AVAC invests in two groundbreaking value-added ag-research projects (January 25, 2006)

Potential to develop fire-suppressant foam made from cow parts and natural, diabetic-friendly sugar replacement from chicory root being explored.


Calgary, Alberta: Having recently received $24 million to invest in Alberta-based value-added agriculture related research (see backgrounder, attached), AVAC is pleased to announce they have completed the first disbursements in two Ag research theme areas.


New uses for bovine Specified Risk Materials:
Alberta’s beef industry produces several byproduct streams during processing, one of which in light of the BSE crisis became known as Specified Risk Materials (SRMs). Prior to BSE, the materials now classified as SRMs were traditionally sold along with other byproducts contributing to the returns for Alberta ranchers. Today however, SRMs must be removed from the byproduct stream at an approximate cost of $37 million annually to Alberta’s cattle producers and processors. As such, novel solutions for SRMs must be found.


To this end, Dr. David Bressler at the University of Alberta is working with an industry partner, Guardian Chemicals Inc., to develop protein-based, biodegradable foaming agents from SRMs. Applications for such foaming agents include fire-fighting operations or deep-well injection enhanced oil recovery technologies. This project represents the first SRM value-added research ever conducted in Alberta. The three-year project is being funded through the Agriculture Funding Consortium, of which AVAC is a member.


“AVAC support allowed the recruitment of research students, generating opportunities to train a new generation of researcher for Alberta. Funding by AVAC has also resulted in the engagement of the chemical supply industry in Alberta.” Said Dr. David Bressler.


“We are pleased to support Dr. Bressler and the University of Alberta in this SRM project. Guardian Chemicals is always looking for new and environmentally-friendly opportunities to augment and expand on our existing product lines.” Said Stewart Roth, President and CEO of Guardian Chemicals Inc.


Potential for a new value-added crop in Alberta:
AVAC’s second disbursement involves comprehensive research into the feasibility of growing chicory for processing into inulin. Inulin is used as a food ingredient in low-fat, calorie-reduced products and can also act as a natural sugar replacement for diabetics. The world-wide market for inulin is currently valued at $400 million CDN and it is estimated that it will grow at a rate of 31% annually until 2010. The project is scheduled for three years and, in addition to AVAC, involves funding from the Ag & Food Council, the Alberta Crop Development Fund, and, as with the SRM project, is supported by an industry partner.


“Our observations indicate that chicory can successfully be grown in southern Alberta, however, without commitment from the funding agents, we would not be able to conduct this comprehensive study.” Said Dr. Bandara at Alberta Agriculture, Food and Rural Development, the lead researcher on this exciting project.


“As both these projects demonstrate, AVAC is working, in cooperation with industry, government, and high-quality Alberta-based researchers to establish a critical mass of agrivalue and renewable resource research excellence in the province of Alberta.” Said Keith Jones, President and CEO of AVAC Ltd. “AVAC’s Ag Research Fund is focused on building research capacity with a line-of-sight towards commercialization opportunities.”


About AVAC Ltd.
AVAC Ltd. is an Alberta-based, not-for-profit, private company that invests in innovative ideas that build the economic viability of Alberta’s agrivalue and renewable resource ventures. Created in 1997, AVAC’s goal is to help the Province attain agrivalue sales worth $20 billion dollars annually by 2010. AVAC Ltd. aids its clients in building the three types of capital required to grow successful businesses: Managerial, Intellectual, and Financial.