TORONTO — The federal and Ontario governments are investing up to $4.77 million in research and innovation projects aimed at bolstering the province’s agri-food sector, as farmers face growing economic pressure from U.S. tariffs.
The joint funding, announced Monday, will support 48 projects and 20 companies through the Ontario Agri-Food Research Initiative (OAFRI). Backed by the five-year, $3.5-billion Sustainable Canadian Agricultural Partnership (Sustainable CAP), the initiative is designed to help producers and agribusinesses adopt new technologies, commercialize innovations, and remain competitive in a volatile trade environment.
Federal and Provincial Ministers Stress Innovation
“It takes innovation to build a successful agri-food sector in Ontario and across the country,” said Heath MacDonald, federal Minister of Agriculture and Agri-Food. “By investing in companies that bring forward bold ideas and practical solutions, we’re helping the sector seize new opportunities and stay competitive and resilient.”
Ontario’s agriculture minister Trevor Jones echoed those remarks, emphasizing the need to prepare farmers and businesses for future challenges. “We want to ensure Ontario’s farmers and agribusinesses have access to the latest technology and innovative solutions to grow and strengthen their businesses,” he said. “Through OAFRI, we are helping them prepare for the future, take advantage of new opportunities and stay competitive and resilient in the face of economic uncertainty.”
Research Projects Target Food Safety, Technology, and Animal Health
The initiative provides funding across five streams of research, innovation, and commercialization. Among the highlighted projects are:
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Piloting new growing strategies to improve grape quality, yields, and food safety for Ontario-grown table grapes.
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Using natural compounds derived from probiotics to reduce harmful bacteria such as Salmonella in raw poultry.
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Enhancing robotic platforms to more precisely apply crop nutrients in fields.
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Developing a non-invasive tool powered by artificial intelligence and imaging to detect mastitis early in dairy cattle, improving milk quality and animal welfare.
In addition to funding individual research projects, OAFRI is helping 20 new companies join the Grow Ontario Accelerator Hub, a program run by Bioenterprise Canada Corporation. The hub supports Ontario-based agri-food and agri-tech firms with strategies to scale, attract investment, and bring products to market.
Industry Leaders Call Investments Critical
“It is exciting to see such compelling and impactful innovations being developed right here in Ontario. The size of our agri-food production in Ontario is second only to California in North America,” said Dave Smardon, President and CEO of Bioenterprise Canada Corporation. “Maintaining a leading position in agri-food innovation is critical to the health and growth of our industry. The support that the Ontario government has provided is helping to ensure that we do so and paves the way for even more innovation as the program continues.”
Industry advocates argue that with Ontario competing against massive U.S. producers, maintaining a technological and research edge is vital to sustaining market share both at home and abroad.
Broader Strategy for Ontario’s Food Supply Chain
The OAFRI program builds on the province’s Grow Ontario Strategy, which focuses on strengthening food supply chains, addressing vulnerabilities, and driving adoption of innovative practices. The strategy emphasizes collaboration between farmers, agri-businesses, and research organizations to enhance Ontario’s competitiveness.
Sustainable CAP, which runs from 2023 to 2028, represents a $3.5-billion investment shared by federal, provincial, and territorial governments. Of that, $1 billion funds federal programs, while the remaining $2.5 billion is cost-shared at 60 per cent federal and 40 per cent provincial/territorial levels to deliver local initiatives.
Next Steps for Ontario’s Agri-Food Innovators
The Grow Ontario Accelerator Hub has reached full subscription for the 2025–26 year, but officials confirmed another intake is expected in the following year. Meanwhile, the latest commercialization stream intake opened September 4, with more opportunities expected for Ontario’s agribusinesses to tap into public funding and support.
As the province navigates the ongoing challenges of trade pressures, government and industry leaders say research-driven growth is key to resilience. By funding projects that connect science, technology, and commercialization, Ottawa and Queen’s Park are betting that Ontario farmers and food producers can stay ahead of their North American rivals.
