Canada to invest $260m in dairy sector in anticipation of CETA

The Government of Canada intends to invest C$350m (approximately $260m) for two new programmes in the dairy sector in anticipation of the entry into force of the Canada–European Union Comprehensive Economic and Trade Agreement (CETA).

CETA is expected to create more jobs and economic growth in Canada, as well as provide considerable market prospects for many segments in the country's agricultural sector.

Canadian Minister of Agriculture and Agri-Food Lawrence MacAulay said: “The government strongly supports supply management. Canada’s dairy producers and processors are vital to the prosperity and clean growth of our nation. They create jobs and offer high-quality products for Canadian consumers.

“These programmes will help Canada’s dairy sector become more productive in order to help it adapt to the anticipated impacts from CETA.”

The two new programmes include Dairy Farm Investment Program (DFIP) and Dairy Processing Investment Fund (DPIF).

The government will investing C$250m (approximately $186m) in DFIP over the next five years, which will provide targeted contributions to support Canadian dairy farmers by updating them with new farm technologies and systems to enhance productivity.

This could include the adoption of robotic milkers, automated feeding systems, and herd management tools.

The Canadian Government will invest C$100m ($74,289) in the DPIF programme over the next four years, which will help dairy processors to modernise their operations and enhance their efficiency and productivity levels, as well as expand their products to pursue new market opportunities.