N.B. government defends Agropur deal, opposition pushes for contract to be made public

A debate around the upcoming closure of a dairy facility dominated the N.B. legislature on Tuesday.

New Brunswick’s Official Opposition is calling on the provincial government to release all details of its $2.4-million agreement with Argopur, which will see the company’s Miramichi plant expand and Sussex plant close.

Agropur announced in April its plans to close the Sussex-area facility – which makes butter and powdered milk products – by the end of 2028, resulting in approximately 60 job losses.

At the same time, Agropur said a $20-million expansion at its Miramichi facility would create 15 skilled jobs. In February, the New Brunswick government announced funding of up to $2.4 million in a non-repayable contribution to expand the capacity to process milk in Miramichi.

During question period in the legislature on Tuesday, interim Progressive Conservative Leader Glen Savoie called on Premier Susan Holt to release all details of the funding agreement.

“So that the public can know exactly when this government found out that they were going to be 60 job losses in Sussex,” said Savoie. “Or can the premier just be radically transparent with people right here, right now in the people’s house and tell them directly when she learned that there would be 60 job losses.

“She either knew in advance or was unaware. Neither option is good.”

Holt was in the legislature on Tuesday, but all questions related to Agropur were answered by Minister responsible for labour Alyson Townsend and Minister responsible for Opportunities New Brunswick Luke Randall.

“Agropur had shared that it was assessing different scenarios across the Maritimes, and we understood that this could include potential operational changes within the region, including Sussex,” said Randall in the legislature.

Last week, Holt told reporters “it would’ve been helpful” to have known Agropur’s full restructuring plans before the province’s financial commitment.

Randall defended the agreement with Agropur on Tuesday, saying it would benefit the province’s economy as a whole.

“This deal adds to our GDP,” said Randall. “It sets us up for long-term growth with this company, and it’s important to remember our government support in Miramichi will ensure that dairy processing capacity remains here in New Brunswick, grows in the province, even as companies make broader operational decisions across their networks.

The official PC opposition also asked what penalties would be incurred by the province if the funding agreement with Agropur was ultimately cancelled.

“The people of Sussex feel blindsided,” said local PC MLA Tammy Scott-Wallace. “They see their Agropur plant closing, where our amazing DairyTown butter is made, and the premier used their tax dollars to do it to them.”

As part of a company-wide restructuring, Agropur also announced in April it would be expanding production in Bedford, N.S., while also ending operations in Truro, N.S.

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