Question Period Note: ASPIRE FOOD GROUP INTO RECEIVERSHIP

Q1 – How much funding has been invested by AAFC to date? Q2 – Why is Farm Credit Canada (FCC) lending to companies that are also receiving government grants? Q3 – Why did National Research Council Canada provide funding for this project? Q4 – What economic or business case analyses did the Government undertake before investing in the facility, and what are the results of those analyses? Q5 – What is the current market demand for insect protein, including specifically for human consumption? Q6 – What happens if a project does not meet its objectives? Q7 – Why did the Government of Canada not disclose information in response to an information request through the Access to Information and Privacy Acts?

R.1 - Aspire Food Group received $8.5 million in AAFC repayable support from the AgriInnovate Program in 2021. This program was part of the Canadian Agricultural Partnership (CAP) which ran from 2018 to 2023. The objective of the program was to facilitate the demonstration, commercialization, and adoption of innovative agri-based products, technologies, processes, or services. The project aligned with the Terms and Conditions of the program in place at the time, including a $10 million project maximum. R.2 - FCC operates at arm's length from the Government and makes lending decisions based on commercial criteria. Government grants and contributions are managed separately. It is not uncommon for businesses to access both debt and support programs. AAFC’s programs have provisions that allow recipients to receive funding from other departments, agencies, and levels of government. R.3 - Contribution programs allow eligible applicants to seek funding from multiple sources at the municipal, provincial and federal level. This stacking of funding is capped to a certain level, depending on the program. The funding provided to Aspire Food Group was within the established stacking limits. R.4 - An evaluation was conducted against the program’s assessment criteria, and AAFC officials determined that the applicant had the technical, managerial, and financial capacity to undertake the project.
All applications for funding received by AAFC undergo a rigorous due diligence review, and only projects that best meet the eligibility criteria and program objectives are selected for funding. This project was supported due to the novel application of various automation and continuous quality control technologies and processes, including proprietary growing habitats sensors, internet-based connectivity, artificial Intelligence systems, and biological waste management.
FCC applies due diligence and proper risk management to all loan applications. Unfortunately, despite that rigour there are times where a business is not able to meet its obligations and is required to make difficult business decisions.
FCC plays an important role in providing access to capital that helps producers and agri-food businesses grow and adapt. FCC maintains a strong reputation as a responsible lender to the agriculture and food industry. R.5 - AAFC does not conduct studies or analyses on the production or human consumption of cricket protein. However, Aspire’s project objectives were to build a new production facility primarily targeting the pet food market, while also considering human, biomedicine and the agrochemical markets. R.6 - Projects funded by AAFC are closely monitored to ensure the terms of the contribution agreements are met. If issues arise, AAFC works with recipients to address them, upholding the goals and integrity of the program. If the recipient does not abide by the terms of the agreement, AAFC can place the company into default and undertake steps to recover the owed funding. In the case of Aspire’s project, although the client did meet its agreed upon objectives, the company was placed into default in March 2025 to attempt to recover owed funds after they indicated they were unable to make further payments. R.7 - AAFC supports all eligible requestors with their right of access to information and ensures every reasonable effort is made to help applicants receive complete, accurate and timely responses in the format requested. In response to an access to information request regarding Aspire Food Group, AAFC conducted a thorough search for records related to the specific questions in the request. AAFC has disclosed prior records through access to information on Aspire, including the full release of the AgriInnovate program contribution agreement in 2022.

Aspire Food Group received an $8.5 million repayable contribution from AAFC on March 31, 2021, to build a new automated production facility for crickets in London, Ontario. Outstanding debt to AAFC as of May 21, 2025, amounts to $7.5 million. FCC lending is separate from government grant and contribution programs. FCC operates at arm's length from the Government and makes lending decisions based on commercial criteria. It is not uncommon for businesses to access both debt and support programs.
The facility was built to utilize automation, artificial intelligence, and advanced connectivity between devices and systems to grow, harvest, and process crickets.
The project was completed, and loan repayments were scheduled to begin in May 2023. As per all repayable contributions, AAFC’s Financial Analysis and Repayment Unit had numerous discussions with Aspire to provide flexibilities, including renegotiation of the agreement and revision of the payment schedule. In March 2025, after the client advised of financial difficulties resulting in the inability to make any further payments, Aspire’s file was deemed to be in default and was transferred to the Department’s accounts receivable team to attempt to recover owed funds.
On May 6, 2025, Aspire was placed into receivership, a step towards bankruptcy, after an application from Farm Credit Canada (FCC) in Ontario Superior Court.

It is FCC’s policy to not comment on customer situations; however, FCC works with customers facing challenges on a case-by-case basis, always respecting privacy and confidentiality.

• The Government of Canada is committed to supporting innovation and sustainable initiatives in the Canadian agriculture and agri-food sector.
• In 2021, the Aspire project was approved for up to $8.5 million under AAFC’s AgriInnovate Program to build a new cricket production facility in London, Ontario. The project aligned with the Terms and Conditions of the program in place at the time which included a $10 million project maximum. Starting on April 1, 2023, the maximum amount advertised was updated to $5 million on new applications.
• Aspire also received funding from Farm Credit Canada (FCC) to support the implementation of this project. Aspire’s cricket plant has been ordered into receivership, and both FCC and AAFC are named as creditors.
• In response to an access to information request regarding Aspire Food Group, AAFC conducted a thorough search for records on interdepartmental communications regarding payments from other government organizations. No records on these specific questions were found. AAFC has disclosed prior records via access to information on Aspire.