Minister Bibeau launches a new support program for processors of Canada's supply-managed commodities

OTTAWA, ON, March 9, 2022 /CNW/ - Canada's supply management system is a model of stability which provides a fair price for farmers, stability for processors, and safe, high quality products for Canadians. This system ensures the viability of family farms and is the backbone of rural communities across the country.

Today, the Minister of Agriculture and Agri-Food, the Honourable Marie-Claude Bibeau, along with Francis Drouin, Parliamentary Secretary to the Minister of Agriculture and Agri-Food, announced the launch of the Supply Management Processing Investment Fund, worth $292.5 million, to help processors of supply-managed commodities increase their competitiveness and resilience in the face of evolving markets. The Supply Management Processing Investment Fund is part of the Government of Canada's commitment to support processors in these sectors to address the impacts of international trade agreements.

Through this 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 labour shortages and enhance product quality.

Launching today, the two-step application process includes first submitting a Project Summary Form, which will help to 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.

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

Quotes

"Our government strongly supports supply-managed sectors and, as promised, we are rolling out various programs to compensate producers and processors who have lost market share further to trade agreements. Today, we are announcing the terms of support for dairy, poultry and egg processors to promote investment in their operations and thereby improve their competitiveness and resilience."
-       The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food

"Canada's supply-managed dairy, poultry and egg farmers are part of the backbone of rural regions from across Canada. With the launch of the Supply Management Processing Investment Fund, the Government of Canada is providing critical investments to accelerate the adoption of new automated equipment and technology for processors to improve their productivity and efficiency, and in turn increase their competitiveness and resilience."
-       Francis Drouin, Parliamentary Secretary to the Minister of Agriculture and Agri-Food

"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."
-       Michael Barrett, Chair, Dairy Processors Association of Canada

"We are pleased to see the government fulfill its commitment to support additional investments in poultry and egg processing plants as a means to mitigate the impact of market access concessions made in CPTPP. The Fund will leverage private investments in processing plants to boost productivity, respond to changing customer expectations and improve our industry's efficiency, viability and competitiveness."
-       Ian McFall, Chair, Canadian Poultry and Egg Processors Council

Quick Facts

• Building on the nearly $2.7 billion already made available to compensate and support eligible dairy, poultry and egg farmers and the $100 million invested to help dairy processors, with today's announcement, all CETA and CPTPP compensation programming has been launched.
• The supply-managed sectors are significant contributors to Canada's agricultural sector, generating in 2020 almost $12 billion in farm-gate sales and creating approximately 100,000 direct jobs in Canada in production and processing activities.
• In 2020, dairy and poultry processing activities alone contributed $24 billion to Canada's manufacturing shipments, equivalent to 20 percent of Canada's total manufactured shipments of food and beverage.
• The Supply Management Processing 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 prioritized.
• AAFC may contribute up to 50% of the project cost for small- and medium-sized enterprises and up to 25% for large organizations of 500 employees or more.
• Today's announcement brings the total amount committed to compensate and support supply-managed sectors impacted by CETA and CPTPP to over $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 Processing Investment Fund;
• $250 million through the Dairy Farm Investment Program;
• $100 million through the Dairy Processing Investment Fund; and,
• $44 million through the Market Development Program for Turkey and Chicken.

Additional Links 

Supply Management Processing Investment Fund
Supporting Canada's supply-managed sectors
Minister Bibeau announces new programs that deliver full and fair compensation for chicken, turkey and egg farmers
Government of Canada announces investments to support supply-managed dairy, poultry and egg farmers
Poultry and Egg On-Farm Investment Program 
Market Development Program for Turkey and Chicken 
Dairy Direct Payment Program

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Backgrounder: Supply Management Processing Investment Fund

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

Eligibility

Eligible applicants are processors of supply-managed commodities, including:

• Dairy processors
• Poultry Primary processors (chicken and turkey)
• Poultry Further processors (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 in processing facilities, such as:

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

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

Improving environmental sustainability, such as:

• Equipment to reduce water and energy consumption
• Equipment required to treat waste water resulting from an increase in production

Responding to consumer demand concerning food safety and animal welfare, such as:

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

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

Application Process

The program will use a two-step intake process. 

A Project Summary Form will be used to screen the applicant's and project's eligibility, fit and readiness to apply for funding. Proposals that meet the program's priorities and eligibility criteria may be invited to submit a full project application.

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

SOURCE Agriculture and Agri-Food Canada

Marianne Dandurand, Press Secretary, Office of the Minister of Agriculture and Agri-Food, [email protected], 343-541-9229; Media Relations, Agriculture and Agri-Food Canada, Ottawa, Ontario, 1-866-345-7972, [email protected]