A Case to be Made for Food Distribution to the NWT & Pet Food Manufacturing
Since 2022, the Regional Economic Development Initiative (REDI) has commissioned Municipal Experts, an Alberta-based consulting company specializing in economic development and other municipal projects, to research the feasibility of various business opportunities tailored for the REDI Region.
“As we explore promising business opportunities, we are committed to supporting our local entrepreneurs every step of the way,” said Lisa Wardley, REDI Board Chair. “REDI has the resources and can source the expertise to assist in conducting full feasibility studies, ensuring any of the business cases within our project can be developed further with confidence.”
The Opportunity Knocks initiative underscores REDI’s dedication to fostering economic growth and innovation in the region, utilizing local strengths and abundant resources to their fullest potential.
To date, REDI has researched and investigated 20 business cases tailored to the region including food distribution to the Northwest Territories (NWT) and pet food manufacturing.
Both business cases have the potential to benefit the region by diversifying existing opportunities and maximizing on the region’s agricultural strengths and abundant local resources.
Feeding the North: A New Opportunity for REDI Region Food Producers
With its vast expanse and sparse population of just over 40,000, Canada’s Northwest Territories (NWT) faces challenges in accessing fresh, affordable food.
The federal government’s Nutrition North Canada program has long relied on sea and air transport to deliver groceries to remote communities throughout the NWT. However, this often results in an unreliable supply of fresh foods at exorbitant prices.
This is where the REDI region sees a golden opportunity.
“Imagine fresh, locally produced food reaching the tables of families in the NWT and Yukon,” said Wardley. “We have the capacity and the quality to make this vision a reality.”
The REDI region is known for its high-quality food products. This business case supports establishing a cold storage distribution centre at the High Level Airport in Alberta. This facility would leverage land and air transport links to supply fresh food to northern markets efficiently.
The potential benefits are immense. The NWT spends approximately $147.7 million annually on food and non-alcoholic beverages, and a significant portion are imported from international markets.
Capturing just 10% of this market could add over $13 million annually to Northwest Alberta’s economy.
“During the 2023 forest fire season, thousands of people from the NWT evacuated to Northwest Alberta,” said Josh Lambert, High Level Town Councillor, High Level Chamber of Commerce President and REDI Board Member. “Multiple conversations with government leadership from the NWT at this time highlighted the need for a stronger, more reliable food supply chain closer to home.”
The proposed distribution centre, a 5,000-square-foot facility with adequate refrigeration systems, would cost between $1.25 million and $1.75 million. This investment would not only support local food producers but also create jobs and stimulate economic growth in the region.
“Building this warehouse is more than just a business opportunity,” said Matthew Luengo, REDI Board member representing the High Level Chamber of Commerce. “It’s about ensuring food security for our northern neighbours and fostering regional development.”
The REDI Region boasts a variety of successful food businesses such as Sunnybrook Sausages and Mackenzie Oat Millers. Local businesses, along with others south in the Peace Region, could significantly benefit from expanded markets.
“Investing in this distribution centre is a win-win,” said Luengo. “It strengthens our local economy while providing high-quality food options in Northern Canada.”
Northwest Alberta: The Next Frontier in Pet Food Manufacturing
With over 28.5 million pets in Canada and a pet food market worth $4.2 billion, Northwest Alberta has the potential to become a key player in the pet food industry.
Known for its high-quality grains, oilseeds and legumes, the REDI Region offers a unique advantage to produce premium pet food products.
“Northwest Alberta’s agricultural landscape is rich with crops like whole-grain barley, rye, oats, red lentils, chickpeas, field peas, flax seed and more,” said Luengo. “These ingredients are nutritious and align with the growing consumer demand for organic and traceable pet foods.”
The region’s certified organic production also gives local farmers a competitive edge.
“Pet owners today are more conscious about what they feed their animals,” said Ray Toews, REDI Board member, representing Fort Vermilion Board of Trade and owner of Hydway Hardware. “They want high-quality, organic and traceable foods that ensure better health outcomes for their animals.”
As this business case develops, one promising market opportunity stands out—grain-based pellet manufacturing.
“By producing base products for large companies like Nestlé Purina and Mars Petcare, a regional pet food manufacturer can gain traction and attract significant investment,” said Andrew O’Rourke, Manager of REDI.
Establishing a pet food production facility in Northwest Alberta requires a financial investment of $500,000 to $2 million, depending on production targets and facility requirements. And, the potential benefits are substantial.
“The REDI Region’s abundant agricultural resources and growing demand for premium pet food products make it an ideal location for a pet food manufacturing facility,” said O’Rourke. “With the right investment and strategic partnerships, our region can become a significant player in the pet food industry, benefiting local farmers and our communities.”
Interested in one of these business opportunities? Visit rediregion.ca
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