Strengthening the Dairy Processing Sector in Simcoe-Grey

January 23, 2025

January 23, 2025 – For Immediate Release

Simcoe-Grey – The governments of Ontario and Canada are supporting 70 dairy processing businesses across Ontario through the Dairy Processing Modernization Initiative, providing cost-shared funding to help improve efficiency, capacity and food safety through their acquisition of modern ways of processing milk products. Some local dairy processors that are benefitting from this funding include:

• Alliston Creamery in Alliston will receive up to $113,112.87 to upgrade two butter churns with new mixer arms, gears, rebuilt drives and support rollers to increaseprocessing efficiency and improve food safety.  Additionally, funding will allow for the purchase and install of two compressor units to increase processing capacity.
• Sheldon Creek Diary in Loretto will receive up to $53,946.88 to purchase and install batch scales, thermal printers, temperature regulated boxes, glycol chiller, pH meter, shadow boards for eligible equipment, and turntable to increase processing efficiencies and improve food safety.

“The agriculture sector is a pillar in our riding of Simcoe-Grey and has been for generations,” said Simcoe-Grey MPP Brian Saunderson. “It’s encouraging and exciting to see these long-standing businesses leverage the skills that come with experience with the latest technology available on the market.”

The Dairy Processing Modernization Initiative is still accepting applications from cow, goat, sheep and water buffalo milk processors until the program is fully subscribed. The initiative provides up to $200,000 in cost-shared funding to each successful applicant to help dairy processing businesses increase production efficiency and food safety in their facilities. Funding can be used to help cover the cost of new or refurbished equipment, training and more. The governments of Ontario and Canada are investing up to $8 million in the initiative through the Sustainable Agricultural Partnership (Sustainable CAP).

“Ontario’s dairy processors have shown remarkable growth over the last several years and continue to produce safe, high-quality dairy products for domestic and international consumers,” said Rob Flack, Minister of Agriculture, Food and Agribusiness. “The success of the Dairy Processing Modernization Initiative underscores the health and vitality of Ontario’s growing dairy industry, and its ability to rapidly seize opportunities to modernize and increase processing capacity and food safety.”

“We are incredibly grateful for the Ontario government’s support in helping Sheldon Creek Dairy streamline our systems and maximize manufacturing efficiencies. This investment allows us to enhance our operations while maintaining our commitment to high-quality dairy products. With these upgrades, we can further improve food safety, traceability, and efficiency—ensuring that we continue to meet the growing demand for food processing in Ontario. This funding strengthens our ability to innovate and support other businesses in the industry through co-packing.”

Marianne Edward, Sheldon Creek Dairy

“Thanks to the funding provided by the government of Ontario, we are excited to update our freezer systems and churns. We are known for our old-fashioned churned butter. This funding will allow us to continue to provide that specialty, with improved equipment reliability and increased efficiency.”

Abby Kennedy, Alliston Creamery

The Sustainable CAP is a five-year, $3.5-billioninvestment by federal, provincial and territorial governments to strengthen competitiveness, innovation, and resiliency of Canada’s agriculture, agri‐food and agri‐based products sector. This includes $1 billion in federal programs and activities and a $2.5-billioncommitment cost-shared 60% federally and 40% provincially/territorially for programs designed and delivered by provinces and territories.