Funding helps farmers and food processors reach new markets and strengthen supply chains
The governments of Canada and Ontario are investing nearly $22 million to help farmers and food processors expand into new markets, increase sales and strengthen the province's food supply chain. The funding is being provided through the Market Diversification and Trade Resiliency Initiative and is expected to support more than 130 agricultural businesses across Ontario.
The investment aims to help producers and processors grow their businesses by exploring new domestic and international trade opportunities. Government officials say the initiative will improve the long-term strength of the agri-food sector, create employment opportunities, and increase Ontario's ability to compete in a changing global market.
“Creating new export opportunities for Ontario food products starts with improving market access and working together,” said Heath MacDonald, Minister of Agriculture and Agri-Food. “By leveraging our shared strengths, we are helping to build a stronger and more resilient agricultural sector.”
The program is part of the Sustainable Canadian Agricultural Partnership, a five-year government initiative focused on increasing competitiveness, innovation and resilience within Canada's agricultural industry. The funding also supports Ontario's Grow Ontario Strategy, which is designed to encourage growth, improve food security, and strengthen the province's food and farming economy.
According to government estimates, nearly $22 million investment could help create more than 925 jobs throughout the agri-food sector. Officials also expect the funding to generate as much as $134 million in total investments when combined with contributions from participating businesses.
“We are laser focused on expanding markets and trade opportunities for Ontario farmers and agribusinesses. The Market Diversification and Trade Resiliency Initiative is protecting agri-food jobs and agribusiness resilience in the face of unprovoked tariffs from Donald Trump,” said Sam Oosterhoff, Ontario Minister of Agriculture, Food and Agribusiness.
He added, “This $22 million investment is unleashing over $110 million in private sector investment, creating over 900 new good-paying jobs and keeping Ontario’s food supply chain secure, sovereign and self-reliant."
Applications for the program opened earlier this year. The initiative offers support through three different funding streams, allowing businesses to invest in projects that improve production capacity, increase efficiency, and expand market opportunities.
Several projects have already received support under the program. Martin's Family Fruit Farm in Waterloo is receiving funding to develop an advanced packaging line for apple sauce production. The project is expected to improve efficiency and support future growth opportunities.
Beck's Broth in Kitchener is receiving funding to introduce new products and expand distribution across Canada. The project will help the company reach additional customers and grow its presence in new markets.
Lynch Ag Ltd. in Englehart is investing in a new handling line, optical sorting equipment and artificial intelligence-enabled grading technology. The improvements are expected to enhance product quality and support additional sales across Canada and export markets.
"Food and Beverage Ontario congratulates the producers and processors supported through the Market Diversification and Trade Resiliency Initiative. Provincial investment in agri-food, including processing, is what lets Ontario companies diversify markets, build resilience and keep jobs here," said Chris Conway CEO Food & Beverage Ontario.
Canada Royal Milk in Kingston is receiving support for new processing and packaging systems. These upgrades are designed to help the company diversify beyond traditional retail markets and strengthen its ability to serve new customers.
Funding levels and cost-sharing requirements differ depending on the stream and project type. Approved projects must be completed by October 2027.
"These investments in Martin's Family Fruit Farm, Beck's Broth and others, will help them launch new products and reach new customers, helping build good jobs right here in our community," said Mike Harris MPP, Kitchener—Conestoga.
Photo Credit: Pexels - Rachel Loughman