Quebec-based distributor FMS Fresh Produce says it is investing $25 million to make it the first in the province to process and package locally-grown baby carrots.
“This project is so much more than just producing baby carrots. It’s about building a sustainable business model for the future of our industry while honoring our commitments to the environment and our community,” Marc-Olivier and Steven Daigneault, co-owners of FMS Fresh Produce, said in a news release.
Baby carrots account for 39% of fixed-weight carrot sales in Canada, representing a $377 million market annually, yet until now, they had been entirely imported in Quebec, according to the release. Despite their popularity among consumers, producing them locally requires substantial investments in infrastructure, as well as precise management of growing conditions, soil and climate, and ensuring a steady supply also demands flawless logistics and strong partnerships, the company said.
The Daigneault brothers are unafraid to take on a market dominated by U.S. giants; they have a clear goal to make Quebec a key player in baby carrot production, and they firmly believe growing baby carrots locally is not only possible but essential for the future of the province’s agricultural industry, FMS Fresh Produce said.
The initiative also reduces the distance the vegetables travel before reaching grocery stores, an approach that aligns with efforts to minimize the agri-food sector’s carbon footprint while offering consumers a fresher product, the release said.
Additionally, with water-efficient equipment and responsible resource management, the company plans to repurpose rejected carrots, providing a solution that is both economical and environmentally friendly. For the Daigneault brothers, local production is part of a long-term vision: meeting growing market demand while protecting the environment and strengthening the competitiveness of Quebec’s agriculture sector, the company said.
The project has support of from local partners. FMS Fresh Produce said Desjardins is providing over $17 million in financing, part of which is guaranteed by Export Development Canada, and a $5 million investment comes from Investissement Québec. These investments will enable the construction of a new 70,000-square-foot carrot packaging and processing plant in Sherrington, Quebec, set to begin operations in summer 2025. This facility will allow FMS Fresh Produce to expand its production capacity and reduce reliance on imports, the release said.
“This innovative project strengthens Quebec’s food self-sufficiency and opens new opportunities for local agriculture. At Desjardins, we firmly believe that supporting businesses in their modernization efforts and market diversification is essential to ensuring their competitiveness and resilience in the face of economic challenges,” said Jean-Yves Bourgeois, executive vice president of business services at the Desjardins Group.
“From the very beginning, we have supported FMS Fresh Produce in all its initiatives,” Bourgeois added. “This new investment will help increase its production capacity and optimize its equipment to meet the demands of local consumers.”
