The funding is a part of the Ontario government's strategy to increase consumer awareness of and access to local food and beverages produced, grown and harvested in the province.
Of the total funding, VG Meats will receive up to $948,025 to invest in new equipment for beef processing and new customer-friendly, leak-proof packaging with the Foodland Ontario logo.
Longo's will receive up to $446,138 to launch 'Taste Ontario Too', an in store and online marketing campaign to increase awareness in consumers about local farmers and processors.
In addition, 12 other local food projects will receive support through the province's Local Food Fund.
The agri-food sector in the province contributes around $34.8bn to the GDP, while backing 780,000 jobs.
Vaughan MPP Minister Steven Del Duca said: "Initiatives supported by the Local Food Fund help to boost local communities, as well as benefit businesses and consumers across the province.
"These projects also help ensure that Ontario's agri-food industry connects rural and urban consumers and brings the best of Ontario-grown food to tables across the province."
