Food for Thought: Grants to Boost Food Processing Innovation

In the fast-moving world of Canadian food processing and innovation, staying ahead means embracing new technology, growing your team with skilled talent, and finding support to do both. For 2025, three standout government grant programs can help small businesses in this space move forward: the Technology Leadership Program, Food Processing Student Work Placement Program (SWPP) and Strengthening the Canadian Food Supply Chain Program.

If you’re a small business in this industry, here’s what you need to know about these opportunities and how to get ready to apply.

Technology Leadership Program

Grant Value: Up to 45% of eligible project costs (average project size: $4.1 million)

Protein Industries Canada, a federal supercluster initiative, continues to offer substantial support to companies involved in plant-based food innovation through its Technology Leadership Program. This grant is designed to help businesses bring new products to grocery store shelves, develop innovative ingredients, and contribute to a stronger Canadian plant-based ecosystem.

To be eligible, your company must be part of a consortium that includes at least three members of Protein Industries Canada. One of these must be an SME (fewer than 500 employees), and at least two must be Canadian companies. All members must contribute meaningfully to the project, and at least two must contribute financially. Academic or research partners are welcome but not mandatory.

This program is ideal for businesses with large-scale R&D projects and those interested in collaborative product development. It’s especially beneficial for businesses aiming to scale plant-based innovations.

Business Case Example:
Let’s say Prairie Pulse, a Saskatchewan-based pulse processor with 45 employees, wants to develop a lentil-based yoghurt. They partner with a local food tech startup and a university food lab to test formulations and scale production. As a consortium, they apply for this program. With each partner contributing funds and expertise, they receive reimbursement for nearly half of their eligible project costs, reducing risk while boosting innovation.

Why it matters:
For SMEs, this program opens the door to high-level R&D and product development that might otherwise be financially out of reach. Plus, it encourages strategic partnerships that can lead to long-term growth.

Food Processing Student Work Placement Program (SWPP)

Program at a Glance:

• Funding: Wage subsidy of up to 70%, maximum of $7,000 per student
• Ideal for: Employers seeking fresh talent to support operations, marketing, QA, R&D, and more
  

Hiring students is a smart move, both for injecting new energy into your team and for helping future professionals gain industry experience. The SWPP program makes that easier by reimbursing part of the student’s wages.

Business Case Example:
Nova Bites, a small Atlantic Canada snack food manufacturer, brings on a food science student from Dalhousie University for a four-month internship. The student assists in developing new gluten-free recipes. The company pays the student $14,000 for the term, and later receives a $7,000 reimbursement, cutting their hiring cost in half.

Why it matters:
SWPP helps SMEs take advantage of student talent without breaking the bank, while also creating a pipeline of skilled workers for the future of Canada’s food sector. It’s flexible, fast, and supports a wide range of business roles, not just those in labs or kitchens.

Strengthening the Canadian Food Supply Chain Program

Program at a Glance:

• Funding: Up to 75% of eligible costs, to a maximum of $150,000
• Ideal for: Businesses looking to reformulate products or scale Canadian ingredient use

This program is designed for businesses that want to reduce reliance on imported ingredients and create products using what’s grown and made in Canada. It supports projects like reformulating recipes or scaling up production to meet domestic demand.

Business Case Example:
Green Fork Foods, a BC-based frozen meal company, wants to replace imported quinoa with Saskatchewan-grown lentils in its best-selling vegan bowls. They also plan to invest in machinery to process lentils more efficiently. Their $200,000 project gets approved, and they receive $150,000 in funding, covering most of the costs of reformulation and scale-up.

Why it matters:
For SMEs, this program not only offsets major production costs but also strengthens their Canadian brand identity. It supports the shift toward local supply chains, which is increasingly important for both sustainability and consumer preference.

Final Thoughts: Strategic Growth Starts with Smart Funding

Small businesses are the backbone of Canada’s food innovation ecosystem, but access to capital can often slow progress. These 2025 grant programs, Technology Leadership, SWPP, and Strengthening the Canadian Supply Chain, offer practical, impactful support for SMEs looking to innovate, hire, and grow with purpose.

Whether you’re developing the next big plant-based product, hiring talent to support your production line, or scaling up with local ingredients, these grants can be a game-changer.

Tip for Applicants:
Start early. Gather partners, define your project scope, and make sure your financials are in order. Most programs require detailed plans and cost breakdowns. If you’re not sure where to start, check out how much funding your company is eligible for by using the Grant Calculator.