Minister Bibeau launches a new support program for processors of products subject to Canada’s supply management

OTTAWA (ON), March 9, 2022 /CNW/ – from Canada supply management system is a model of stability that provides a fair price to farmers, stability to processors, and safe, high-quality products to Canadians. This system ensures the viability of family farms and forms the backbone of rural communities across the country.

Today, the Minister of Agriculture and Agri-Food, the Honorable Marie-Claude Bibeau, accompanied Francois DrouinParliamentary Secretary to the Minister of Agriculture and Agri-Food, announced the launch of the Supply Management Transformation Investment Fund, worth $292.5 million, to help processors of supply-managed products increase their competitiveness and resilience to changing markets. The Supply Management Transformation Investment Fund is part of the Government of from Canada commitment to support processors in these sectors to cope with the impacts of international trade agreements.

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

Launched today, the two-step application process first includes the submission of a project summary form, which will help determine a project’s eligibility and alignment with program criteria and priorities. Those who pass this stage will be invited to submit a full application.

Work is underway with supply managed sectors to determine full and fair compensation for the impacts of Canada-United States-Mexico agreement within the year. By providing processors with the support they need, the Government of Canada ensures that Canadian family farms thrive and remain well positioned for the future.

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“Our government strongly supports sectors under supply management and, as promised, we are deploying various programs to compensate producers and processors who have lost market share as a result of trade agreements. Today we are announcing the terms of support for dairy, poultry and eggs. processors to promote investment in their operations and thereby improve their competitiveness and resilience.”
– The Honorable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food

from Canada supply managed dairy, poultry and egg producers are part of the backbone of rural areas everywhere Canada. With the launch of the Supply Management Transformation Investment Fund, the Government of Canada provides critical investments to accelerate the adoption of new automated equipment and technologies for processors to improve their productivity and efficiency, and thereby increase their competitiveness and resilience. »
Francois DrouinParliamentary Secretary to the Minister of Agriculture and Agri-Food

“Dairy processors welcome the announcement of the Supply Management Transformation Investment Fund, which will support the additional investments and innovations needed to from Canada dairy processing sector to the transition to new market realities resulting from the additional market access concessions granted in trade agreements with Europe and transpacific countries. By supporting investments in processing plants, the Fund will help boost the competitiveness, productivity and long-term sustainability of the Canadian dairy industry. »
Michel BarrettePresident, Dairy Processors Association of Canada

“We are delighted to see the government delivering on its commitment to support additional investment in poultry and egg processing plants to mitigate the impact of market access concessions granted under the CPTPP. The Fund will leverage private investments in processing plants to boost productivity, meet changing customer expectations and improve the efficiency, sustainability and competitiveness of our industry. »
Ian McFallPresident, Canadian Poultry and Egg Processors Council

Fast facts

  • Relying on nearly $2.7 billion already made available to compensate and support eligible milk, poultry and egg producers and $100 million invested to help dairy processors, with today’s announcement all CETA and CPTPP offset programs have been launched.
  • Supply-managed sectors contribute significantly to from Canada agricultural sector, generating in 2020 nearly $12 billion in farm gate sales and the creation of approximately 100,000 direct jobs in Canada in production and processing activities.
  • In 2020, dairy and poultry processing activities alone contributed $24 billion for from Canada manufacturing shipments, equivalent to 20 percent of from Canada total manufactured food and beverage shipments.
  • The Supply Management Transformation Investment Fund was announced in Budget 2021 to support private investment in processing plants aimed at improving the competitiveness and maintaining the viability of Canadian agri-food processors of dairy, poultry and eggs.
  • Projects from small and medium-sized enterprises (SMEs) will be given priority.
  • AAFC can contribute up to 50% of the project cost for small and medium enterprises and up to 25% for large organizations with 500 or more employees.
  • Today’s announcement brings more than $3 billion. This includes:
    • $1.75 billion through the Dairy Direct Payment Program;
    • $647 million through the Poultry and Egg On-Farm Investment Program;
    • $292.5 million through the Supply Management Transformation Investment Fund;
    • $250 million through the Dairy Farm Investment Program;
    • $100 million through the Dairy Processing Investment Fund; and,
    • $44 million as part of the Market Development Program for Turkey and Chicken.

Additional links

Supply Management Transformation Investment Fund
Proof from Canada supply managed sectors
Minister Bibeau announces new programs offering full and fair compensation to chicken, turkey and egg producers
Government of Canada announces investments to support dairy, poultry and egg producers subject to supply management
Poultry and Egg On-Farm Investment Program
Market Development Program for Turkey and Chicken
Direct payment program for dairy products

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Backgrounder: Supply Management Transformation Investment Fund

New, $292.5 million The Supply Management Transformation Investment Fund supports investments in processing facilities that improve productivity and efficiency through the acquisition of new automated equipment and technologies.

Eligibility

Eligible applicants are processors of supply managed products, including:

  • Dairy processors
  • Poultry Primary processors (chicken and turkey)
  • Poultry Secondary processing (chicken and turkey)
  • Hatcheries (broiler, egg type and turkey)
  • Egg graders
  • egg processors

Eligible activities

The program will focus its support on projects that:

Increase automation of processing facilitieslike:

  • Automation or robotization of an existing production process
  • Improvement of an already existing automated or robotic process
  • Development of a new production line
  • Implementation or improvement of integrated management software

In addition to the above, projects may also include activities that will bring additional benefits, such as:

Improve environmental sustainabilitylike:

  • Equipment to reduce water and energy consumption
  • Equipment needed to treat wastewater resulting from increased production

Respond to consumer demand for food safety and animal welfare, like:

  • Packaging that increases shelf life
  • Processing equipment to reduce/control pathogen load

Note: AAFC’s maximum contribution to an organization will normally not exceed $5 million.

Application process

The program will use a two-step admissions process.

A project summary form will be used to verify the applicant’s and project’s eligibility, suitability and readiness to apply for funding. Proposals that meet program priorities and eligibility criteria may be invited to submit a full project application.

Applications will be accepted on an ongoing basis until funding has been fully committed or otherwise announced by the program.

SOURCE Agriculture and Agri-Food Canada

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