Government of Canada helps The Real Dairy Company of Newfoundland Ltd. develop secondary processing capacity

News release

July 27, 2021 · Deer Lake, Newfoundland and Labrador · Atlantic Canada Opportunities Agency (ACOA)

The Canadian agriculture and agri-food sector is a powerhouse of the economy, spurring job creation and prosperity across the country. That is why the Government of Canada is helping The Real Dairy Company of Newfoundland Ltd. provide stability to the dairy industry and enhance food self-sufficiency in Newfoundland and Labrador.

Federal government support for dairy industry growth

Today, Gudie Hutchings, Member of Parliament for Long Range Mountains, announced a federal investment from the Atlantic Canada Opportunities Agency of $5 million (repayable) for The Real Dairy Company of Newfoundland Ltd. to establish a secondary dairy processing facility.

Agriculture and Agri-Food Canada is prepared to make an investment of up to $8 million towards the new facility. Funding would be partially repayable, and is conditional on finalizing departmental due diligence, including an external review, and on the successful negotiation of agreeable terms of a contribution agreement.

The announcement was made on behalf of the Honourable Mélanie Joly, Minister of Economic Development and Official Languages and Minister responsible for ACOA, and the Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food.

The new facility will create capacity for secondary processing of all excess industrial milk produced in Newfoundland and Labrador, which is currently shipped out of province.

Today’s announcement demonstrates the Government of Canada’s commitment to investing in the dairy industry so it is well-positioned for sustainable future growth.

Quotes

“This last year has taught us many things, particularly around self-sufficiency and food security. By supporting projects like this one with The Real Dairy Company of Newfoundland Ltd., the Government of Canada is working to address those issues and help strong, resilient businesses contribute to a swift economic recovery and a prosperous future for all Atlantic Canadians.”

-   The Honourable Mélanie Joly, Minister of Economic Development and Official Languages and Minister responsible for ACOA

 

“The Real Dairy Company of Newfoundland’s initiative to reinstitute secondary milk processing capacity in the province has the potential to bring important benefits to the dairy industry in Atlantic Canada. The Government of Canada is committed to working with the provinces and the sector in ensuring the long-term economic viability of the dairy industry, keeping local rural communities strong and ensuring a sustainable future for the next generation of Canadian dairy producers.”

- The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food


“The establishment of a secondary processing facility in the Long Range Mountains is significant for all of Newfoundland and Labrador. This facility is exactly what is needed for food security, rural economic development, growth in our agriculture sector and reducing our carbon footprint. We all look forward to tasting the products, developed and processed in Deer Lake from dairy farmers all across the province.  It is exciting and we cannot wait for various other goods through innovative research and development, to showcase the phenomenal locally made items. Congratulations to the Real Dairy Company, and all those that worked so hard to make this project a reality.”

- Gudie Hutchings, Parliamentary Secretary for rural Economic Development and Women and Gender Equality and Member of Parliament for Long Range Mountains

 

“Dairy farmers are a vital sector of our rural economy and critical to local food security and healthy communities. Expanding the production of dairy products locally builds on the success of this sector, to create jobs and drive growth”.

- The Honourable Seamus O’Regan Jr., Minister of Natural Resources and Member of Parliament for St. John’s South—Mount Pearl

 

“Dairy farmers play an important role in food security in Newfoundland and Labrador, and I would like to extend a special thank you to the farmers in my district of Humber-Gros Morne for their hard work on this file. We are delighted to have worked closely with our federal partners and The Real Dairy Company of Newfoundland Ltd. to confirm this funding, building on the $5 million our government invested last summer.”

- The Honourable Andrew Furey, Premier of Newfoundland and Labrador

 


"Our company and Dairy Farmers of Newfoundland and Labrador are extremely appreciative of ACOA's support of efforts over the past several years to establish critically needed secondary processing in NL's dairy industry. We're also very thankful to Premier Furey and his government for their steadfast support and their significant financial contribution to the development of the processing plant in Deer Lake.

We are confident AAFC will recognize that this initiative is essential to the survival and maturation of NL's dairy industry. This initiative will correct the structural imbalance of NL being the only province without commercial scale secondary processing and being forced to ship our industrial milk out of the province for processing. This plant will greatly enhance our food self-sufficiency and will enable NL to participate more fully in Canada's supply management system.

We are especially grateful for the efforts over the past nineteen months of Minister Seamus O'Regan Jr., MP Gudie Hutchings, Premier Furey and former Premier Ball."

- Les Brophy and Brent Chaffey, Interim Directors, The Real Dairy Company of Newfoundland Ltd.

Quick facts

  • The Real Dairy Company of Newfoundland Ltd. – a private company made up of 13 Newfoundland and Labrador dairy farmers and Glenstal Foods Limited of Limerick, Ireland – will build the processing facility in Deer Lake, NL.

  • The Atlantic Canada Opportunities Agency (ACOA) is providing a repayable contribution of $5 million through the Business Development Program (BDP).This investment will go towards capital costs of building construction and equipment purchase and installation.

  • This funding is in addition to a $5 million investment from the Government of Newfoundland and Labrador, announced in July 2020.

  • The new facility will create 10 new full time year-round secondary processing jobs in rural Newfoundland and Labrador and will help sustain 100 jobs.

  • Newfoundland and Labrador currently ships 30 per cent of its milk production outside the province for secondary processing. At present, the dairy industry employs over 1200 people and has a value of over $125 million to the local economy. This project will further enhance the value and sustainability of the sector.

Associated links

Contacts

Catherine Mounier-Desrochers

Press Secretary

Office of the Minister of Economic

Development and Official Languages

Catherine.Mounier-Desrochers@canada.ca


Oliver Anderson

Director of Communications

Office of the Minister of Agriculture and Agri-Food

oliver.anderson@agr.gc.ca

613-462-4327


Julie Afonso

Manager, Communications

Atlantic Canada Opportunities Agency

709-743-5835

Julie.afonso@acoa-apeca.gc.ca

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