April 25, 2017 By Caisse de dépôt et placement du Québec
April 25, 2017, Montreal, Que. – Caisse de dépôt et placement du Québec (la Caisse) presented its strategy for Québec’s agri-food sector, and also announced the creation of a $125-million fund to invest in every segment of the sector’s value chain, targeting both companies seeking to accelerate their growth and farmers who operate family businesses, and their successors.
La Caisse has been investing in agri-food processing and distribution/marketing for many years. The strategy presented aims to maximize la Caisse’s impact and expand its presence throughout the value chain and among all types of businesses and of projects by covering the entire agri-food sector.
This strategy is built on four pillars:
- Supporting young farmers and entrepreneurs who want to take over a business or create new market leaders;
- Backing owners and the family-farm model in the production segment;
- Reinforcing technological transition by improving access to modern equipment;
- Supporting growth and the expansion of operations in regional and international markets in industries where they are competitive.
To further support projects in the agri-food sector, la Caisse has announced the creation of the Fonds agroalimentaire CDPQ. This $125-million fund will be used to make direct investments (between $1 million and $30 million) in every segment of the value chain, with farmers and in projects and SMEs.
Specific criteria and targeted investment amounts vary for each segment in the value chain, as shown in the table available on the Caisse’s website.
Investments in the agri-food sector will also be made through funds, in partnership with those active in the industry and other experts in targeted markets (between $5 million and $30 million). The Fund will target investments meeting certain criteria, including:
- A well-structured business plan;
- A well-established management team to provide farmers and entrepreneurs with proper support and structure;
- A transition and succession plan;
- A solid performance track record and growth strategy;
- An investment structure positioning la Caisse as a long-term partner for sustainable businesses and projects.
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