Supporting Agricultural Exports in Nova Scotia

ECONOMIC DEVELOPMENT--Supporting Agricultural Exports in Nova Scotia

The province is making a $10-million loan to Oxford Frozen Foods Limited to support an important rural industry.

The loan, announced today, Feb. 7, will help the company continue to buy millions of pounds of produce from local farmers for the company's newly expanded processing plant in Oxford, Cumberland Co.

"Oxford Frozen Foods needs to purchase more product and Nova Scotia's farmers need to sell their crops," said Economic Development Minister Ernest Fage. "At a time when other processors are closing their doors, it's critical to support the agricultural sector's ability to export products and create jobs."

"All the stakeholders of the company benefit from this loan: our employees, our suppliers, the farmers, the customers, the town," said John Bragg, president of Oxford Frozen Foods.

Mr. Fage said the loan will support nearly 800 jobs at the company's three plants in rural Nova Scotia, including those at its recently expanded processing factory in Oxford.

The three-year loan is repayable and secured by the company's new factory, other significant properties and personal guarantees. Taxpayers are expected to receive about $600,000 a year of interest on the loan, with a profit of $200,000 annually.

Oxford Frozen Foods recently completed an $85-million factory expansion, which created an additional 295 jobs. This $10-million loan will help replenish the company's working capital, which was used to help finance that expansion.

Oxford Frozen Foods is the major employer in Cumberland County. It generates $40 million in direct household income for Nova Scotia. The firm has a proven record of expanding employment and maintaining its loans in good standing.

Oxford Frozen Foods is the world's largest blueberry processor, North America's second-largest frozen carrot processor and a major supplier of battered frozen food products.