Federal government invests $350 million into dairy sector

Nov 10, 2016

Producers and processors will benefit from funding

By Diego Flammini
Assistant Editor, North American Content
Farms.com

Canada’s federal government is investing $350 million into the country’s dairy sector to support its competitiveness as the Canada-European Union Comprehensive Agreement (CETA) comes into effect.

CETA’s impact on Canadian dairy farmers means more than 17,000 tonnes of cheese will not be produced in Canada, and could cost producers about $116 million annually in lost revenues, according to a Dairy Farmers of Canada release.

The investment will create two programs the government says will help “ensure that dairy producers and processors continue to innovate and improve productivity," according to the government release on the investment.

A Dairy Farm Investment Program will receive $250 million over five years. It’s designed to help dairy farmers upgrade equipment including robot milkers, feeding systems and herd management tools.

A Dairy Processing Investment Fund will receive $100 million over four years to help processors modernize their operations and pursue new market opportunities – which is good news, according to some Ontario dairy farmers.

“There’s a really big emphasis on robots and making them more available to dairy farmers,” said Anna Roberts, an Ottawa-area producer who attended a VMS robotic tour with DeLaval at October’s World Dairy Expo. “I think it’s a really good idea.”

Dairy Farmers of Canada recognizes the government’s investment, but warns it’s only a small step in larger journey.

"With today's announcement, the government has taken a significant step in demonstrating their commitment to supply management, and to the continued innovation and growth of Canada's dairy sector; for that, DFC gives thanks," Wally Smith, president of DFC said in a release. "However, in order to ensure the continued sustainability and viability of supply management, there is still work to be done and the government has a significant role to play."

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