A Burnaby software company is getting a quarter-million dollars to prove that AI can help Canadian food manufacturers run smarter, cleaner operations.

UDP Software landed $249,999 from the Canadian Food Innovation Network (CFIN) to pilot FoodPM, an AI-powered platform it's building specifically for Canadian food processors. The company is testing the system with The Fritter House, a Vancouver partner.

The funding came through CFIN's Foodtech Next Program, which announced $1.1 million for five Canadian startups on earlier this month. Industry partners are matching the government funding, bringing the total investment to nearly $2.4 million.

FoodPM is designed to handle the messy realities of running a food processing operation. It combines manufacturing resource planning with tools for inventory control, production scheduling, workforce training, and regulatory compliance—all the pain points that can bog down smaller manufacturers.

The platform also integrates CRM, food safety documentation, HR and payroll, and supply chain management. Think of it as an operating system purpose-built for food manufacturers dealing with Canadian regulations and market conditions.

"Canada's food processors face unique challenges in productivity, compliance, and labour," said Terry Ridyard, COO of UDP Software. "Our vision is to equip them with intelligent tools that not only solve today's problems but also position them for the future."

The pilot will test whether the platform can actually deliver on its promises: boost productivity, cut food waste, improve how companies use their workforce, and help them stay compliant with environmental and social governance requirements.

UDP Software was one of two Western Canadian companies in this funding round. Alberta's Knead Technologies received $248,675 to pilot AI-powered food rescue tools with three partners: Leftovers Foundation, BluPlanet Recycling, and Metro Food Rescue. The platform optimizes delivery routes and matches food donations with recipients in real-time.

The three other recipients are scattered across the country. Ontario's Gastronomous Technologies is testing an autonomous beverage system with a national restaurant chain ($249,706). Nova Scotia's Freshr Sustainable Technologies is working with Cooke Aquaculture on antibacterial packaging that extends shelf life ($232,861). And Ontario's uDesign Solutions is building an AI-enabled crate packing system for a Quebec dairy ($196,254).

The Foodtech Next program is designed to help early-stage companies de-risk their technology by testing it in real operational settings. That kind of validation is crucial for attracting the larger investments needed to scale.

And it's been working. Companies that have gone through CFIN programs have pulled in more than $82 million in follow-on investment and created over 355 jobs across the country.

For UDP Software, the pilot with The Fritter House could be the proof point that opens doors to food processors across Canada—and keeps another successful tech company rooted in Vancouver as it grows.

CFIN has now invested more than $22.6 million across 108 Canadian foodtech projects since launching in 2021, with the program supported by the federal government's Strategic Innovation Fund.