Turning Constraints Into Opportunities by Sharing Food Processing Equipment and Infrastructure

In Quebec, no one can deny that the current economic context is very challenging for the food processing industry. As inflation affects investments in development and innovation projects, it becomes all the more crucial to consider concrete solutions to gain efficiency and ensure profitability. A new pilot project, implemented in Montérégie, precisely aims to achieve this objective.

Coordinated by Saint-Hyacinthe Technopole, promoter of the most important agri-food innovation hub in Quebec, this project now makes it possible to support processors in the region in the mutualization of their spaces and equipment. An overview of a highly promising initiative!

“Initially, the pilot project for mutualizing food processing equipment and infrastructure was born from repeated requests from several small businesses in the MRCs of Acton, Rouville, and Les Maskoutains located in Montérégie. They were asking for help to find financing to acquire new equipment, while some of them owned assets that were not being used 100%,” reveals Jade Proulx, Agri-Food Innovation Director at Saint-Hyacinthe Technopole.

The project is part of the Regional Action Plan to facilitate the mutualization of food processing equipment and infrastructure in Montérégie, led by the Stratégie bioalimentaire Montérégie (SBM). This approach stems from the Sectoral Agreement for the Development of the Biofood Sector for the realization of structuring projects in the region. It brings together 21 signatory partners, who have collectively invested the sum of $4.3 million for the period from 2021 to 2026 to support more than 30 structuring projects responding to regional priorities.

An Innovative Practice to be Democratized

Mutualization of equipment and infrastructure is an innovative solution allowing food processors to better monetize their assets (e.g., commercial kitchens, movable equipment, storage spaces, or transport vehicles), while offering other companies the possibility to carry out projects without having to bear the cost of new infrastructure alone. It is a commercial and human relationship beneficial in several respects.

This approach differs from contract packaging (co-packing) and subcontracting, consisting of a closer business relationship leading to collaborations and partnerships that are winning for both parties. For example, a microbrewery can share its refrigerated spaces with a raspberry producer, and this proximity can lead to the creation of a new beer with their fruit.

Also, thanks to mutualization, owners can derive a new source of income from their underutilized assets, which is more than welcome in a somewhat difficult economic context. In return, users gain access to specialized or expensive equipment they otherwise could not afford to acquire.

Another significant positive impact of mutualization is that it allows for a genuine exchange of expertise. It can bring together two entrepreneurs who will share their marketing strategies, their suppliers, and their know-how related to processing. In short, everyone wins!

New Tools for Processors

For various reasons, some companies hesitate to try this practice due to lack of time, resources, or even confidence in it. Many also worry about the consequences of sharing one of their assets, particularly regarding liability in case of breakdown, or maintenance.

“Moreover, it’s not always simple to find precise data regarding supply and demand,” a phenomenon Jade Proulx has observed in her role.

As part of the pilot project, food processing companies can use user-friendly tools to eliminate or reduce the challenges they face. The first is the MiXR digital platform, a coordination tool that allows food processing players to offer or search for resources.

She also mentions that other tools are being developed by the SBM and its partners, including mutualization contract models designed to properly protect the parties and a cost-estimation tool to assess the economic viability of a project before its implementation.

A Specialized Advisor in Mutualization

Saint-Hyacinthe Technopole recently welcomed a new mutualization advisor to its team. “Our organization is the entry point for Montérégie processors to navigate all the processes of mutualizing equipment and infrastructure. This resource is therefore at their service to guide them in their practices and help them structure their initiatives.

She can support companies in adopting the new tools, like the MiXR platform, and directly accompany them in the development and deployment of their equipment and infrastructure mutualization projects. Processors who want to know more should not hesitate to contact us,” emphasizes the director.