production cookie in factoryAgriculture and Agri-Food Canada (AAFC) created the 5 year, $50 Million Agri-Processing Initiative (API) as a part of the government funding for business program, Agricultural Flexibility Fund, launched nation-wide under the 2009 Canadian Federal budget.

The API aims to help companies in the Agri-Processing sector become more competitive while enabling them to adopt new technology, products and services. The initiative supports the Agri-Processing sector by providing funding for costs such as equipment, training, installation, and environmental knowledge and assessments.

Type of Government Funding for Business Offered Through API

While this particular program does not offer non-repayable contributions in the form of Canadian small business grants, the repayable contributions offered through API are interest-free and unsecured.   This Canadian government funding runs up to $2 million per project, or as much as 50% of eligible costs, whichever is less.  Funds can be used for the cost of purchasing and installing new-to-company machinery and equipment in Canadian facilities in order to enable the adoption of innovative and new-to-company manufacturing technologies and processes, and/or the introduction of new products.

Government Funding Canada Agri-Processing Initiative Success Stories

Success stories from this government funding for small business initiative can be found across Canada.  Here are just a few of the successes that we have come to know of:

  • A food processing company received a $1,900,000 repayable contribution to purchase and install new high pressure food processing equipment.  The recipient company specializes in the production of over 120 varieties of sausages, ham, and specialty deli meats. It employs more than 250 associates, serving customers across North America.
  • A meat products business received a $376,770 repayable contribution to purchase and install a new machine to automate the packaging of beef jerky.   The business that received the funding processes, packages and sells beef jerky.
  • A company specializing in the dessert foods received a $94,500 repayable contribution to purchase and install a specialized ingredient mixer for various flavoured cake icings/frostings and butter-creams.   The recipient business produces a variety of products including cheesecakes, layered cakes, and cookies for retail and foodservice mark.

Interested in Learning More about the Agri-Processing Initiative?

OPA Business Funding Grants UpdateEligibility-CriteriaGet-Started

For the latest news and updates on API check back with us regularly, and if you have any questions regarding the program please take a look at our Agri-Processing FAQ’s.

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Written by

Ryan has a BA in economics, an MSc in management, and several published works including two books. As Marketing Analyst at Mentor Works, Ryan enjoys communicating with business owners & executives about government grants and funding available to help overcome obstacles to growth.

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