Michael McGee, Director of Innovation, and Richard Cloutier, Board Director and Innovation Advisor at Boenterprise Canada discuss the relationships between agri-tech innovation, food security, and economic growth
By Tabitha Caswell for Bioenterprise Canada
When we talk about food security, most people focus on addressing hunger and social inequality. However, it’s time to broaden the conversation. Food security is not only a humanitarian concern but also a regional and national economic necessity. For Canada, food and agri-tech innovation can unlock solutions to help feed more people while also driving growth.
Richard Cloutier, a Board Director and Innovation Advisor at Bioenterprise Canada, joins the conversation, bringing his expertise in tech transfer, innovation, and early-stage investments. Alongside him is Michael McGee, Director of Innovation at Bioenterprise Canada, who brings over 30 years of experience in small and medium-sized enterprise (SME) investments, with the last eight years dedicated to agri-food. Together, they explore how fostering agri-tech innovation drives Canada’s economic prosperity.
As governments recognize the urgency of food security, they are increasingly prioritizing policies that encourage the development of innovative solutions. Harnessing these solutions to enhance food security also attracts investment, boosts trade, and reduces strain on social systems. Can the push to improve food security be viewed as a catalyst for long-term economic growth and stability?
Through targeted investments in food and agri-tech innovation, Canada can position itself as a leader in food production and a global economic force. Before we dive in too deep, however, let’s start by examining what we mean by food security.
Richard says, “According to the Committee on World Food Security, the four pillars of food security are availability, access, utilization, and stability, which form the basis of the most acceptable definition.” A secure food system provides access to a stable supply of healthy food, available to, and used sustainably by, everyone. He adds, “While there is no direct link between food security and the economy, a secure food system directly benefits individuals, who then contribute to the economy.” Considering this, we can evaluate how agri-tech ecosystems play a role, directly or indirectly, in supporting these pillars.
Referring to Maslow’s Hierarchy of Needs, Michael notes, “Food production is one of the most urgent societal requirements to address. I cannot think of anything more disruptive to productivity, the social fabric, and democracies than a country where most of its populace or workforce can no longer afford the basics.” Given Canada’s growing population, northern climate, and regionalized systems, the critical role of food security in supporting both social stability and economic growth is apparent.
Whether directly or indirectly, food security and the economy are related. So, where does agri-tech innovation fit in? Read on as we examine the relationships between agri-tech, food security, and economic resilience including investment, jobs, trade opportunities, and more.
Attracting Investment and Driving Innovation
Nurturing the food and agri-tech ecosystem drives innovation while attracting crucial investments that fuel economic growth. Public and private funding in research and development (R&D) leads to advancements in farming techniques, crop resilience, and supply chain efficiency. Resulting new applied technologies can not only boost long-term economic growth but also help mitigate food insecurity by increasing food production and processing, and improving access to affordable, nutritious food.
Michael highlights how recent events shined a spotlight on current systems. “The supply chain disruptions from the COVID-19 lockdowns brought the vulnerability of our food systems into focus for the public and policymakers. This generated significant investment interest in technologies like controlled environment agriculture (CEA), plant-based proteins, and recirculating aquaculture systems (RAS), all of which also align with environmental, social, and governance (ESG) priorities and regenerative agriculture.”
However, Michael points out, “Despite the excitement, private capital often reverts to seeking risk-adjusted financial returns, while social impact funds and public/quasi-government investors may continue funding these strategic initiatives for their long-term societal benefits despite modest financial returns.” This means that while private investors typically seek quicker financial returns, public and impact investors are more willing to fund social initiatives like food security and environmental sustainability for their long-term societal benefits, trading immediate financial gain for long-term rewards.
While investment is an indispensable driver for innovation, Canadian agri-tech startups face unique challenges in securing the necessary funding to scale. Breaking down these barriers is essential for creating a vibrant ecosystem that attracts both domestic and international investors necessary for positioning Canada as a leader in agri-tech innovation.
Richard adds, “Entrepreneurs are consistently reminded that their products must meet market needs, particularly through cost reduction. In Canada, innovations are developed with limited funding compared to larger investments seen elsewhere, but our entrepreneurs are still meeting these demands adequately.”
The influx of capital into food and agri-tech innovation creates new markets for emerging technologies, contributing to broader economic resilience and strengthening a nation’s competitive edge in the global food system.
Sustainability and Resilience
Agri-tech solutions have the potential to address both food security and environmental sustainability, contributing to long-term economic stability. Richard highlights that “the sustainable use of resources is where innovations will play a significant role. Soil carbon loss, more efficient nitrogen use, and water management are just a few areas where climate change forces organizations to better account for resource use and productivity.” Achieving long-term stability across the entire value chain requires deeper integration of climate considerations.
As Michael notes, “Investing in food security enhances economic growth through higher production yields, reducing dependence on imports, and improving exports. This reduces food inflation and improves societal outcomes. However, balancing traditional agricultural methods with innovative technologies that are environmentally sustainable, without increasing costs to producers or reducing yields, is a challenge.”
By reducing waste and optimizing resources, innovative solutions not only ensure environmental sustainability but also help foster long-term stability by decreasing costs and improving efficiency across the food production chain. However, both experts agree that innovations alone aren’t enough; educating farmers for improved uptake and adoption, and aligning efforts across the entire national supply chain are essential to fully realizing the benefits of new technologies like artificial intelligence (AI), robotics, and more.
By improving food production, availability, and affordability, food and agri-tech innovations can improve processes and supply chains, reducing the strain on social welfare systems, and allowing governments to redirect resources to other critical areas of concern. Moreover, healthier, more stable food systems contribute to reduced healthcare costs by addressing malnutrition and food-related diseases, thus promoting overall workforce productivity and societal stability.
Job Creation, Workforce Development, and Reducing Social Burdens
Agri-tech innovation plays a pivotal role in stimulating job creation across food and agriculture, technology, and sustainability sectors. As automation and robotics fill gaps in hard-to-fill roles, workforce development becomes key, with new technological advancements requiring upskilling and reskilling. The new tech-driven jobs that are created in local economies, particularly in underdeveloped regions such as Canada’s northern and rural communities, boost consumer spending and growth.
In these communities, the benefits are compounded. Michael says, “I believe that technology will increasingly allow our northern and Indigenous communities to become more self-sufficient, improving health outcomes particularly as it relates to the availability of fresh and unprocessed foods.”
In short, food and agriculture technologies can offer solutions to improve food security, create new tech jobs, and build companies. This forms a sustainable cycle that reduces dependence on social welfare and enhances workforce productivity, further reinforcing Canada’s economic resilience – locally, nationally, and globally.
Enhancing Trade and Export Opportunities
We’ve established that innovative food and agri-tech solutions can improve both the quality and quantity of food production. This allows Canada to meet domestic needs while also opening doors to global markets. Nations that leverage these technologies are positioned to become key players in international trade, generating foreign revenue, boosting GDP (gross domestic product), and strengthening their trade balances. This enhances their economic resilience and increases their influence on global food security. As a top player in R&D, Canada is positioned to become a global agri-food leader if we can improve our ability to bring our innovations to market.
As Michael points out, “In an era of climate change, significant geopolitical tensions, and protectionism, Canada is well-positioned to build enhanced resilience in its food supply chain and to export its technologies abroad. The key to achieving this is to invest heavily in technologies that enhance our productivity, ensuring that as a trading nation dependent on commodity exports, we maintain a competitive advantage as a trusted low-cost producer.”
It’s important to recognize that Canadian agri-tech entrepreneurs and startups still face significant barriers in scaling and accessing global markets, requiring further policy support and investment to ensure their innovations can compete internationally.
Richard adds “Innovation and knowledge can be exported too. While most commodity products face stiff competition in international markets such as Canadian canola competing with products from Europe or China, efficient production technologies find ready markets. However, technology alone won’t meet all consumer needs. For example, kiwis will still come from New Zealand and bananas from India or Indonesia. But if Canadian innovations optimize production both economically and environmentally, the global societal impact will be significant.”
He concludes, “We should think in terms of local production rather than exporting products,” suggesting the idea of domestic growth as a foundation for global competitiveness.
Boosting Local Economies
Agri-tech innovation extends beyond farming, creating diverse revenue streams that can transform local economies. The development of agri-tourism, regional food brands, and local food products and companies open new avenues for economic growth. These initiatives help rural and remote communities move beyond traditional agriculture, offering the availability of new healthy, nutritious food sources and additional sources of income.
Michael says, “The transition from an agrarian to an industrial society has always been characterized by the growth of urban populations at the expense of rural ones. With small businesses historically driving Canadian job growth, we need to create conditions that enable agri-tech entrepreneurs to succeed in smaller communities.”
He points out successful examples from Alberta, where significant investments in advanced agricultural technologies have transformed local farming operations. GoodLeaf Farms has invested in a 74,000-square-foot vertical farm in Calgary, while Sunterra Farms has developed a 20-acre greenhouse in Acme. “These investments have increased the economic diversity of the region by enabling year-round production of locally grown produce,” Michael says. “This helps to lower off-season prices and provides consumers with more nutritious, fresh food, ultimately benefiting both local economies and public health.”
By strengthening local economies, investments like these ripple outward, contributing to the nation’s overall economic stability and reinforcing Canada’s leadership in both domestic food security and global agri-tech innovation.
Facing a future of ever-evolving geopolitical pressures, a growing population, and the effects of climate change, food security can be viewed not solely as a humanitarian goal, but as a key driver of economic progress. By generating jobs, attracting investment, enhancing trade, and reducing social welfare burdens, innovative food and agri-tech solutions help to solve food supply issues and create resilient economies that are better equipped to overcome challenges at the same time.
Looking ahead, however, unlocking the full potential of these solutions requires breaking down barriers for Canadian startups and ensuring continued investment in innovation. With the right policies and support, Canada’s agri-tech sector can not only meet domestic food security needs but also become an example of innovation and a global leader in sustainable, tech-driven agricultural prosperity.