The federal and provincial governments are supporting 70 dairy processing businesses across Ontario through the Dairy Processing Modernization Initiative.
Local dairy processing businesess benefit from modernization initiative

The federal and provincial governments are supporting 70 dairy processing businesses across Ontario through the Dairy Processing Modernization Initiative.

This is providing cost-shared funding to help businesses improve efficiency, capacity, and food safety through their acquisition of modern ways of processing milk products.

Two local dairy processors are benefitting from this funding.
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 increase processing efficiency and improve food safety.
Additionally, funding will allow for the purchase and installation of two compressor units to increase processing capacity.
Sheldon Creek Dairy 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 a 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.
“We are incredibly grateful for the Ontario government’s support in helping Sheldon Creek Dairy streamline our systems and maximize manufacturing efficiencies,” said Marianne Edward, of Sheldon Creek Dairy. “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.”
The governments of Ontario and Canada are investing up to $8 million in the initiative through the Sustainable Agricultural Partnership (Sustainable CAP).
The Sustainable CAP is a five-year, $3.5-billion investment 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-billion commitment cost-shared 60 per cent federally and 40 per cent provincially/territorially for programs designed and delivered by provinces and territories.

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