October 13, 2016

Capital régional et coopératif Desjardins (CRCD) announced at the International Summit of Cooperatives that it has made investments in two Québec-based agricultural co-operatives – Citadelle Maple Syrup Producers’ Cooperative and Unicoop.

With support from the Essor et Coopération fund, the combined investments totaled C$9 million, with C$6.5 million being committed to Citadelle and C$2.5 million committed to Unicoop.

Founded in 1925, Citadelle produces both conventional and organic maple syrup, honey, and cranberries, which it exports to over 40 countries. Beginning in 2010, Citadelle maneuvered to become one of the three largest cranberry processors, and the only cranberry cooperative in Canada.

Headquartered in Sainte-Marie-de-Beauce, Unicoop is an agri-food wholesaler and agricultural cooperative that offers a range of products and services through its 20 outlets.

“The support announced today will enable these two agriculture and agri-food industry frontrunners to stay in the lead in their respective markets,” said Luc Ménard, COO of Desjardins Business Capital régional et coopératif, the manager of CRCD.

Since its formation in 2001, CRCD has invested more than C$171 million in 35 co-operatives and has built its assets under management to C$1.64 billion. Other recent investments made by CRCD in companies in the agricultural and agribusiness space include a $55 million placement by Capital regional et coopératif Desjardins as part of a $470 million investment in Agropur, Canada’s largest dairy cooperative, and inclusion in a $10 million round of financing raised by web-based irrigation management company, Hortau.

“We finance 90% of the co-operatives in Quebec. And as business models evolve quickly, that contribution will likely continue to grow…,” said Guy Cormier, president and CEO of Desjardins Group. ”This drive to grow will be felt particularly in the agri-food industry where Desjardins, with loans of CAD$10bn, is already a market leader, generating spinoffs across all regions of Quebec.”

Unicoop will use the fresh capital to help fund its expansion plans centered around a strategy involving being able to take advantage of acquisitions opportunities.

“Our market is changing fast due to increasing consolidation, in particular in the farming, hardware and farm machinery sectors,” said Gaétan Roger, Unicoop General Manager and CEO. “With CRCD support for our expansion plan, we’ll have the means to take advantage of business opportunities through strategic acquisitions that will solidify our position.”

Citadelle however, plans to use the fresh funds to help lift sales of its products in overseas markets.

“With demand increasing in every part of the world, we had to find the resources to more actively drive sales of the products we export to some 40 countries,” said Martin Plante, Citadelle’s Director General. “While that’s an exciting situation for all of our 2,000 members, it called for support from a patient partner that believes in cooperative values and understands the importance of growing Québec businesses.”

Lynda Kiernan