Question Period Note: DAIRY FARM INVESTMENT PROGRAM/DAIRY PROCESSING INNOVATION FUND

How are the investment programs introduced by the Government helping the dairy sector?

1. The Dairy Farm Investment Program is helping farmers to invest in productivity-enhancing technologies like robotic milkers, automated feeding systems and better herd management tools.

2. To date, the Program has supported close to 2,000 projects.

3. The Dairy Processing Investment Fund is helping dairy processors modernize their operations, improving productivity and competitiveness. Through the program, over 70 firms to have invested in new processing equipment.

On August 1st, 2017, AAFC launched:

• The Dairy Farm Investment Program provides up to $250 million over five years in targeted contributions to help Canadian dairy farmers update farm technologies and systems and improve efficiencies and productivity through upgrades to their equipment. This could include the adoption of robotic milkers, automated feeding systems, and herd management tools.
• The Dairy Processing Investment Fund provides up to $100 million over four years to help dairy processors modernize their operations and in turn, improve efficiency and productivity, as well as diversify their products to pursue new market opportunities.

The Dairy Farm Investment Program consists of two phases:

Phase 1 of the Dairy Farm Investment Program

Under Phase 1, just over 1,900 projects were approved worth approximately $129 million. Examples of equipment funded include robotic milkers, automated feeding systems, and herd management tools.

Phase 2 of the Dairy Farm Investment Program

The application window for Phase 2, with funding valued at $98 million, was open from January 7 to February 8, 2019.

Eligible expenditures remain the same as in Phase 1. For the second intake period, priority was to farms that have not already received funding (recipients under Phase 1 were ineligible to apply). Projects are eligible for a contribution of up to $100,000. Approximately 1,400 projects are expected to be funded in Phase 2. Applications for Phase 2 of the Program are currently being reviewed and recipients are being notified as projects are approved.

Based on demand, the program will strive to support investments in all provinces over the five year life of the program, approximately in proportion to their share of the total milk quota.

Dairy Processing Investment Fund

The Dairy Processing Investment Fund was established to provide funding to dairy processors for investments that will improve productivity and competitiveness, and help them prepare to market changes resulting from the CETA. The program is providing non-repayable contributions to support projects through capital investments and access to expertise:

• Improving manufacturing technologies and processes, or the introduction of new or improved products (including the acquisition and installation of equipment);
• Construction, expansion and/or modernization of dairy processing establishments in Canada; and,
• Engagement of external expertise/consultants related to plant improvements.

Access to Expertise can be the engagement of private sector technical, managerial, and business expertise. To date, the program has approved 85 projects valued at $73,316,713.00. There are an additional 17 projects in assessment.

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