Canada to provide targeted support amid Covid-19 pandemic

The Canadian Government has pledged an investment of C$252m ($179m) to support the country’s farmers, food businesses and food processors in the wake of the coronavirus (Covid-19) pandemic.

Canada Prime Minister Justin Trudeau also announced that his government intends to propose an additional C$200m in borrowing capacity for the sector.

Trudeau said: “Canadians count on farmers and producers to provide them with the food they need to feed themselves and their families.

“Today, we are giving them the support they need to keep their workers safe and food systems running during this challenging time, for the benefit of all Canadians.”

As part of this initiative, the government has created a C$77.5m ($55.2m) Emergency Processing Fund to help food producers for procuring personal protective equipment (PPE) as well as to automate their facilities and operations.

Under the AgriRecovery initiative, the government has allocated up to C$125m ($89.1m) in funding to help producers faced with additional costs incurred by Covid-19.

The funding is aimed at helping beef and pork producers and processors adapt to changing market situations.

The government also expressed its intention to increase the Canadian Dairy Commission’s borrowing limit by C$200m ($142m) to support costs associated with the temporary storage of cheese and butter to avoid food waste.

With an initial C$50m ($35m) fund, the government also created the Surplus Food Purchase Programme for redistributing existing and unsold inventories such as potatoes and poultry to local food organisations serving vulnerable Canadians.

The government will also be working with provinces and territories to increase interim payments from 50% to 75% through AgriStability to support producers facing significant revenue declines.

It will also work with provinces and territories to explore possibilities for expanding the AgriInsurance programme to address labour shortages in the horticulture sector.