Government of Canada Invests in Dairy Sector in Anticipation of CETA

The government of Canada announced an investment of $350 million for two new programs to support the competitiveness of the dairy sector. Image: Sharee Basinger

OTTAWA - As part of the Government’s strong commitment to supply management, the Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food, and the Honourable Chrystia Freeland, Minister of International Trade, announced an investment of $350 million for two new programs to support the competitiveness of the dairy sector, in anticipation of the entry into force of the Canada–European Union Comprehensive Economic and Trade Agreement (CETA).

Also read, CETA and the Canadian Foodservice Industry.

"The Government strongly supports supply management. Canada’s dairy producers and processors are vital to the prosperity and clean growth of our nation. They create jobs and offer high-quality products for Canadian consumers. These programs will help Canada’s dairy sector become more productive in order to help it adapt to the anticipated impacts from CETA," stated  Lawrence MacAulay, P.C., M.P., Minister of Agriculture and Agri-Food.

CETA will create more jobs and growth for Canadian families, will generate economic opportunities for the middle class, and will present substantial market opportunities for many segments of Canada’s agricultural sector. The Government is supporting the continued strength of the dairy sector by helping to ensure that dairy producers and processors continue to innovate and improve productivity.

The two new programs are:

• $250 million over five years for a Dairy Farm Investment Program that will provide targeted contributions to help Canadian dairy farmers update farm technologies and systems and improve productivity through upgrades to their equipment. This could include the adoption of robotic milkers, automated feeding systems, and herd management tools.
• $100 million over four years for a Dairy Processing Investment Fund that will help dairy processors modernize their operations and, in turn, improve efficiency and productivity, as well as diversify their products to pursue new market opportunities.

These programs will complement the dairy sector’s ongoing investment efforts, helping both current and future generations of dairy farmers and processors to remain profitable for the long term, within a strong supply management system.

"This is an opportunity for Canadian dairy producers and processors to modernize their operations and become more competitive in Canada and in international markets. I encourage producers to leverage the new market access provided by CETA and other free trade agreements in order to grow their business," said Chrystia Freeland, P.C., M.P., Minister of International Trade.

During consultations, stakeholders shared their views on the anticipated impacts of CETA. These programs were informed by this feedback and by the Government’s over-arching priorities to build competitiveness and innovation in our economic sectors.

In the coming weeks, the Government will engage with the dairy sector to seek input that will inform program design to help ensure programs respond to the needs of producers and processors. Input can also be provided online. Programs will be in place when CETA comes into force.

SOURCE Agriculture and Agri-Food Canada