Edmonton, Alberta, December 13, 2010 - Alberta's cheese industry is set to see its first major expansion in decades -bringing an opportunity for Alberta milk producers to increase their yearly revenue by a potential $15 million.

Thanks to a joint federal-provincial program, cheese producer Agropur will receive a $2.4 million grant toward its $23-million expansion and automation of their Sunnyrose cheese plant in Diamond City in southern Alberta. The expansion will nearly double the production capacity of the existing plant and increase Agropur's product selection of cheeses. The Growing Forward grant will be distributed over two-years and was approved through the Alberta Livestock and Meat Agency (ALMA).

"By investing in the expansion of the Sunnyrose cheese plant, the Government of Canada is supporting the continued growth of Alberta's dairy industry and its value-added markets," said federal Agriculture Minister Gerry Ritz. "Strategic investments like this are helping to build a competitive and innovative agricultural industry that benefits Alberta and all Canadians."

"Alberta milk producers will benefit as Agropur pursues new business opportunities and becomes more competitive in the specialty cheese category," said Alberta Agriculture and Rural Development Minister Jack Hayden. "Initiatives like these are important in helping us further strengthen Alberta's diverse agriculture industry."

"Agropur invests continuously in its plants in order to maintain its growth and meet consumer needs," stated Louis Lefebvre, President of the Agropur Cheese and Functional Products Division. "The Diamond City investment, one of Agropur's largest in Canada in recent years in the cheese-making sector, will enable us to increase our production capacity in an area where milk is readily available."

"This project will be of tremendous benefit to Alberta milk producers as it increases the demand for Alberta milk products," says Gordon Cove, President and CEO, ALMA. "ALMA's partnership with Agropur confirms our commitment to furthering Alberta's livestock and meat industry."

Agropur Cooperative is a Canadian dairy industry leader with 5,225 employees and $3.4 billion in sales. They process close to 3.2 billion litres of milk annually and offer an impressive array of products, including such popular brands as Canadian Reserve, Sealtest, Natrel, Yoplait, Oka, Island Farms, La Lacteo, Trega and Schroeder.

Growing Forward is a federal-provincial-territorial initiative that better positions the agriculture industry for success. The national vision is "a profitable and innovative agriculture, agri-food and agri-products industry that seizes opportunities in responding to market demands, and contributes to the health and well-being of Canadians."

The Alberta Livestock and Meat Agency contributes ideas, information and investment as it works with industry partners towards achieving the goal of a sustainable, profitable and internationally respected livestock and meat industry. For more information, visit www.alma.alberta.ca.

Backgrounder: Agropur's Sunnyrose cheese plant

How will this project increase revenue for Alberta milk producers?
Agropur will double its milk allocation in Alberta in 2011-12 as the facility expansion is completed. Agropur has an agreement in place with the Alberta Milk Marketing Board to support this increase. Moving milk from the butter and skim milk powder markets into the cheese market will increase revenue to producers.

What is ALMA's role in the Growing Forward initiative?
Through the Growing Forward initiative, $9 million in funding has been allocated for two programs for the 2010-11 fiscal year: $7 million for the Agri-Business Automation and Lean Manufacturing Program and $2 million for the Agri-Business and Product Development Program. ALMA is responsible for the administration and delivery of these programs.

Agri-Business Automation and Lean Manufacturing Program
The purpose of the Agri-Business Automation and Lean Manufacturing Program is to stimulate new investment and capital expansion to enhance Alberta's ability to supply agriculture and agri-food products. The program helps improve the productivity of producers and processors through cost reductions and/or increases in operational efficiencies. The program encourages the adoption of best practices, new technologies and state-of-the-art processes that improve food safety, food quality and increase value and market access.

Agri-Business and Product Development Program
The purpose of the Agri-Business and Product Development Program is to stimulate new investment in value-added food and agri-product processing sectors. This program targets agri-food processing companies and producers with innovative, market-driven opportunities to commercialize a product create a healthy or healthier product or expand their business.

Growing Forward
Growing Forward is a federal-provincial-territorial initiative that better positions the agriculture industry for success. The national vision is "a profitable and innovative agriculture, agri-food and agri-products industry that seizes opportunities in responding to market demands, and contributes to the health and well-being of Canadians."

Together, the governments of Canada and Alberta are investing $273 million over five years (2009-2013) for flexible and innovative programs for Alberta's agriculture industry. Alberta's Growing Forward goal is a stronger value-chain that thinks locally and grows globally.

There are 23 programs organized into 12 areas including: Bio-Security; Business Management Skills and Tools; Energy Efficiency; Entrepreneur Development; Food Safety; Leadership; Lean Manufacturing and Automation; Livestock Welfare; Product and Market Development; Stewardship Plans; Traceability; and Water Management. Alberta is also responsible for Growing Forward's Business Risk Management programs delivered by Agriculture Financial Services Corporation.

For more information, media may contact:

Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
613-773-7972
1-866-345-7972

Meagan Murdoch
Press Secretary
The Office of the Honourable Gerry Ritz
613-773-1059

Nicole Paradis-Clancy
Communications Officer
Alberta Livestock and Meat Agency
780-638-1932 or 780-884-9425 (cell)

Julie Boursiquot
Corporate Communications
Agropur
450-646-1010, ext 4563

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