Canadian dairy cooperative ADL receives funding for modernization

By Jim Cornall contact

- Last updated on GMT

The government funding will allow ADL to invest in the infrastructure and innovation to grow and diversify. Pic: ©Getty Images/Elenathewise
The government funding will allow ADL to invest in the infrastructure and innovation to grow and diversify. Pic: ©Getty Images/Elenathewise
Canadian cooperative Amalgamated Dairies Ltd (ADL) has received a C$5.4m (US$4.3m) investment to modernize its Summerside, Prince Edward Island, operation, with the aim of reducing production costs, increasing the volume of milk it buys from dairy producers and introducing new products in response to market demand.

The investment will also enable ADL to increase storage capacity for both specialty cheese products and packaging supplies.

The bulk of the investment comes from AAFC's Dairy Processing Investment Fund (C$4.4m/US$3.5m) and the rest from the Atlantic Canada Opportunities Agency, ACOA's Business Development Program.

The dairy sector contributes C$24bn (US$19m) to the Canadian economy through sales by farmers and food processors, including more than C$80m (US$63m) in farm cash receipts from PEI.  

Increase of production and storage

The announcement was made by Canada's Agriculture and Agri-Food Minister, Lawrence MacAulay, at ADL's annual general meeting in Summerside.

MacAuley said ADL is a great example of the economic benefits that come from a strong dairy processing industry, and that the modernization project will strengthen PEI's dairy industry, its food processing sector and the island's overall economy.

Jim Bradley, ADL CEO, said the funding will allow ADL to adapt to the new realities in the Canadian dairy industry and invest in the infrastructure and innovation that are needed to grow and diversify.

“The ADL Water Street cheese plant expansion will increase production capacity by 40% and increase storage capacity by 30%,”​ Bradley said.

“Improvements and modernization of processing equipment and technology will also allow ADL to work with our partners to diversify products and seek new markets. ADL is proudly owned by 165 family dairy farms and today's announcement provides them the confidence to continue investing in their farm operations."

The dairy processing cooperative, which was created in 1953, has 260 employees.

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