Agricultural funding creates new opportunities in Newfoundland and Labrador

Working with new programs under the Agricultural Policy Framework (APF), the province�s agriculture and agri-food industry is transforming itself for the future, Agriculture and Agri-Food Minister Andy Mitchell and Natural Resources Minister Ed Byrne said today.

Meeting in St. John�s to review mid-term progress under the five-year national plan for agriculture, the ministers said more than $14 million in federal and provincial funding has been invested in Newfoundland and Labrador to date on programs and projects to bring more stability to the industry and support new approaches to the business of agriculture.

�The industry here in Newfoundland and Labrador is responding to marketplace demand for innovation and new levels of service,� said Minister Mitchell. �These investments are creating new opportunities to increase profitability in the industry and address the priorities of health, safety and the environment that are so important to consumers.�

Under the APF agreement, more than $32 million in federal and provincial funding is available for programs and projects in Newfoundland and Labrador to help the provincial agriculture and agri-food industry contribute to the national objective of making Canada the world leader in food safety and quality, innovation and environmentally sustainable production.

�The continued growth of the agriculture and agri-food sector is a bright spot in this province�s economy,� said Minister Byrne. �The strategic investments under APF have given this industry opportunities to develop and diversity. As a result, the rural-based agriculture and agri-food sector will continue to expand as a sustainable industry and create jobs in the province.�

Among the changes in the industry under the APF to date:

• 240 per cent increase in the number of farms with environmental farm plans;
  new yogurt processing plant in Stephenville;
• over 1,000 acres of new farmland for crop rotation, reducing environmental pressures and increasing industry diversification;
• doubling of feed corn acreage to support the province�s growing dairy sector;
• 30-fold increase in growth in fur industry;
• first commercially grown crop of lingonberries and expansion of blueberry and cranberry production to meet growing demand.

Two new programs developed under APF to help farmers deal with income and crop losses, the Canadian Agricultural Income Stabilization Program and Production Insurance, have so far made payments of more than $660,000 in the province.

In an industry that brings its share of risks and uncertainty due to diseases, weather and market fluctuations, the APF has provided a structured approach to stabilizing farmers� incomes,� said Merv Wiseman, president of the Newfoundland and Labrador Federation of Agriculture. �At the same time, the APF is creating new opportunities to develop the potential that exists in the Newfoundland and Labrador agriculture industry.�

There are 643 registered farms and some 100 food processors operating in Newfoundland and Labrador. The agriculture industry employs 6,200 people with total sales of $500 million a year. Farm cash receipts for 2004 were $85.3 million.

More information on the APF is available at www.agr.gc.ca and www.gov.nl.ca/agric/apf

Media contact:

  Media Relations, Agriculture and Agri-Food Canada, (613) 759-7972, 1-866-345-7972
 
  Matt Tolley, Office of the Minister of Agriculture and Agri-Food, (613) 759-1059
 
  Carmel Turpin, Communications, Department of Natural Resources, Government of Newfoundland and
  Labrador, (709) 729-5282, 685-4624

BACKGROUNDER
APF Highlights in Newfoundland and Labrador

The Government of Canada and the provincial and territorial governments are working together with Canadian producers to build a stronger agriculture and agri-food industry through the Agricultural Policy Framework (APF). The APF is a national plan to make Canada the world leader in food safety and quality, environmentally responsible production, and innovation.

On May 12, 2003, Newfoundland and Labrador became the first province to sign an agreement with the Government of Canada to implement the APF. Since then, the APF has delivered nearly $14 million in federal and provincial funding to bring greater stability and growth to the sector. Among the developments that have been supported by the APF:

• Feed corn acreage has more than doubled in the last two years to over 2,000 acres, moving towards a target of 5,000 acres that would help the province to become more self-sufficient in dairy feed production. The expansion comes as Newfoundland and Labrador�s dairy industry is increasing production. Further research is underway to identify high-protein crops suitable for production in the province.
   
• The number of farmers with environmental farm plans has increased by 240 per cent in two years. More than 170 farms now have the plans.
   
• Over $450,000 has been invested to date in 22 projects to help sectors meet higher food quality and safety standards, including on-going training and workshops to help producers develop on-farm food safety programs.
   
• Since opening last January, Wholesome Dairy Limited in Stephenville has distributed its Good NaturedTM yogurt line in supermarkets across the province, creating jobs and increasing demand for milk produced in the province.
   
• Natural Newfoundland Nutraceuticals Inc., a new venture launched by Rodrigues Winery in Whitbourne, is using specialized extraction and drying equipment to remove juices and other compounds from local fruit and berries for use in healthy fruit drinks and nutraceuticals.
   
• New technology and breeding stock from Denmark are helping to re-establish the province as an exporter in global fur markets. This year, the industry is expected to generate $3.4 million in mink sales and another $500,000 in fox sales.
   
• An investment to date of $980,000 in projects and programming to help farmers develop business plans to expand and diversify their operations, prepare farm succession plans and to bring new entrants into the Newfoundland and Labrador agriculture and agri-food industry.
   
• Large-scale commercial production of lingonberries could be just around the corner with field testing of a new Swedish variety at five farms across Newfoundland and Labrador this year. The goal is to identify a variety that can produce between 10,000 and 12,000 pounds per acre. That would help meet the growing demand for fresh and processed berries.
   
• A piece of blueberry processing equipment known as a belt-tunnel freezer is allowing a Bay Roberts blueberry processor to do its own further processing for the export market, rather than sending the berries to Quebec for final cleaning and sizing for shipping. Harbour International expects the technology will boost exports to Europe and Japan.

For more information, media may call: Brian Goldsworthy, Agriculture and Agri-Food Canada, St. John�s, (709) 772-4055

2005 09 21                                            2:15 p.m.