Canada launches support program for processors of supply-managed goods
Dairy, chicken, turkey products and eggs are supply managed in Canada
10 March 2022
2 minute read
Canada's minister of agriculture Marie-Claude Bibeau announced on Wednesday the launch of the Supply Management Processing Investment Fund, worth $292.5 million. The aim of the fund is to help processors of supply-managed commodities increase their competitiveness and resilience in the face of evolving markets.
According to a government press release, the Supply Management Processing Investment Fund is part of the government's commitment to addressing the impacts of international trade agreements.
Through the 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 uses private investment in processing plants to accelerate adoption of automation to lower processing costs, address labour shortages and enhance product quality.
"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," said Michael Barrett, chair of the Dairy Processors Association of Canada. "By supporting investments in processing plants, the fund will help boost the competitiveness, productivity and long-term sustainability of the Canadian dairy industry."
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.
