COVER STORY
ON-FARM PROCESSING HELPS FARM FAMILIES DIVERSIFY Two Ontario dairy farm families share their recent journeys to open their own processing plants, reflecting a strong provincial trend By Treena Hein
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elicious and healthy dairy products made right on the farm— that’s the idea behind the many small on-farm processing plants getting started across Canada right now. In Ontario, in particular, the number of these plants is growing at a rapid pace. Over the last five years, three have opened their doors in Ontario, bringing the current total to 17, with more expected to begin operating in the next 24 months, according to Dairy Farmers of Ontario (DFO) staff. These processing farms are located across the province and produce milk and other products, such as chocolate milk, butter, yogurt and cheese. The smallest plant processes 14,000 litres of milk per year and the largest processes 825,000 litres. All the farms continue to ship milk into the provincial pool. When you look at the factors behind this trend, it makes perfect sense. First, the desire for locally-produced foods has never been stronger. Second, on-farm processing is an excellent way for farm families to diversify and expand their operations so they can support the next generation without purchasing additional quota or land. It’s also a way for family members to innovate in terms of making and marketing products that are artisanal, vintage or another category. Of course, adding processing to a dairy farm is a big step, but those starting out have access to many resources, such as DFO’s Start Up & Scale Up Innovation Program. It’s open to any entrepreneurs who want to start milk processing or expand their business. It started in 18
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2016 with a small pilot and has supported 91 participants to date. Previous to its implementation, producers received various types of assistance from DFO staff. “Our role is to support them from start to finish by providing guidance in the process, requirements, regulations, procedures and so on,” explains Alan Grebinski, DFO’s director of business & educational development. “Other integral support comes in the form of mentoring through developing a business plan, a pitch deck, sell sheets, marketing advice, go-to-market strategy, co-packer relationships, plant setup and design.” Several graduates have also accessed one or more matching grants from DFO to aid in growing their businesses, he adds. The Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) also helps guide producers through the start-up process and required regulations. “Once you begin the process of licensing an on-farm processing plant, OMAFRA will be with you every step of the way,” says Rick Bond, dairy food safety adviser at OMAFRA. Once applicants notify OMAFRA of their interest in on-farm processing, the applicant is sent licence and permit applications where they’ll have to describe their overall farm operation and proposed processing plant, Bond adds. Included in the package are OMAFRA's guidelines and copies of relevant regulations. After the completed applications are received, OMAFRA will begin working with the client to get started, Bond explains. “This will include on-site visits to ensure they are meeting all the relevant WWW.MILKPRODUCER.CA
