Agriculture and Agri-Food Canada (AAFC) has recently announced a new funding program, the Supply Management Processing Investment Fund (SMPIF) to support investments in processing facilities that improve productivity and efficiency through the acquisition of new automated equipment and technology.
SMPIF assists processors of supply-managed commodities in adjusting to market shifts arising from the implementation of trade agreements such as the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Canada-United States-Mexico Agreement (CUSMA). This initiative offers non-repayable contributions to bolster investments in dairy, poultry, and egg processing facilities.
The total program budget allocated for the period spanning April 1, 2022 to March 31, 2028, is $397.5 million.
Funding Snapshot: Supply Management Processing Investment Fund (SMPIF)
Funding Amount
Funding details state that:
- The maximum AAFC contribution will normally not exceed $5M;
- AAFC will contribute up to 50% of the project costs for small and medium-sized enterprises (under 500 employees); and
- AAFC will contribute up to 25% for large organizations with 500 employees or more.
Eligible Applicants
Eligible applicants are processors in supply-management commodities, including:
- Dairy processors;
- Poultry Primary processors (chicken and turkey);
- Poultry Further processors (chicken and turkey);
- Hatcheries (broiler, egg-type and turkey);
- Egg graders; and
- Egg processors.
Projects from small and medium-sized enterprises will be prioritized.
Eligible Activities
The program will focus its support on projects that:
- Increase automation in processing facilities, such as the:
- Automation or robotization of an existing production process;
- Improvement to an already existing automated or robotic process;
- Development of a new production line; or
- Implementation or improvement of an integrated management software.
In addition to the above, projects may also include activities that will provide additional benefits, such as:
- Improving environmental sustainability, such as:
- Equipment to reduce water and energy consumption; and
- Equipment required to treat wastewater resulting from an increase in production.
- Responding to consumer demand concerning food safety and animal welfare, such as:
- Packaging that increases shelf life; and
- Processing equipment to reduce/control pathogen load.
Timeline to Apply
- Applications should be submitted approximately 3-6 months before initiating project activities;
- Projects should normally be completed over a maximum period of 3 years; and
- The program is open until funding has been fully allocated.
Apply for More Agri-Business Capital & Tech Adoption Grants
To apply for the SMPIF program, contact us today. As grant writing experts, we can support you with 98%-time savings and an 86% approval rate. Accessing grant funding can be a competitive process – this is why we recommend you consult with an expert before beginning the grant writing process.
For agri-businesses looking to adopt new technologies or capital, visit our Sustainable Canadian Agricultural Partnership (SCAP) program page and discover tailored grant programs to help support your agri-business projects specific to your province.
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