Supply Management Processing Investment Fund (SMPIF)

About the SMPIF

The Supply Management Processing Investment Fund (SMPIF):

• Supports the dairy, poultry, and egg processing sectors to mitigate the impacts of:
  • The Canada-European Union Comprehensive Economic and Trade Agreement (CETA)
  • The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
• Aims to assist existing processors in supply-managed sectors to increase their competitiveness and resilience in evolving markets
• Has an overall budget of $292.5 million from April 1, 2022, to March 31, 2028

Program Objective

The SMPIF supports investments in processing facilities to improve productivity and/or efficiency through the acquisition of new automated equipment and technology.

Priority Consideration

Priority is given to:

• Small and medium enterprises (SMEs)
• First-time applicants
• Processors manufacturing products on the import control list
• Projects that improve productivity

Eligibility

Eligible Applicants

• For-profit organizations, including corporations and cooperatives
• Processors of supply-managed commodities:
  • Dairy (cows, ewes, goats, water buffalo)
  • Poultry primary processors (chicken and turkey)
  • Poultry further processors (chicken and turkey)
  • Hatcheries (broiler, egg-type, or turkey)
  • Egg grading and processed egg (chicken only)

Applicant Requirements

Applicants must be:

• Operating in Canada
• Predominantly processing supply-managed commodities at the project location, with the majority sourced from Canadian raw commodities
• Holding an active federal or provincial licence for food processing activities
• Able to provide financial statements demonstrating ongoing revenues from processing (minimum of 24 months prior)
• Federally or provincially registered legal entities capable of entering into legally binding agreements

Funding Details

• Contributions are non-repayable
• Maximum AAFC contribution:
  • Dairy: $10 million
  • Others: $5 million
• Funding is available over the life of the program (2022-2028)

Funding Structure

Eligible Costs

• Purchase and installation of new equipment
• Contracting external expertise for equipment installation services
• Modification of processing facilities necessary for equipment installation (excluding building construction)
• Purchase of land and buildings
• Research and development

Eligible Activities

Projects that increase automation and/or improve productivity in processing facilities, such as:

• Automation of existing production processes
• Improvement of existing automated or robotic processes
• Purchase of new production equipment or production lines
• Implementation or improvement of integrated management software

Additional activities may include:

• Improving environmental sustainability
• Responding to consumer demands for food safety and animal welfare

Application Process

Deadlines

Applications are accepted until available funds are fully allocated or until March 31, 2028.

Two-Stage Application Process

1. Stage 1: Complete a Project Summary Form
   • Determines applicant eligibility and alignment with program criteria
   • If successful, invitation to apply for Stage 2
2. Stage 2: Complete Project Application Package
   • Submit detailed project budget form
   • Respond to follow-up questions
   • If successful, sign Contribution Agreement with AAFC

AAFC aims to provide a funding decision within 100 business days of receiving a complete application package.