The governments of Canada and Ontario have announced a joint investment of up to $7.18 million under the Sustainable Canadian Agricultural Partnership (Sustainable CAP) to support 70 projects aimed at modernizing dairy processing facilities and strengthening food safety across Ontario. This funding, matched by contributions from the dairy sector, is expected to drive approximately $22 million in total capital investments and reinforce the supply of high-quality Ontario milk.
Dairy Processing Modernization Initiative
The Dairy Processing Modernization Initiative provides eligible processors of cow, goat, sheep, and water buffalo milk with up to $200,000 in cost-shared funding per project. These funds can be used to upgrade equipment, enhance food safety, and improve processing efficiency. The program, which is over 90% subscribed, remains open to new applications, highlighting strong interest in modernizing Ontario’s dairy industry.
Examples of Funded Projects:
- Four All Ice Cream (Waterloo): Awarded up to $200,000 for a walk-in cooler with blast freezer capabilities, a pasteurizer, and a plate-heat exchanger to boost productivity.
- Max and Lion Production (Peel Region): Granted $119,692 for new equipment, including a liquid filler machine and high-pressure homogenizer, to improve quality and efficiency.
- Ontario Water Buffalo Co. (Hastings County): Received $53,925 for equipment to enhance food safety and production capacity, including a batch freezer and pasteurizer.
- Sargent Family Dairy (Durham Region): Secured $40,609 to reduce manual strain and increase efficiency with a mechanical curd mill and cream separator.
Economic Impact and Strategic Goals
The Sustainable CAP initiative is part of a broader five-year, $3.5 billion investment to bolster the competitiveness, innovation, and resilience of Canada’s agri-food sector. This includes $1 billion in federal funding and $2.5 billion in cost-shared programs between federal and provincial/territorial governments.
Ontario’s dairy industry plays a crucial role in the province’s agri-food sector, which employs over 871,000 people and contributed nearly $51 billion to the provincial GDP in 2023. By funding innovation and modernization, the Dairy Processing Modernization Initiative aligns with the goals set in The Guelph Statement and Ontario’s Grow Ontario Strategy, emphasizing research, technology adoption, and long-term competitiveness.
Key Highlights:
- Ontario is home to 171 licensed cow and goat dairy processors, along with several sheep and buffalo dairy processors.
- The initiative focuses on improving productivity, food safety, and processing capacity, ensuring the dairy sector remains dynamic and responsive to growing demand.
Looking Ahead
This investment underscores a shared commitment by federal and provincial governments to ensure the continued growth and sustainability of Ontario’s dairy industry. By modernizing facilities and adopting cutting-edge technologies, the initiative not only supports dairy processors but also strengthens the broader food supply chain.
For more information about the Dairy Processing Modernization Initiative and the Sustainable CAP, visit Canada.ca or contact the Ontario Ministry of Agriculture, Food and Rural Affairs.
