Natural Resources Minister Paul Robichaud, who is also minister responsible for the province's Regional Development Corporation, says the money will create 12 jobs at the company's plant in Shippagan.
The company is acquiring new technology to increase productivity and energy efficiency, as well as reducing production costs at its Shippagan plant.
The provincial government's share of the project is $250,000.
The Atlantic Canada Opportunities Agency is providing the company with $500,000, which is repayable.
The Jiffy plant has been operating on the Acadian Peninsula since the mid-1970s.
The Norwegian-based company employs more than 300 people at its plant in Shippagan and makes pots, pellets and plastic trays.