The governments of Canada and Ontario are contributing up to $10 million via the Sustainable Canadian Agricultural Partnership (Sustainable CAP) to assist food processing enterprises in reducing their energy costs. The Agri-Food Energy Cost Savings project is a novel initiative to reduce costs and improve sustainability for food processors.  

The Agri-Food Energy Cost Savings Initiative: What Is It?

The Sustainable Canadian Agricultural Partnership (Sustainable CAP) and the governments of Canada and Ontario have launched the Agri-Food Energy Cost Savings initiative to assist food processing companies in increasing their energy efficiency and reducing their costs. In addition, the initiative will provide up to $10 million in financing to promote projects that prioritize reducing greenhouse gas emissions by deploying innovative technology, equipment, and building or facility improvements.  

How will the program benefit companies that process agri-food?

The Agri-Food Energy Cost Savings Initiative will fund initiatives that prioritize reducing greenhouse gas emissions to assist agri-food processing enterprises in lowering their costs, becoming more competitive, and becoming more sustainable. It can be done by investing in new machinery, technology, and building or facility upgrades. Qualified enterprises can apply for up to a 20% cost share for eligible costs, up to a maximum of $300,000 per business, with up to $10 million in cash available.  

What are the initiative's advantages?

The Agri-Food Energy Cost Savings Initiative benefits agri-food processing companies in several ways. First, businesses can cut their energy use and costs by investing in new technology, equipment, and building or facility improvements. They become more resilient and competitive, increasing their chances of expansion and success. Additionally, the effort helps Ontario's food processing industry become more progressive and sustainable.  

What role does this project play in the Grow Ontario Strategy?

To boost the development and growth of the agri-food sector and ensure that Ontarians may continue to enjoy high-quality food that is grown and produced locally, the Agri-Food Energy Cost Savings Initiative builds on the Grow Ontario Strategy of the Ontario government. The Grow Ontario Strategy outlines the government's goals for developing the agri-food industry while guaranteeing a productive, consistent, and flexible food supply. The project supports the objectives established in Ontario's Grow Ontario Strategy, which include boosting agri-food exports by 8% yearly, expanding food production by 30% over the next ten years, and creating and maintaining world-class research facilities.  

What is the Sustainable Agricultural Partnership of Canada (Sustainable CAP)?

The federal, provincial, and territory governments will invest $3.5 billion over five years (2023–2028) in the Sustainable Canadian Agricultural Partnership (Sustainable CAP) to boost the sector's innovation, competitiveness, and resilience. In addition to an anticipated $1.13 billion in business risk management programs for Ontario farmers, the effort includes up to $569 million for cost-shared strategic projects under the Sustainable CAP. In The Guelph Statement, the federal, provincial, and territorial agricultural ministers lay out their priorities for the Sustainable CAP, including advancing sustainability and innovation in Canada's agriculture-food industry. The Sustainable CAP will infuse up to $1.77 billion into Ontario's agri-food sector over the next five years to boost the province's agri-food sector's competitiveness, innovation, and resilience.  

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