Government of Canada investing to create a more competitive processing industry

September 11, 2009

OTTAWA, Ontario – The Government of Canada is investing in new processing technologies and projects that will create new, more stable markets to improve income opportunities for farmers and the processing sector.

"Our Government knows that a healthy processing sector will drive the recovery of our economy," said the Honourable Jean-Pierre Blackburn, Minister of National Revenue and Minister of State (Agriculture), who made the announcement today in Saint-Ambroise, Quebec. "This investment will help processors acquire new technology, new equipment, and new expertise that will keep them on the cutting edge here at home and around the world."

The AgriProcessing Initiative (API) will deliver $50 million over five years in repayable contributions to processing facilities. API will provide contributions for the purchasing and installing of equipment in Canadian facilities to enable the adoption of new manufacturing technologies and processes. The initiative may also contribute towards costs related to the contracting of external expertise for services related to equipment installation, and consultation, design, and advice regarding new (novel to facility) manufacturing technologies, processes and products.

"This smart investment in Canada’s processing sector will benefit the entire value chain to build a more profitable industry and a stronger economy," said Parliamentary Secretary Pierre Lemieux who made the announcement with Member of Parliament Joe Preston in Guelph, Ontario. "This funding will help our processors weather the credit crunch and build their businesses for the future."

API is now the second program outlined under the five year $500 million Agri-Flexibility fund, after the Livestock Auction Traceability Initiative. The Agri-Flexibility fund announced in Canada’s Economic Action Plan was created to help reduce costs of production and improve environmental sustainability for the sector; promote value-chain innovation and sectoral adaptation; and respond to emerging opportunities and market challenges for the sector. Beginning September 1, the AgriFlexibility fund is accepting project proposals from provincial governments and the agricultural industry.

To receive an application form for the API, please email API@agr.gc.ca or phone toll free 1-877-246-4682.

For further details on AgriFlexibility, visit www.agr.gc.ca/agriflexibility.
For more information on Canada’s Economic Action Plan, visit www.actionplan.gc.ca.