Agrivalue Processing Business Incubator (APBI): Incubator Entrance and Exit Criteria

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The Agrivalue Processing Business Incubator (APBI) is a not for profit business and will be operated in a business like manner. Processors wishing to be admitted as clients will be selected on the basis of their venture’s likelihood of commercial establishment and growth. Evaluation will be based on the strength of their business plan and their potential to support Alberta Agriculture and Forestry’s (AF) growth objectives. The purpose of the incubator is to assist start-up companies to establish a market presence, provide serviced facilities to develop and refine production techniques, share experiences with other entrepreneurs, and take advantage of economies from sharing services and facilities. The AF Processing Industry and Workforce Development Section is available to provide business and marketing advice. Contact can be arranged with Agriculture Financial Services Corporation personnel to provide information on the Commercial Loan Program. Legal, accounting and transportation firms willing to provide advisory services to Incubator clients can also be arranged.

The incubator is managed and operated by the Food and Bio Processing Branch of Alberta Agriculture and Forestry. The facility is a Federally registered establishment with the Canadian Food Inspection Agency (CFIA) and regulatory compliance is required by all incubator clients. Branch management is responsible for ensuring that clients comply with these regulations.

In addition to a business plan acceptable to Branch management, clients must demonstrate financial resources to; supply and install process equipment, manufacture and ship product, and pay accounts while waiting for receivables to be cleared. Potential clients will be requested to provide authorization for a credit review.

Clients of the Food Processing Development Centre who wish to become tenants in the incubator must have demonstrated an ability to maintain their account in good standing.

Criteria for acceptance:
  • Must be a new or expanding business
  • Must have a complete business and marketing plan in place available for review
  • Must be capable of meeting and ensuring compliance with all CFIA regulations
  • Must have HACCP plans in place prior to initial production
  • Must have adequate resources to pay rent, wages, supplies and overhead
  • Must have a plan for graduating from the Incubator at the end of the lease agreement
  • Should show capacity for managerial competence
  • Should be open to coaching
  • Should demonstrate a need for incubation services
  • Should have space and utility requirements compatible with incubator capacity
  • Should not be in competition with existing Incubator clients

Lease Terms and Exit criteria:
The desired outcome from APBI is a steady influx of promising client companies and a steady outflow of successful graduates.

The duration of a client’s lease term in the Incubator will depend to a certain extent on the complexity of the mechanical installation required for the process. In most cases the term is expected to be 18 to 36 months, sufficient time to establish a sustained market presence, verify and optimize processing parameters, develop distribution patterns and establish a positive cash flow. During the incubation period, the client may avail themselves of business financial and marketing assistance provided at the Incubator.

At the end of the lease term, client companies will evolve into their own facilities or enter into a co-packing arrangement with existing processors. Client owned equipment is to be removed from the Incubator facility within thirty days of the expiration of the lease agreement. .Any alternations made to the Suite by the client will require repair and the suite must be returned to it's original state.
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For more information about the content of this document, contact Teryle Simpson.
This information published to the web on March 8, 2007.
Last Reviewed/Revised on January 11, 2018.