Milan, Quebec, February , 2012 - Canada's Economic Action Plan is delivering support for Canada’s organic grain industry to improve its competitiveness. The Honourable Christian Paradis, Minister of Industry and Minister of State (Agriculture), today announced a federal government investment for La Meunerie Milanaise to help it double its processing capacity and automate its packaging line.

"To expand, agriculture needs to rely on a value chain that is profitable at every stage, and La Meunerie Milanaise is a good example of success," said Minister Paradis. "Agriculture drives our economy, and we are continuing to help grain producers and processors by investing in the future of the industry and the regions."

La Meunerie Milanaise has been manufacturing 100% organic flour in the Estrie region since 1979 and is a leader in the organic grain industry in Quebec. The installation of a new steel mill will allow the company to double production capacity within three years, reduce operating costs and ensure product quality. The additional milling capacity will also permit the company to expand its sales and increase its exports to the U.S.

"Thanks to this interest-free repayable contribution from the Government of Canada in support of our $2.7 million equipment investment plan, we’ve more than doubled our organic flour production and quintupled our packaging capacity," said Robert Beauchemin, president of La Meunerie Milanaise.

This repayable contribution of up to $814,393 is being delivered by the Agricultural Flexibility Fund through the AgriProcessing Initiative, a five-year, up to $50 million initiative designed to enhance the competitiveness of the agri-processing sector in Canada. It provides support to existing companies for projects that involve the adoption of innovative and new-to-company manufacturing technologies and processes that are essential to sustaining and improving the sector's position in today's global marketplace. For more information on this program visit www.agr.gc.ca/api.

Through Canada’s Economic Action Plan (EAP), the Government of Canada is helping farmers find new markets, adapt to current economic challenges and make their businesses more efficient and environmentally sustainable. The next phase of the EAP will continue to strengthen the economy, while returning to balanced budgets and securing Canada's economic future. For more information on Canada’s Economic Action Plan, visit www.actionplan.gc.ca.

Source: Agriculture and Agri-Food Canada