Product Development Program (PDP)

About the Program

The Product Development Program (PDP) aims to foster growth and innovation in the agriculture/food processing sector by supporting strategic initiatives. Through financial assistance, the program seeks to catalyze the development of novel value-added products and processes that will significantly enhance the value of Canadian agricultural products in Saskatchewan.

Approved projects under this program will play a pivotal role in bolstering provincial value-added revenues and promoting thriving businesses, thereby driving sustainable economic growth and reinforcing the province’s leadership position in the global market of value-added products.

The core objectives of the program are as follows:

• Increase Value-Added Revenues: The program aims to boost the overall revenue generated from value-added agricultural products by encouraging projects that add substantial value throughout the production and processing chain.
• Enhance Value-Added Processing of Canadian Agriculture Products: Through targeted funding, the program seeks to foster advancements in value-added processing techniques and technologies, enabling agricultural products to attain higher market value and competitiveness.
• Foster the Development of New Value-Added Products, Prototypes, and Processes: The program is dedicated to supporting research and development efforts that lead to the creation of innovative value-added products, prototypes, and processes, ensuring that Saskatchewan remains at the forefront of agricultural innovation.
• Reduce By-Product Waste: One of the program’s crucial goals is to promote sustainability and resource efficiency by supporting projects that minimize by-product waste through responsible and environmentally friendly means to eliminate or re-use by-products of an agri-food process.
• Expand and Nurture Value-Added Businesses: The program is committed to nurturing the growth of value-added businesses in Saskatchewan by providing them with the necessary financial backing to expand their operations, explore new markets, and establish themselves as key players in the global value-added product landscape.

By focusing on these key intentions, the funding program seeks to drive lasting positive impacts on the agricultural sector, fostering a vibrant and resilient ecosystem that benefits both producers and consumers while contributing to the overall prosperity of the province.

The Product Development Program is funded in part by the Governments of Canada and Saskatchewan under the Sustainable Canadian Agricultural Partnership, a federal-provincial-territorial initiative.

The Saskatchewan Food Industry Development Centre administers this program on behalf of the federal and provincial governments. While eligible projects must be carried out through verifiable third-party service providers and/or contractors, applicants are not required to engage the technical services of the Saskatchewan Food Industry Development Centre to be considered eligible for program funding.

Applicants

Eligible Applicants:

The Product Development Program welcomes applicants from agriculture processors who meet the following value-added criteria:

• Applications must include a physical transformation or upgrade of any raw/primary agriculture product, or any agricultural by-product or waste stream, into a new or upgraded value-added product.
• Applicants must operate, pay taxes, and have plans to grow and build their business within Saskatchewan.
• The application must demonstrate a substantial use of Canadian grown or raised agriculture products.
• Applicants must be for-profit commercial entities.
• Projects must align with the Sustainable Canadian Agriculture Partnership and Saskatchewan Ministry of Agriculture’s Value-Added guidelines and policies.

Ineligible Applicants:

• Publicly funded facilities.
• Cannabis processing facilities that do not have a standard processing license as issued by Health Canada.
• Processors of seafood or fish.
• Processors of seed intended to grow crops.

Activities

Eligible Activities:

The following activities are eligible for consideration if conducted at a verifiable third-party facility and/or by a contracted service provider:

• Material Costs
• New Product Development & Technical Services
• Processing and Manufacturing Costs
• Development of a Process/Manufacturing Technology Including Assessment
• Process and Specification Development Costs
• Engineering and Techno-Economic Analysis Costs
• Equipment Rentals
• Marketing Activities to a maximum of 25% of approved funding, limited to:
  • First-time design of packaging and labelling artwork
  • First-time design of promotional materials such as product-specific flyers or technical data sheets
  • First run of labels and/or package printing, and samples/prototypes used for new product launch to a maximum of 500 units

Ineligible Activities Include But Not Limited To:

• Activities receiving funding from other Government of Saskatchewan sources, or Agriculture and Agri-Food Canada Agri-Marketing program.
• Training and wages/salaries for employees.
• Expenses for ongoing activities or other typical operating expenses.
• Marketing or promotional activities that support the firm beyond the scope of commercializing the developed product, including media buys, trade show registrations, travel expenses, or similar broad-based marketing activities.
• Per diems and meals domestically and internationally.
• Equipment purchases and other capital expenditures not explicitly identified as eligible.
• Administration costs and other activities not directly related specifically to the project.
• Cost of production for saleable products and materials.
• Taxes, legal fees, and financing fees.
• Memberships in trade organizations.
• Costs that are associated with third party representatives such as agents or promoters.

Funding Parameters:

• Approved applicants may be reimbursed up to 50 per cent of eligible project expenses, to a maximum program payment of $20,000 CAD per company per fiscal year.
• Stacking with other federal or provincially funded initiatives is not permitted.
• Reimbursement will occur via a claim-based process.