$292.5 million available to dairy processors through Supply Management Processing Investment Fund

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Source: Dairy Processors Association of Canada

Agriculture and Agri-Food Canada has launched the Supply Management Processing Investment Fund (SMPIF) to assist dairy, poultry and egg processors mitigate the impacts of CETA and CPTPP.

The $292.5 million program provides processors with non-repayable contributions up to $5 million to support investments in processing facilities that improve productivity and/or efficiency through the purchase of new automated equipment and technology. The Fund was announced as part of Budget 2021 and builds on the $100 million investment program launched in 2016 to address the impacts of CETA.

DPAC has long advocated for additional mitigation measures to be put in place to support dairy processors transitioning to new market realities created by recent trade agreements. It is estimated that these agreements, along with CUSMA, will result in annual losses of $300 million for Canada’s dairy processors by the time they are fully implemented.

At the launch of the Fund, DPAC Chair, Michael Barrett stated:

“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.”

Highlights of the program can be found below. For more information about eligibility and funding opportunities, visit:

https://agriculture.canada.ca/en/agricultural-programs-and-services/supply-management-processing-investment-fund


Backgrounder: Supply Management Processing Investment Fund (Agriculture and Agri-Food Canada)

 

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.