Canada introduces new support program for dairy processors

By Jim Cornall

- Last updated on GMT

Pic: Getty Images/ Rowena Kong
Pic: Getty Images/ Rowena Kong

Related tags Dairy Canada

The Canadian government has announced the launch of the Supply Management Processing Investment Fund, worth C$292.5m (US$229.3m), to help processors of supply-managed commodities increase their competitiveness and resilience in the face of evolving markets.

The fund aims to support processors in these sectors to address the impacts of international trade agreements.

Through the program, processors of supply-managed commodities will have access to funding to improve their productivity and efficiency through investments in new automated equipment and technology. The fund leverages private investment in processing plants to accelerate adoption of automation to lower processing costs, address labor shortages and enhance product quality.

The two-step application process includes first submitting a project summary form, which will help determine a project's eligibility and alignment with program criteria and priorities. Those successful at this stage will be invited to submit a full application. Projects from small- and medium-sized enterprises (SMEs) will be prioritized.

Work is under way with supply-managed sectors to determine full and fair compensation for the impacts of the Canada-United States-Mexico Agreement within the year.

"Dairy processors welcome the announcement of the Supply Management Processing Investment Fund, which will support the additional investments and innovations necessary for Canada's dairy processing sector to transition to new market realities resulting from additional market access concessions granted in trade agreements with Europe and Trans-Pacific countries. By supporting investments in processing plants, the Fund will help boost the competitiveness, productivity and long-term sustainability of the Canadian dairy industry,"​ said Michael Barrett, chair of the Dairy Processors Association of Canada.

Building on the nearly C$2.7bn (US$2.1bn) already made available to compensate and support eligible dairy, poultry and egg farmers and the C$100m (US$78.4m) invested to help dairy processors, with today's announcement, all CETA and CPTPP compensation programming has been launched.

In 2020, dairy and poultry processing activities alone contributed C$24bn (US$18.8bn) to Canada's manufacturing shipments, equivalent to 20% of Canada's total manufactured shipments of food and beverage.

Related topics Markets