April 7, 2022

Ontario investing $25M in food processing capacity

The Ontario, Canada government is investing up to $25 million over two years to build up the province’s food processing capacity.

The new Strategic Agri-Food Processing Fund Program, which was announced in the 2021 Fall Economic Statement, to increase the province’s food processing capacity, strengthen its food security and position the agri-food sector for economic growth, was scheduled to launch April 1, 2022.

Ontario’s food processing sector faces challenges to their ability to process more of the food that is grown in the province, including aging technology and facilities. Many aging food processing plants are limited in their capacities to expand and compete by outdated equipment and inadequate operational space to add new, efficient production lines.

The Strategic Agri-Food Processing Fund will support industry investment in projects that address the processing capacity shortage and increase the sector’s competitiveness and resilience against future disruptions. Agri-food businesses are eligible for up to $3 million in cost-share funding to either build new processing facilities, expand or modernize existing facilities and adopt new innovative technologies to improve current operations.

“This strategic investment will boost competitiveness and create new opportunities for the Ontario food processing sector and the entire supply chain,” said Lisa Thompson, Minister of Agriculture, Food and Rural Affairs. “By enabling more private-sector investments that increase local food production, we’re ensuring Ontario has a safe and stable food supply made right here at home while driving economic growth and creating good local jobs.”

In an effort to increase local food production across Ontario, rural, northern and Indigenous businesses will receive an additional 5% in cost-share funding to build critical processing capacity in underserviced areas.

“This is great news for Ontario’s agri-food sector here in Ottawa,” said Goldie Ghamari, MPP for Carleton. “Farmers and processors across Carleton and Ontario will be able to benefit from this funding to help grow their operations, and support Ontario’s food supply chain.”

  • In 2020, there were 4,527 food and beverage business locations in Ontario.
  • Since 2018, the Ontario Government has supported the Province’s agri-food processing sector with approximately $94 million in funding, through the Canadian Agricultural Partnership, the Agri-Tech Innovation Program, and the Strategic Agri-Food Processing Capacity Fund.

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