Monday, June 24, 2024

Government Assistance for Agri-Food Processing Companies to Reduce Costs

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Through the Sustainable Canadian Agricultural Partnership (Sustainable CAP), the governments of Ontario and Canada are making investments of up to $10 million to assist food processing businesses in increasing their energy efficiency and lowering their costs.

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The Agri-Food Energy Cost Savings Initiative is a brand-new cost-share program designed to assist food processors in cutting costs in order to become more sustainable and competitive. By investing in new technology, equipment, and building or facility modifications to assist in achieving this objective, the focus is on supporting projects that prioritize reducing greenhouse gas emissions.

The Honourable Marie-Claude Bibeau, the federal Minister of Agriculture and Agri-Food, stated, “Our government is making substantial investments to help producers and processors reduce their energy consumption, which allows for economic and environmental advantages.” These ventures will add to making the food handling area of Ontario a more creative and feasible area.”

According to Ontario Minister of Agriculture, Food, and Rural Affairs Lisa Thompson, “Ontario’s food processing sector is an essential component of Ontario’s food supply chain, and the Agri-Food Energy Cost Savings Initiative will reduce costs and improve efficiencies, enabling them to grow and succeed.” To ensure that Ontarians can continue to enjoy the high-quality food that is grown and produced right here in the state, this initiative builds on our government’s Grow Ontario Strategy and supports the agri-food industry’s growth and expansion.

Today at the Grow Ontario Food Summit, where more than 175 agri-food sector leaders and contributors to the province’s food system are meeting to discuss actions to achieve the Grow Ontario Strategy’s priorities, Minister Thompson will also highlight this news. The technique sets out the public authority’s vision to reinforce the agri-food area, while guaranteeing a productive, dependable and responsive food supply.

Following discussions with Ontario’s food manufacturing industry, the Agri-Food Energy Cost Savings Initiative builds on other government support for the sector, such as the $10 million investment made through the Food Security and Supply Chain Fund, $22 million made through the Agri-tech Innovation Program, and $25 million made available through the Strategic Agri-Food Processing Fund.

The Agri-Food Energy Cost Savings Initiative allows applicants to receive up to a $300,000 maximum cost share for eligible expenses. Qualified organizations can apply for help through this drive beginning on April 27, 2023.

The Supportable CAP will infuse up to an expected $1.77 billion in Ontario’s agri-food industry throughout the following five years, to fortify Ontario’s agri-food seriousness, development, and flexibility of the horticulture, agri‐food and agri‐based items area. This includes cost-shared strategic initiatives for Sustainable CAP of up to $569 million and programs for Ontario producers’ business risk management of up to $1.13 billion.

The federal, provincial, and territorial governments will invest $3.5 billion in Sustainable CAP over five years (from 2023 to 2028) to improve the competitiveness, innovation, and resilience of the agriculture, agrifood, and agri-based products sector. This remembers $1 billion for bureaucratic projects and exercises and $2.5 billion in cost-shared projects and exercises by administrative, commonplace and regional states.

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