Agri-Tech Innovation Initiative Success Story. National Pasta

Growing capacity, delivering a Canadian solution

When U.S. tariffs on packaged food products prompted Canadian companies to look closer to home for suppliers in 2025, the phone started ringing at National Pasta in Cambridge, Ont. Almost overnight, demand for two specialty potato products – double stuffed potatoes and potato skins – more than doubled.

“Demand for the two potato products blew up overnight,” says Mauro Pennacchiolo, President of National Pasta. “Customers wanted a Canadian source, and we were the only food company in Canada that could provide these popular potato products.”

National Pasta has come a long way since the company first opened their doors as a small pasta maker more than 15 years ago. Today, the company specializes in co-packing and manufacturing frozen entrees, like lasagna, macaroni and cheese, shepherd's pie and other prepared meals, for grocery retailers, distributors and food brands across North America.

Investment with impact

The company was already producing the potato products customers were looking for, but its existing equipment wasn't designed to handle the sudden surge in demand. To keep pace, National Pasta needed to significantly increase its production capacity.

Through funding from the Agri-Tech Innovation Initiative (ATII), delivered by the Agricultural Adaptation Council, the company invested in specialized, custom-built equipment that dramatically increased production. Built by an Ontario manufacturer in Woodstock, the new production line equipment now allows National Pasta to produce ten times more potato products than before.

“Equipment and automation are major investments in the food manufacturing industry,” says Pennacchiolo. “The ATII funding really helped move the project forward during a period of rapid growth.”

The investment reached well beyond National Pasta's production floor. The new equipment and many of the ingredients used in the finished products, including potato cubes sourced from Brantford, come from Ontario businesses, strengthening the province's agri-food supply chain while helping food companies source Canadian-made products closer to home. The expanded production line has also created eight new jobs, supporting continued growth at the Cambridge facility.

The benefits didn't stop with potato products. Many of the customers who first contacted National Pasta looking for a Canadian supplier have since discovered the company's broader manufacturing capabilities, creating new opportunities to produce additional food products and supporting the company's long-term growth.

For Pennacchiolo, the investment was about more than purchasing new equipment. It enabled the company to respond when market conditions changed and gave National Pasta the capacity to build new business relationships while strengthening its role in Ontario's food manufacturing sector.

“The process was straightforward, and the ATII funding support made a real difference,” says Pennacchiolo.” Programs like this help businesses move projects ahead and take advantage of opportunities when they arise.”

As consumer increased demand for Canadian-made food products continues, National Pasta's experience demonstrates how strategic investments in processing capacity can help Ontario food businesses respond quickly to changing markets, strengthen local supply chains, create jobs and build long-term resilience across the province's agri-food sector.

 

The Agri-Tech Innovation Initiative program was funded in part through the Sustainable Canadian Agricultural Partnership, a 5-year, $3.5 billion federal-provincial-territorial initiative. This program is being delivered by the Agricultural Adaptation Council on behalf of the Ontario Ministry of Agriculture, Food and Agribusiness.

 

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