The Federal government has delivered on a promise to provide Canada's dairy industry with support to soften to impact of the Canada-Europe Trade Agreement.

Ag Minister Laurence McCauly announced this morning $350 million for two new programs to support the competitiveness of the dairy sector.

$250 million over five years for a Dairy Farm Investment Program that will provide targeted contributions to help farmers update technologies and systems, as well as improve productivity through upgrades to their equipment.

$100 million over four years for a Dairy Processing Investment Fund that will help dairy processors modernize operations and, improve efficiency and productivity, as well as diversify their products to pursue new market opportunities.

McCauly also indicated he will be consulting with dairy sector stakeholders on the exact design of these programs, so they respond to the needs of producers and processors effectively.