Food and Beverage Processing Sector Investment

The Honourable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario)

Guelph, Ontario
November 10, 2009

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Bonjour. Welcome ladies and gentlemen, friends and honoured guests.

I am pleased to be here with you today in the Royal City.

Thank you to the Guelph Food Technology Centre for hosting us.  

Over the past few months, I’ve had the pleasure of visiting many communities throughout Southern Ontario in my role as Minister of State for the new Federal Economic Development Agency for Southern Ontario, or FedDev Ontario as we like to call it.

I have been witnessing first hand the strength, determination, creativity and innovation of the people, businesses and communities of Southern Ontario, despite challenging times.

We all know that the economy, and particularly the manufacturing sector, has been particularly hard hit by the global recession. These circumstances dictated a swift response, and our government has been quick to act.

Our government has reduced taxes, paid down the debt and invested in roads, bridges, waterways, post-secondary institutions and other important projects. Canada’s Economic Action Plan builds on our country’s strengths and sets the path for our future economic success.

Over the last few months, we have taken action to develop and deliver economic development programs that will build on the strengths of our communities and create an environment where our people and businesses can thrive.

And, there is evidence that our government’s actions are having a real impact and our economy is starting to benefit from our plan.

But this government recognizes that we still need to do more in Southern Ontario. This is why our government announced, as part of the Economic Action Plan, more than $1 billion to create a new southern Ontario development agency.

FedDev Ontario is providing the tools and resources that communities and businesses need to diversify and become more competitive.

We have been taking action to get funding out the door quickly, where it’s needed most.
In the last three months, I’ve announced almost $300 million in new investments to help strengthen the Southern Ontario economy.

Last month for example, I launched one of the agency’s key funding programs, the Southern Ontario Development Program, with a call for project applications under the first intake, which is now worth $55 million. 

This program supports productivity, innovation, commercialization, community economic development and diversification in Southern Ontario.

Just last week, I announced a $15.75-million investment to help small- and medium-sized manufacturers in Southern Ontario expand and improve their operations so they can create more jobs.

As I mentioned earlier, we realize that the manufacturing sector in Southern Ontario has been hit particularly hard by the recession. 

And this is especially true in the food and beverage processing sector – the second largest manufacturing sector in Ontario. 

Food and beverage processing in Ontario is a $33-billion business. Our province is the third largest food production area in North America. These businesses buy 70 per cent of the production from Ontario farms, and have about 700 establishments in rural communities across the province.

Today, we are taking action that will have a significant impact for small- and medium-sized businesses in the food industry in Southern Ontario.

I am pleased to announce that our government will invest $20 million through the Southern Ontario Development Program to help food and beverage processors modernize their operations, become more competitive and create jobs. Businesses can apply for this assistance starting today.

Ontario is a leader in high-quality foods and beverages for consumers worldwide. When you look around at this type of facility, you can see the potential that exists in this sector. A great deal of innovation is occurring, which represents the future for food processing. 

We want to ensure that this continues and that this industry receives the support it needs to be successful, both at home and across the world.

Our government recognizes that this sector needs financial assistance to remain a leader in the manufacturing industry and to continue to develop innovative products that meet the evolving needs of consumers in Canada and in other countries.

I’m pleased to bring you this opportunity to access funding which will help local food and beverage processors create jobs, promote local products and increase their productivity. 

Total funding for the Southern Ontario Development Program is $100 million in 2009-10.  And with today’s investment, more than $90 million has now been announced.

I will also be making more announcements related to SODP funding very soon, so stay tuned.

Our government understands the importance of supporting the people, manufacturers, processors, communities and non-profit organizations in Southern Ontario, and the critical role they play in our economy. 

And we’re delivering on our commitment to create jobs and invest in the economy of the future — today.

I look forward to working with many of you as we continue to support people, communities and businesses in this region and pave the way for long-term growth and make sure that Southern Ontario continues to be an economic leader.

Thank you. Merci.