SASKATOON, SASKATCHEWAN -- (Marketwire) -- 11/20/09 -- The Government of Canada is investing over $4.4 million to increase profitability for Canadian pulse growers. The four projects that make up this investment will help drive the Canadian economy and deliver real benefits to Canadian farmers.

"Canadian farmers grow and export more pulses than anyone else in the world," said Agriculture Minister Gerry Ritz. "Canada's Economic Action Plan will help them build their business for the future while creating a more profitable industry and a stronger economy."

This federal investment will support four new projects administered by Pulse Canada:

- Through the AgriFlexibility fund, part of Canada's Economic Action Plan:

  - Up to $1.5 million for the Marketing the Sustainability of
    Canadian Agriculture project, to potentially capture premium
    prices by marketing Canadian pulse products as environmentally
    friendly;

  - Up to $1.5 million for the Pulse Health, Innovation and
    Commercialization project to create and capture new opportunities
    for Canadian pulses in the growing markets for healthy and
    sustainable food; and

  - Up to $1.13 million for the Canadian Pulse industry
    Transportation Initiative to give the pulse and speciality crops
    industry better access to equipment and make more efficient and
    reliable transportation systems.

- Through the AgriMarketing program, up to $308,250 will be
provided to help create new opportunities for pulse farmers by
promoting pulses as important in health and environmentally-conscious
markets world-wide.

Funding is subject to the projects meeting all eligibility requirements and the signing of contribution agreements.

For more information on Agriculture and Agri-Food Canada's (AAFC) programs visit www.agr.gc.ca.

For more information on Canada's Economic Action Plan, visit www.actionplan.gc.ca.

BACKGROUNDER

AgriFlexibility Fund

The AgriFlexibility fund, part of Canada's Economic Action Plan, was created to help reduce costs of production and improve environmental sustainability for the sector; promote value-chain innovation and sectoral adaptation; and respond to emerging opportunities and market challenges for the sector.

Marketing the Sustainability of Canadian Agriculture

The Marketing the Sustainability of Canadian Agriculture project, administered by Pulse Canada, aims to enhance the profitability of Canadian farming sector by promoting the environmental sustainability of Canadian-grown pulse products. The project will:

- Undertake value chain work within the food industry to develop relationships with sustainability organizations and ingredient, food and bioproduct companies;

- Develop enviro-agricultural science summaries and other value chain development tools to raise awareness of the contributions Canadian agriculture (i.e. pulse, flax, canola) to environmental sustainability;

- Build industry intelligence; and

- Position Canadian agriculture as a leading participant in the demand side of the emerging sustainability movement.

It is expected that the long-term outcomes of this project will be increased demand for Canadian-grown agricultural products, increased competitiveness of our agricultural sector and new market opportunities for our farmers.

Pulse Health, Innovation and Commercialization

The Pulse Health, Innovation and Commercialization project, administered by Pulse Canada, aims to create and capture new market opportunities for pulses through the development of value chains.

The project will:

- Advance the food industry's priorities for nutrition and health research;

- Strengthen the pulse industry's value chain by creating strong links with key stakeholders in the food sector;

- Identify and address information gaps in processing, functionality and application of pulses within the food industry; and

- Ensure that technical support is provided to speed the introduction of pulse-based foods into the market.

Expected long term benefits of this project include higher demand for Canadian pulses which translates into increasing profitability of our farmers; decreasing environmental impact as pulses do not require manufactured nitrogen fertilizer; and positioning Canada as a global leader in value chain innovation.

Canadian Pulse Industry Transportation Initiative

The Canadian Pulse Industry Transportation Initiative, administered by Pulse Canada, aims to:

- Improve Canada's pulse and special crops industry's access to equipment (hopper cars, box cars, intermodals and marine containers); and

- Improve service from all transportation service providers.

The project will benchmark, through web-based software, the current access to equipment and level of service provided by the transportation service providers, identify the key defects and bring together stakeholders to define and implement solutions.

In the long term, the pulse and special crops industry will have an improved access to equipment and the level of service provided. This will lead to the pulse and speciality crops farmers' increased profitability and Canada's reputation as a consistent and reliable supplier of pulses and special crops world-wide.

AgriMarketing Program

The AgriMarketing program provides funding to Canadian producer, processor and exporter associations to develop and implement long term international strategies and undertake activities such as international market development, brand building and industry-to-industry trade advocacy.

Launched on April 7, 2009, AgriMarketing is an $88 million program that is part of the AAFC's Market and Trade Development under Growing Forward - Canada's New Agricultural Policy Framework.

Marketing Canadian Pulse Products

Pulse Canada will also be administering funds, received under the AgriMarketing program, for the general promotion of Canadian pulse products. In particular, activities will focus on maintaining competitiveness in existing markets, expanding market potential in new opportunity areas - such as processed food and pet food, and supporting the introduction of innovative products to the market place. Pulse Canada's activities will be targeted at:

- Retailers with significant private label offerings

- Processors and ingredient companies operating in food and feed categories of most relevance to pulses

- The food service sector and significant influencers of consumer choice (health professionals and media).

This investment will also enable Pulse Canada to conduct an educational and outreach program on environmental contribution of pulses, to conduct various public relations campaigns, to build capacity and to showcase pulse products at domestic and international trade shows.