The province�s rapidly-developing cranberry industry will continue to grow with the announcement today that the Provincial Government is now accepting applications for the Cranberry Industry Development Program established in Budget 2008.

The Provincial Government is investing $2.95 million in the program in 2008-09.

"Tremendous potential has been identified in the province�s cranberry industry in recent years, necessitating the creation of a dedicated program to keep pace with growth and provide direction for further expansion," said the Honourable Kathy Dunderdale, Minister of Natural Resources and Minister Responsible for the Forestry and Agrifoods Agency. "The program will provide financial assistance to eligible applicants involved in developing cranberry sites in the province."

The Cranberry Industry Development Program will aid the continued development of the cranberry industry from a research and development phase to the commercialization phase. Eligible applicants can access $15,000 per acre up to a maximum of 10 acres per year (a maximum of $150,000 per year).

"The development of a cranberry operation requires considerable engineering and construction-related work," said Minister Dunderdale. "As a result, development of cranberry production sites is an expensive venture and requires significant upfront investment on the part of the developer. It�s estimated that costs range in the area of $30,000 to $35,000 to develop one acre of land for cranberry production."

The Provincial Government has been engaged in cranberry research and development initiatives since 1999. This has proven the viability of cranberry production in Newfoundland and Labrador. Based on work completed so far, it appears the quality of the cranberry crop produced in this province is as good, or even better than, that of other jurisdictions. Commercialization of the province�s cranberry industry is the next logical step in the development of the crop.

Officials with the Department of Natural Resources will meet with cranberry industry participants over the next few weeks to explain details of the new program and answer any questions.

The island portion of the province currently has five cranberry development sites, including sites at Deadman�s Bay, Terra Nova, Stephenville Crossing (Route 490), Stephenville (White�s Road) and Frenchman�s Cove (Burin Peninsula). In 2007, the province produced 300,000 pounds of fruit, up from 280,000 pounds in 2006. The 2007 harvest was worth about $225,000 in farm gate value.

Budget 2008 contains $11.2-million in new funding for the agriculture and agrifoods industry, bringing the total annual provincial investment in this sector to $32.8 million. The province�s agriculture industry is valued at $500 million a year and provides direct and indirect employment for 6,200 people, mainly in rural Newfoundland and Labrador.