The Food Processing Growth Fund (FPG) supports projects in BC’s diverse value-added food processing sector to scale up operations to increase productivity, business opportunities and competitiveness.

The Food Processing Growth Fund is a three-year, up to $20M, program funded by the Government of BC through the Ministry of Agriculture and Food (AF) and delivered by IAF.

The objective of the fund is to assist funding recipients in improving their facilities, operations, capacity, and systems to increase productivity and support utilization of BC agricultural inputs.

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Area of Interest:

Note: IAF is currently developing a similar program to help businesses with less than $500K in revenue. We want to support their expansion and growth, and anticipate the fund will open to applications this summer, giving smaller businesses that boost they need to grow.

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Program Goals

Who's Eligible

Important Dates

Application

Prioritization Criteria

Program Goal

To address gaps in BC’s food processing sector to increase food production and economic growth by supporting facility upgrades, new equipment, expanding processing capacity and training.

Background

BC’s food processing sector is the second-largest processing sector in BC (in dollar value) with over 3,200 registered establishments and $12.6 billion in sales. The Food Processing Growth Fund supports BC’s diverse value-added sector, targeting established businesses working to scale up to increase productivity, business opportunities and competitiveness. The fund provides support for established food processors’ scale-up needs, including new or improved equipment, physical infrastructure, specialized research and development expertise, product development, and new innovative processes and systems, business planning, resource training and technical expertise.

BC Processed Food

The final product undergoes one of the following activities performed in a commercial food and/or beverage manufacturing facility located in BC, for the purpose of sales and distribution:

  1. General physical alterations: grinding beef, milling wheat, crushing tomatoes, shredding cheese, chopping cucumbers, etc. and/or
  2. Extending shelf life: freezing, canning, drying, pickling, smoking, fermenting, etc. and/or
  3. Combining ingredients to make a new product: Baking muffins, making pizza, blending juice, mixing salad greens, etc.

The following are not considered food processing (with the exception of any of these being combined with one of the activities above):

  • Cleaning
  • Washing
  • Bagging
  • Packaging and/or wrapping

Please note: This is the Ministry of Agriculture and Food’s definition of BC Processed Food and is the only definition the program uses.

Approach

Applications will be accepted on a continual basis until funding is fully committed. While applications will be continually received, they will be reviewed in batches at set deadlines against the priorities set by AF. The first deadline for review is June 6, 2023. IAF will complete adjudication and notification of funding within one month of an application review deadline.

Projects may receive from $50K to $1M in cost-shared funding for infrastructure, equipment, and training projects, depending on their activities and budgets. Projects may be up to 24 months in duration, although all projects must complete no later than February 1, 2026.

Who’s Eligible?

To be considered eligible for this program, an applicant must be located in the Province of British Columbia, and must be a(n):

  • Established food and/or seafood processing business, with:
    • Minimum of 2 years in operation
    • Minimum of $500K gross annual revenues (audited financial statements will be required for verification purposes)
  • Commercial food hub, commissary kitchen and other shared-use commercial food processing facility;
  • Industry group or association

NOTE: Subsidiaries can apply for funding separately from their parent organization provided they are legal entities and meet the 2 year and $500k criteria as a subsidiary. The total funding for the parent organization and all subsidiaries must not exceed the project funding limits.

Eligible Activities / Expenses

The following project activities and costs are eligible for funding through the Food Processing Growth Fund:

  1. Purchase and install new or upgraded/expanded facilities and infrastructure and equipment. This includes:
    • Capital investments in new and upgraded/expanded facility/infrastructure (e.g. new cooler/freezer, production room expansion).
      • Eligible costs include costs for renovations, site improvements, and other related costs.
    • New/upgraded equipment/machinery to increase production capacity or support product line expansion.
  1. Purchase and install new technology and systems. This includes:
    • New innovative technologies, software, advanced automation such as robotics, digital or Artificial Intelligence (AI) technology and systems that would increase processing capacity (e.g. AI, automated sorters, logistic or distribution software, supply chain and logistics solutions).
      • Eligible costs include costs for facility changes, upgrades and modifications required for installation of advanced automation or manufacturing technology or equipment.
  1. Applied Research & Development (R&D) for new and improved products, lab analysis, packaging etc.
    • R&D for new and improved products using technology, access to laboratory equipment for food and ingredient development and analysis such as pH, shelf-life, microbiology testing, sensory analysis, ingredient and nutritional analysis, and applied research support and expertise (private or academic institutions).
  1. Training that supports infrastructure or equipment upgrades or adoption
    • Specialized training and upskilling of resources. Production staff, operational staff upgrading on new skill set, new equipment, new processes or systems and also includes specialized expertise such as food scientists, food engineers, software developers and implementation training.

Cost-Shared Funding Amounts

The Food Processing Growth Fund’s contribution for approved projects:

Minimum of $100,000.00
Maximum of $1,000,000.00
With a maximum of $100,000 for the training component.

For approved projects with only Training-related activities, the Food Processing Growth Fund’s contribution:

Minimum of $50,000.00
Maximum of $100,000.00.

 NOTE: When applying for minimum funding amounts, only projects with an eligible cash budget equal to at least 133.33% of the minimum contribution will be eligible for funding due to the cost-shared ratio of 75%

Cost-Share Ratio

The Food Processing Growth Fund will provide cost-shared funding of up to 75% of eligible costs. The remaining 25% of project revenues for eligible costs must be supplied by the applicant or other funding sources.

Stacking

Stacking of funds from other government programs is allowed up to 90% except for select programs delivered by IAF, including (but not limited to): Farmed Animal Disease Program. (Note: this list will expand as more programs become available.)

Ineligible

Participants

  • Retail food services or operations
  • Processors/manufacturers of pet food, except where provides value-add to waste from food supply
  • Processors/manufacturers of Cannabis-infused food products and beverages
  • Restaurants and food service, including catering services
  • Packaging material manufacturers
  • Processors/manufacturers of health products or nutritional supplements
  • Processors/manufacturers of alcohol-based beverages and ingredients meant for alcohol-based beverages
  • New entrant businesses
  • Animal feed processors

Activities and Expenses

  • Operational labour
  • In-kind activities
  • Equipment, facilities, and technology investments that do not enhance processing productivity
  • Early-stage business or feasibility planning
  • Market development and marketing activities
  • Individual business support for food safety and other certifications processes
  • Costs related to existing operations (limited to new investments to increase processing capacity and improve businesses productivity)

Application Details

Important Dates

Applications will be accepted through the IAF Client Portal starting on April 26, 2023 on an ongoing basis. Applications will be reviewed in batches and funded based on the priorities provided by the Ministry of Agriculture and Food and available funds.

The review dates for each application batch for the 2023/24 fiscal year are as follows:

  • June 6, 2023
  • July 18, 2023

Additional review dates will be added as required, pending available funds.

Project Start Date (on or after): July 18, 2023

Retroactive costs will not be considered.

Application Process

Applicants will apply through the IAF Client Portal. The application process will consist of:

  • Create a personal profile (name and email)

  • Organization information, including:
    • Name
    • contact details
    • type of organization
    • BC ID / CRA numbers
    • primary contact
    • and more

Select Food Processing Growth Fund from Funding Opportunities, and provide:

  • Applicant type
  • Project start & end dates
  • Project activities
  • Details confirming that activities align with / support their program goals
  • Anticipated project benefits
  • Project Lead
  • Resourcing for the implementation of project activities.
  • Project expenses and project funding required
  • Permit status, if required
  • Communications/information sharing activities
  • Audited financial statements (for processing businesses)

Applicants may provide supplementary materials in support of their application (e.g. audited financial statements, quotes). These appendices can be uploaded through the IAF Client Portal as attachments to the application.

IAF staff are available to answer questions regarding eligible activities, costs and/or the application process. IAF may also contact applicants for additional information or clarification to assess or strengthen their application.

Applicants can contact fpg(at)iafbc.ca with any questions about the program or to receive support in developing their application.

Applicants are encouraged to include only activities they are confident will be completed on time and within budget limits.

Need help with IAF’s Client Portal?

We’ve created a number of tutorials and FAQs about the IAF Client Portal to help you navigate this resource successfully.

Review and Adjudication

IAF will accept applications on a continuous basis with review and adjudication in batches.  After each review date, IAF will review all applications received in the batch and evaluate against the prioritization criteria found in Prioritization Criteria. Applications that best align with the prioritization criteria will be offered funding first. Applications will be considered in batches until all available funding is committed.

Applications that are not successful will not be brought forward to the next review batch and applications will need to re-apply for future consideration. Adjudication decisions are final.

Notifications & Obligations

Funding Notifications & Contracts

If the project is approved, IAF will inform the applicant of the details of the decision and any associated terms and conditions. The applicant then enters into an agreement with IAF which outlines the obligations of each party.
Funding is application and project-specific and must be used for the approved project and related expenses. Funds are non-transferable.
Project activities requiring financial resources cannot commence until the contribution agreement has been signed by both the applicant and IAF. All project activities and expenditures must be approved prior to commencing – retroactive costs will not be considered.
Projects funded in 2023 may begin on or after July 18, 2023, and must be completed within 24 months. If the project is not approved, the applicant will receive a written response from IAF.

Changes to Contracted Projects

If you are not able to complete your project or require a change, please inform the IAF Team as soon as possible using the IAF Client Portal.

Funding Acknowledgement

This program is funded by the Government of BC, as such acknowledgement of funding is required when publicly communicating about a project and/or funding. To ensure appropriate acknowledgement, all communications and marketing materials, including public announcements or social media posts, must be pre-approved by the IAF Communications Team. Materials can be submitted via the IAF Client Portal.

Reporting Requirements

Successful applicants must complete activity and financial reports at regular intervals to ensure projects are on-track, payments may be tied to this reporting. Interim and final reports must be filled out and submitted to IAF to be considered for funding reimbursement. It is important that reporting is submitted on time and with all required information. Please retain all invoices and receipts, you may be asked to submit some or all receipt/invoices following a review of your report by the IAF Team. Expenses will be reimbursed based on audited receipts, and the approved project budget. All reporting will be completed via the IAF Client Portal.

Prioritization Criteria

All eligible applications will be evaluated and funded based on the strength of their alignment with a pre-determined set of priorities, defined for the Fund by the Ministry of Agriculture and Food.

For the initial launch of the program, the Ministry has set the following priorities:

Priority 1: Eligible Participants

a. Established BC-based food and seafood processing businesses (high priority).
b. BC-based commercial food hubs, commissary kitchens and other shared-use commercial food processing facilities (equal priority with c).
c. BC Industry groups and associations (equal priority with b).

Priority 2: Projects that will positively impact the use of BC inputs

a. Companies/organizations that currently use BC inputs or will increase procurement once the project is completed.
b. Companies/organizations that do not currently use BC inputs and/or will not increase procurement once the project is completed.

Priority 3: Commodities

Group 1 (highest priority)

  • Seafood
  • Meat
  • Fruit and Vegetable

Group 2

  • Plant-based protein
  • Dairy
  • Bakeries and tortilla
  • Beverages
  • Grain and oilseed milling

Group 3 (lowest priority)

  • Sugar and confectionary
  • Other foods

Ready to Apply?

Applications are open on a continuous basis. The next review date is June 6, 2023. Please ensure your application is submitted by June 6 at 4:30pm to be reviewed in the first batch.

Resources

FAQ

Up to 50% of cash costs may be provided up front with an approved cash flow plan. IAF will provide a payment schedule during the contracting process. Payments may be tied to activity and financial reporting.

Final payments will be made based on actual expenses reported and payments will be made in arrears. All projects will require a final report and the final payment will be retained pending submission of final reporting.

You have a maximum of 24 months to complete your project. All projects must be completed by February 1, 2026.

If your project is likely to take longer than 24 months, or not complete by February 1, 2026, we recommend a phased approach. Apply to complete the phase(s) you will be able to complete within the timelines of the program.

When reporting you may be asked to submit an image of the equipment (or similar) serial number, this serial number must match the serial number on the submitted invoice.

Please provide the status of the permit and any supporting documentation at the time of application.

For FPG, audited financial statements can one of three following:

1. Notice to Reader,

2. Review Engagement, or

3. Full Audited Statements

Food Processing Growth Fund Program Guide

Download the Food Processing Growth Fund Program Guide.

Have a Question?

Contact the IAF Team

Funding Acknowledgement Requirements

Download the Funding Acknowledgement Requirements for the Food Processing Growth Fund.

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We gratefully acknowledge the financial support of the Province of British Columbia through the Ministry of Agriculture and Food.