Programs to support the competitiveness of the dairy industry

November 10, 2016 – Ottawa, Ontario – Agriculture and Agri-Food Canada

The Canada–European Union Comprehensive Economic and Trade Agreement (CETA) will provide Canada access to the world’s largest agriculture and agri-food market. Upon entry into force, the agreement will present substantial market opportunities for many segments of Canada’s agricultural sector, such as pork, beef, maple syrup, horticulture and processed foods, to name a few.

CETA will also provide greater access for European cheeses to Canada, more specifically, duty-free imports of 17,700 tonnes of cheese, representing about four per cent of Canada’s cheese production. While dairy producers and cheese processors will continue to see their income increase in future years, they are expected to see a loss in anticipated income growth as a result of this new access for European cheeses.

As such, the Government is supporting the continued strength of the dairy sector, and in turn the Canadian economy by providing opportunities for dairy producers and processors to innovate and boost productivity.

The two new programs announced today are intended to help the dairy sector adapt to new market opportunities and challenges. The precise terms and conditions of the programs will be finalized following discussion with industry.

1. Dairy Farm Investment Program: will help dairy farmers in their efforts to further modernize their operations and improve productivity. The investments in new equipment are expected to complement the investment efforts deployed by our Canadian dairy farmers.

   For example, the program could support activities such as the adoption of robotic milkers, automated feeding systems, herd management tools, or other equipment upgrades.

2. Dairy Processing Investment Fund: is intended to support the dairy processing sector as it seeks to improve efficiencies and productivity to respond to the new market environment resulting from CETA. This initiative is separate from the government’s commitment to the Agri-Food Value Added Investment Fund. This funding envelope is specific to the dairy processing sector, and is intended to support the dairy processing sector as it seeks to adjust to new market conditions created by CETA.

   The program will help dairy processors by supporting access to technical expertise and the purchase of new equipment in order to expand processing capacity, enhance efficiencies and productivity, and diversify product lines to maintain and capture new market opportunities.

Related products

• Government of Canada Invests in Dairy Sector in Anticipation of CETA

Contacts

Guy Gallant
Director of Communications
The Office of the Honourable Lawrence MacAulay
613-773-1059

Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
613-773-7972
1-866-345-7972
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