Survey Report
Results of the Bioproducts Production and Development Survey 2015
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by Yannick Rancourt (Statistics Canada) and Catherine Neumeyer and Ningning Zou (Agriculture and Agri-Food Canada).
Release date: December 22, 2017
Highlights
- In 2015, 190 establishments were engaged in the production or development of non-conventional industrial bioproducts in Canada. The majority of these establishments (60.0%) were engaged in bioproduct activities for 10 years or less.
- Bioproduct establishments in 2015 were involved in the production or development of bioproducts, including biofuels, bioenergy, organic chemicals, materials and composites, intermediary biochemicals and biomaterials, and other bioproducts.
- Bioproduct sales were estimated to be $4.3 billion in 2015. Domestic sales accounted for $2.9 billion (66.8%) with exports accounting for $1.4 billion (33.2%). In the international market, annual exports of Canadian bioproducts were primarily to the United States, the European Union, China and Japan.
- Bioproduct co-product sales accounted for $441.5 million in 2015.
- In 2015, 5,618 workers were engaged in bioproduct-related activities (including biomass improvements), with associated salary expenditures of $355 million.
- In 2015, biofuels exceeded other bioproduct categories in terms of both sales and number of establishments. Biofuel sales, totaling $2.7 billion, accounted for 63.6% of all bioproduct sales. Ethanol comprised 75.2% of biofuel sales (over $2 billion) while biodiesel made up 24.1% ($653 million).
- Nearly 60% of all establishments reported involvement (research, development or production) in biofuels. Of these, 30 were involved in ethanol, 29 in biodiesel and 24 in gaseous fuels.
- Biomass purchases totaling $2.3 billion in 2015 served as inputs for bioproduct activities. The two main sources of biomass inputs were forestry biomass, with 12.3 million metric tonnes, and agricultural biomass, with 8.8 million metric tonnes. Grains and oilseeds accounted for 99.0% of the volume of agricultural biomass.
- In-house research-and-development spending on bioproduct development decreased to $91.2 million in 2015, from $101.6 million in 2014.
- In 2015, approximately one-third of bioproduct establishments were involved in collaborative arrangements with other businesses or organizations. These collaborative arrangements, numbering about 218, were predominantly with businesses (both domestic and foreign) and academic institutions in Canada.
Introduction
The bioproducts sector has unexplored potential in Canada. In the last decade, however, efforts have been made to better measure this activity. One of the major reasons for interest in this activity is that the manufacturing of bioproducts offers processors additional markets for new products and commodities. Canada has more biomass resources per capita than any other country and access to a wealth of biomass feedstock.Note This paper presents results from the 2015 Bioproducts Production and Development Survey, Statistics Canada’s fourth survey on businesses engaged in this sector. The survey is conducted on a cost-recovery basis by the Centre for Special Business Projects (CSBP) on behalf of Agriculture and Agri-Food Canada (AAFC). Previous iterations of this survey were also conducted for 2003, 2006 and 2009. The objective of the survey is to measure activity in the bioproducts sector.
For the purpose of this survey, bioproducts are defined as “non-conventional” products produced from biomass with the goal of commercialization (see Box 1 definitions below). Thus, all bioproducts produced only for in-house use (e.g., electricity, heat) are ruled out. For example, this definition includes biofuels (e.g., ethanol, biodiesel), bio-gas and bioenergy, organic chemicals (e.g., biopolymers), bio-pesticides, plant-made biologics, non-conventional construction materials and composites, intermediary biochemicals, and biomaterials (if produced in a non-conventional manner), but excludes all food, nutraceuticals, feed (e.g., livestock and pet food), medicines and forestry-based bioproducts produced in a traditional way (e.g., lumber, paper).Note
The main objective of this descriptive paper is to give to the reader a better idea of the size and scope of bio-economic activity in the Canadian economy and to provide statistical information on the Canadian bioproducts sector. A detailed profile of establishments engaged in the production and/or development of bioproducts in the country is presented.
Start of text box
Box 1 Definitions
Bioproducts
For the
purpose of this survey, bioproducts are products produced from biomass
and for commercial purposes.
Include: biofuels (e.g., ethanol, biodiesel), bio-gas and bioenergy, organic chemicals (e.g., biopolymers), bio-pesticides, plant-made biologics, non-conventional construction materials and composites, intermediary biochemicals, and biomaterials (if produced in a non-conventional manner).
Exclude: food, nutraceuticals, feed (e.g., livestock and pet food), medicines, forestry-based bioproducts produced in a traditional way (e.g., lumber, paper).
Biomass
For the purpose of this survey, biomass refers to the
following renewable biological materials:
- biological materials from forestry, agriculture, marine and aquaculture sources
- by-products from processing (e.g., agricultural, forestry, pulp and paper, food or feed processing)
- salvaged wood and wood-based products from construction and demolition sites
- waste biological materials (e.g., solid waste such as yard waste, trees, wood waste, waste cooking oil)
- micro-biological materials (e.g., algae, bacteria, fungi).
Exclude: microbiological materials that are used only as a catalyst or converter in a production process or in research.
Establishment
The Establishment as a statistical indicator, is defined as the
most homogeneous unit of production for which the business maintains
accounting records and, from which it is possible to assemble all the data
elements required to compile the full structure of the gross value of
production (total sales or shipments, and inventories), the cost of materials
and services, and labour and capital used in production.
Establishments sizes
For this survey, a small size establishment has less than
50 employees, a medium size establishments has 50 to 149 employees and a
large size establishments has 150 or more employees.
Bioproduct-related activities Bioproduct-related activities are any combination of activities related to research and development (R&D), production, and sales or distribution of bioproducts.
Bioproduct co-products
Bioproduct co-products are produced jointly with
bioproducts from the same production stream. They are often produced for sale,
but additional processing may be required. Distillers’ dry grains and carbon
dioxide (CO2) are examples of co-products of ethanol production.
Glycerine may be a co-product of biodiesel fuel production.
Biomass improvement activities (or biomass
pre-processing)
Biomass improvement activities are activities such as collecting,
aggregating, baling, cleaning, separating, drying, modifying, refining,
grading or packaging of post-harvest biomass to prepare the biomass for
efficient conversion into bioproducts.
Post-harvest improved biomass Post-harvest improved biomass is a type of biomass that has been collected, aggregated, baled, cleaned, separated, dried, modified, refined or packaged from its raw form at harvest so it can be directly fed into a conversion process for bioproduct production. It can also be referred to as conditioned or pre-processed biomass.
End of text box
Survey population
The target population for the survey included all commercial establishments located in Canada that use renewable biomass to develop or produce bioproducts (see definition in Box 1), as well as those that collect, separate and/or refine the biomass inputs used in bioproducts.
The criteria used to define a bioproduct establishment for this survey resulted in a very small population. This is one of the main challenges of the survey. Bioproduct establishments are difficult to identify and find, because bioproducts are not an industry but, rather, activities carried out by establishments. To date, there is no complete database which identifies non-conventional bioproducts and those businesses involved in developing or producing these products. Therefore, a census approach was used to obtain a robust responding population who could self-identify their bioproducts activities, in order to produce reliable estimates. The frame was constructed from three sources:
- lists of businesses obtained from federal partners, provincial and territorial bioproduct industry associations, and industry experts
- enterprises from the Business Register System that were in-scope during the Survey of Advanced Technology (2014), the Survey of Innovation and Business Strategy (2012), the Environmental Protection Expenditures Survey (2012), and the previous Bioproducts Production and Development Survey (2009)
- external sources including association websites.
Only establishments in the following North American Industry Classification System (NAICS) sectors were retained:
- manufacturing (31-33)
- wholesale trade (41)
- professional, scientific and technical services (54)
- agriculture, forestry, fishing and hunting (11)
- mining, quarrying, and oil and gas extraction (21)
- utilities (22).
These sources collectively yielded 1,123 potential in-scope establishments. After an initial contact by phone, the number of potential in-scope establishments was reduced to 599 establishments.Note Subsequently, an in-depth analysis was required to remove all remaining out-of-scope establishments. Following the analysis, 190 bioproduct establishments were determined to be in-scope for this survey. Calculated for the final population, the overall survey response rate was established at 48.2%.
This paper presents the findings from the survey on the bioproducts sector in Canada. The annex includes all survey estimates by region (Atlantic provinces, Quebec, Ontario, the Prairies and British Columbia) and by establishment size based on the number of employees (less than 50, 50 to 149, and 150 or more).
Industry profile
In 2015, an estimated 190 Canadian establishments were involved in the production and/or development of non-conventional bioproducts.Note Note Chart 1 shows that, geographically, 52.6% were located in central Canada (59 in Ontario and 41 in Quebec). Small establishments (with less than 50 employees) made up the majority of the distribution (71.1%). Medium-sized establishments (with 50 to 149 employees) represented 13.7% of the distribution, and large establishments (with 150 or more employees) accounted for 15.3%.Note
Data table for Chart 1
Regions | Number of establishments |
---|---|
Atlantic provinces | 21 |
Quebec | 41 |
Ontario | 59 |
Prairies | 43 |
British Columbia | 26 |
Source: Statistics Canada, 2015 Bioproducts Production and Development Survey, Table A.1. |
Bioproduct establishments were involved in the production and/or development of many types of bioproductsNote encompassing a wide range of activities.Note These activities involved the production and/or development of biofuels (58.4%),Note bioenergy (21.1%), intermediary biochemicals or biomaterials (20.0%), materials and composites (17.4%), organic chemicals (14.2%), and other bioproducts (11.1%). From these estimates, 111 establishments were involved in biofuels, 30 in ethanol, 29 in biodiesel and 24 in gaseous fuels.
Bioproduct establishments profile
Chart 2 shows that, in 2015, there were 61 mature establishments (those in operation for more than 20 years). These accounted for 32.3% of bioproduct establishments. The results show that the majority of establishments (80) were young, having been in operation for 10 years or less. These young establishments made up 42.3% of all bioproduct establishments, while the mid-age groups (11 to 15 years, and 16 to 20 years) made up 25.4%.
Data table for Chart 2
Engaged in bioproduct related activities | Number of establishments |
---|---|
0 to 5 years | 33 |
6 to 10 years | 47 |
11 to 15 years | 22 |
16 to 20 years | 26 |
21 years or more | 61 |
Source: Statistics Canada, 2015 Bioproducts Production and Development Survey, Table A.5. |
Similarly (chart 3), a majority of bioproduct establishments (60%) had indicated that their business had been involved in bioproduct activities for 10 years or less. Less than 10% of the total had been involved in bioproduct activities for 11 to 15 years, 11.1% for 16 to 20 years, and 19.5% for more than 20 years. New businesses tend to engage in bioproduct-related activity from the beginning of operation.
Data table for Chart 3
Engaged in bioproduct related activities | Number of establishments |
---|---|
0 to 5 years | 49 |
6 to 10 years | 65 |
11 to 15 years | 18 |
16 to 20 years | 21 |
21 years or more | 37 |
Source: Statistics Canada, 2015 Bioproducts Production and Development Survey, Table A.17. |
There were various reasons why businesses were engaged in bioproduct activities (table 1). The three main reasons for initially becoming involved in bioproducts were opportunities through education or employment (42.0%), opportunities through business domestic activities (41.0%), and cooperation or collaboration with other establishments or organizations (25.2%).
Reasons | 2015 |
---|---|
percent | |
1. Exposed to bioproduct-related opportunities through education or employment | 42.0 |
2. Exposed to bioproduct-related opportunities through its domestic activities | 41.0 |
3. Cooperated or collaborated with other businesses or organizations on bioproduct activities | 25.2 |
4. Acquired another business’s bioproduct activities | 13.0 |
5. Exposed to bioproduct-related opportunities through its international activities | 10.6 |
6. Other | 9.3 |
7. Acquired or licensed technology from a domestic business or laboratory | 9.1 |
8. Acquired or licensed technology from a foreign business or laboratory | 3.8 |
9. Merged with another business involved in bioproduct activities | 0.0 |
Note: Total does not sum to 100: respondents could select multiple reasons. Source: Statistics Canada, 2015 Bioproducts Production and Development Survey, Table A.18.1. |
Business profile
In 2015, sales of bioproducts totaled an estimated $4.3 billion.Note Of this total, 66.8% were domestic sales and 33.2% exports. Biofuels represented the most significant bioproduct activity, with sales of $2.7 billion (63.6%)Note . Chart 4 shows that, geographically, 44.4% of all bioproduct sales were made by establishments located in Ontario, 27.6% by establishments located in the Prairies, 25.8% by establishments located in Quebec, and less than 2.2% by establishments located in British Columbia. Sales from other business lines (not bioproducts) accounted for 61.0% of establishments’ total sales in 2015.Note
Data table for Chart 4
Regions | Percent |
---|---|
Atlantic provinces | 0.0 |
Quebec | 25.8 |
Ontario | 44.4 |
Prairies | 27.6 |
British Columbia | 2.2 |
Source: Statistics Canada, 2015 Bioproducts Production and Development Survey, Table A.1. |
In 2015, the majority of bioproduct establishments (83.8%) had clients in Canada. Additionally, 45.6% had clients in the United States, 13.6% had clients in the European Union, 8.6% had clients in China, 7.1% had clients in Japan, and 7.1% had clients in other countries (Chart 5).Note
Data table for Chart 5
Destinations | Percent |
---|---|
Canada | 83.8 |
United States | 45.6 |
European Union | 13.6 |
China | 8.6 |
Japan | 7.1 |
Other customer locations | 7.1 |
Source: Statistics Canada, 2015 Bioproducts Production and Development Survey, Table A.22. |
Bioproduct establishments in Canada employed a total of 5,618 peopleNote (where at least 50% of theirs work was devoted to bioproduct and/or biomass activities).Note Of this total, 1,879 people were employed by small establishments, 1,661 people were employed by medium-sized establishments, and 2,078 people were employed by large establishments.Note In total, these employees earned an estimated $355 million in wages and salaries in 2015.Note
Of this workforce, 46.4% had occupations in production and operations, 18.8% in management, marketing or finance, 15.3% in engineering, 9.2% in R&D, and 8.2% in laboratories as laboratory technicians (Chart 6).
Data table for Chart 6
Type of employees | Number of employees |
---|---|
All other employees | 114 |
Laboratory technicians | 463 |
Scientific research and development employees |
518 |
Engineers | 857 |
Management, marketing or finance employees | 1,057 |
Production employees or operators | 2,609 |
Source: Statistics Canada, 2015 Bioproducts Production and Development Survey, Table A.31.1. |
In 2015, 17.1% of all bioproduct establishments reported unfilled or vacant positions.Note Establishments cited the main reasons for their unfilled employment positions as the inability to find highly qualified personnel (46.9%) and the unwillingness of qualified individuals to relocate (29.0%).Note
Contracting or outsourcing services were reported by 34.3% of all bioproduct establishments in 2015.Note The most common outsourced activities included engineering services (49.1%), R&D (24.6%), and production of goods (23.0%).Note The top two reasons given for contracting out were to “access outside scientific expertise / knowledge” (52.3%) and for “cost-effectiveness” (48.3%).Note
Biomass
Forestry biomass was the largest source of biomass produced (table 2), at 12.3 million metric tonnes, of which 8.5 million metric tonnes came from processing residue from pulp-and-paper mills. Agricultural biomass was the second largest source of biomass, with 8.8 million metric tonnes produced, the majority being derived from grains and oilseeds. In 2015, bioproduct establishments incurred biomass costs amounting to $2.3 billion.Note
Quantity of biomass used | |
---|---|
metric tonnes | |
Agricultural biomass | 8 768 015 |
Grains and oilseeds | 8 676 586 |
Forestry biomass | 12 314 424 |
Mill processing residue | 8 532 225 |
Other products and by-products | X |
Food processing, slaughter and rendering by-products | 623 774 |
Source: Statistics Canada, 2015 Bioproducts Production and Development Survey, Table A.2.1. |
Overall, 42.1% of all establishments used agricultural biomass as their primary source of biomass.Note About one-quarter (26.3%) of establishments identified forestry as their primary biomass in 2015. Primary biomass was sourced mainly from the region in which the establishment was located.Note In terms of distance travelled to the source of the biomass (graph 7), 14.7% of establishments used on-site biomass; 19.7% obtained the primary biomass from a distance of less than 50 km; and 65.7% had more than 50 km to travel to their primary biomass source.
Data table for Chart 7
Destinations | Percent |
---|---|
0 km (on-site) | 14.7 |
Less than 50 km | 19.7 |
50 km to less than 100 km | 32.0 |
100 km to less than 500 km | 29.5 |
500 km or more | 4.2 |
Source: Statistics Canada, 2015 Bioproducts Production and Development Survey, Table A.30. |
In 2015, almost one-third of bioproduct establishments in Canada were also using some of their own bioproducts internally (e.g., bioenergy for drying products and heating buildings).Note This ratio varies among regions. The Prairies had the lowest proportion of internal bioproduct consumption, with only 14.0% of establishments using their own bioproducts internally, whereas the Atlantic provinces had the highest ratio, at 61.9%.Note This ratio can vary, depending on factors such as the type of bioproduct being produced and alternative costs. For example, ethanol might be more profitable to produce for external use, while a cheaper energy source is substituted for internal use.
About one-third (35.3%) of all bioproduct establishments also reported sales of co-productsNote (e.g., distiller dry grains and CO2 as co-products of ethanol production).Note The Prairies (46.5%) and British Columbia (46.2%) were the leading regions for co-products sales.
In 2015, total sales from co-products amounted to $441.5 million, which represented 10.3% of total bioproduct sales.Note Medium-sized establishments accounted for 60.8% of all those sales, while small and large establishments accounted for 31.9% and 7.3% of co-products sales.
Research and development (R&D) and innovation
In 2015, Canadian bioproduct establishments invested $112.1 million in in-house research and development (R&D). Note Of this amount, $91.2 million (81.3%) was spent on bioproduct and biomass activities. Small establishments invested the most in R&D in 2015, accounting for 59.7% of all R&D expenditures. Medium-sized establishments made 31.2% of all R&D expenditures while large establishments accounted for the remaining 9.0% of such expenditures.Note
Overall research intensity (measured as expenditures on R&D divided by bioproducts sales) in 2015 was found to be 2.1% when combining bioproduct and biomass activities.Note
In addition to in-house R&D investments, establishments can expand their innovative capacity through other avenues. For example, they may cooperate or collaborate with other establishments or institutions to expand (or borrow) expertise, knowledge or technical knowhow. They may also outsource specific research activities or acquire (or lease) intellectual property from other sources to advance their innovative objectives. Establishments may also seek external funding from government programs or use incentives to either finance in-house R&D or access funds to outsource R&D.
In 2014 and 2015, the two main reasons why establishments were attempting to raise capital were to conduct R&D or to expand R&D capacity (about one-third of establishments), and to develop proof of concept or a pilot project (26.8% of establishments).Note Furthermore, R&D programs were the most common type of government (federal, provincial and municipal) programs to which bioproduct establishments applied for (about one-third of establishments).Note When bioproduct establishments were asked what programs or incentives would be beneficial to their businesses over the next five fiscal years, they identified commercialization programs as the most beneficial followed by R&D programs.Note
Over 60% of all bioproduct establishments received Scientific Research and Experimental Development (SR&ED) refunds and/or tax credits over the previous five years, for a total of $100.4 million.Note Of those, 65.3% were small establishments. In addition, 58 establishments indicated that they had received Industrial Research Assistance Program (IRAP) funding, of those establishments, 81.0% were small establishments.Note
Intellectual property and collaborations
In 2015, 62 establishments had an existing patent or a pending patent, for a total of 1,822 registered patents. Of these patents, 17.0% were registered in Canada, 20.8% in the United States, 17.0% in Europe and 2.0% in Japan. The remaining 43.3% were registered in other counties.Note Of the 167 pending patents awaiting approval, 32.3% were filed in Canada, 26.9% in the United States, 22.8% in Europe, 8.4% in Japan and 10.2% elsewhere.
In 2015, 10 bioproduct establishments assigned a bioproduct-related intellectual property licence to a third party and 11 bioproduct establishments acquired at least one intellectual property licence.Note
Thirty-seven bioproduct establishments owned at least one bioproduct trademark in 2015.Note A total of 102 bioproduct trademarks were registered in 2015, compared to 89 in 2014.
Roughly one-third of establishments (69) participated in collaborative (or cooperative) arrangements with other businesses in 2015.Note In total, 218 such arrangements were reported, of which one-quarter were multi-partner arrangements. Small establishments accounted for 66.1% of all bioproduct collaborative arrangements. The most common collaborations were with other businesses. International businesses accounted for 37 of the arrangements, while 48 arrangements were with businesses in CanadaNote (Chart 8).
Data table for Chart 8
Type of partners | Number of establishments |
---|---|
Other collaborators | 4 |
Academic institutions outside Canada | 7 |
Federal government agencies or labs | 13 |
Provincial government agencies or labs | 17 |
Academic institutions in Canada | 35 |
Businesses outside Canada | 37 |
Businesses in Canada | 48 |
Source: Statistics Canada, 2015 Bioproducts Production and Development Survey, Table A.40.1. |
Nationally, the most important reasons given in deciding to collaborate with partners, were to access outside scientific expertise/knowledge (80.4%) and to perform R&D (66.5%).Note All medium-sized establishments indicated that access to outside scientific expertise/knowledge, access to capital and cost-effectiveness were their main reasons for collaboration.
Challenges
In 2015, the five most cited obstacles (Chart 9) faced by all bioproduct establishments were the difficulty in entering the commercial marketplace, the cost of biomass, the cost and timeliness of regulatory approval, lack of financing and the cost to comply with regulations. However, lack of financing was identified as the “major” challenge faced by many establishments. About 30% of all establishments identified this as a major obstacle, followed by the cost and timeliness of regulatory approval (21.4%), the cost of biomass (16.5%) and the unreliable quantity of biomass (16.4%).Note
Data table for Chart 9
Type of partners | Not an obstacle | Minor | Moderate | Major | Minor and major | Moderate and major |
---|---|---|---|---|---|---|
Other obstacles | 79.4 | Note x: suppressed to meet the confidentiality requirements of the Statistics Act | 12.1 | Note x: suppressed to meet the confidentiality requirements of the Statistics Act | 8.5 | Note x: suppressed to meet the confidentiality requirements of the Statistics Act |
Cost of developing environmental indicators | 64.3 | 20.1 | Note x: suppressed to meet the confidentiality requirements of the Statistics Act | Note x: suppressed to meet the confidentiality requirements of the Statistics Act | Note x: suppressed to meet the confidentiality requirements of the Statistics Act | 15.6 |
Unreliable quantity of biomass | 60.7 | 12.6 | 10.3 | 16.4 | Note x: suppressed to meet the confidentiality requirements of the Statistics Act | Note x: suppressed to meet the confidentiality requirements of the Statistics Act |
Absence of adequate product standard certification | 59.6 | 22 | 10.6 | 7.8 | Note x: suppressed to meet the confidentiality requirements of the Statistics Act | Note x: suppressed to meet the confidentiality requirements of the Statistics Act |
Unreliable quality of biomass | 56.2 | 19.2 | 15.2 | 9.3 | Note x: suppressed to meet the confidentiality requirements of the Statistics Act | Note x: suppressed to meet the confidentiality requirements of the Statistics Act |
Lack of skilled human resources | 53 | 37 | Note x: suppressed to meet the confidentiality requirements of the Statistics Act | Note x: suppressed to meet the confidentiality requirements of the Statistics Act | Note x: suppressed to meet the confidentiality requirements of the Statistics Act | 10 |
Cost to comply with regulations | 46.4 | 22 | 16.1 | 15.6 | Note x: suppressed to meet the confidentiality requirements of the Statistics Act | Note x: suppressed to meet the confidentiality requirements of the Statistics Act |
Lack of financing | 42.8 | 14.6 | 12.9 | 29.8 | Note x: suppressed to meet the confidentiality requirements of the Statistics Act | Note x: suppressed to meet the confidentiality requirements of the Statistics Act |
Cost and timeliness of regulatory approval | 41.9 | 19.3 | 17.3 | 21.4 | Note x: suppressed to meet the confidentiality requirements of the Statistics Act | Note x: suppressed to meet the confidentiality requirements of the Statistics Act |
Cost of biomass | 39.7 | 16.7 | 27 | 16.5 | Note x: suppressed to meet the confidentiality requirements of the Statistics Act | Note x: suppressed to meet the confidentiality requirements of the Statistics Act |
Difficulty in entering commercial marketplace | 39.4 | 20.7 | 26 | 13.9 | Note x: suppressed to meet the confidentiality requirements of the Statistics Act | Note x: suppressed to meet the confidentiality requirements of the Statistics Act |
x suppressed to meet the confidentiality requirements of the Statistics Act Source: Statistics Canada, 2015 Bioproducts Production and Development Survey, Table A.24.1. |
However, over 50% of establishments indicated that the cost of developing environmental indicators (64.3%), the unreliable quantity of biomass (60.7%), the absence of adequate product standard certification (59.6%), the unreliable quality of biomass (56.2%) and the lack of skilled human resources (53.0%) were not challenges for them.Note
Chart 10 shows the number of establishments that applied for federal, provincial and municipal government programs. The two most common programs applied for were bioproduct R&D programs (68 establishments applied) and commercialization programs (47 establishments applied).
Data table for Chart 10
Type of government programs | Number of establishments |
---|---|
Programs for process or product environmental assessment | 0 |
Marketing programs | 10 |
Programs for product performance testing | 12 |
Other government programs | 24 |
Commercialization programs | 47 |
Programs for bioproduct R&D | 68 |
Source: Statistics Canada, 2015 Bioproducts Production and Development Survey, Table A.60. |
Chart 11 shows the types of programs or incentives that would be beneficial for bioproduct establishments. Commercialization programs were identified as being the most beneficial programs for bioproduct establishments over the next five years. This was followed by programs for bioproduct R&D and marketing programs. Considering that entering the commercial marketplace was reported to be the main challenge, it is no surprise that commercialization programs and incentives were identified as being the most helpful to bioproduct establishments.
Data table for Chart 11
Type of programs | Number of establishments |
---|---|
Other government programs | 18 |
Programs for technology or knowledge transfer | 25 |
Programs for new standards development | 27 |
Programs for product performance testing | 44 |
Programs for process or product environmental assessment | 47 |
Marketing programs | 56 |
Programs for bioproduct R&D | 64 |
Commercialization programs | 82 |
Source: Statistics Canada, 2015 Bioproducts Production and Development Survey, Table A.61.1. |
Conclusion
The 2015 Bioproducts Production and Development Survey focused on bioproduct establishments that produced and developed bioproducts from biomass in a non-conventional way with the aim of selling these bioproducts. This survey reflects results relating to those “specific” bioproducts only and omits a great range of conventional bioproducts.
One hundred ninety (190) bioproduct establishments were found to be in-scope for the survey. Such establishments were diversified and spread across Canada. A large spectrum of bioproduct activities were found, including biofuels, bioenergy, organic chemicals, materials and composites. Intermediary products (i.e., biochemicals and biomaterials) were also reported.
In 2015, bioproduct establishments included a sizable number of young (in operation for 10 years or less) establishments. Moreover, many new entrants into bioproduct production and development were of mature age (in operation for 21+ years). Although the primary source of bioproduct sales in 2015 was biofuels, sales also came from a wide range of bioproduct categories.
Canada’s bioproducts were sold in the domestic market, the United States, Europe and Asia. A greater proportion of sales were in the domestic market; the United States was the main export market.
The research intensity (R&D divided by establishments’ bioproducts sales) of in-house research into bioproducts (including biomass) by bioproduct establishments was 2.1%.
Establishments expanded their research and innovative capacity through external avenues, such as collaborative or cooperative arrangements with other partners, using research incentive programs (e.g., SE&RD and IRAP). In 2015, many establishments had collaborative arrangements. Most of them were with other establishments and with academic institutions, both in Canada and other countries. Those collaborations had the main goal of accessing outside scientific expertise and knowledge, along with undertaking R&D.
The major critical challenge identified in 2015 by bioproduct establishments was lack of financing and the main reason behind seeking additional financing was undertaking R&D and developing proof of concept (or for a pilot project).
Statistics Canada’s 2015 Bioproducts Production and Development Survey attempted to survey all establishments in Canada that used biomass feedstock resources in innovative or novel ways for commercial purposes. The paper’s main objective was to provide an overview of the Canadian bioproducts sector, including the size and scope of activities conducted by bioproduct establishments. The survey was designed to present data on the Canadian bioproducts sector by region and establishment size.
Comparing to previous surveys
A similar survey was also conducted by Statistics Canada for reference years 2003, 2006 and 2009. Given the different survey designs, each iteration needs to be considered separately and not be treated as part of a time-series. The main objective of these surveys is to measure the bioproducts sector in Canada for a specific reference period.
The extent of any attempt to compare survey iterations requires consideration of two aspects:
- changes related to the survey methodologies, including frame, sampling method, edits, imputation and weighting
- changes related to questionnaire content and concept definitions.
As bioproducts in Canada continue to be an evolving and emerging concern, identifying the target population undertaking bioproduct-related activities is challenging. Specific questions relating to the types of bioproducts and biomass used, in order for establishments to self-identify as belonging to the population, reduced the number of in-scope units. The identification of the target population and the list of establishments differed for each iteration of the bioproducts survey. The fact that the survey uses a census approach does not guarantee a census population.
Changes in questionnaire content included modifications to the questionnaire design and modifications to reflect the realities of the market. Furthermore, questions were removed, revised or incorporated according to lessons learned from previous survey iterations and their relevance at the time of the survey.
The development of bioproducts for novel uses of biomass continues to evolve, and such definitions are continually evolving. As these definitions are adjusted, the survey must also adapt to recent bioproduct developments. A strict definition format would make it challenging to keep each survey iteration relevant as well as comparable.
Annex tables
Table A.1 Profile of bioproduct establishments, by region and establishment size, 2015
Table A.2.1 Quantity of biomass used by bioproduct establishments, by biomass type and region, 2015
Table A.10.1 Revenue breakdown of bioproduct establishments, by region, 2015
Table A.10.2 Revenue breakdown of bioproduct establishments, by establishment size, 2015
Table A.11.1 Revenues of bioproduct establishments, by product type and region, 2015
Table A.11.2 Revenues of bioproduct establishments, by product type and establishment size, 2015
Table A.12.1 Expense breakdown of bioproduct establishments, by region, 2015
Table A.12.2 Expense breakdown of bioproduct establishments, by establishment size, 2015
Table A.18.1 How establishments initially became involved in bioproducts, by region, 2015
Table A.23.1 Factors motivating establishments to develop or produce bioproducts, by region, 2015
Table A.25.1 Biomass improvement activities performed by bioproduct establishments, by region, 2015
Table A.26 How bioproduct establishments source biomass, by region and establishment size, 2015
Table A.27.1 Types of biomass suppliers used by bioproduct establishments, by region, 2015
Table A.29.1 Percentage of primary biomass sourced, by geographical location and region, 2015
Table A.30 Distance primary biomass was transported, by region and establishment size, 2015
Table A.52.1 Number of bioproduct-related trademarks, by year and region, 2014 and 2015
Table A.52.2 Number of bioproduct-related trademarks, by year and establishment size, 2014 and 2015
Table A.54.1 Reasons for attempting to raise capital in 2014 and/or 2015, by region, 2014 and 2015
Table A.56.1 Total funds raised for bioproduct-related activities, by source and region, 2015
References
The Canadian Trade Commissioner Service website. http://www.international.gc.ca/investors-investisseurs/sector-secteurs/bioproduct-bioproduit.aspx?lang=eng.
Notes
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