The Honourable Dwight Ball, Premier of Newfoundland and Labrador, and the Honourable Gerry Byrne, Minister of Fisheries and Land Resources, today announced $5 million in Provincial Government funding to help establish a proposed $25-million secondary processing dairy facility in Deer Lake. The initiative will support economic growth in the dairy sector and enhance food self-sufficiency in Newfoundland and Labrador.
The Real Dairy Company of Newfoundland Ltd. – a new company consisting of 13 Newfoundland and Labrador dairy farmers and partner Glenstal Foods Limited of Limerick, Ireland – is proposing to establish a facility that will process milk into salted butter and skim milk powder, with potential to eventually expand into cultured products such as cream cheese, sour cream, and yogurt.
Provincial Government funding for this project was identified to support employment in rural communities and help open new markets and products for renewable resource-based businesses during the COVID-19 global pandemic. Along with Provincial Government and private investment, the proponent is also seeking Federal Government funding to support this initiative, expected to employ eight to 10 people.
More information on the dairy industry in Newfoundland and Labrador can be found in the backgrounder below.
The Way Forward on Agriculture – Agriculture Sector Work Plan established growth targets to increase food self-sufficiency by at least 20 per cent by 2022, and to increase secondary processing of food products, including industrial milk.
Quotes
“Newfoundland and Labrador’s dairy sector is strong and vital, despite the gap left by the loss of local secondary dairy processing facilities in 2013 and 2016. With a combined production and processing value of $125 million annually – and a skilled workforce of more than 1,200 people at 24 dairy facilities across the province – our dairy producers have the knowledge and drive required to bring secondary dairy processing back to this province to create more local jobs and support food self-sufficiency. I’m pleased to offer the Provincial Government’s support for this important and welcome initiative.”
Honourable Dwight Ball
Premier of Newfoundland and Labrador
“Newfoundland and Labrador’s dairy producers work tirelessly to ensure high-quality, nutritious, local dairy products are sustainably produced for, distributed to, and enjoyed by the people of the province. Our dairy producers have identified an exciting and much-needed opportunity to process milk into secondary products that can and should be made right here, the way our supply management system intended. I look forward to seeing this initiative move forward with the full support and cooperation of our federal counterparts.”
Honourable Gerry Byrne
Minister of Fisheries and Land Resources
“We thank the Provincial Government, and particularly Premier Ball and Minister Byrne, for their wholehearted support of this exciting new initiative, and look forward to getting down to the business of once again processing local milk right here at home.”
Lee Noel
Chair, Dairy Farmers of Newfoundland and Labrador
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Media contacts
Jeremy Reynolds
Office of the Premier
709-729-3558
jeremyreynolds@gov.nl.ca
Linda Skinner
Fisheries and Land Resources
709-637-2284, 632-8167
lindaskinner@gov.nl.ca
Lee Noel
Dairy Farmers of Newfoundland and Labrador
709-636-1890
lee.noel@nf.sympatico.ca
BACKGROUNDER
Information on the Dairy Industry in Newfoundland and Labrador
Newfoundland and Labrador’s dairy sector is comprised of fluid milk consumed as table milk, and industrial milk utilized for further processing. Industrial milk can be processed into products such as butter, ice cream, milk powders, and cheese.
The closure of two secondary dairy processing facilities in 2013 and 2016 eliminated most industrial milk processing in the province. Smaller niche processors produce less than one per cent of Newfoundland and Labrador’s industrial milk production. As a result, most industrial milk – approximately 16.5 million litres annually, is shipped out of province.
The Deer Lake Industrial Park was selected as the site due to its proximity to dairy farms, adjacency to the Trans-Canada Highway, and available site services. The proponent’s initial product development will involve 20 million litres at start-up and increase to 30 million litres of industrial milk annually as new markets are developed.