The province�s cranberry industry is getting a major boost today thanks to an investment of over $2 million from federal and provincial governments in the Newfoundland and Labrador Federation of Agriculture.

The announcement was made today at the Atlantic Cool Climate Crop Research Centre in St. John�s by the Honourable Loyola Hearn, Minister of Fisheries and Oceans (DFO), on behalf of the Government of Canada and Harry Harding, Parliamentary Secretary to the Honourable Kathy Dunderdale, Minister of Natural Resources and Minister Responsible for the Forestry and Agrifoods Agency. Funds will be used to cultivate the province�s cranberry industry.

The project will involve the development of additional production acreage at pilot sites, a site selection analysis for the province and development of a comprehensive report outlining opportunities for future commercial development.

"The Government of Canada is working with its partners to get things done for the people of Newfoundland and Labrador," said Minister Hearn. "This federal investment of over $1.3 million recognizes the importance of the cranberry industry as a priority sector for agri-food development in Newfoundland and Labrador. This rural-based project will encourage the development of full-scale commercial processing operations and strengthen economic development in communities throughout the province."

To further develop the industry, the Newfoundland and Labrador Federation of Agriculture (NLFA) will work with four private sector partners to develop increased acreage for cranberry harvesting. With the addition of 52 new acres, the provincial industry will grow from the current 32 acres of developed farmland to a total of 84 acres.

"The cranberry pilot project is a tremendous success story that started five years ago with the federal and provincial governments sharing the annual cost of research and development into improving cranberry crop yields," said Minister Dunderdale. "The success of the project is another example of our continuing efforts to diversify and develop sustainable industries in rural Newfoundland and Labrador. We are pleased to be partnering in this project to take our cranberry production to the next level and onto commercialization."

"The cranberry industry in Newfoundland and Labrador is positioning itself to become an important player in a sector that is undergoing significant growth in North America," said Mervin Wiseman, President, Newfoundland and Labrador Federation of Agriculture. "This support by the federal and provincial governments is an important part of a collaborative effort that will help move the industry to a point where individual firms can operate as viable businesses and additional companies will enter the industry at the primary and processing level."

The Newfoundland and Labrador Federation of Agriculture (NLFA) was established to coordinate the efforts of farmers throughout the province for the purpose of promoting their common interest through collective action and to promote and advance the social and economic conditions of those involved in agricultural pursuits.

The Government of Canada is providing $1,325,560 through ACOA�s Innovative Communities Fund for this project. Agriculture and Agri-Food Canada has to date contributed $48,000 under the Canada Newfoundland and Labrador Agricultural Policy Framework (APF) towards the provincial Department of Natural Resources funding of $530,400. This funding provides for the production of three million cranberry plants and the use of agricultural equipment, facilities and staff over the life of the project. An additional $200,000 is being provided by the provincial Department of Innovation, Trade and Rural Development through the Regional Sectoral Diversification Fund to assist industry in moving this initiative forward.

- 30 -

Media contacts:

2007 11 09                                                     10:20 a.m.