Government of Canada announces support to increase dairy processing capacity on Prince Edward Island

SUMMERSIDE, PE, March 7, 2025 /CNW/ - Today, Bobby Morrissey, Member of Parliament for Egmont, on behalf of the Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food, and the Honourable Gudie Hutchings, Minister of Rural Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency (ACOA), announced a federal investment of up to $12 million for Amalgamated Dairies Limited (ADL).

This funding will help the dairy farmer-owned cooperative modernize its milk receiving and processing operations and invest in new automated cheesemaking equipment. With these upgrades, ADL will be able to increase processing capacity while improving productivity and efficiency.

Agriculture and Agri-Food Canada is providing up to $10 million through the Supply Management Processing Investment Fund, a key part of the Government of Canada's commitment to support processors in supply-managed sectors to address the impacts of recent international trade agreements. ACOA is providing up to $2 million through the Regional Economic Growth through Innovation program, which supports projects that promote sustainable community economic development, enhance business development and growth, and facilitate innovation.

The Government of Canada will continue to preserve, protect and defend Canada's supply management system. This system ensures Canadian producers receive fair returns for their labour and investments, brings stability for processors, and provides consumers with a steady supply of high-quality products.

Quotes

"We will always stand up for Canada's supply management system and the family farms and rural communities it supports. ADL has long been a vital pillar of the dairy industry here on Prince Edward Island. This funding will help them add new automated equipment and boost processing capacity so they can provide folks with more of their top-quality products."
-       The Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food

"Your federal government, through ACOA, is investing to help Canadian businesses like ADL work faster and smarter, so that PEI's dairy industry can keep creating good jobs and drive growth in our small communities."
-       The Honourable Gudie Hutchings, Minister of Rural Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency

"For more than 70 years, ADL has been an important part of Prince Edward Island's dairy processing industry and a source of great local pride. With this investment, ADL will be able to modernize its operations in Summerside and increase capacity and productivity, which will strengthen our agricultural sector and spur economic growth."
-       Bobby Morrissey, Member of Parliament for Egmont, Prince Edward Island

"This significant funding will allow ADL to modernize and enhance operations at our cheese processing facility in Summerside. It will ensure that ADL is competitive in cheddar and specialty cheese processing for decades to come by allowing for investment in additional production capacity, milk processing technology, and sustainability measures for our co-operative. This investment from the Government of Canada is crucial to ADL remaining innovative and able to adapt to evolving market needs."
-       Chad Mann, Chief Executive Officer, ADL

"DFPEI is pleased to see ADL make further investments in the modernization of processing operations. ADL's continued dedication to processing the high-quality milk produced on our farms is reassuring for producers and reinforces the dairy industry in Prince Edward Island. This investment further highlights the industry's commitment to delivering high-quality Canadian dairy products to consumers."
-       Gordon MacBeath, Chairman, Dairy Farmers of PEI

Quick Facts 

• The supply-managed sectors are significant contributors to Canada's agricultural sector, generating more than $15 billion in farm-gate sales in 2023 and creating approximately 145,000 direct jobs in Canada in production and processing activities.
• Prince Edward Island's dairy industry is a major contributor to the provincial economy. In 2024, dairy farms generated $118 million in sales of raw milk, contributing approximately 14% to the province's farm cash receipts.
• Amalgamated Dairies Limited (ADL) was established in 1953 and is owned by Prince Edward Island dairy farmers. It produces a wide range of dairy products including cheese, butter, fluid milk and evaporated milk. The cooperative provides important processing capacity for Atlantic Canada, processing about 120 million litres of local milk per year.
• Projects and final funding are subject to negotiation of a contribution agreement.
• The Government of Canada has delivered on its commitment to fully and fairly compensate producers and processors who have lost market share under the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Canada-United States-Mexico Agreement (CUSMA). The total compensation will reach over $4.8 billion.

Associated Links

• Supply Management Processing Investment Fund
• Supporting Canada's supply-managed sectors
• Regional Economic Growth through Innovation

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SOURCE Agriculture and Agri-Food Canada

Contacts: For media: Annie Cullinan, Director of Communications, Office of the Minister of Agriculture and Agri-Food, [email protected]; Media Relations: Agriculture and Agri-Food Canada, Ottawa, Ontario, 613-773-7972, 1-866-345-7972, [email protected]; Connor Burton, Press Secretary, Office of the Minister of Rural Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency, [email protected]; David Fleming, Communications Manager, Atlantic Canada Opportunities Agency, [email protected]