The federal Conservative government last week offered Canada’s food processors a $50 million, five-year loan program to invest in new equipment and technology to improve competitiveness.
A food industry lobby group embraced the AgriProcessing Initiative, part of the government’s $500 million Agri-Flexibility fund announcement in last winter’s budget.
“We will continue to work with the government to build a stronger food processing industry, one that is encouraged to invest and adds value to the economy,” said Derek Nighbor, senior vice-president for public affairs at the Food and Consumer Products of Canada lobby. “This new initiative will give manufacturers an important boost to support industry’s competitiveness.”
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Government MPs announced the program simultaneously at Quebec and Ontario events.
It is the second announcement of money from the Agri-Flexibility fund.
In the budget, the first announcement was $50 million in help for the Canadian packing industry. It was described as an “investment” and that led many in the agriculture sector to think it was an offer of grants to help expand packing capacity in under-served areas of the country.
When it became clear it was a loan offer, the industry was less than impressed.
Last week’s announcement also called it an investment. “The government of Canada is investing in new processing technologies and projects that will create new, more stable markets to improve income opportunities for farmers and the processing sector,” said the government statement Sept. 11.
But it quickly noted the offer was “repayable contributions to processing facilities.”
It said the loans would be available to help purchase new equipment and hire consultants to advise on installation of new equipment, creation of new products or new production processes.
Meanwhile, Liberal agriculture critic Wayne Easter complained that despite the January announcement of the Agri-Flexibility fund to help finance regional needs, money has not yet been spent eight months later.
He tied it to the income and equity crisis in the hog industry.
“What, pray tell, are the Conservatives waiting for?” Easter said in a statement issued Sept. 9. “Get the money out there. Canada’s hog farmers alone face over $1 billion in losses. Perhaps they’re waiting for entire industries to be wiped out first?”
