Live lobster holding facilities in the P.E.I. communities of Evangeline, Souris, Tignish, Summerside and Darnley are expanding with the help of funding from the provincial government.

Being able to hold live lobster for a longer period gives processors more flexibility to adjust their production to meet the existing labour supply, according to a written release.

"Innovation PEI is responding to the industry's needs by providing grants to five projects that will enhance our province's live lobster holding capacity, enhancing our exports and supporting the economies in our rural communities while building our reputation as Canada's Food Island," Economic Development Minister Heath MacDonald said in the release.

Innovation PEI has contributed more than $224,000 in grants since March 2015 to the Live Lobster Holding Program, with the remaining $2.2 million coming from the private sector.

The five projects — at Acadian Supreme, Colville Bay Oyster Co., Royal Star Foods, JMK Fish Mart and Basin View Seafood — will add more than half a million pounds to the province's total lobster holding capacity, which is approximately 2.3 million pounds.

"An increase in live lobster storage capacity gives us the opportunity to store more lobster during peak landing periods and as a result will get additional fresh, high quality, value added products to market," said Jeff Malloy, Acadian Supreme's CEO and general manager.

Under Innovation PEI's program, companies can access a 10 per cent grant from government for expansion projects, to a maximum of $50,000 per company per during 12-month period.