December 15, 2015
Governments Support Manitoba's Dairy Sector With Funding for $50-Million Facility
The governments of Canada and Manitoba will provide $2.5 million toward the construction of a modern dairy processing facility in St. Boniface, Federal Agriculture Minister Lawrence MacAulay and Manitoba Agriculture, Food, and Rural Development Minister Ron Kostyshyn announced today.
“The Government of Canada is committed to supporting this country's dynamic agricultural industry, which is a key driver of jobs and economic growth,” said Minister MacAulay. “This project is a great opportunity for governments to support private sector efforts, through Growing Forward 2, to modernize and expand the dairy processing sector in Manitoba.”
The new facility, owned by Parmalat Canada Inc., will be built at the St. Boniface Industrial Park Phase 2, a 180-acre site off Dugald Road and east of Lagimodiere Boulevard. The decision to replace an aging building with a new, $50-million facility in a new location will allow the company to increase production with modern equipment in a neighbourhood more suitable for its business. Government funding will be used for energy and water-use reduction equipment, waste-water treatment and new processing equipment.
“Manitoba is proud to support this strategic investment to maintain and secure good jobs, create opportunities for growth in the agricultural sector and benefit Manitoba’s economy,” said Minister Kostyshyn. “This expansion is important to the future of the food processing and dairy industries in Manitoba and we are committed to seeing this project move forward.”
Minister Kostyshyn noted this initiative supports Manitoba’s goal of creating a $5.5-billion value-added food industry by 2022.
In July of this year, the City of Winnipeg announced it would sell city-owned property in St. Boniface to Parmalat Canada worth $2.625 million, allowing the company to keep its dairy operation in Winnipeg. Offset by the sale of the land, the city, the province and Parmalat Canada will cover the $5.61 million cost to extend services like electrical and water to the new facility.
“I am very pleased that the new facility will set Parmalat up for success in Winnipeg and will position the company to act as a catalyst attracting further business to St. Boniface Industrial Park,” said Mayor Brian Bowman, City of Winnipeg. “I would like to thank our federal and provincial partners for joining the city in contributing to ensure Parmalat’s continued growth in Winnipeg for many years to come.”
Parmalat Canada employs 139 Manitobans at facilities in St. Boniface, St. Claude and Grunthal. New hires are expected once the expanded facility in St. Boniface becomes operational in 2017.
“Parmalat Canada is pleased to have such enthusiastic partners in the provincial and federal governments and the City of Winnipeg for this important expansion,” said Jean Paul Quiblier, vice-president, operations, Parmalat Canada. “Local dairy producers have been extremely supportive in providing us with the raw materials to make a world-class product, and this investment shows our company’s commitment and support of agriculture in Manitoba.”
Funds for this project were issued as part of Growing Forward 2, a five-year, federal-provincial-territorial policy framework to advance the agriculture industry. The federal and provincial governments are investing $176 million in Manitoba, helping producers and processors become more innovative and competitive in world markets.
-30-