Ontario dairy processing industry gets $8-million boost from feds and province

Agriculture and Agri-Food Canada recently announced that the federal government and the Province of Ontario will be investing upwards of $8 million through the Sustainable Canadian Agricultural Partnership (Sustainable CAP), that will go towards the creation and/or increasing of processing efficiencies and enhancing food safety in Ontario’s dairy processing sector.

Agriculture and Agri-Food Canada stated that “eligible dairy businesses are invited to apply for funding through the Dairy Processing Modernization Initiative to acquire modern technologies that increase production efficiency and ensure food safety in their facilities; and that cost-share support through this initiative can be used to help cover the purchase and installation of new or refurbished equipment and its associated costs, such as training.”

The investment was created to help support the province’s Grow Ontario Strategy, designed to strengthen the agri-food sector throughout Ontario. Targets for the Grow Ontario Strategy include increasing the production of food by 30 per cent by 2032 and growing the province’s agri-food exports by 8 per cent, annually.

“Ontario’s dairy processors work tirelessly to ensure their products meet the highest standards for quality and safety. Through this $8 million shared investment under Sustainable CAP, processors will be able to access the technology they need to continue to grow and improve their efficiency,” stated Minister of Agriculture and Agri-Food Lawrence MacAulay.

The Dairy Processing Modernization Initiative is open to cow, goat, sheep and water buffalo milk processors. There are currently 171 licensed cow and goat dairy processors in Ontario, in addition to various sheep and buffalo dairy processors. Eligible applicants can receive upwards of $200,000 in cost-share support.

“Our government is committed to working with Ontario’s dairy processors, so they will be able to continue to supply the array of delicious, nutritious and safe products that consumers enjoy and trust. Efficiencies realized through new technologies will play a key role in helping the sector continue to thrive,” stated Ontario Minister of Agriculture, Food and Rural Affairs Lisa Thompson.

Applications open on April 2, 2024, and will remain open until the initiative is fully subscribed. Eligible project costs can be incurred as of April 2, 2024.

About Sustainable Canadian Agricultural Partnership
The Sustainable CAP is a 5-year (2023-2028), $3.5-billion investment by federal, provincial and territorial governments to strengthen competitiveness, innovation, and resiliency of the agriculture, agri‐food and agri‐based products sector. This includes $1 billion in federal programs and activities and a $2.5 billion commitment that is cost-shared 60% federally and 40% provincially/territorially for programs that are designed and delivered by the provinces and territories.

To learn more about Sustainable CAP, click here.