A new Canadian initiative is demonstrating how agricultural byproducts can deliver fresh value for farmers, processors, and rural communities, while reducing waste across the food system.
Protein Industries Canada has announced a $1.1 million project that brings together Terra Bioindustries and Great Western Brewing Company (GWBC) to transform brewers’ spent grain (BSG) into high-value, sustainable food ingredients. The project focuses on upcycling BSG, a nutrient-rich byproduct of beer production, into products that can be reintegrated into the food supply chain.
For Canadian farmers and small-scale producers, the initiative highlights a growing opportunity: extracting more value from crops already grown and processed domestically.
Turning Byproducts into Opportunity
Brewers’ spent grain is produced in large volumes across Canada’s brewing industry. While it has traditionally been used as livestock feed or discarded, new processing technologies are opening the door to higher-value uses.
Terra Bioindustries is applying its proprietary system to separate key components of BSG, including proteins, fibres, sugars, and flavour compounds. From this process, the company is developing four ingredients: a protein concentrate, a dietary fibre, a cocoa substitute, and a barley-based syrup known as TERRA Malt.
This project will focus on TERRA Malt, a multifunctional ingredient that can be used in a variety of food products, including beverages and baked goods.
By making better use of agricultural outputs, the project aligns closely with the principles of circular agriculture, which aims to reduce waste and maximize efficiency at every stage of production - which of course we love at Small Farm Canada.
Protein Industries Canada CEO Tyler Groeneveld noted that projects like this strengthen domestic supply chains by creating more food from existing resources.
The approach not only improves efficiency but also builds resilience within Canada’s food system, an increasingly important goal for producers facing market volatility and climate pressures.
Member of Parliament Tim Louis highlighted the local impact of the initiative, emphasizing how innovation in communities such as Kitchener supports both economic and agricultural growth.
A Circular System with No Waste
One of the defining features of the project is its zero-waste ambition. By separating and refining each component of brewers’ grain, Terra Bioindustries ensures that the entire input is used productively.
According to Terra’s Marketing Lead Rebecca Palmer, the process improves both sustainability and functionality.
The result is a set of ingredients that are more versatile, easier to incorporate into food production, and capable of reducing reliance on imported inputs such as cocoa or refined sugars.
For small-scale food producers, this could mean greater access to Canadian-made ingredients with consistent quality and a lower environmental footprint.
Innovation in the Brewing Sector
Great Western Brewing Company is also exploring new product development through the partnership. The company is using TERRA Malt to create a non-alcoholic beer, taking advantage of the ingredient’s low fermentable sugar content.
This innovation allows brewers to control alcohol levels more precisely while reducing emissions associated with transportation and processing.
For craft brewers and small beverage producers, the technology may offer new product lines that meet rising consumer demand for low- or no-alcohol options.
GWBC Chief Financial Officer Brendan Halbgewachs emphasized that the project will also generate economic benefits, allowing the company to reinvest savings into operations, staff, and community initiatives.
Looking Ahead
As consumers continue to seek sustainable, locally sourced food products, innovations such as this one are expected to play an increasingly important role in shaping the agri-food landscape.
By turning what was once considered waste into a valuable resource, the project offers a practical example of how Canadian agriculture can evolve to meet future challenges.
For farmers, processors, and rural communities, it signals a future where every harvest has greater potential, and where sustainability and profitability can grow side by side.