Tomorrow’s Agriculture

What began as a TV series in Manitoba featuring innovation in the new economy has since evolved into a Calgary-based company that fosters innovation in the knowledge-based industries – agriculture and food, environment, life sciences and information technology.

Dennis McKnight: President, The Innovators

Photography by Jason Molyneaux

Dennis McKnight started the Innovators Global Network as a way of exposing Canadian companies to leading industry practices around the world and vice versa. As part of that effort, Mc-Knight organizes international symposiums and Smart Tours that take Alberta producers to other countries to share knowledge and witness innovation first-hand. Having grown up on a prairie farm, McKnight understands agriculture and has honed in on the food and bioenergy sectors. The time is ripe to strengthen Alberta’s position in the global food industry, and the Innovators can help producers do it.

AV: Why is it important for food producers to have a global perspective?

DM: We are in a global marketplace. If you want to find out what to do in a particular industry, you go to where they’ve done it longer and better than anyone else. We often think what’s happening in our own backyard is what’s happening in the world, but it’s not. There’s a lot we can learn from other countries. Stay home, stay stupid.

Europe leads the food industry. Why?

Take Italy; there is no stronger food brand. Italian food products demand a premium. We took Alberta producers to see dairy, cheese, prosciutto producers; every place we went, there was a story behind the product and company. If you don’t have a story, then you’re a commodity. If you’re a commodity, then the only thing that matters is price. By a story, I mean what are you doing that sets yourself apart? If you have a good story that ties into your product, you can charge more for it. One of the greatest examples is Tim Hortons. People love the story and it builds loyalty.

What’s going on in Brazil? Why take producers there?

Brazil is often viewed as a Third World country that can’t compete. But it has 20% of the world’s arable land. They grow 2½ crops to our one. They have the largest commercial herd of cattle in the world. And Goldman Sachs released its concept of BRIC – Brazil, Russia, India and China – to be the big economies by 2050. The most impressive thing Brazil’s doing is in the ethanol market. They have about 300 sugar mills where they can make sugar or ethanol. Right away, they have a second use for their product.

Do you see any application of ideas after a tour?

We took someone with the Western Barley Producers to Brazil, and he saw how they use sugar cane – everything from the stalks to the sugar. He’s since put together a study to see how we can use barley because Alberta grows more barley than the entire United States or any of the other provinces. He’s looking at the kernel, shells, stalks and straw. What can we extract that we can use in another market? So there’s a lesson learned. There’s very promising biofuel potential for barley.

If producers can’t manage the whole process, what else can they do?

There’s a U.K. berry company where 70 growers formed a co-operative. They share genetic research for new varieties and market under one brand. Today, this group has 50% of the U.K. market. By banding together, it allowed them to go to the big retailers and have some degree of power. Create a scenario where you have some say in the marketplace – how your product is processed, marketed and sold. And what you get for it. To be a lone producer and think you’re going to sell into this international marketplace and do well is largely wishful thinking.

With such a strong agricultural foundation, why hasn’t Alberta’s food industry taken off?

Bottom line, Alberta’s focus is on energy. It adds tremendous money to the economy, but it’s a very short-lived opportunity. Alberta has the second-largest agricultural industry in Canada in terms of volume of dollars. We have to realize it’s a very important industry. Food and bioenergy are huge areas of opportunity that can contribute significantly to our future. That said, it’s not easy to find money for food processing companies because everyone puts their money in oil and gas. But the world needs food, too, not just energy.

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