Winnipeg, Apr. 16 - Research and development company Burcon Nutrascience Corp may make its first profit in 2010 as commercial production begins on one of its food ingredient proteins, its president and chief operating officer says.
"We're finally coming to a a point where we can look forward and actually see ourselves having net positive cash flow and net profitability," Johann Tergesen said in an interview with Reuters on Wednesday.
Burcon, based in Vancouver, British Columbia, has extracted soy and canola protein isolates -- highly pure proteins separated from plant meal -- that could be used as ingredients in drinks, dressings or baked goods.
The company's first net profit in 10 years would likely coincide with the opening of the first commercial processing plant using its technology: either an Archer Daniels Midland plant producing canola protein or a soy protein plant run by an undetermined partner, Tergesen said.
ADM has signed a licensing and development agreement with Burcon but has not made a final decision on building a plant.
"We have a technology that people want ... It's neck and neck; hard to say whether our first plant is soy or canola," Tergesen said.
Burcon has patented two canola protein isolates, which ADM has licensed for development, pending an agreement on royalties. Commercial production also awaits completion of an optional stage of a U.S. Food and Drug Administration review, called GRAS (generally recognized as safe) notification.
The canola proteins could be used in dressings, protein bars or beverages. Burcon has also developed a soy protein for juices and sports drinks.
It's likely the debate over genetically modified foods will cause the ADM canola protein plant to locate outside Canada, the world's top exporter of the oilseed and the place where canola was developed as a variant of rapeseed, Tergesen said. Canada does not segregate its genetically modified (GMO) canola seed.
The plant could locate in Europe, where all canola grown is non-GMO or in the United States using identity-preserved (IP) canola, Tergesen said.
"It's an unfortunate thing because I would argue that the GMO product is good science," he said. "If we were to produce and not be able to say it's non-GMO, we'd have a difficult time selling the protein into Europe where they want non-GMO."
The ADM plant would compete with one planned by Bio Extraction Inc to be the first producing canola protein isolates as food ingredients.
Canola is crushed mostly for its oil, which is used in biofuel and as vegetable oil.
The protein market is dominated by soy and dairy, but canola has potential to become a major source because of its high nutritional value and unique applications, Tergesen said.
Other new sources may also muscle into the market. Burcon is researching flax and hemp as protein sources and could sign licensing agreements for both within a few years, he said.