$292.5 Million in Funding available for processors of supply-managed commodities


Funding Overview

The Supply Management Processing Investment Fund (SMPIF) helps processors of supply-managed commodities adapt to market changes resulting from the implementation of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The program provides non-repayable contributions to support investments in dairy, poultry, and egg processing facilities that improve productivity and/or efficiency through the purchase of new automated equipment and technology.

Eligible Applicants

  • For-profit organizations, including corporations and cooperatives
  • Processors of supply-managed commodities:
    • Dairy processors
    • Poultry Primary processors (chicken and turkey)
    • Poultry Further processors (chicken and turkey)
    • Hatcheries (broiler, egg-type or turkey)
    • Egg graders
    • Egg processors

In addition, eligible applicants must be:

  • Federally or provincially registered legal entities capable of entering into legally binding agreements
  • Operating in Canada
  • Processors buying domestic raw commodities
  • Holding an active federal or provincial license to carry out activities with respect to food processing and
  • Able to provide financial statements demonstrating ongoing revenues from processing for a minimum of 2 years prior to application

Priority consideration will be given to:

  • Small and medium enterprises (SMEs)
  • First-time applicants
  • Projects that improve productivity

Eligible Activities

The program supports projects that increase automation and/or improve productivity in processing facilities, such as, but not limited to:

  • Automation of an existing production process
  • Improvement to an existing automated or robotic process
  • Purchase of a new production line
  • Implementation or improvement of an integrated management software

In addition to the above, projects may also include activities that will provide additional benefits such as, but not limited to:

  • Improving environmental sustainability, such as:
    • Equipment to reduce water and energy consumption
    • Equipment required to treat waste water resulting from an increase in production
  • Responding to consumer demand concerning food safety and animal welfare, such as:
    • Packaging equipment that increases shelf life
    • Processing equipment to reduce/control pathogen load

Eligible Costs

The following costs are eligible if they are reasonable and directly related to the project:

  • Costs for the purchase and installation of new equipment
  • Costs related to the contracting of external expertise for services related to the equipment installation
  • Costs for the modification of the processing facility necessary for the installation of the equipment

Costs related to construction of a building, the purchase of land and buildings, and research and development are not eligible under the Supply Management Processing Investment Fund.

The proposed project costs will be evaluated by AAFC, and modifications could be negotiated, when deemed necessary, to ensure that the level of funding is the minimum necessary to achieve the expected results of the project.


The program will consider costs eligible for reimbursement from the date a complete application is received by AAFC. A confirmation of the date will be provided by AAFC. Any costs incurred prior to the signing of a contribution agreement would be incurred solely at the applicant's risk without obligation of payment by AAFC.


March 31, 2028

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