Glacier FarmMedia — The federal government will invest $89 million in 49 processing projects in the supply managed sector.
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.
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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.
While much of the investment is in the East where supply managed industries are more common, several western Canadian companies are also receiving money.
In Alberta, Crystal Springs Cheese at Coal Hurst will get $544,100 to install a two-phase milk ultrafiltration system. Jenner Colony Farming Co. in Jenner will get $43,600 to upgrade its refrigeration system and install new processing equipment in its poultry operation.
Sun works Farm at Armenia will automate poultry slaughtering, cutting and deboning with a $160,000 investment, and Tiras Dairies from Camrose will get $121,900 for an automated yogurt line.
Several large investments in British Columbia of $5 million each will see Golden Valley Foods in Abbotsford install a fully automatic egg grading system, Punjab Milk Foods in Surrey install an automated state-of-the-art processing line for its paneer cheese and Vitalus Nutrition of Abbotsford put in an automated powder handling and packaging system in its dairy processing facility.
Ridgecrest Dairies at Mission will use its $227,600 to install a walk-in cooler extension and new automated processing equipment such as a cheese press, cutter and vacuum packaging, while Rossdown Natural Foods at Abbotsford will get $1.5 million for automated poultry processing equipment.
In Saskatchewan, Star Egg in Saskatoon is set to receive $5 million to modernize and automate packaging and install new equipment for in-house egg processing.
Processor associations welcomed the announcements.
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.
—Karen Briere writes for the Western Producer from Saskatchewan.
