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Funding: $8M to Ontario dairy processing sector


January 17, 2024  by  Bree Rody

The governments of Canada and Ontario are investing up to $8 million, through the Sustainable Canadian Agricultural Partnership (Sustainable CAP), to create or increase processing efficiencies and enhance food safety in the province’s dairy processing sector.

“Ontario’s dairy processors work tirelessly to ensure their products meet the highest standards for quality and safety,” said the Honourable Lawrence MacAulay, federal Minister of Agriculture and Agri-Food. “Through this $8 million shared investment under Sustainable CAP, processors will be able to access the technology they need to continue to grow and improve their efficiency.”

Eligible dairy businesses are invited to apply for funding through the Dairy Processing Modernization Initiative to acquire modern technologies that increase production efficiency and ensure food safety in their facilities. Cost-share support through this initiative can be used to help cover the purchase and installation of new or refurbished equipment and its associated costs, such as training.

This investment supports the objectives of the government’s Grow Ontario Strategy to strengthen the agriculture and food supply chain and build resiliency in the face of any future disruption.

“Our government is committed to working with Ontario’s dairy processors, so they will be able to continue to supply the array of delicious, nutritious and safe products that consumers enjoy and trust,” said Lisa Thompson, Minister of Agriculture, Food and Rural Affairs. “Efficiencies realized through new technologies will play a key role in helping the sector continue to thrive.”

The Dairy Processing Modernization Initiative is open to cow, goat, sheep and water buffalo milk processors. Each eligible applicant can receive up to $200,000 in cost-share support. Applications open on April 2, 2024, and will remain open until the initiative is fully subscribed. Eligible project costs can be incurred as of April 2, 2024.

The Sustainable CAP is a five-year (2023-2028), $3.5-billion investment by federal, provincial and territorial governments to strengthen competitiveness, innovation, and resiliency of the agriculture, agri‐food and agri‐based products sector. This includes $1 billion in federal programs and activities and a $2.5 billion commitment that is cost-shared 60 per cent federally and 40 per cent provincially/territorially for programs that are designed and delivered by the provinces and territories.

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