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News Release

Biofuels, Organic Sectors in P.E.I. to Benefit from New Government Funding

September 28, 2007

FREETOWN, Prince Edward Island - The Honourable Gerry Ritz, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, today announced almost $460,000 in federal funding for three projects aimed at boosting alternative fuel production and organic agriculture in Prince Edward Island.

"Biofuels and organic agriculture represent two exciting growth areas for Canadian farmers," said Minister Ritz. "These innovative projects are also good for the environment and Canada's New Government is proud to partner with groups and individuals in P.E.I. who are committed to making the industry greener and more profitable."

The funding includes $189,450 under the Biofuels Opportunities for Producers Initiative (BOPI) for a pilot project by the Island Grain and Protein Council to evaluate the use of locally processed canola oil as a bio-fuel for farm machinery. The Atlantic Canada Opportunities Agency is providing $145,000 towards the purchase of equipment to press canola to produce oil and meal, creating demand for locally grown canola for renewable fuel and livestock and poultry feed.

The P.E.I. Department of Agriculture has recognized the potential opportunity for expansion in the biofuels sector, and has committed $130,000 to the canola biofuel project.

"Identifying new uses for existing products and new ways to produce those products is part of our strategy to diversify the agriculture industry and create new opportunities for producers," said Prince Edward Island Minister of Environment, Energy and Forestry, George Webster. "We will continue to work with all sectors of the industry to make it more profitable and sustainable."

Canada's New Government is also investing $124,900 in the region's organic sector under the Advancing Canadian Agriculture and Agri-Food (ACAAF) Program, including $90,000 to support the growth of an organic grain sector in the Maritimes and $34,900 to provide the dairy industry in P.E.I. with specialized education and training to deal with the unique health requirements of cattle raised for organic milk production.

"These projects demonstrate that there is no single way to tackle environmental challenges, that we can make a difference from a variety of directions that can also create economic opportunities," said Elmer MacDonald, Chair of the PEI ADAPT Council, which delivers the ACAAF and BOPI programs in the province.