Minister Bibeau launches a brand-new assistance program for processors of Canada’s supply-managed products

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Canada’s supply management system is a design of stability which supplies a reasonable rate for farmers, stability for processors, and safe, high quality items for Canadians. This system guarantees the practicality of household farms and is the foundation of rural neighborhoods throughout the nation.

March 9, 2022 – Ottawa, Ontario – Agriculture and Agri-Food Canada

Canada’s supply management system is a design of stability which supplies a reasonable rate for farmers, stability for processors, and safe, high quality items for Canadians. This system guarantees the practicality of household farms and is the foundation of rural neighborhoods throughout the nation.

Today, the Minister of Agriculture and Agri-Food, the Honourable Marie-Claude Bibeau, along with Francis Drouin, Parliamentary Secretary to the Minister of Agriculture and Agri-Food, revealed the launch of the Supply Management Processing Investment Fund, worth $292.5 million, to assistance processors of supply-managed products boost their competitiveness and strength in the face of developing markets. The Supply Management Processing Investment Fund is part of the Government of Canada’s dedication to assistance processors in these sectors to address the effects of global trade arrangements.

Through this program, processors of supply-managed products will have gainaccessto to financing to enhance their efficiency and effectiveness through financialinvestments in brand-new automatic devices and innovation. The Fund leverages personal financialinvestment in processing plants to speedup adoption of automation to lower processing expenses, address labour lacks and boost item quality.

Launching today, the two-step application procedure consistsof veryfirst sending a Project Summary Form, which will aid to identify a job’s eligibility and positioning with program requirements and toppriorities. Those effective at this phase will be welcomed to send a complete application.

Work is underway with supply-managed sectors to figureout complete and reasonable settlement for the effects of the Canada-United States-Mexico Agreement within the year. By supplying processors the assistance required, the Government of Canada is guaranteeing Canadian household farms flourish and stay well located for the future.

“Our federalgovernment highly supports supply-managed sectors and, as guaranteed, we are rolling out different programs to compensate manufacturers and processors who have lost market share additional to trade contracts. Today, we are revealing the terms of assistance for dairy, poultry and egg processors to promote financialinvestment in their operations and therefore enhance their competitiveness and strength.”

–       The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food

“Canada’s supply-managed dairy, poultry and egg farmers are part of the foundation of rural areas from throughout Canada. With the launch of the Supply Management Processing Investment Fund, the Government of Canada is supplying crucial financialinvestments to speedup the adoption of brand-new automatic devices and innovation for processors to enhance their efficiency and performance, and in turn boost their competitiveness and strength.”

–       Francis Drouin, Parliamentary Secretary to the Minister of Agriculture and Agri-Food

“Dairy processors welcome the statement of the Supply Management Processing Investment Fund, which will assistance the extra financialinvestments and developments required for Canada’s dairy processing sector to shift to brand-new market truths resulting from extra market gainaccessto concessions approved in trade contracts with Europe and Trans-Pacific nations. By supporting financialinvestments in processing plants, the Fund will assistance increase the competitiveness, efficiency and long-lasting sustainability of the Canadian dairy market.”

–       Michael Barrett, Chair, Dairy Processors Association of Canada

“We are delighted to see the federalgovernment satisfy its dedication to assistance extra financialinvestments in poultry and egg processing plants as a suggests to reduce the effect of market gainaccessto concessions made in CPTPP. The Fund will takeadvantageof personal financialinvestments in processing plants to increase efficiency, respond to altering client expectations and enhance our market’s performance, practicality and competitiveness.”

–       Ian McFall, Chair, Canadian Poultry and Egg Processors Council

  • Building on the almost $2.7 billion currently made readilyavailable to compensate and assistance eligible dairy, poultry and egg farmers and the $100 million invested to aid dairy processors, with today’s statement, all CETA and CPTPP payment shows hasactually been introduced. 

  • The supply-managed sectors are substantial factors to Canada’s farming sector, getting in 2020 practically $12 billion in farm-gate sales and producing roughly 100,000 direct tasks in Canada in production and processing activities.

  • In 2020, dairy and poultry processing activities alone contributed $24 billion to Canada’s production deliveries, equivalent to 20 percent of Canada’s overall produced deliveries of food and drink. 

  • The Supply Management Processing Investment Fund was revealed in Budget 2021 to assistance personal financialinvestment in processing plants intended at enhancing the competitiveness and preserving the practicality of Canadian agri-food processors of dairy, poultry and eggs.

  • Projects from little- and medium-sized business (SMEs) will be focusedon.

  • AAFC might contribute up to 50% of the job expense for little- and medium-sized business and up to 25% for big companies of 500 staffmembers or more. 

  • Today’s statement brings the overall quantity dedicated to compensate and assistance supply-managed sectors affected by CETA and CPTPP to over $3 billion. This consistsof:

    • $1.75 billion through the Dairy Direct Payment Program;
    • $647 million through the Poultry and Egg On-Farm Investment Program;
    • $292.5 million through the Supply Management Processing Investment Fund;
    • $250 million through the Dairy Farm Investment Program;
    • $100 million through the Dairy Processing Investment Fund; and,
    • $44 million through the Market Development Program for Turkey and Chicken.
  • Marianne Dandurand
    Press Secretary
    Office of the Minister of Agriculture and Agri-Food
    marianne.dandurand@agr.gc.ca
    343-541-9229

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