Dairy Processing Modernization Initiative – Funding for equipment upgrade

Amount: 50% of eligible costs up to a maximum of $200,000 in funding.

The Dairy Processing Modernization Initiative provides funding to dairy processors for equipment upgrades that make processing more efficient and/or improve food safety.

Eligible Requirements

To be eligible to participate in the Initiative, an Applicant will:

  1. be a Dairy Processor:
    1. If the Dairy Processor is processing cow or goat milk, the Dairy Processor must meet the licensing requirements under O. Reg. 761: Milk and Milk Products.
    2. If the Dairy Processor is processing sheep or water buffalo milk, the Dairy Processor must meet the requirements of local Public Health Unit inspectors under the Health Protection and Promotion Act.
  2. provide its:
    1. CRA BN, or
    2. SIN, but only if the Applicant has been found eligible to participate in the Initiative and is also eligible to receive an Initiative Payment
  3. submit a completed Ministry-approved Application Form
  4. be undertaking an eligible activity set
  5. have a valid and up to date Premises ID Number for the business location(s) where the Project is to take place
  6. be in compliance with the following for its business operations at the time of applying to the Initiative:
    1. environmental-related Requirements Of Law
    2. labour-related Requirements Of Law
    3. tax-related Requirements Of Law
    4. material compliance with all other Requirements Of Law
  7. is not, nor is any officer, director or employee of the Applicant (if any), a current or former federal public office holder or federal public servant, or if the Applicant is, or any officer, director or employee of the Applicant (if any) is, the Applicant, or that officer, director or employee of the Applicant (if any) is in compliance with the Conflict of Interest Act (Canada), the Conflict of Interest Code for Members of the House of Commons (Canada), the Values and Ethics Code for the Public Sector (Canada) and the Policy on Conflict of Interest and Post-employment (Canada), as applicable
  8. is not, nor is any officer, director or employee of the Applicant (if any), a member of the House of Commons on the Senate, or, if the Applicant is, or any officer, director or employee of the Applicant (if any) is, the Applicant, or the officer, director or employee of the Applicant (if any), is permitted under the Parliament of Canada Act (Canada) to receive funding from Canada under the Sustainable CAP
  9. agrees that any intellectual property rights arising from their Project, should the Applicant be found to be eligible to participate in the Initiative as well as receive an Initiative Payment, belongs to the Applicant
  10. agrees that Canada and Ontario may, should the Applicant be found to be eligible to participate in the Initiative as well as receive an Initiative Payment, publish information about the Applicant
  11. agrees to be bound by the terms, conditions and requirements of the Initiative.

Eligible Activities

The following activities are eligible under the Initiative:

  1. incremental activities specifically required to create or increase processing efficiencies for Ontario facilities
  2. incremental activities specifically required to both create or increase processing efficiencies and improve food safety for Ontario facilities

Eligible Costs

The following costs are eligible for the purposes of the Initiative, provided they were reasonably incurred and necessary to complete the Recipient’s Project:

  1. costs that were incurred on or after April 1, 2024 but before February 15, 2026
  2. costs that reflect the actual costs to the Recipient, less any costs, including taxes, for which the Recipient has received, will receive or is eligible to receive, a rebate, credit or refund
  3. equipment costs to increase cooler/freezer capacity, including:
    • condenser units
    • seals on cooler/freezer doors
    • air flow upgrades in coolers/freezers (such as fans)
  4. waste management handling/processing costs, including equipment and structures to handle, store and dispose of processing by-products such as:
    • wastewater holding tanks
    • valves
    • piping
  5. product handling and food safety., including:
    • processing equipment
    • conveyers
    • winches
    • hydraulics
    • bottling/bagging
    • automated tote washers, commercial grade dishwashers, commercial bottle washers, form washers
    • plate coolers
    • scales
    • vacuum and other packaging
    • mixers
    • milk tanks, blend and mix tanks
    • pasteurizers/High Temperature Short Time (HTST) pasteurizer heat exchanges
    • cream/milk separators
    • ice cream makers
    • cheese presses
    • homogenizers
    • clean-in-place (CIP) and clean-out-of-place (COP) systems
    • fermentation vats
    • tippers
    • x-ray machines
  6. equipment costs to incorporate testing to support monitoring, surveillance, data collection, lab testing and analysis, including:
    • pH meters
    • conductivity meters
    • adenosine triphosphate (ATP) test units
  7. equipment costs to improve product traceability, including barcoding and product identification equipment
  8. costs for engineering/professional services for equipment/processes/first time food safety audit or certification (includes gaining access to new markets)
  9. one-time costs to train key personnel on Project-related equipment and technology (train the trainer)
  10. one time-installation costs from third party service providers and minor building modifications specifically required for the equipment that is an Eligible Cost under this section 4.2.1
  11. minor equipment or structural upgrades directly linked to installed equipment increasing productivity/capacity/food safety

Amount

A Recipient is eligible to be approved for 50% of Eligible Costs up to a maximum of $200,000 in funding under the Initiative.

Funding for the Initiative

Funding for the Initiative comes from the Sustainable Canadian Agricultural Partnership (Sustainable CAP). Up to $8,000,000 has been allocated for the Initiative.

Eligibility Timeline

Applications will be accepted as of April 2, 2024.

The deadline to apply is 11:59 p.m. EST November 30, 2025, or until funding runs out — whichever comes first.

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