Federal government launches Supply Management Processing Investment Fund

Mar 10, 2022

On Wednesday, Minister of Agriculture and Agri-Food Marie-Claude Bibeau announced the launch of the Supply Management Processing Investment Fund, worth $292.5 million, to help processors of supply-managed commodities.

“Our government strongly supports supply-managed sectors and, as promised, we are rolling out various programs to compensate producers and processors who have lost market share further to trade agreements. Today, we are announcing the terms of support for dairy, poultry and egg processors to promote investment in their operations and thereby improve their competitiveness and resilience,” said Bibeau.

The Supply Management Processing Investment Fund is part of the Government of Canada’s commitment to support processors in these sectors to address the impacts of international trade agreements.

Through this program, processors of supply-managed commodities will have access to funding to improve their productivity and efficiency through investments in new automated equipment and technology. The Fund leverages private investment in processing plants to accelerate adoption of automation to lower processing costs, address labour shortages and enhance product quality.

Work is underway with supply-managed sectors to determine full and fair compensation for the impacts of the Canada-United States-Mexico Agreement within the year.

Wednesday's announcement brings the total amount committed to compensate and support supply-managed sectors impacted by CETA and CPTPP to over $3 billion. This includes:

- $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.

Eligible applicants are processors of supply-managed commodities, including:

- Dairy processors
- Poultry Primary processors (chicken and turkey)
- Poultry Further processors (chicken and turkey)
- Hatcheries (broiler, egg-type and turkey)
- Egg graders
- Egg processors

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