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Alberta’s government is continuing its push to grow value-added agriculture by supporting major investments in dairy processing across the province.
Through the Agri-Processing Investment Tax Credit (APITC), the province has conditionally approved up to $1.7 million in tax credits for Lactalis Canada to modernize and expand its dairy processing facilities in Calgary and Lethbridge.
The projects are expected to strengthen Alberta’s dairy supply chain by increasing processing capacity, improving food safety systems, and introducing advanced automation technologies. Provincial officials say the investments will also help support Alberta dairy farmers through greater milk utilization while reducing environmental impacts and protecting long-term manufacturing jobs.
Alberta Minister of Agriculture and Irrigation Tara Sawyer said the province’s value-added processing sector continues to play a major role in Alberta’s economic growth.
“Alberta is an agriculture powerhouse partly because of our thriving value-added processing sector,” Sawyer said. “The Agri-Processing Tax Credit helps build on our province’s many other competitive advantages to attract large-scale investment in value-added ag manufacturing, stimulating our economy and creating more jobs for Albertans.”
Gilles Froment, senior vice president of Government and Industry Relations for Lactalis Canada, said the company remains committed to investing in Canadian food manufacturing and supporting local producers.
“The Agri-Processing Investment Tax Credit helps accelerate important investments in the dairy sector so that we can collectively create long-term value for local dairy farmers, our employees, communities where we operate and Canadians at large,” Froment said.
The APITC program provides a 12 per cent non-refundable, non-transferable tax credit for companies investing at least $10 million into building or expanding value-added agri-processing facilities in Alberta. The initiative is open to food manufacturers and bio-processors that add value to agricultural commodities or transform byproducts into consumer or industrial goods.
According to the province, up to $175 million in tax credits is available for individual projects.
Since the program was introduced through Budget 2023, Alberta has received 22 applications representing approximately $1.85 billion in proposed agri-processing investments. Of those, 17 projects totaling roughly $1.71 billion in investment have been approved.
With more than 140 years of brand heritage in Canada, Lactalis Canada operates more than 30 facilities nationwide. Its Calgary facility produces fresh and flavoured milk products, while the Lethbridge operation manufactures yogurt, cottage cheese, sour cream, and other dairy products.
The company’s well-known brands include Cracker Barrel, Black Diamond, Cheestrings Ficello, IÖGO and Beatrice.
For more information about the Agri-Processing Investment Tax Credit, visit the Government of Alberta website at www.alberta.ca/alberta-agri-processing-investment-tax-credit.
Information for this article was sourced from the Government of Alberta website.
