Government investments via Sustainable CAP propel energy efficiency for 30 food processors, yielding $16M savings, enhancing competitiveness in Ontario's agri-food sector. (CBC)
Government investments from Canada and Ontario, facilitated through the Sustainable Canadian Agricultural Partnership (Sustainable CAP), are making strides in supporting energy cost savings initiatives for food processing businesses. The funding, a collaborative effort under the Agri-Food Energy Cost Savings Initiative, amounts to over $16 million and aims to enhance the energy efficiency of 30 food processors, subsequently reducing operational costs and fostering competitiveness.
The initiative places a strong emphasis on projects prioritizing energy efficiency through investments in cutting-edge technology, equipment, and facility modifications. The shared funding is expected to generate approximately $3 million in annual operational cost savings for the recipient businesses. Successful applicants stand to benefit from a cost share of up to 20%, capped at $300,000 per business, with project completion targeted by March 31, 2025.
Several notable projects have received funding under this initiative. R. Denninger Limited in Hamilton secured $6,368.70 to acquire a new pressure washing system, aiming to curtail natural gas usage and operational costs. Front Road Cellars at Blueberry Hill in Norfolk County received up to $16,819.61 to implement solar power systems and deploy high-efficiency heat pump and radiant heat sources for enhanced operational efficiency and sustainability. Marini Foods Limited in Toronto secured up to $165,000 to upgrade roofing and HVAC systems, consequently boosting energy efficiency.
The Agri-Food Energy Cost Savings Initiative, a result of consultations with Ontario's food processing industry, complements a series of government initiatives aimed at supporting the province's food processing sector. This includes a commitment of up to $25 million through the Agri-Tech Innovation Initiative, with applications opening on February 15, 2024.
The Sustainable CAP, spanning from 2023 to 2028, represents a substantial $3.5-billion investment by federal, provincial, and territorial governments. This comprehensive initiative seeks to fortify the competitiveness, innovation, and resiliency of the agriculture, agri-food, and agri-based products sector. Notably, the federal contribution amounts to $1 billion, while the remaining $2.5 billion is cost-shared with a 60% federal and 40% provincial/territorial split for programs devised and executed by the provinces and territories.
Federal Minister of Agriculture and Agri-Food, the Honourable Lawrence MacAulay, emphasized the significance of supporting the agri-food sector, stating that the funding would aid food processors in making their operations more sustainable and energy-efficient, safeguarding their financial bottom line. Ontario Minister of Agriculture, Food, and Rural Affairs, Lisa Thompson, highlighted the pivotal role of Ontario as the food processing hub of Canada and the government's commitment to creating an environment conducive to sectoral growth, increased food production, and job creation.
In terms of quick facts, Ontario's food processing sector boasts over 4,900 business locations and contributed $14.7 billion to the province's economy in 2022. The Sustainable CAP aligns with the goals outlined in Ontario's Grow Ontario Strategy, targeting a 30% increase in food production over 10 years and an 8% annual growth in agri-food exports. The federal-provincial-territorial agricultural ministers outlined priorities for Sustainable CAP in The Guelph Statement, emphasizing sustainability and innovation in Canada's agriculture and food industry.
