The Ontario Market Diversification Grant and Trade Resiliency Initiative is offering up to $619,000 in funding for food processors and beverage producers ready to scale production and enter new markets. Applications close March 17, 2026.
If you’re an Ontario-based food or beverage manufacturer looking to expand into new markets, invest in production equipment, or implement new systems, this grant could cover 25-35% of your project costs.
Here’s everything you need to know to determine if you qualify and how to apply.
What Is the Ontario Market Diversification Grant and Trade Resiliency Initiative?
This government funding program supports food processors and beverage producers in diversifying their markets and building trade resilience. The initiative recognizes that relying on a single market creates vulnerability, and provides financial support to help businesses expand into new domestic and international markets.
Three funding streams are available:
- Schedule 1: Planning and strategy (up to $50,000)
- Schedule 2: Implementation and market development (up to $70,000)
- Schedule 3: Equipment and technology (up to $499,999)
You can apply to multiple schedules, meaning a single business could potentially access the full $619,000 if they have qualifying projects across all three categories.
Does Your Business Qualify?
Eligibility Requirements
✓ Ontario-based primary producer or processor
Farms, food processors, beverage producers, and agri-food manufacturers with Ontario production facilities qualify.
✓ Identified target markets
You need specific markets identified. General exploration doesn’t qualify.
✓ Completed market research
Applications require a business analysis or market development plan demonstrating market opportunity.
✓ Projects start after approval
No costs incurred before the Ministry approval date are eligible.
Need help identifying target markets or developing your market analysis?
Chops Consulting provides operations management consulting and market entry strategy development to help you build a competitive grant application. We deliver supply chain operations analysis and market diversification planning for agriculture, food, and beverage businesses.
What’s Covered (And What’s Not)
Schedule 1: Planning Services (Up to $50,000)
Reimbursement:
- 25% for US-focused projects
- 35% for non-US projects
What’s Covered:
- Third-party advisory services to identify importers or distributors
- Regulatory requirements analysis for new markets (labeling, certifications)
- Supply chain and logistics planning for market entry
- Market development implementation planning
- Marketing tactics development (target consumers, promotional materials, tradeshow strategy)
- Training directly related to export development
What’s NOT Covered:
✗ Market exploration to identify which markets to pursue
✗ Staff salaries
✗ Standalone training programs
✗ Costs submitted before grant approval
Schedule 2: Implementation (Up to $70,000)
Reimbursement:
- 25% for US-focused projects
- 35% for non-US projects
What’s Covered:
For New Product Development:
- Regulatory review for new products
- Ingredient sourcing and formulation development
- Scale-up trials and shelf-life testing
- Nutritional, microbial, chemical, and allergen testing
- Packaging sourcing and compatibility testing
- Labeling design and development for regulatory compliance
For Sales and Marketing:
- Website design and development for new market entry
- Brand development services
- Focus groups and consumer studies
- Product demonstrations
- Marketing campaign development and management
- Promotional material design (ads, brochures, videos)
- Tradeshow participation (booth fees, display development, travel for up to 3 employees)
- Buyer meeting expenses
What’s NOT Covered:
✗ Website hosting and maintenance
✗ Staff salaries
✗ Retailer listing or slotting fees
✗ Equipment purchases
✗ Marketing not completed by third-party vendors
✗ Production packaging materials
✗ Domestic marketing of aquaculture and seafood products
Schedule 3: Equipment & Technology (Up to $499,999)
Reimbursement:
- 25% for US-focused projects
- 35% for non-US projects
What’s Covered:
Equipment and technology to create new products or increase production capacity:
- Production equipment (new or refurbished)
- Warehouse management systems
- Manufacturing CRM platforms
- ERP integration
Related eligible costs:
- Installation and shipping
- Vendor training on acquired equipment
- Lease-to-own equipment (principal payments only)
What’s NOT Covered:
✗ Equipment replacement without capacity increase
✗ Repairs or maintenance
✗ Equipment for non-owned facilities
✗ Building modifications
✗ Vehicles or farm machinery
✗ Interest, insurance, service contracts
Application Requirements
What You Need to Submit
1. Written vendor quotes:
- Legal vendor name and date
- Service or equipment description
- Complete cost breakdown including taxes
2. Business analysis or market development plan:
- Market research supporting expansion into identified markets
- Impact methodology (job creation/retention, sales projections, production output)
- Implementation strategy
3. Project workplan:
- Activities and timelines aligned with vendor quotes
How Applications Are Evaluated
Your application strength depends on:
✓ Clearly identified target markets based on market analysis
✓ Strong rationale for market diversification and trade resiliency
✓ Quantified business impacts with credible methodology
✓ Detailed workplan aligned with quotes
Timeline
- Application deadline: March 17, 2026
- Project start: Only after Ministry approval (date provided in approval letter)
- Project completion: Must be completed within the specified timeframe
- Claims: Costs must be incurred and paid between approval and completion dates
How to Maximize Your Application Success
1. Start with Market Research
The strongest applications have solid market research with specific data on:
- Market size and growth rates in target regions
- Competitor pricing and market share
- Distribution channel specifications
- Regulatory compliance requirements
- Sales projections with timelines
2. Quantify Your Business Impact
Use measurable outcomes:
- Production capacity increase percentages
- Jobs created or retained with timelines
- Sales projections by quarter
- Market penetration targets with methodology
Strong applications will get specific. Rather than stating “We’ll grow our business” – find the data you need in order to tell your story, such as: “We’ll increase production capacity by 300%, create 4 new jobs, and generate $2M in sales within 18 months.”
3. Align Activities to Market Entry
Every activity must directly support entering or expanding into your identified markets. General operational improvements without clear market expansion connection are ineligible.
4. Get Detailed Quotes
Submit detailed quotes from all third-party vendors. Include deliverables, timelines, and any assumptions or exclusions.
5. Work with a Consultant
Operations management consultants, supply chain operations consultants, and technology consultants provide:
- Market analysis and business case development
- Grant-eligible third-party services
- Application requirement expertise
- Implementation support after approval
At Chops Consulting, we partner with Raven & Wren (CPG specialists with 20+ years experience) to provide grant-eligible services including:
- Market entry strategy and planning (Schedule 1)
- Supply chain and distribution operations design (Schedules 1 & 2)
- Product development and regulatory compliance (Schedule 2)
- Marketing and brand development (Schedule 2)
- Warehouse management systems and ERP implementation (Schedule 3)
FAQ:
Can primary producers apply?
Yes. Primary producers and processors in agriculture, food, and beverage sectors qualify.
Can I apply to multiple schedules?
Yes. Submit separate applications for planning, implementation, and equipment if you have qualifying projects.
Do I need to choose markets before applying?
Yes. This grant is for businesses that have already identified their target markets. If you’re still in the market research phase, this grant won’t cover that initial exploration.
What about domestic markets?
Projects must demonstrate market diversification beyond your current customer base. This can include domestic expansion into new regions or channels, or international markets
Can I claim costs for work I’ve already started?
No. Only costs incurred after your application is approved are eligible. Do not start your project or make deposits before receiving approval.
Is this a loan or a grant?
This is a grant – you don’t have to pay it back. You’ll be reimbursed for 25-35% of eligible costs after you submit proof of payment and project completion.
How long does the application process take?
Processing times vary, but plan for several weeks to months between application submission and approval. Don’t wait until the deadline – apply early for your best chance of securing the grant.
Take Action Before March 17, 2026
Prepare your application:
- Prepare your business analysis or market development plan
- Obtain detailed vendor quotes
- Submit your application before March 17, 2026
- If approved, receive your approval letter and start date
- Complete your project(s) and submit proof of payment
- Receive your reimbursement
Get expert support:
Chops Consulting provides operations, marketing, and technology services that are grant-eligible under this initiative. We can help you:
- Assess your eligibility and determine which schedules to apply for
- Develop your market entry strategy and business case
- Provide grant-eligible consulting services
- Navigate the application process
Book a discovery call to discuss your expansion plans, assess grant eligibility, and explore how operations management consulting and supply chain operations services support your market diversification plan.
About Chops Consulting:
Chops Consulting provides operations management, technology implementation, and marketing services for food, beverage, and CPG manufacturers. We partner with Raven & Wren Consulting to deliver specialized supply chain, product development, and regulatory compliance expertise for businesses ready to scale.
Disclaimer: This blog post provides general information about the Ontario Market Diversification and Trade Resiliency Initiative based on publicly available program guidelines. Grant requirements, eligibility criteria, and funding amounts are subject to change. Always verify current program details and consult with the Ontario Ministry of Agriculture, Food and Agribusiness before applying.
