The Manitoba government announced a $13 million “down payment” on Thursday toward the Global Agriculture Technology Exchange (Gate) facility that Cereals Canada is looking to build in downtown Winnipeg.
Premier Wab Kinew made the announcement alongside Agriculture Minister Ron Kostyshyn, staff from Cereals Canada, and farmer representatives from several provincial wheat grower organizations, including the Manitoba Crop Alliance and Sask Wheat.
“We heard about this project and said we need to get down there. We’re going to bring a whole lot of bread because this is the best thing since sliced bread…” joked the premier. “This is about showcasing our ag industry when Canada absolutely needs to diversify our trading partners.”
The total cost for the facility that would replace Cereals Canada’s current home and serve as a hub for promoting the use of Canadian crops to customers from around the world has been pegged at $102 million. The province said its contribution would go toward the building and equipment for the facility, which would house space for research, specialty milling, a pilot bakery, pasta extrusion, as well as training, and offices.
Provincial grower organizations from Alberta, Saskatchewan, Manitoba, Ontario, and Quebec have previously committed around $13.5 million to the proposed Gate facility, conditional on government contributions. Cereals Canada is also contributing $5 million from its reserve fund.
Kinew said the Manitoba government went with the $13 million amount to match the contribution from farm groups, but the province is hoping to split the full cost of the facility three-ways with the federal government and industry.
“If all goes well, we’re going to be there for a third of this,” he said, while refusing to speculate when asked what happens if the federal government doesn’t cover a third of the cost: “I’m always an optimist and assume everything is going to work out perfectly, and that whoever wins the federal election is going to be a huge supporter of ag in Western Canada and everything is going to go great. I’m not willing to abandon that presupposition on day one.”
Both Cereals Canada CEO Dean Dias and southeast Manitoba farmer Korey Peters spoke about the importance of the facility for market development and technical support for customers, with Dias noting it the concept has been in the works for 18 years.
As for the specific location, Dias said they have identified a prospective piece of land in Winnipeg’s Exchange District area, but agreements haven’t been signed, so he couldn’t say. He previously said one option they were considering was a tract east of the Fairmont Hotel in downtown Winnipeg owned by the Richardson family, whose grain company is a prominent Cereals Canada member.
To date, the federal government and industry members of Cereals Canada, including grain exporters that sell grain to overseas customers, have not publicly announced any funding commitments for Gate. The capital fundraising campaign has coincided with some changes in Cereals Canada’s membership, as several companies have signaled their intent to withdraw from the national cereal crop value chain organization for various other reasons.
Kinew and others at the press conference repeatedly emphasized the importance of investing in market development and trade diversification as Canada adjusts to new levels of trade uncertainty.
“What we’re seeing on tariffs right now on two fronts, from the PRC (People’s Republic of China) and Trump administration, underlines why this project is so valuable to Western Canada, the whole country, and the Province of Manitoba,” said the premier.
