Natural Resources
July 25, 2007

Province Invests $1.2 Million in New Egg-grading Facility

The province�s egg producing sector is preparing for growth with the announcement today of funding towards the construction of a state-of-the-art egg-grading station by Newfoundland Eggs Inc. on Roaches Line in Conception Bay.

The Provincial Government is investing $1.2 million under the Agriculture and Agrifoods Development Fund (AADF) to the construction of the facility, which has a total cost of approximately $4.2 million. The new modern facility allows the company to increase its egg-grading capacity and produce higher quality and safer egg products at a lower production cost, increasing the industry�s competitiveness.

"The new technology will increase efficiency and give our industry a greater opportunity to gain market share and displace the importation of eggs into the province," said the Honourable Kathy Dunderdale, Minister of Natural Resources. "This upgrade will bring the facility in line with new food safety standards and ensure the long-term sustainability of the province�s egg production industry."

Newfoundland Eggs Inc. is part of the Smallwood Group, which includes Russwood Poultry, Smallwood Farms and BIA Farms, and is the largest of three egg-grading stations in the province. The facility grades 60 per cent of the province�s egg production. The new grading operation is creating five new full-time jobs and 209 weeks of part-time employment annually at the facility.

"The egg-grading process is critical to quality control and ensuring only the best quality product reaches customers� tables and we are pleased to partner with the Provincial Government on this significant investment in our industry," said Phillip Smallwood, president of Newfoundland Egg Inc. "Our new modern egg-grading facility is part of a larger overall company expansion, with this facility allowing us to market production from our other units and other island egg producers. The investment is critical to our ability to pursue growth opportunities in this industry and meet consumer demands for fresh, locally produced nutritious eggs."

"This initiative is a prime example of how government continues to work with farmers and other agrifoods producers throughout the province to identify and make available the support necessary to maintain and enhance their infrastructure," said Merv Wiseman, president of the Newfoundland and Labrador Federation of Agriculture. "This kind of support levels the competitive playing field with other Atlantic provinces and enables egg producers and graders to produce safe and quality food needed to maintain and expand markets."

The AADF is a $4-million program established last year to encourage the development, diversification and expansion of large-scale agricultural projects. Budget 2007 continues the Provincial Government�s $4-million investment.

"Today�s announcement is consistent with our government�s approach of making strategic investments in industries with growth potential," said the Honourable Tom Hedderson, MHA for Harbour Main-Whitbourne. "The investment in this egg-grading facility is another example of how we remain committed to the agrifoods industry in this area and in creating long-term employment in rural Newfoundland and Labrador."

This is the third major funding announcement under this program. AADF is the same program under which the Provincial Government invested $1 million to assist Central Dairies in the expansion into the specialty cheese market and another $1 million to assist Brookfield Dairies to expand its premium ice-cream production operation.

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Media contact:
Tracy Barron
Director of Communications
Department of Natural Resources
709-729-5282, 690-8241
tracybarron@gov.nl.ca

2007 07 25                                                      11:35 a.m.

 


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