SUMMERSIDE, P.E.I. — A Summerside dairy processing plant is receiving millions in federal funds to upgrade and expand its operations and create new jobs.
The $5.4 million earmarked for Amalgamated Dairies Ltd. (ADL) is a welcomed announcement, said Abe Buttimer, president of ADL’s board.
Buttimer said over the past couple of years, milk production has increased by more than 20 per cent on the Island, but there have been no new hires to deal with the increase.
This funding will help address that issue, he said.
“Before everyone was just working harder, but now that we have room and equipment, we can hire,” he said, adding the investment will create at least 25 new jobs.
The announcement was made during ADL’s annual meeting Monday at Credit Union Place in Summerside.
ADL is owned by 165 family dairy farms on P.E.I.
Buttimer hopes the funding will alleviate the financial burden on new Island dairy farmers.
“It’s incredible that we won’t saddle the next generation with huge debts for the processing part.”
The investment announced by Agriculture Minister Lawrence MacAulay will also help the co-operative to reduce production costs, increase the volume of milk it buys from dairy producers and introduce new products in response to market demands.
“Producers here in the province have invested in their farms and have risen to the challenge. They have really responded to the call and are bringing forth massive amounts of new production. It’s really about responding to growth on the farm and positioning the company for growth down the road.”
-Jim Bradley
MacAulay said the multi-million-dollar ADL modernization project currently underway is “vitally important” to make sure the dairy processing industry remains competitive and on the cutting edge.
“What you have to do is make sure you’re able to produce new products and be able to satisfy the demands of the consumer,” he said. “So, without any question, ADL will be able to produce more enjoyable products that the consumer wants, and they’re fully aware that if they do not do it, somebody else will.”
Jim Bradley, CEO of ADL, said the money will help with the ADL Water Street cheese plant expansion and will increase production capacity by 40 per cent and storage capacity by 30 per cent.
“Producers here in the province have invested in their farms and have risen to the challenge. They have really responded to the call and are bringing forth massive amounts of new production,” he said. “It’s really about responding to growth on the farm and positioning the company for growth down the road.”
The modernization project is supported by the Dairy Processing Investment Fund, a federal $100-million, four-year program designed to help dairy processors modernize their operations and improve productivity and competitiveness. The fund supplied $4.4 million of today’s announcement, with the rest coming from Atlantic Canada Opportunities Agency.
The ADL project, which began in December 2016, is expected to be complete this fall.
