Regional Minister for Newfoundland and Labrador, Federal Minister of Intergovernmental Affairs and President of the Queens Privy Council, Peter Penashue and the Honourable Shawn Skinner, Minister of Natural Resources, Government of Newfoundland and Labrador, made the announcement in St. John's, Newfoundland.

"This investment will bolster the competitiveness of the Newfoundland and Labrador agriculture sector by building and strengthening the province's capacity for innovation," said Minister Penashue, on behalf of federal Agriculture Minister Gerry Ritz.

"At the same time, we are strengthening our protection of this valuable industry by increasing the provinces capacity to detect, monitor and control the spread of foreign animal diseases."

"This funding will strengthen our provinces agriculture industry through investment in research capacity, improving expertise and better positioning the industry to improve response to foreign animal diseases," said Minister Skinner.

"Our farmers and processors have demonstrated the ability to adapt and succeed and innovative approaches will support growth and improvement for the provincial agriculture industry."

The joint investment by Canada and Newfoundland and Labrador will focus on two initiatives, and provide:

• $7.5 million for the Agriculture Research Initiative to help farmers and others in the sector lower production costs, enhance environmental sustainability and seize opportunities in new crop varieties, livestock and crop management practices through new techniques especially suited to the Newfoundland and Labrador climate; and
• $3.9 million for the Foreign Animal Disease Preparedness and Specified Risk Materials Disposal Initiative to build a new animal disease laboratory that will help increase animal disease surveillance and detection capacity.

The federal government will contribute more than $6.8 million under the AgriFlexibility Fund, part of Canada's Economic Action Plan. Newfoundland and Labrador will invest more than $4.5 million.

Through Canada's Economic Action Plan (EAP), the Government of Canada is helping farmers find new markets, adapt to current economic challenges and make their businesses more efficient and environmentally sustainable.

The Next Phase of the EAP will remain focused on strengthening the economy, while working towards returning to balanced budgets and securing Canada's economic future. For more information on Canada's EAP, visit www.actionplan.gc.ca.