If you process or transform agricultural products in Alberta, knowing which costs you can claim under the Alberta Value-Added Program can make or break your application. This program helps food and bio-industrial processors invest in growth by covering a share of specific project expenses. Funding can reach up to $250,000, but only for costs that meet the program rules.
Below is a clear breakdown of eligible expenses under the Alberta Value-Added Program, based on current program guidelines.
The Alberta Value-Added Program supports capital and non-capital project expenses. Each category has different cost-share rates and rules.
Capital expenses are long-term investments that help you expand or improve processing capacity. The program covers 25% of these costs, and your business pays 75%.
Eligible capital expenses include:
Processing and manufacturing equipment
Equipment used to change an agricultural product into a value-added product, such as food processing, packaging, or bio-industrial machinery.
Automation and productivity equipment
Machinery that improves throughput, consistency, or efficiency in processing operations.
Installation and setup costs
Costs directly tied to installing eligible equipment, including wiring, plumbing, and equipment commissioning.
Specialized infrastructure tied to equipment
Facility modifications required to house new processing equipment. General building construction is typically not eligible unless directly related to the equipment.
Capital expenses must be new or first-use for the project and directly linked to value-added processing.
Non-capital expenses are short-term or project-based costs. These are more heavily supported, with the program covering 50% and your business covering 50%.
Eligible non-capital expenses include:
Engineering and technical studies
Feasibility studies, process design, and engineering assessments tied to your value-added project.
Product development and testing
Costs to develop, test, or refine new value-added products before full commercialization.
Market development activities
Market research, branding work, and sales materials related to launching value-added products.
Training related to new equipment or processes
Staff training required to operate new processing systems or adopt new production methods.
Professional services
Third-party consultants providing technical, operational, or commercialization support for the project.
Tools like GrantHub’s eligibility matcher can help you filter programs by province and industry in seconds, which is useful if your project includes mixed expenses.
The program has two funding streams with different limits:
Stream A
Stream B
Eligible expenses under the Alberta Value-Added Program must fall within your approved project scope and funding stream.
Including regular operating costs
Day-to-day expenses like rent, utilities, or raw materials are not eligible under the program.
Claiming expenses incurred before approval
Costs incurred before your project is approved are usually ineligible. Always wait for written confirmation.
Assuming all construction costs qualify
General building or expansion costs are often excluded unless directly required for eligible equipment.
Mixing capital and non-capital cost-share rates
Capital and non-capital expenses are reimbursed at different percentages. Misclassifying them can reduce your funding.
Q: What expenses are eligible under the Alberta Value-Added Program for food processors?
Food processors can claim eligible capital equipment, installation costs, product development, market research, and technical studies, as long as they support value-added processing.
Q: Are equipment upgrades eligible under the Alberta Value-Added Program?
Yes. Equipment upgrades are eligible if they improve processing capacity, efficiency, or product quality and are directly tied to value-added activities.
Q: Is the Alberta Value-Added Program funding repayable?
No. The Alberta Value-Added Program provides non-repayable grant funding, provided all program conditions are met.
Q: Can startups claim expenses under the Alberta Value-Added Program?
Early-stage businesses must meet minimum revenue thresholds. Stream A requires at least $25,000 in annual sales, which can limit eligibility for very early startups.
Q: Are professional consulting fees eligible expenses?
Yes. Third-party consulting fees are eligible non-capital expenses when they support engineering, product development, or commercialization activities.
GrantHub tracks hundreds of active grant programs across Canada—check which ones match your business profile.
Eligible expenses under the Alberta Value-Added Program are tightly defined, but the funding can significantly reduce the cost of growth-focused investments. Before you apply, map each project cost to the correct expense category and cost-share rate. GrantHub can help you confirm eligibility and find complementary Alberta and federal programs that fit your processing plans.
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