Alberta is home to one of Canada’s strongest agricultural industries, and dairy production is a significant contributor. In 2023, Alberta produced close to 840 million litres of milk, which is almost 10 per cent of Canada’s total milk production. In the same year, the dairy manufacturing industry employed more than 3,000 people.

To help further grow and diversify the agriculture industry, Alberta’s government established the Agri-Processing Investment Tax Credit program to encourage investment in value-added manufacturing in the agri-processing sector. DIW Buildings & Land Corporation has qualified for the program with a project to construct Canada’s first milk concentration facility in Alberta. When the $73.7-million plant opens in Blackfalds in 2025, it will transform raw milk into a new concentrated form that is more efficient to transport for further processing. Up to 300 million litres of milk will be sourced from western producers each year.

“Our government is thrilled Alberta will be home to the first high-tech milk concentration facility in the country. This landmark project shows how our Agri-Processing Investment Tax Credit program is making our province a hot spot for major investments in food and agri-processing. Having this new facility here will create jobs and help our dairy producers save money they would spend transporting milk as far away as Manitoba for processing.”

RJ Sigurdson, Minister of Agriculture and Irrigation

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 DIW Buildings & Land Corporation conditional approval for a tax credit estimated at $7.6 million.

This project is creating as many as 185 permanent and temporary jobs. Once the new concentration plant is operational, it will use a reverse osmosis and ultrafiltration process to remove more than half the water content from unpasteurized raw milk. Every four truckloads of raw milk will be concentrated into as little as one truckload of raw milk components that will be shipped to other value-added processors to make products like cheese, butter, ice cream and yogurt. With fewer milk transport trucks on the roads, the dairy industry will be on track to meet its net-zero greenhouse gas target by 2050.

“This investment in the DIW facility goes beyond just constructing a building, it's about setting a new standard for dairy production in Canada. We are grateful for the support from the Government of Alberta and the importance they have placed on supporting the industry through the Agri-Processing Investment Tax Credit program.”

Henry Holtmann, chair, DIW Buildings & Land Corporation

“We are grateful for the Government of Alberta’s ongoing support and especially now for the Agri-Processing Investment Tax Credit. As we progress, we are confident that DIW will exemplify the positive change that can be achieved when farmers, communities, and governments collaborate.”

Stuart Boeve, chair, Alberta Milk

Quick facts

  • DIW Buildings & Land Corporation (also known as Dairy Innovation West) is a collaboration between: Alberta Milk, Dairy Farmers of Manitoba, SaskMilk, and the BC Dairy Association.

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