ADL gets butter deal from ACOA

Amalgamated Dairies Limited, based in western P.E.I., is looking to sell more butterand is getting help from ACOA and the P.E.I. government.

ADL is upgrading its processing facility in O'Leary to increase butter production.

An ACOA news release says the agency is offering a $400,000 loan. The province will contribute a $100,000 loan to the project.

"Today's announcement is an investment into the sustainability, efficiency and future of the O'Leary butter plant," said ADL CEO Chad Mann.

ADL is owned by a consortium of 165 dairy farmers and employs 250 people.

Growing demand for butter

As part of the upgrades, there will be new cream holding tanks, and the six pasteurization vats will be replaced with three larger, more efficient ones.

Plant manager Brendon Arsenault saidthe plant can currently churn out about 12,000 poundsof butter per dayand with the upgrades, that capacity will increase to close to 16,000 pounds. Arsenault saidthat will help the facility meet growing demand.

"Over the last say fouryears, we've increased our production here nearly a million pounds in four years, just due to the fact that there's been more cream volume around, and more demand for butter," Arsenault said.

The outside of the building will also get a facelift as part of the upgrades.

Supporting dairy industry

Egmont MP Bobby Morrissey announced the federal funding at a news conference Monday. Morrissey said he's been hearing concerns from dairy farmers following trade negotiations. He says the government is committed to helping the dairy industryand he expects this investment will have a positive impact.

"When you continue to invest in a key producer-owned company like amalgamated dairies, it ensures that farmers [have]a market for the product they're producing, and ADL remains a very competitive company to ensure that it's able to maximize its quota, the amount of milk it purchases in P.E.I., and continues to grow those supplies," Morrissey said.

Five people currently work at the butter plant, and for now, that's not going to change. However Arsenault said the increased capacity could lead to more jobs in the future.

More P.E.I. news