Protein Industries Canada (PIC) on Thursday announced a new $3-million program to help Canadian food and ingredient companies remain competitive in the wake of the ongoing uncertainty around trade with the US.
The program will “support the development of new, or the reformulation of existing products, for the domestic market,” a PIC release said.
“Now more than ever, it is vital that we support our Canadian ingredient manufacturers and food processors. Their ability to remain viable is key to Canada’s agriculture and food sector, and Canada’s domestic supply chain,” CEO of Protein Industries Canada Robert Hunter said. “This program will help our manufacturers and processors create or reformulate products for the Canadian market, using Canadian ingredients.”
The Strengthening the Canadian Supply Chain Program will reimburse up to 75% of eligible costs to a maximum project cost of $200,000. To be eligible, projects must include at least one of the following:
As will all Protein Industries Canada investments, projects are required to use Canadian feedstocks or ingredients derived from Canadian crops such as wheat, oats, barley, peas, soy or fava beans. Other emerging crops, such as lupin or hemp, will also be considered.
In addition to launching the new program, Protein Industries Canada is also making changes to its Technology Leadership Program to increase the rate of reimbursement on the cost of eligible commissioned capital and equipment. This change, which will be applied retroactively to all current projects, and all projects currently in development, will help offset the cost of installing capital equipment in Canada, helping Canadian companies build out their processing capacity in Canada.
US President Donald Trump has threatened to levy a 25% tariff on US imports of most Canadian goods, including grains and grain products. The tariffs have been delayed twice but are now slated to take effect next month. The US is Canada’s largest trading partner by far, with over $17 billion in grains and grain products exported every year.
Canada is now also fighting a second trade war with China, with tariffs on Canadian canola oil and meal, along with other agricultural products, coming into force today.
