Agriculture is Alberta’s oldest industry and continues to be a strong contributor to economic growth and diversification. In 2023, Alberta produced more potatoes than any other province in Canada. On an annual basis, potato production contributes more than $2 billion to Alberta’s economy.
To help further grow and diversify the agriculture industry, Alberta’s government introduced the Agri-Processing Investment Tax Credit program in spring 2023 and it is already attracting large-scale investment in value-added agricultural manufacturing. The Little Potato Company is building a new $39.5-million project in Nisku to double its processing capacity and produce more packaged potatoes with seasonings that can be quickly roasted, microwaved or grilled.
“Our government developed Alberta’s Agri-Processing Investment Tax Credit program with corporations like The Little Potato Company in mind. The program is providing the right conditions for food and ag processors to invest in our province, grow their business and create more jobs for Albertans. Through incentives like this tax credit, we’re building on Alberta’s competitive advantages and continuing to drive economic growth and diversification.”
To be considered for the tax credit program, corporations must invest at least $10 million in a project to build or expand a value-added agri-processing facility in Alberta. The program offers a 12 per cent non-refundable tax credit for eligible capital expenditures. Through this program, Alberta’s government has given conditional approval for a tax credit to The Little Potato Company estimated at about $1.3 million.
“Agri-Processing is an important and growing industry, supporting our economy and creating jobs for hard-working Albertans. The agri-processing tax credit is an excellent tool to help businesses set up and expand here in Alberta.”
The Little Potato Company’s new facility currently employs 224 Albertans. The 240,000-square-foot facility in Nisku will be able to process about 125 million pounds of potatoes, up from 65 million pounds at the former Edmonton location.
“We are honoured and grateful for this generous tax credit from the Government of Alberta. The investment elevates our efforts to grow, pack and bring more convenient, nourishing and flavourful Little Potatoes to busy families. We share our heartfelt thanks for this funding as we open our new Nisku packaging facility, which allows us to better serve our family farmers, communities, customers, consumers, climate, soil and water – and all of us.”
Quick facts
- Alberta potato growers planted 80,100 acres in 2023, up from 73,080 acres in 2022.
- The Little Potato Company will export up to 70 per cent of the potato products they process to the United States, enhancing Alberta’s reputation as the third-largest agri-food exporter in Canada.
Related information
Related news
- New tax credit opens the door to big investments (April 24, 2023)
- Capitalizing on value-added agriculture (Feb. 7, 2023)