(MAPAQ) - Food Processing Program - Component 1

(MAPAQ) - Food Processing Program - Component 1

To carry out projects aimed at resolving issues of labor productivity, food quality and safety, or improving the competitiveness and environmental footprint of the food processing sector.

At a glance

Eligible Funding
  • From 5,000$ to 75,000$
  • 50% of project cost
Timeline
  • Open Date : April 04, 2024
Financing Type
Grant and Funding
Eligible Industries
  • Agriculture, forestry, fishing and hunting
Grant Providers
  • Ministry of Agriculture, Fisheries and Food
Status
Open

Overview

To carry out projects aimed at resolving issues of labor productivity, food quality and safety quality and food safety, or to improve the competitiveness and environmental footprint of the food and environmental footprint of the food processing sector, companies need the support of resources with expertise. Among other things, they support companies in carrying out diagnostics, planning projects project planning and skills development. The Importance of the Food Transformation Program Subsidy in Quebec's Food Industry The Quebec Ministry of Agriculture, Fisheries, and Food (MAPAQ) has launched the Food Transformation Program to bolster the food processing industry, which is a vital part of the province's economy. Component 1 of this program—Project Planning and Skill Development—focuses on aiding businesses through subsidies that offset costs related to the enhancement of operational efficiencies and skills development. This subsidy aims to help these companies remain competitive and sustainable in an ever-evolving market. This article delves into the intricacies of this subsidy, examining its objectives, application process, and the potential impacts on Quebec’s food industry. Objectives of the Subsidy The primary goal of the Food Transformation Program is to improve the competitiveness and productivity of food processing enterprises within Quebec. The program achieves this by providing financial assistance to cover part of the costs for hiring external experts. These experts offer services that range from conducting business diagnostics to developing strategies for employee recruitment and retention. The overarching aim is to equip businesses with the tools and knowledge necessary to drive innovation and growth in their operations. Eligibility Requirements For a business to qualify for this subsidy, it must adhere to several criteria. It needs to be registered with the Quebec Enterprise Registrar and operate a facility in Quebec that has been active for at least a year. Furthermore, the facility must be involved in food processing or related activities that are recognized by the Ministry, ensuring that their products are available either on the wholesale market or online. This eligibility framework ensures that the subsidy is targeted towards active, operational entities within the food industry. Exclusions from Eligibility Not all businesses can benefit from this program. Those not eligible include facilities solely processing animal feed, aquatic product processing facilities in maritime regions, and large for-profit businesses that do not comply with the French Language Charter. This exclusion criteria help focus the subsidy on businesses that align more closely with the program's objectives to strengthen food processing capabilities across the province. Applying for the Subsidy The application process for the subsidy is thorough, reflecting the program's commitment to ensuring that funds are allocated to well-prepared and deserving businesses. Applicants must first gather a suite of documents, including the official application form, a detailed financing plan, and the latest financial statements. These documents, along with any justifications for ministerial enhancements, are submitted via email in French. Following submission, the Ministry provides preliminary support through regional advisors and sends an acknowledgment of receipt. If additional information is needed or the application is incomplete, the Ministry will request further documentation. A complete and eligible application is then thoroughly evaluated to confirm its alignment with the program's goals and the applicant's operational capacity. Financial Details of the Subsidy The subsidy covers up to 50% of eligible expenses, with a cap of $75,000 per establishment for the duration of the program. An additional incentive of up to 10% can be granted for projects that address specific ministerial or governmental priorities, such as organic food processing or public health initiatives. Scope of Eligible and Ineligible Expenses The program supports expenses directly related to the project, such as fees and travel expenses for external experts, training costs for staff, and the acquisition of specialized information. However, it excludes costs not directly linked to the project, any cost overruns, and expenses incurred before the complete application submission. This ensures that the subsidy is used efficiently and effectively for its intended purpose. Impact on the Food Industry By reducing the financial burden of innovation and skill development, the subsidy not only supports individual businesses but also contributes to the broader goal of enhancing the food processing industry's sustainability and efficiency in Quebec. It enables small to medium-sized enterprises (SMEs) to undertake significant projects that may have been financially out of reach, fostering an environment conducive to growth and technological adoption. Conclusion The Food Transformation Program subsidy is a vital tool for Quebec's food processing sector, designed to enhance the industry's adaptability and competitive edge. By supporting projects that improve operational efficiencies and expand skills, MAPAQ is helping to ensure that the province's food industry continues to thrive. This subsidy not only demonstrates a commitment to the economic health of Quebec but also to the sustainable practices that will lead the food industry into the future. The strategic use of such subsidies is crucial in maintaining a robust and dynamic food sector capable of meeting both today's demands and tomorrow's challenges.

Eligibility criteria

Applicants who meet all of the following requirements are eligible:

- Are companies registered with the Quebec Enterprise Register;

- Are applying for financial assistance for an establishment they operate in Quebec;

- Have been in operation for at least one full year (12 months);

- The establishment for which the application for financial assistance is submitted meets at least one of the following conditions:

o It carries out food processing activities, or at least two other activities recognized by the Ministry whose food products are, at the time of application, offered on the wholesale market or online;

o Operates a central kitchen.

Who is eligible

  • Agricultural production: field crops, specialized crops, livestock, etc.
  • Agri-food: Food processing, food distribution, etc.
  • Fishing and aquaculture: Commercial fishing, sport fishing, aquaculture, etc.
  • Rural development: Agricultural diversification, agri-tourism, etc.
  • Innovation and research: Development of new technologies, applied research, etc.

Who is not eligible

- Applicants whose establishment for which financial assistance is requested processes exclusively livestock feed;

- Applicants whose aquatic product processing establishments are located in maritime regions and whose main activity is the preparation and canning of aquatic products (NAICS code 3117);

- Government departments, budget-funded bodies, non-budget-funded bodies, Crown corporations referred to in Schedules 1 to 3 of the Financial Administration Act (RLRQ, chapter A-6.001), corporations controlled directly or indirectly by a government (provincial or federal) or by a Crown corporation, and municipal entities;

- Financial cooperatives and banking institutions;

- Applicants registered in the Registre des entreprises non admissibles aux contrats publics (RENA), including their subcontractors registered in the RENA, accessible at the following address: https://amp.quebec/rena/;

- Applicants who, during the two years preceding the application for financial assistance, have failed to meet their obligations after having been duly served with formal notice by the Minister, in connection with financial assistance previously granted by the latter;

- Applicants who are subject to an order issued by the Minister or a judge under the Animal Welfare and Safety Act (RLRQ, chapter B-3.1); 11

- Applicants who are under the protection of the Companies' Creditors Arrangement Act (R.S.C. [1985], chapter C-36) or the Bankruptcy and Insolvency Act (R.S.C. [1985], chapter B-3).

Eligible expenses

The following expenses are eligible:

- Those directly related to the realization of a project;

- Those corresponding to the following items:

o Fees and travel expenses for external experts with no business ties to the applicant;

o Staff training costs (training registration, teaching materials, access to a training platform and travel expenses in accordance with the rates set out in the Recueil des politiques de gestion du gouvernement du Québec);

o Purchase of specialized information required to carry out the project (databases, specialized journals, scientific articles).

Eligible projects & activities

To be eligible, projects must meet the following conditions:

- Have eligible expenses of at least $10,000;

- Have a maximum duration of 36 months from the date assistance is granted;

- Involve food processing activities or other activities recognized by the Ministry and carried out by the applicant;

- consist of hiring an external expert with no business ties to the applicant for at least one of the following projects:

- Business diagnostics that may focus on productivity, competitiveness, business functions, environmental performance or other aspects;

- Development and deployment of a workforce recruitment or retention strategy;

- Employee skills development;

- Business transfer planning;

- Drawing up plans and specifications.

Eligible geographic areas

Companies in Quebec

Evaluation & selection criteria

Projects are submitted on an ongoing basis. All complete applications for financial assistance, for which both the applicant and the project are eligible, will be analyzed by representatives of the Minister, based on the following criteria:


- Relevance of the project to the objective of the component;

- Presence of the technical, organizational and administrative capacity required to carry out the project;

- The company's viability and financial performance. The Minister's decision will be communicated to the applicant by e-mail.

How to apply

On-line subscription, form sent via MAPAQ website - Processing takes 2 to 4 weeks. An advisor in charge of the application file will contact the applicant and follow up on the progress of each application.


1. Preparation of Documents

  • Application Form: Obtain and fill out the financial aid application form available on the program's website.
  • Financing Plan: Complete a financing plan for the application.
  • Financial Statements: Prepare your company's latest annual financial statements. For abattoirs and cheese factories, also prepare additional documents such as a personal balance sheet or your latest tax return.
  • Justification for Ministerial Enhancement: Prepare the necessary documents to justify any applicable ministerial enhancements.

2. Submission of Application

  • Compilation of Documents: Ensure all required documents are complete and in French.
  • Transmission: Send all documents in a single email to transfo@mapaq.gouv.qc.ca.

3. Preliminary Support

  • Contact a Counselor: If you desire support, contact your regional food processing counselor, whose contact details can be found on the MAPAQ website.

4. Acknowledgment of Receipt

  • Receipt of Application: After submitting your application, the Ministry will send an acknowledgment of receipt to the applicant.

5. Completeness Check

  • Request for Additional Information: If information or documents are missing, the Ministry will send a written request by email.

6. Eligibility Confirmation

  • Evaluation of Application: If your file is complete and both you and your project are eligible, you will receive a confirmation of eligibility.

7. Project Analysis

  • Detailed Examination: A representative of the minister will analyze your application based on the relevance of the project, your technical, organizational, and administrative capabilities, as well as the financial viability of your enterprise.

8. Decision

  • Notification of Decision: The Ministry will inform you of its decision to fund or not fund the project. If your project is selected, you will need to sign a financial aid agreement outlining the conditions and modalities of project implementation.

9. Request for Review

  • Review Option: If you wish to contest the decision, you can appeal the evaluation decision within 20 working days of its communication.

Additional information

  • Maximum rate of financial assistance: 50% of eligible expenses


  • Increased financial assistance: 10% for projects meeting ministerial or government priorities In the case of equipment purchased from a supplier registered with the Quebec Business Register, the increase applies only to the eligible expense, not to all eligible expenses.


  • Minimum amount of assistance granted: $7,500


  • Maximum amount of assistance: $150,000 per establishment for the duration of the program.


  • Type of contribution from applicant and partners: In cash


  • Minimum private funding from applicant: 20% of eligible expenses

Documents and links

(MAPAQ) - Food Processing Program - Component 1

Contact information

smsaia@mapaq.gouv.qc.ca
418 380-2110
Apply to this program