Agriculture
P&H Group building $241-million flour milling facility in Red Deer County.
P&H Milling Group has qualified for the Agri-Processing Investment Tax Credit program
Alberta’s food processing sector is the second-largest manufacturing industry in the province and the flour milling industry plays an important role within the sector, generating millions in annual economic impact and creating thousands of jobs. As Canada’s population continues to increase, demand for high-quality wheat flour products is expected to rise. With Alberta farmers growing about one-third of Canada’s wheat crops, the province is well-positioned to help meet this demand.
Alberta’s Agri-Processing Investment Tax Credit program is supporting this growing sector by helping to attract a new wheat flour milling business to Red Deer County. P&H Milling Group, a division of Parrish & Heimbecker, Limited, is constructing a $241-million facility in the hamlet of Springbrook to mill about 750 metric tonnes of wheat from western Canadian farmers into flour, every single day. The new facility will complement the company’s wheat and durum milling operation in Lethbridge.
“P&H Milling Group’s new flour mill project is proof our Agri-Processing Investment Tax Credit program is doing its job to attract large-scale investments in value-added agricultural manufacturing. With incentives like the ag tax credit, we’re providing the right conditions for processors to invest in Alberta, expand their business and help stimulate our economy.”
P&H Milling Group’s project is expected to create about 27 permanent and 200 temporary jobs. Byproducts from the milling process will be sold to the livestock feed industry across Canada to create products for cattle, poultry, swine, bison, goats and fish. The new facility will also have capacity to add two more flour mills as demand for product increases in the future.
“This new facility not only strengthens our position in the Canadian milling industry, but also boostsAlberta’s baking industry by supplying high-quality flour to a diverse range of customers. We are proud to contribute to the local economy and support the agricultural community by sourcing 230,000 metric tonnes of locally grown wheat each year.”
To be considered for the tax credit program, corporations must invest at least $10 million in a project to build or expand a value-added agri-processing facility in Alberta. The program offers a 12 per cent non-refundable tax credit based on eligible capital expenditures. Through this program, Alberta’s government has granted P&H Milling Group conditional approval for a tax credit estimated at $27.3 million.
“We are grateful P&H Milling Group chose to build here in Red Deer County. This partnership willbolster our local economy and showcase our prime centralized location in Alberta, an advantage that facilitates efficient operations and distribution.”
Quick facts
- In 2023, Alberta’s food processing sector generated $24.3 billion in sales, making it the province’s second-largest manufacturing industry, behind petroleum and coal.
- That same year, just over three million metric tonnes of milled wheat and more than 2.3 million metric tonnes of wheat flour was manufactured in Canada.
- Alberta’s milled wheat and meslin flour exports increased from $8.6 million in 2019 to $19.8 million in 2023, a 130.2 per cent increase.
- Demand for flour products rose in Alberta from 2019 to 2022, with retail sales increasing by 24 per cent during that period.
- Alberta’s flour milling industry generated about $840.7 million in economic impact and created more than 2,200 jobs on average between 2018 and 2021.
- Alberta farmers produced 9.3 million metric tonnes of wheat in 2023, representing 29.2 per cent of total Canadian production.
Related information
Agriculture
The Climate Argument Against Livestock Doesn’t Add Up
From the Frontier Centre for Public Policy
Livestock contribute far less to emissions than activists claim, and eliminating them would weaken nutrition, resilience and food security
The war on livestock pushed by Net Zero ideologues is not environmental science; it’s a dangerous, misguided campaign that threatens global food security.
The priests of Net Zero 2050 have declared war on the cow, the pig and the chicken. From glass towers in London, Brussels and Ottawa, they argue that cutting animal protein, shrinking herds and pushing people toward lentils and lab-grown alternatives will save the climate from a steer’s burp.
This is not science. It is an urban belief that billions of people can be pushed toward a diet promoted by some policymakers who have never worked a field or heard a rooster at dawn. Eliminating or sharply reducing livestock would destabilize food systems and increase global hunger. In Canada, livestock account for about three per cent of total greenhouse gas emissions, according to Environment and Climate Change Canada.
Activists speak as if livestock suddenly appeared in the last century, belching fossil carbon into the air. In reality, the relationship between humans and the animals we raise is older than agriculture. It is part of how our species developed.
Two million years ago, early humans ate meat and marrow, mastered fire and developed larger brains. The expensive-tissue hypothesis, a theory that explains how early humans traded gut size for brain growth, is not ideology; it is basic anthropology. Animal fat and protein helped build the human brain and the societies that followed.
Domestication deepened that relationship. When humans raised cattle, sheep, pigs and chickens, we created a long partnership that shaped both species. Wolves became dogs. Aurochs, the wild ancestors of modern cattle, became domesticated animals. Junglefowl became chickens that could lay eggs reliably. These animals lived with us because it increased their chances of survival.
In return, they received protection, veterinary care and steady food during drought and winter. More than 70,000 Canadian farms raise cattle, hogs, poultry or sheep, supporting hundreds of thousands of jobs across the supply chain.
Livestock also protected people from climate extremes. When crops failed, grasslands still produced forage, and herds converted that into food. During the Little Ice Age, millions in Europe starved because grain crops collapsed. Pastoral communities, which lived from herding livestock rather than crops, survived because their herds could still graze. Removing livestock would offer little climate benefit, yet it would eliminate one of humanity’s most reliable protections against environmental shocks.
Today, a Maasai child in Kenya or northern Tanzania drinking milk from a cow grazing on dry land has a steadier food source than a vegan in a Berlin apartment relying on global shipping. Modern genetics and nutrition have pushed this relationship further. For the first time, the poorest billion people have access to complete protein and key nutrients such as iron, zinc, B12 and retinol, a form of vitamin A, that plants cannot supply without industrial processing or fortification. Canada also imports significant volumes of soy-based and other plant-protein products, making many urban vegan diets more dependent on long-distance supply chains than people assume. The war on livestock is not a war on carbon; it is a war on the most successful anti-poverty tool ever created.
And what about the animals? Remove humans tomorrow and most commercial chickens would die of exposure, merino sheep would overheat under their own wool and dairy cattle would suffer from untreated mastitis (a bacterial infection of the udder). These species are fully domesticated. Without us, they would disappear.
Net Zero 2050 is a climate target adopted by federal and provincial governments, but debates continue over whether it requires reducing livestock herds or simply improving farm practices. Net Zero advocates look at a pasture and see methane. Farmers see land producing food from nothing more than sunlight, rain and grass.
So the question is not technical. It is about how we see ourselves. Does the Net Zero vision treat humans as part of the natural world, or as a threat that must be contained by forcing diets and erasing long-standing food systems? Eliminating livestock sends the message that human presence itself is an environmental problem, not a participant in a functioning ecosystem.
The cow is not the enemy of the planet. Pasture is not a problem to fix. It is a solution our ancestors discovered long before anyone used the word “sustainable.” We abandon it at our peril and at theirs.
Dr. Joseph Fournier is a senior fellow at the Frontier Centre for Public Policy. An accomplished scientist and former energy executive, he holds graduate training in chemical physics and has written more than 100 articles on energy, environment and climate science.
Agriculture
Why is Canada paying for dairy ‘losses’ during a boom?
This article supplied by Troy Media.
Canadians are told dairy farmers need protection. The newest numbers tell a different story
Every once in a while, someone inside a tightly protected system decides to say the quiet part out loud. That is what Joel Fox, a dairy farmer from the Trenton, Ont., area, did recently in the Ontario Farmer newspaper.
In a candid open letter, Fox questioned why established dairy farmers like himself continue to receive increasingly large government payouts, even though the sector is not shrinking but expanding. For readers less familiar with the system, supply management is the federal framework that controls dairy production through quotas and sets minimum prices to stabilize farmer income.
His piece, titled “We continue to privatize gains, socialize losses,” did not come from an economist or a critic of supply management. It came from someone who benefits from it. Yet his message was unmistakable: the numbers no longer add up.
Fox’s letter marks something we have not seen in years, a rare moment of internal dissent from a system that usually speaks with one voice. It is the first meaningful crack since the viral milk-dumping video by Ontario dairy farmer Jerry Huigen, who filmed himself being forced to dump thousands of litres of perfectly good milk because of quota rules. Huigen’s video exposed contradictions inside supply management, but the system quickly closed ranks until now. Fox has reopened a conversation that has been dormant for far too long.
In his letter, Fox admitted he would cash his latest $14,000 Dairy Direct Payment Program cheque, despite believing the program wastes taxpayer money. The Dairy Direct Payment Program was created to offset supposed losses from trade agreements like the Comprehensive Economic and Trade Agreement (CETA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Canada–United States–Mexico Agreement (CUSMA).
During those negotiations, Ottawa promised compensation because the agreements opened a small share of Canada’s dairy market, roughly three to five per cent, to additional foreign imports. The expectation was that this would shrink the domestic market. But those “losses” were only projections based on modelling and assumptions about future erosion in market share. They were predictions, not actual declines in production or demand. In reality, domestic dairy demand has strengthened.
Which raises the obvious question: why are we compensating dairy farmers for producing less when they are, in fact, producing more?
This month, dairy farmers received another one per cent quota increase, on top of several increases totalling four to five per cent in recent years. Quota only goes up when more milk is needed.
If trade deals had actually harmed the sector, quota would be going down, not up. Instead, Canada’s population has grown by nearly six million since 2015, processors have expanded and consumption has held steady. The market is clearly expanding.
Understanding what quota is makes the contradiction clearer. Quota is a government-created financial asset worth $24,000 to $27,000 per kilogram of butterfat. A mid-sized dairy farm may hold about $2.5 million in quota. Over the past few years, cumulative quota increases of five per cent or more have automatically added $120,000 to $135,000 to the value of a typical farm’s quota, entirely free.
Larger farms see even greater windfalls. Across the entire dairy system, these increases represent hundreds of millions of dollars in newly created quota value, likely exceeding $500 million in added wealth, generated not through innovation or productivity but by a regulatory decision.
That wealth is not just theoretical. Farm Credit Canada, a federal Crown corporation, accepts quota as collateral. When quota increases, so does a farmer’s borrowing power. Taxpayers indirectly backstop the loans tied to this government-manufactured asset. The upside flows privately; the risk sits with the public.
Yet despite rising production, rising quota values, rising equity and rising borrowing capacity, Ottawa continues issuing billions in compensation. Between 2019 and 2028, nearly $3 billion will flow to dairy farmers through the Dairy Direct Payment Program. Payments are based on quota holdings, meaning the largest farms receive the largest cheques. New farmers, young farmers and those without quota receive nothing. Established farms collect compensation while their asset values grow.
The rationale for these payments has collapsed. The domestic market did not shrink. Quota did not contract. Production did not fall. The compensation continues only because political promises are easier to maintain than to revisit.
What makes Fox’s letter important is that it comes from someone who gains from the system. When insiders publicly admit the compensation makes no economic sense, policymakers can no longer hide behind familiar scripts. Fox ends his letter with blunt honesty: “These privatized gains and socialized losses may not be good for Canadian taxpayers … but they sure are good for me.”
Canada is not being asked to abandon its dairy sector. It is being asked to face reality. If farmers are producing more, taxpayers should not be compensating them for imaginary declines. If quota values keep rising, Ottawa should not be writing billion-dollar cheques for hypothetical losses.
Fox’s letter is not a complaint; it is an opportunity. If insiders are calling for honesty, policymakers should finally be willing to do the same.
Dr. Sylvain Charlebois is a Canadian professor and researcher in food distribution and policy. He is senior director of the Agri-Food Analytics Lab at Dalhousie University and co-host of The Food Professor Podcast. He is frequently cited in the media for his insights on food prices, agricultural trends, and the global food supply chain.
Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country.
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