Prince Edward Island’s largest processor of dairy pproducts is investing in new technology to diversify its offerings. The Honourable Gail Shea, on behalf of the Honourable Keith Ashfield, Minister of State (Atlantic Canada Opportunities Agency), and the Honourable Allan Campbell, Minister of Innovation and Advanced Learning, were in Summerside today at the Head Office of Amalgamated Dairies Limited (ADL) to announce government support.
“Our government, through Canada’s Economic Action Plan, is taking steps to reduce the effect of the economic slowdown,” said Minister Shea. “We are pleased to invest $375,000 in Amalgamated Dairies Limited for new technology to introduce a product that will increase its competitiveness in the marketplace.”
In 2008, ADL installed a whey processing technology, called ultrafiltration, to process whey (a by-product of cheese) and produce Whey Protein Concentrate. With the installation of this reverse osmosis technology, ADL will be able to further process the whey to collect the remaining lactose from the product. ADL is the first dairy processor to bring this scale of new technology to the Atlantic region.
“The Government of Prince Edward Island is committed to investing in new technology to create long-term jobs and build a stronger economy for Islanders,” said Hon. Allan Campbell, PEI’s Minister of Innovation and Advanced Learning. “We have worked with this company in the past and we are pleased to provide financial support for the latest phase of this expansion.”
With production of nearly seven million kilograms of cheese per year, ADL generates 50-60 million liters of whey annually. Thanks to support from the federal and provincial governments, the company will purchase new equipment to further process whey using reverse osmosis. The resulting product, lactose, could be marketed for use by food companies, or be used in animal feed or as a feed source for biomass energy products.
“This new technology will complement the ultrafiltration system which has been operational for the past year,” said Mr. Jim Bradley, Chief Executive Officer, ADL. “The two systems can operate on a stand-alone basis or side-by-side, allowing for increased flexibility of product processing options.”
ACOA is providing a $300,000 repayable contribution through its Business Development Program. The National Research Council of Canada Industrial Research Assistance Program (NRC-IRAP) is giving a non-refundable financial contribution of $75,000. NRC-IRAP also helps the firm with technical and business advice, more specifically on project definition and objectives, as well as with project management. The provincial government will contribute $175,000 through the Enriched Investment Tax Credit program. ADL will secure by way of equity and borrowing the balance of the $1.15 million project.