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www.economy.gov.sk.ca Volume 31 } SUMMER 2016Saskatchewan’s quarterly newsletter on people and business engaged in economic growth

Building wealth for future generations: ABD By Dave Yanko

Saskatchewan NOW! } SUMMER 2016 1

Athabasca Basin Development (ABD) is doing very well for itsowners in seven northern Saskatchewan communities. ABDlaunched in 2002 with an initial investment of just $10,000from its shareholders. In 2015, revenue generated from the bas-ket of investments it owns in whole or in part totalled $127 mil-lion.

“Today, our investments have an equity value of more than $80million,’’ says Geoff Gay, CEO and the investment manager ofABD.

“Our company started from humble beginnings and grew towhere we are today largely because of the continued unity of theleadership in the region. Without this unity, we would not bewhere we are today.”

ABD is owned by Hatchet Lake Development, Black LakeVenture and Fond du Lac First Nation, each with 23 shares; thenorthern hamlet of Stony Rapids, with 12 shares; and the north-ern settlements of Wollaston Lake, Uranium City and CamsellPortage, with six shares each. ese largely Dene First Nationcommunities have a total of about 5,000 people and are locatedin the Athabasca Basin, one of the most remote areas ofSaskatchewan and home to an estimated 20 per cent of theworld’s uranium reserves. And while it was expansion of thatindustry in the 1990s that led to the establishment of ABD andits earliest opportunities, Gay says the community members whoplanned the corporation did so with a vision that reached beyondthe benefits that accrued from the mining industry.

“e leadership at that time said they’d like to have a companythat maximizes opportunities but makes sure there’s somethingthere for future generations,’’ says Gay. “So that when mining’sfinished in the region, there’s a company that’s still here that canparticipate in the economy.’’

ABD has a dozen companies in its portfolio and owns three ofthem outright: Athabasca Basin Security, Athabasca BasinLabour Services and Lonona Contracting. It has partial owner-ship in Artic Beverages (48.33 per cent), Double Diamond

Geoff Gay of Athabasca Basin Development Photo by: Kevin Hogarth

Envirotec Services Incorporated once was atwo-man operation employing a tiny old vac-uum truck to empty septic tanks and 80portable toilets located at work sites aroundSaskatoon. Today, 25 years later, theSaskatoon-based company has 175 employ-ees, new multi-million dollar facilities inRegina and has just expanded to Esterhazy toservice the mining industry and future oiland gas concerns in that region. Envirotecrecently won the 2016 SABEX Business ofthe Year award as well as the inauguralSABEX Safety award and a SaskatchewanBetter Business Bureau Torch Award forEthics.

“e cornerstone of our company is the vac-uum truck, and what it spawned are all theservices we offer today,’’ says Lyle Clouatre,president and co-owner with Terry Loraas ofEnvirotec.

“Really, it all started with two people.’’

Envirotec offers seven areas of service: recy-cling and waste management, automotivefluid services, vacuum truck services, indus-trial cleaning and flushing, emergencyresponse, environmental sciences and envi-ronmental remediation.

Clouatre says the company no longer isinvolved in the portable toilet business.However, the bigger, more powerful vacuumtrucks remain key to business. “We go intopotash mines; we jump into storage tanks inconfined spaces. It’s really heavy industrialcleaning—that’s what the trucks are used fortoday.’’ On the recycling front, Envirotechandles everything from school lab chemicalsand household paints to heavy-duty indus-trial chemicals and solvents.

Environmental sciences is the company’snewest business line. Envirotec advises clientson the potential environmental impact of aplanned development, including Phase I andPhase II environmental site assessments formining companies. Environmental remedia-tion, meanwhile, involves spill or wastecleanup and efforts to eliminate damageoccurring on land, water, road and rail.Clouatre says Envirotec is on call for emer-gencies and is one of the private contractorsCanadian Pacific and Canadian National rail-ways call for cleanups after derailments.

“Whether it’s crude oil or anhydrous ammo-nia, chlorine, liquid petroleum gas… any ofthe nasties, we’re likely to be involved.’’

And involved they were in Regina in 2007when a huge asphalt oil spill seeped into thecity’s storm sewer system and into WascanaLake. e huge oil slick coated geese near theSaskatchewan Legislative Building andrequired another dredging of the lake thathad just undergone a major dredging project.Envirotec worked on the cleanup for two-and-a-half years.

“at was a pivotal moment for our companybecause it helped us enter a larger arenaregarding what we could do in the future,’’says Clouatre. “And we’ve built around that.’’

To offer its broad array of services the com-pany requires employees with a range oftraining, education and expertise. Clouatresays all new staff go through a comprehensivebasic training program including WorkplaceHazardous Materials Information System

(WHMIS), first aid and CPR. All newemployees also work under a mentor for theirfirst six months. Later, as they proceed alongtheir career path, they’re sent for advancedsafety training at top facilities across NorthAmerica, including: Texas A&M University’sEnvironmental Health and Safety program;the Justice Institute of British Columbia,billed as Canada’s leading public safety train-ing facility; and e Security and EmergencyResponse Training Centre in Pueblo,Colorado.

“is kind of training is just not available inmany places and it’s very expensive,’’ saysClouatre. “But we have to send our people tothese institutes in order to provide the serv-ices we do.’’ Envirotec offers an array ofcareers ranging from truck drivers andmechanics to chemists, engineers and toxicol-ogists.

Changing public attitudes have helped thecompany. Clouatre says that when Enviroteclaunched in the early 1990s, there was muchuncertainty about the environmental indus-try. e uncertainty grew out of a push forbetter care of the environment that focusedon compliance and enforcement. “Now,there’s a lot of awareness and people want todo the right thing. And we want to help themdo that.’’

Envirotec is pleased with its growth andhappy to continue to expand withinSaskatchewan. But Clouatre says the com-pany is not looking to expand beyondprovincial boundaries.

“We sat down here a while ago and really gotinto our DNA and why Envirotec exists. Andwhat we concluded is that we cherish ourhome, Saskatchewan, and we exist to takegreat care of its people and environment.’’

2 Saskatchewan NOW! } SUMMER 2016

Envirotec—Saskatchewan’scleanup crewBy Dave Yanko

“We cherish our home,Saskatchewan.”

Saskatchewan NOW! } SUMMER 2016 3

The Envirotec team Photo by: Calvin Fehr Photography

4 Saskatchewan NOW! } SUMMER 2016

Safe and sound: SSC training e Saskatchewan economy loses an esti-mated $1.1 billion annually through pre-ventable injuries and almost 5,500 of thoseinjured each year are students—Saskatchewan has the fourth-highest job-injury rate in Canada for people under 25.

“Only one in five young people receivesome type of safety orientation in their firstjobs,’’ says Terri Kerbrat, community rela-

tions coordinator for the SaskatchewanSafety Council (SSC).

“We know that students are most likely tobe injured during their first six months onthe job, and yet the vast majority of themare not getting any safety orientation atall.’’

Kerbrat and the SSC are determined to

change that. e SSC has developed amodel for a flexible, school and industrybased training program aimed at reducingsuch injuries and the economic and humancosts they incur. It’s called the Early SafetyTraining Program (ESTP) and it takes thevision and goals of a regional safety pro-gram established in southeastSaskatchewan’s oil patch in the late 1990sand adds industry specific electives and

By Dave Yanko

Melfort and Unit Comprehensive Collegiate (MUCC) students at Bourgault Industries Photo by: Red Storm Photography

alternative delivery formats that can meetthe safety training needs of virtually anyregion of the province. Young people 14 to21 are eligible for the training and Kerbratsays it holds particular appeal to Grade 12students looking for jobs on graduation.

“We tell students this is a way of enhancingyour portfolio,’’ she says.

“And when they get their certificates thatsay they participated in the Early SafetyTraining Program, there’s an explanationon the back that tells would-be employersexactly what that means.’’

e ESTP consists of three basic methodsof delivery aimed at increasing accessibilityand reducing costs. ey include a self-study bursary program, classroom curriculafitted format and what the SSC calls “eNext Generation Safety Training BootCamps.’’ Mandatory courses include:Workplace Hazardous MaterialsInformation System (WHMIS), which canbe taken online or through classroomdelivery; Standard First Aid and CPR,available through classroom or a “blendedlearning’’ process that mixes online withclassroom study; and the Young WorkerReadiness Certificate Course available freeonline. Students or student groups canchoose from one of a host of electivecourses that meets their specific needs,including back care/lifting, defensive driv-ing, food safety, H2S Alive (hydrogen sul-fide safety) and transportation ofdangerous goods.

SSC has been administering the provincialprogram since 2013 in a partnership withWorkSafe Saskatchewan as well as commu-nity, education and industry stakeholders.When the SSC inherited the ESTP, stu-dents took the training in their communi-ties and then applied for a self-studybursary of up to $200 to help cover costsof the courses. is is still an option.However, Kerbrat says that since the SSCbegan administering the program it’s beenhelping to find funding and organizingtraining sessions. Requests for help spon-soring ESTP typically come from schoolsor school divisions and, if there is not spe-cific funding in place in that region for theelectives required, Kerbrat sets out to raise

the funds through sponsorship and/orfundraisers. However, Kerbrat says the SSCin May carried out a safety training pro-gram and boot camp so successful it willnow serve as the template for future effortsacross the province.

e program was a collaborative endeavourhosted by Melfort and UnitComprehensive Collegiate (MUCC) andsponsored by Bourgault Industries, the St.Brieux-based manufacturer of agriculturalequipment. In addition to SSC andBourgault, the partnering networkincluded the Red Cross and the SafetyAssociation of SaskatchewanManufacturers. A group of 20 studentsfrom MUCC completed the YoungWorker Readiness Certificate, the onlinecomponents of First Aid/CPR, FallProtection and Respiratory Protection.ey then attended a one-day FirstAid/CPR skills assessment course on a hol-iday Monday at MUCC to finalize theircertification. e following Saturday, thestudents attended Bourgault Youth SafetyDay at the company’s St. Brieux headquar-ters to complete the certification for FallProtection and Respiratory Protection.

Kerbrat says Bourgault’s sponsorship wasbig part of the success. Frank Blandin,Bourgault’s corporate safety officer, led stu-dents through the information and presen-tations required to finalize theircertification. Afterwards, they toured theBourgault plant and received their certifi-cations.

And through it all, the students were ableto check out Bourgault as a possible placeof work while Bourgault was able to size upsome future job candidates.

“is is the model,’’ says Kerbrat. “It isabsolutely what we aspire to.’’

Saskatchewan NOW! } SUMMER 2016 5

course preps youth

6 Saskatchewan NOW! } SUMMER 2016

Growth drives success for TA Foods

Winning the Diversity Leadership Awardat the Yorkton Chamber of Commerce2016 Celebrate Success Business Awards inApril is the latest recognition in a string ofawards that TA Foods Ltd. has earned dur-ing a period of intense growth.

e Yorkton-based food processor was therecipient of the Growth & ExpansionAward at the Saskatchewan Chamber ofCommerce 2015 ABEX awards lastOctober. e company had also beennamed finalist in the Exports andInnovation categories.

TA Foods specializes in supplying cleanedflaxseed, milled flax and flax oil to bulk andretail markets throughout Canada, the US,

Mexico, and Asia and is now offering co-packaging/production services to compa-nies requiring custom oil pressing, bottling,and packaging.

e Growth & Expansion award was “anawesome honour,” says Mike Popowich,co-owner of the family operated business.“It’s amazing how much an award like thathelps the company gain recognition in theinternational community.

“A lot of our customers don’t get theopportunity to meet us face-to-face or seeour facility, so awards like that really helpto legitimize your company in the interna-tional community.”

e award recognized the work that TAFoods had accomplished as a result of facil-ity upgrades completed three years ago,when the company added a cleaning plantand bottling line, Popowich says.

“e upgrades were geared to increasingcapacity and increasing production andsales. We went from about five employeesto 30 employees now—about 26 at thetime we won the award.”

“With the addition of our high capacitycrushing area, we were able to do a lotmore flax oil per day than we were able todo before, and with the addition of a bot-tling line being able to offer a private labelto customers,” he adds.

By Darrell Noakes

Mike and Terry Popowich, owners of TA Foods Ltd., Yorkton Photo by: Darrell Noakes

Saskatchewan NOW! } SUMMER 2016 7

“We do all of our own label design and bagdesign here. We can do it quickly and easilyfor anybody who wants to start marketingtheir own brand of milled flax or whole flaxor flax oil.”

One particular innovation that Popowichis proud to point out is the company’s suc-cess in improving the “smoke point”—thetemperature at which bluish smoke startsto form, indicating the destruction of ben-eficial nutrients and the creation of harm-ful free radicals—for its flax oils. Flax oilshave a reputation for easily oxidizing, hesays, resulting in a low smoke point, a littleover 100 degrees Celsius.

“But with the flax oil that we produce hereit's between 180 and 200 degrees Celsius,similar to an olive oil. So we can recom-mend our flax oils for baking and for stirfrying. “

Innovation has always been a driving forcebehind the Popowich family. In the 1980s,Mike’s parents, Terry and Ann, establisheda seed-cleaning plant on the family farmsouth of Orcadia, purchasing grain fromlocal farmers, then distributing the cleanedgrain to processors and end users. By thelate 1980s, the family opened PopowichMilling, with its main facility just beyondthe northern outskirts of Yorkton. efamily sold Popowich Milling to GrainMillers in 2002.

In 2003, recognizing the vast potential forvalue-added production of market-readyproducts for consumers, the familylaunched TA Foods Ltd.—the T and Astanding for Terry and Ann. Starting froma single employee, they quickly grew toestablish a headquarters and main produc-tion facility on Yorkton’s downtown edge,in a building that they purchased after hav-ing sold it to Grain Millers only a year pre-viously. Mike Popowich and his wife Lanajoined the family business as co-owners in2013.

About 50 per cent of the company’s rev-enues come from its retail products,Popowich says. In addition, TA Foods sup-

plies flax, milled flax and bulk oil as blendsor ingredients used in familiar brands ofgranola and health foods.

“As a food product, it has been growingmore and more with the health food indus-try. With high Omega-3s, Omega-6s andOmega-9s in the product, it’s very healthy.

“We do some custom packaging and cus-tom crushing for other companies inSaskatchewan, too, for camelina oils, somehemp oils and various products like that.We try to utilize this facility as much as wecan.”

Worldwide, interest in flax products hasbeen growing steadily for the last decade,Popowich says. e company exportsmainly to China, Japan, Taiwan, SouthKorea, Ireland, Mexico and the US.

“Most of our future focus for the businessis on the retail side,” he says, noting thatthe retail market is primarily overseas,whereas the US market tends toward bulkingredients.

Although TA Foods markets under its ownbrand, familiar to grocery shoppers

throughout Canada, Popowich says thecompany also bottles and packages morethan 30 private labels currently.

e company purchases almost all of itsconventional flax from Saskatchewan farm-ers, many of them in the Yorkton region.For its organic flaxseed, the company looksa little wider, Popowich says, buying fromproducers in Alberta and Manitoba, aswell.

Popowich notes that TA Foods meets therigorous standards of Global Food SafetyInitiative (GFSI)—Safe Quality FoodsProgram (SQF), Hazard Analysis andCritical Control Point (HACCP), GoodManufacturing Practice (GMP), Pro-CertOrganic, Non-GMO Project, Kosher andGluten Free certifications.

“Canada is the world’s largest grower andexport of flax in the world,” Popowich says.

“If you include some of the northern flax-producing US states—North Dakota andMontana—over 50 per cent of the world’sflax is grown within 1000 miles of here.”

8 Saskatchewan NOW! } SUMMER 2016

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Structures (66 per cent), Flyer Electric (68 per cent), Mudjatik yssenJoint Venture (29.5 per cent and 35 per cent), Points Athabasca (75per cent), Points North Group of Companies (48.3 per cent), TeamDrilling (50 per cent), Tru-North RV, Auto and Marine (50 per cent),and West Wind Aviation (55.4 per cent).

ABD does not operate companies itself—it places one or two peopleon the boards, instead. Gay serves as a board member for most of thecompanies and ABD will also choose a board member with expertisein a particular industry when it’s appropriate. Its own board, whichincludes representatives from the shareholder communities, each yearsets a dividend value for distribution to member communities.

e company paid no dividends for the first five years while it focusedon building equity. Since 2007, however, dividends have almost dou-bled.

“We’ve built a lot of wealth on paper for the long term,’’ says Gay. “Andwe’ve taken the approach with these dividends that we want them tobe sustainable. We don’t want them to fluctuate up and down.’’

So successful has that approach been that member communities areable to go to the bank and borrow against future dividend paymentsto finance capital projects like an arena in one community and, likely,a new town hall in second. Another benefit for ABD members is adonation program that this year contributed $80,000 to a First Nations

breakfast program at four schools in the region. Last year, two com-munities received a total of $50,000 to build greenhouses that providefresh produce to residents.

“When we were at what we believed to be the peak of the resourcecycle, when we thought earnings might struggle a bit over the next cou-ple of years, we did a one-time donation for cell tower service to all thecommunities in the Athabasca.’’ Gay says the $249,000 donationbrought a $6 million project that benefits everyone in the area, helpsensure safety in the communities and makes residents more accessiblefor jobs and business communications.

e downturn in the uranium industry has had an impact on residentsof Athabasca. Gay says at peak cycle four years ago there were about400 northern people working in ABD companies and that numberhas since decreased. But ABD’s equity and dividends continue to growthrough a prudent investment strategy that balances short-term benefitsand long-term growth with a focus on helping future generations oncethe mines are eventually shuttered.

“So we consider that long-term vision, along with the desire of peoplewanting cash now, and we work to find that balance between the two.

“It’s not easy to do, but we continue to work at it. And we’re makinggood progress towards the original goal of building wealth for futuregenerations.’’

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Building wealth for future generations: ABD