ADL to modernize its Summerside, PEI plant

Summerside, P.E.I. – Amalgamated Dairies Ltd. (ADL) is receiving some government help to modernize its operation in Summerside.

In a statement, Agriculture and Agri-Food Canada (AAFC) says it is investing up to $5.4 million to help the cooperative reduce production costs, increase the volume of milk it buys from dairy producers and introduce new products in response to market demand.

The government funding will also go toward helping the company increase storage capacity for both specialty cheese products and packaging supplies.

Jim Bradley, ADL”s CEO, says in the statement that funding will help ADL “adapt to the new realities in the Canadian dairy industry and invest in the infrastructure and innovation that are needed to grow and diversify our business into the future.”

Bradley adds in the statement that production capacity will increase by 40 per cent and storage capacity will increase by 30 per cent. Also, by modernizing the plant the cooperative will be able “to work with its partners to diversify products and seek new markets.”

AAFC says the investment is supported by the Dairy Processing Investment Fund, a $100-million, four-year program designed to help dairy processors modernize their operations and improve productivity and competitiveness.

The statement says that the Atlantic Canada Opportunities Agency (ACOA)’s Business Development Program is also supporting ADL’s modernization project with $1 million: $500,000 for equipment to expand the plant and $500,000 for equipment to create new value-added products.

ADL is owned by 165 family dairy farms and today has 260 employees. The cooperative was created in 1953.