A program that pays grants to Canadian wineries to help them adapt to industry and competitiveness challenges has been extended to 2027, the federal government announced today.
“This extension of the Wine Sector Support Program will provide vitally important support to our wineries as they continue to innovate and adapt to challenges so the sector can stay strong and competitive for years to come,” said federal Minister of Agriculture and Agri-Food Lawrence MacAulay in a news release.
The extension will cost the federal government up to $177 million, the news release said.
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The Wine Sector Support Program, instated in 2022, provides non-repayable grant payments to licensed Canadian wineries based on their bulk wine production, with a maximum of $25 million per fiscal year, the government’s website says.
Wine Growers Canada on its website said the program must continue, “otherwise billions in economic opportunity are left on the table and wineries across Canada will shrink or… go out of business.”
Imports represent 70 per cent of wine sales in Canada, Wine Growers Canada said. Foreign wineries receive government subsidies or lower taxes, the organization added.
Wine Growers Canada said that each dollar of federal funding will generate more than six dollars in transactions in the Canadian economy.
MacAulay announced up to $6.7 million in funding for two other wine and grape initiatives under the Sustainable Canadian Agricultural Partnership. Both projects, led by the Canadian Grapevine Certification Network, will “advance science and research and increase the competitiveness of the sector.”
