Feds plan to invest in processing projects

Glacier FarmMedia -The federal government will invest $89 million in 49 processing projects in the supply managed sector.

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Agriculture minister Lawrence MacAulay was in Ingleside, Ont., at the Lactalis Canada cheese plant to make the Feb. 5 announcement. The projects are through the six-year, $397.5-million Supply Management Processing Investment Fund, which is part of Ottawa’s commitment to help sectors that lost market share due to trade agreements.

The funding is available to dairy, egg and poultry processors to buy and install automated equipment and technology so they can boost capacity and be more productive. Examples include milk pasteurizers, ultrafiltration systems, robotics for packaging systems and new machines to grade, set and break eggs. The projects also address environmental challenges and labour shortages.

Lactalis will receive more than $3.4 million for automated cheese processing and packaging equipment. The government said the upgrades will help modernize the plant, reduce waste and improve productivity and the company has already invested $11 million in the project.

The fund provides non-repayable investments that support up to 50 percent of eligible project costs for small and medium-sized processors and up to 25 percent for large companies with 500 employees or more.

For a full list of funded projects, click here.

Mathieu Frigon, president of the Dairy Processors Association of Canada, said the fund is valuable because it leverages increased investments.

Similarly, Mark Hubert, president of the Canadian Poultry and Egg Processors Council, said numerous processors have been able to make important investments.

“New investments in equipment and technology will facilitate companies’ efforts to increase productivity and efficiency and enable Canadian poultry and egg processors to undertake valuable and leading-edge modernization projects,” he said.

MacAulay said he will always stand up for Canada’s supply management system.

“With this funding, dairy, poultry and egg processors will be able to modernize their operations so they can continue providing Canadians families with high-quality products while supporting small, rural communities across the country,” he said in a news release.