Slaughter Improvement Program (SIP)

What is it?

The Slaughter Improvement Program is a three-year, $50-million program designed to strengthen the competitiveness of the red meat industry and to address gaps in regional slaughter capacity. It provides interest-free, conditionally repayable contributions to support investments in operational improvements, modernization and slaughter capacity enhancement. The SIP is delivered by Agriculture and Agri-Food Canada and runs until March 31, 2012.

What's the benefit to my company?

• You could receive an interest-free, repayable contribution to cover up to 50 per cent of the eligible costs of operational improvements, modernization and slaughter capacity enhancement.
• Repayment will be linked to your profitability and scheduled over a period of up to 10 years, without interest.
• Eligible projects that require less than $100,000 in financial assistance under the SIP may not require repayment.

Who qualifies?

You could qualify if your business is a legal entity that is:

• slaughtering red meat or presents a business plan to become involved in the slaughter of red meat;
• a federally inspected meat packing and processing plant, or a provincially inspected plant implementing a project to become federally inspected to enable marketing beyond provincial boundaries, or planning to establish a federally inspected plant in a region where a lack of slaughter capacity is constraining sector growth.

What qualifies?

Eligible projects must be focused on:

• Reducing operating costs or improving plant efficiency through the adoption of cost-reducing technologies and equipment, including enhanced plant automation;
• Increasing revenues through the adoption of new value-added activities or technologies, including enhanced value-added processing and the development of red meat products for new markets;
• Meeting future business conditions and consumer expectations by adopting innovative new practices or equipment and technologies to improve animal welfare, food safety and traceability, or environmental performance;
• Enhancing slaughter capacity in regions that have a demonstrated regional gap that is constraining sector growth.

Costs eligible for up to 50% financing include:

• costs for equipment and technology
• costs related to shipping or transportation of eligible equipment and technologies costs for installation
• short-term training related to the implementation of equipment or technologies
• construction costs directly related to eligible projects, except for new plant construction
• costs related to the completion of environmental assessments
• federal and provincial taxes, including the non-refundable portion of the Goods and Services Tax (GST), if any, paid by the recipient

Detailed information on eligible and ineligible costs is available in Annex B of the Applicant Guide. To be eligible, activities and costs must be incurred on or after April 1, 2009 and be completed by March 31, 2012.

How do I apply?

An Applicant Guide and Application Form are available online at www.agr.gc.ca/slaughterhouse (click on the "application package" link) or call 1-877-246-4682.
Your application must describe your activities and how they meet program objectives, and the required budget to undertake activities within the program's timeframe. You must also submit a business plan.

To be reviewed as part of the second round of applications, an application should be submitted on or before Oct. 30, 2009.

After October 30, 2009 requests for applications can be made on www.agr.gc.ca, subject to the availability of funds.

Where can I find more information?

For more information, visit www.agr.gc.ca/slaughterhouse, email SIP@agr.gc.ca or call a program officer for assistance at 1-877-246-4682.

We're here to help

To find out how the Business Development Branch at OMAFRA can provide you with knowledge, connections and resources to help grow your business, call us toll-free at 1-888-466-2372, Ext. 643486 or email us at foodinvest@ontario.ca. For information about this program and others, as well as our branch, visit www.omafra.gov.on.ca/english/food/