rich consumer
products (eggs or meat).
2. Cattle: assist industry in the
development of flax based feed rations with improved digestibly and
efficacy for beef and dairy cattle.
3. Assist industry to develop omega 3
enriched meat and diary products through the development of novel
‘proprietary’ rumen bypass technology.
4. Evaluate the efficacy of flax and
flax fractions as replacement for antibiotics and to improve the
immune status of beef cattle.
5. Develop and distribute information
highlighting advantages of new second generation flax based
products.
6. Advocate for regulatory harmonization
regarding the Feeds Act, Feed Additive Petition and Functional Foods
(GRAS, Novel Foods, Health Claims) approvals. |
1. Develop business case for use in
attracting investment funds to attract a linoleum manufacturer to
Canada.
2. Develop a product development and
commercialization plan for using flax oil as feed stock for unique
oleochemical applications.
3. Establish a bio refinery to produce
oleochemical feedstocks (e.g. for polymer resins, fuel bioadditives,
etc).
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1. Develop three commercially viable
processed flax fiber and shive products.
2. Increase the market demand for flax
fiber in niche pulp and paper industries.
3. Improve returns for farmers who
practice improved in field straw management.
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To support Industry Pillar
Opportunities:
1.
Develop higher yielding varieties with
higher oil and protein with levels of ALA approaching 70%, lower in
antinutritional factors.
2.
Develop higher yielding flax varieties
higher in straw yield with improved fiber quality.
3.
Develop crop management strategies to
improve straw management and educate producers.
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