Governments investing in Ontario’s dairy processing sector
Investment in Ontario's Dairy Industry
On January 15, 2025, in Toronto, Agriculture and Agri-Food Canada announced that the governments of Canada and Ontario are investing up to $7.18 million through the Sustainable Canadian Agricultural Partnership (Sustainable CAP) in 70 projects across Ontario to enhance and modernize dairy processing capacity and food safety.
This investment, which is shared with the dairy sector, aims to generate approximately $22 million in total capital investment, reinforcing the supply of high-quality Ontario milk. The Dairy Processing Modernization Initiative is over 90% subscribed and accepting applications from diverse milk processors, offering up to $200,000 in cost-shared funding per applicant.
Project Examples and Investment Outcomes
- Four All Ice Cream in Waterloo will receive up to $200,000 for equipment to boost productivity.
- Max and Lion Production in Peel Region will use up to $119,692 to enhance production capacity and improve product quality.
- Ontario Water Buffalo Co. in Hastings County will obtain up to $53,925 to improve food safety and production.
- Sargent Family Dairy in Durham Region will benefit from up to $40,609 for equipment to improve efficiency.
This initiative is part of the larger Sustainable CAP, a $3.5-billion investment aimed at enhancing Canada's agriculture sector competitiveness and innovation.
“There’s no doubt that our dairy processors work hard to ensure Canadians can enjoy their top-quality products. With funding from the Sustainable Canadian Agricultural Partnership, this initiative is helping processors make important updates to their facilities so they can meet the growing demand for their products.” - The Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food
“Ontario’s dairy processors have shown remarkable growth over the last several years and continue to produce safe, high-quality dairy products for domestic and international consumers. The success of the Dairy Processing Modernization Initiative underscores the health and vitality of Ontario’s growing dairy industry, and its ability to rapidly seize opportunities to modernize and increase processing capacity and food safety.” - The Honourable Rob Flack, Ontario Minister of Agriculture, Food and Agribusiness
“The Dairy Processing Modernization Initiative is supporting Ontario dairies to grow and meet the increasing demand for dairy products by helping to modernize their facilities and improve productivity. The Ontario government’s commitment to grow this important sector is much appreciated and will help to ensure that it continues to play a pivotal and dynamic role in Ontario’s agri-food industry.” - Christina Lewis, President, Ontario Dairy Council
Quick Facts
- Ontario has 171 licensed cow and goat dairy processors, along with sheep and buffalo dairy processors.
- The agri-food sector in Ontario employs over 871,000 people.
- The sustainable CAP seeks to boost productivity through innovation and new technologies.
