Ottawa invests $50M to strengthen Canada’s agri-food sector

The federal government is investing $50 million through the Strategic Response Fund in a $94.8-million project led by Natural Products Canada to strengthen the country’s agri-food sector.

Agriculture and Agri-Food Minister Heath MacDonald, on behalf of Industry Minister Mélanie Joly, made the announcement alongside Charlottetown MP Sean Casey, Parliamentary Secretary to the Minister of Veterans Affairs and associate minister of National Defence.

The government says the investment will help address pressures facing Canada’s food ecosystem, including shifting trade relationships, climate change and evolving supply chains.

Natural Products Canada, an industry-led, not-for-profit organization, will use the funding to help commercialize agri-food technologies and accelerate their adoption in global markets. The project is expected to create more than 550 jobs and generate more than $1.8 billion in GDP.

The funding will also support the creation of a new Capacity Building Fund to invest in food-related manufacturing and processing capacity and strengthen domestic food production, supply chain resilience and food security.

“Canada’s economic security depends on building a strong, domestic base of natural and bio-based innovators, and that is exactly what NPC exists to do,” said Shelley King, chief executive officer, Natural Products Canada. “This $50 million investment provides the continued opportunity to evaluate, support and provide capital to those companies, while providing the resources necessary to strengthen Canada’s bioeconomy and food security initiatives, building on a decade of impact that includes investment in over 100 companies, generating $622 million in follow-on capital and contributing $900 million to Canada’s GDP.”

The investment is part of the federal government’s new National Food Security Strategy, a $3-billion plan announced June 11 to strengthen domestic food production, improve access to affordable, nutritious food and position Canada as a global leader in sustainable agri-food innovation.