Ontario’s Food and Beverage Processing Industry Strategy THE NEW ENGINE OF ONTARIO’S ECONOMY

October 2013

ONTARIO’S FOOD AND BEVERAGE PROCESSING INDUSTRY STRATEGY | The NEW Engine of Ontario’s Economy

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ONTARIO’S FOOD AND BEVERAGE PROCESSING INDUSTRY STRATEGY | The NEW Engine of Ontario’s Economy

TABLE OF CONTENTS 4 ...................................................................... Introduction 5 .................................Strategy Process & Consultation 6 ..................................................................Industry Profile 10..................................... Industry Issues & Challenges 14......The New Way Forward – Recommendations 15 ......................................................................... Next Steps

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ONTARIO’S FOOD AND BEVERAGE PROCESSING INDUSTRY STRATEGY | The NEW Engine of Ontario’s Economy

THE ALLIANCE OF ONTARIO FOOD PROCESSORS Ontario Food & Beverage Processing by 2020 T e larges anufac uring e loyer in e ro ince an e sec or of c oice for e erience rofessionals young eo le an ne Cana ians T e nu er one cus o er of n ario s ri ary agricul ure sec or generating eal an e loy en for local far ers ecession resis an an gro ing i s re enues an e or s year o er year consis en ly n engine for e e elo en of ne ig uali y ro uc s an ec nologies a ancing e elo en rocessing is ri ution an consu er eal inno ations fro isco ery o co erciali ation ri er of local econo ies generating eal e loy en an raining o or unities an a racting ne usinesses an resi en s o co unities roug ou e ro ince critical ar of ensuring continui y in su ly of eal y foo o Cana ians

The Alliance is a not-for-profit organization that speaks on issues and concerns common to Ontario’s food and beverage industry. Our focus is on the success, prosperity and growth of the food and beverage processing sector. We work collaboratively with our colleagues and partners across the agriculture and food sector. T e foo an e erage rocessing sec or is a key con ri u or o e ro incial econo y n e in us ry genera e illion in annual re enues an con ri u e illion o e ro incial ross o estic ro uc er o s are irec ly ro i e roug e sec or i ousan s ore genera e in irec ly in su orting infras ruc ure i o er of ro uc urc ase y foo an e erage rocessors fro n ario far ers e sec or is also a a or su or er of n ario s far fa ilies n n ario in e cess of usinesses ake u e foo an e erage rocessing sec or ese s all e iu an large si e usinesses con ri u e irec ly o e ro ince s econo y an o creation an ro i e eal y ig uali y foo an rink ro local c eeses o ine coun ry in ages fro elicious ea s o regional re s an fro oleso e s ecial y rea s a s an as ries foo an e erage rocessors are a sec or n arians s oul e rou of n e lliance of n ario oo rocessors s ear ea e an initiati e

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o in estiga e in us ry issues an c allenges an forecas sec or gro o ential T e resulting action lan as een e elo e o su or e eo le of is in us ry eo le o are co i e an assiona e a ou aking foo an rink in is ro ince n n ario is e rig lace for e foo an e erage rocessing in us ry o continue o gro n is ro ince e a e access o local an e or arke s a e of kno le ge in aca e ia e er s in researc an rig young eo le an eager ne Cana ians e arking on careers in an en re reneurial usiness cul ure Toge er i in us ry co i en an in es en y all ree le els of go ern en ere is re en ous o or uni y o reac a itious gro arge s y i e rig su or y e in us ry can gro o irec o s an a itional o er o ay s nu ers an genera e o er illion in re enues T e follo ing lan in i es go ern en an in us ry s ake ol ers o engage in ne ar ners i s a ill crea e a a ay o a rig er ore co etiti e an ore o erful n ario foo an e erage rocessing sec or

S atistics Cana a nnual Sur ey of anufac urers an ogging n arian inis ry of gricul ure an oo cono ic ac nalysis n ario oo an Be erage rocessing n us ry

ONTARIO’S FOOD AND BEVERAGE PROCESSING INDUSTRY STRATEGY | The NEW Engine of Ontario’s Economy

Strategy Process & Consultation With funding from the Canadian Agricultural Adaptation Program administered by the Agricultural Adaptation Council and generous support from the Grain Farmers of Ontario, the Alliance partnered with MNP LLP, Pursuit Labs Inc. and the Institute of Competitiveness and Prosperity to assist with initial research and subsequent industry consultations. The initiative followed several steps: s a lis e an n us ry

isory Co

i ee o gui e e initiati e

n iron en al scan of curren li era ure ren s an arious in us ry an organi ational s ra egies an a erials T e scan inclu e a ig le el S T analysis a re ie of olicy a ers an ro incial an national s ra egy ocu en s e elo e y key agri foo layers an organi ations an i enti cation of ig riori y s ra egies Consul ation session i o er artici an s on uly re resenting key s ake ol ers irec ly an in irec ly in ol e in e foo an e erage rocessing sec or e elo en of a consul ation iscussion a er ase on en iron en al scan acili a e consul ation on c o er fro across e sec or ne o one consul ations i

i

e

in us ry lea ers

in us ry an go ern en s ake ol ers

Co letion of n ario s oo an Be erage rocessing n us ry S ra egy i action i e s o ri e a ig ly co etiti e sec or

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ONTARIO’S FOOD AND BEVERAGE PROCESSING INDUSTRY STRATEGY | The NEW Engine of Ontario’s Economy

Industry Profile The food and beverage processing sector is an essential link in the food supply chain beginning at the farm gate and ending at the consumer’s plate. The process of making food and drink requires a number of steps and people working together starting with farmers, followed by employees in process plants and those working in the transportation, distribution and warehousing sectors. Restaurants and retail stores have the most common direct contact with consumers. The sector is made up of ten sub-sectors: $8,180,793 $5,182,626 $4,920,944 $4,674,096 $4,356,472 $3,572,452 $3,054,393 $2,696,643 $2,502,714 $289,646

$39,430,779 TOTAL 2011 REVENUE (’000)

T e sec or in n ario is co rise of a ou foo an e erage rocessing co anies ranging fro ultinationals o locally e elo e gian s an successful nic e ri en usinesses a ro i e e loy en o o er eo le in e ro ince an con ri u e ore an illion in salaries an ages ile e a ori y of foo an e erage rocessing co anies are loca e close o ur an cen res a nu er of es a lis en s are loca e in rural regions ro i ing econo ic o or unities roug ou e ro ince T e n ario foo an e erage rocessing in us ry irec ly an in irec ly i ac s e

SUB-SECTOR Meat Products Dairy Products Beverage & Tobacco Manufacturing Bakeries & Tortilla Grain & Oilseed Milling Other Food Manufacturing2 Fruit & Vegetables Sugar & Confectionery Animal Food Seafood ource tatistics Canada, urvey of Manufacturers and ogging

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n ario econo y roug e en i ures on goo s an ser ices e e loy en of orkers an e generation of a re enues is esti a e a in foo an e erage rocessors genera e e follo ing for n ario To al irec in irec an in uce ou u of illion an no inal of illion ou irec in irec an in uce full ti e e ui alen e loyees T s ou illion in irec in irec an in uce a ation re enue T e n ario foo an e erage rocessing in us ry is ore recession resis an an o er a or anufac uring sec ors n a s u y con uc e in e foo an e erage rocessing sec or as co are o e o or e icle anufac uring elec rical e ui en a liance an co onen anufac uring an agricul ure sec ors T e resul s of e enc ark analysis s o e a ile co ara or anufac uring sec ors re enue ecrease o er e e year erio fro o e n ario foo an e erage sec or an e agricul ure sec or e erience gro

S atistics Cana a nnual Sur ey of anufac urers an ogging cono ic ac nalysis n ario oo an Be erage rocessing n us ry cono ic ac nalysis n ario oo an Be erage rocessing n us ry u u is e o al gross alue of all usiness re enue is e alue a e o e econo y e un u lica e o al alue of goo s an ser ices

ONTARIO’S FOOD AND BEVERAGE PROCESSING INDUSTRY STRATEGY | The NEW Engine of Ontario’s Economy

S rong e an e is s i in e S e ico sia an uro e for foo an e erage ro uc s rocesse in n ario n n ario s foo an e erage anufac uring sec or e or s ere a ou illion accounting for ore an

of Cana a s o al foo an anufac uring e or s

e erage

T e sec or in n ario as also gro n o eco e e ir larges foo an e erage anufac uring sec or in or erica

any of e orl s larges foo an e erage anufac uring co anies a e loca e in e ro ince e sa e ti e any local co anies ro ucing inno ati e nic e ro uc s a e eco e recogni e in e arke lace

GROWTH TARGETS BY SECTORS (2010 - 2020)

TOTAL REVENUES BY SECTORS (2005 - 2010)

TOTAL REVENUES BY SECTORS (2005 - 2010)

Electrical Equipment, Appliance & Component Manufacturing

70

Agriculture

60 BILLIONS OF DOLLARS ($)

60 50 40 30 20 10 0

n us ry Cana a n ernational Tra e aa

60

BILLIONS OF DOLLARS ($)

Motor Vehicle Manufacturing

70

BILLIONS OF DOLLARS ($)

Food & Beverage Manufacturing

70

50

50 40

Electrical Equipment, Appliance & Component Manufacturing 30 Electrical Equipment,

40 30

Appliance & Component Manufacturing

Agriculture

20

20

Food & Beverage Manufacturing 10

10

Motor Vehicle Manufacturing 0

2005

2006

2007

0

2008

2009

2006

Food & Beverage Manufacturing Vehicle 2010Motor2020

2010

Manufacturing

YEAR

2005

Agriculture

YEAR

2007

2008 YEAR

2009

2010 7

ONTARIO’S FOOD AND BEVERAGE PROCESSING INDUSTRY STRATEGY | The NEW Engine of Ontario’s Economy

STRENGTHS • Attractive location. ocation

an logistics are a a or s reng for n ario s foo an e erage rocessing sec or n ario s large ig earning o ulation an ro i i y o e S arke ro i e e ro ince i access o a large lucrati e o ential consu er ase T e in us ry is also in close ro i i y o key is ri ution rou es an a or ackaging co anies

• Favourable climate and abundant resources. Sou ern n ario s ric

agricul ural lan s an il cli a e allo for e ro uction of ore an agricul ural co o ities

• Reputation for safety and quality.

Consu ers in n ario kno a ey can rus n ario foo an e erage ro uc s as a resul of e in us ry s ig s an ar s in safe y an uali y e cellence

• Quality research and education opportunities. n n ario ere

are a le o or unities for s u en s o gain e skills re uire o artici a e in e in us ry an for researc o e con uc e o su or e in us ry nsti utions suc as e ni ersities of uel Toron o ueen s an es ern n ario an a nu er of colleges suc as e Craig ic ar son nsti u e of oo rocessing Tec nology an eorge Bro n College o er suc o or unities

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WEAKNESSES • Opportunities for commercialization. T ere are

a un an o or unities for n ario rocessors o ring inno ati e agri foo ro uc s o arke roug co erciali ation o or unities a e ossi le roug cen res suc as e gri Tec Co erciali ation Cen re uel oo Tec nology Cen re Toron o oo Business ncu a or an e inelan esearc an nno ation Cen re

• Strong relationships.

Con ri uting o e success of e foo an e erage rocessing sec or in e ro ince are e s rong relations i s a e is a ong usinesses go ern en an aca e ia

• Competitive food clusters.

n ario articularly in areas suc as Toron o an uel is one of e larges an os co etiti e foo clus ers in or erica

• Costly to operate in major urban centers. articularly in e rea er

Toron o rea i is eco ing increasingly cos ro i iti e for anufac urers o e in close ro i i y o nee e su ly c ain an infras ruc ure ue o e ensi e lan cos s ig co ercial ro er y a resi ential encroac en an ig a er as e a er cos s

• Steep increases in utility costs.

ig an una oi a le cos s associa e i foo an e erage anufac uring resulting fro increases in energy a er an as e anage en cos s ake i less a racti e o in es in is region

• Risks associated with retail and distribution consolidation.

e ail an is ri ution consoli ation in n ario as resul e in a fe a or foo re ailers an is ri u ors o inating e arke lace an i osing signi can co etiti e ressure on s all an e iu si e foo an e erage rocessors

• Difficulty in securing financing.

argins in e foo rocessing in us ry are ercei e o e lo an as a resul nancial insti utions are less incline o ro i e nancing o co anies in e in us ry T is ro le is articularly ronounce for S s

• High industry entry costs.

So e su sec ors a e ig ca i al an scale re uire en s ic ay e er ne layers fro en ering e in us ry

• Seasonal producer supply.

nlike so e co eti ors ro ucers an rocessors in n ario are face i e c allenge of anaging seasonali y rela e o e ro uction of co o ities resulting in e cos rela e o i or e su ly

• Rapid increases in input costs.

nu er of fac ors a e een con ri uting o rising in u cos s associa e i foo an e erage anufac uring inclu ing increases in energy an as e anage en cos s increases in e loy en cos s as a resul of e loyee a raction an re ention e or s an in ernational a es on i or e in u s

• Low levels of investment in traditional R&D. oo an e erage

rocessing ranks secon o las in ro ucti i y gro a ong n ario s anufac uring in us ries resulting in s all an e iu si e usinesses railing larger ore ro ucti e an inno ati e co anies roug e a lication of infor al ro uc e elo en ec ni ues

ONTARIO’S FOOD AND BEVERAGE PROCESSING INDUSTRY STRATEGY | The NEW Engine of Ontario’s Economy

THREATS • Shifting consumer preferences.

Consu ers are increasingly argeting eal ier foo an e erage o tions an in oing is are eco ing ore a are of e con en s of e ro uc s ey consu e s a resul e consu tion of so e articular rocesse foo an e erage ro uc s ay i inis

• Increasing competition and pressure on profitability.

T ere is gro ing co etition fro rocessors in e S an e erging arke s e sa e ti e co etition e een ri a e la els an national ran s is likely o increase as a resul of eig ene consu er rice sensiti i y resulting in lo er ro argins for foo an e erage anufac urers in e ro ince

OPPORTUNITIES • Regulatory environment.

T e co le an cons an ly c anging regula ory en iron en a e is s i oses ig co liance cos s on in us ry artici an s an li i s eir a ili y o inno a e o satisfy c anging consu er foo an e erage references

• Required investment in food safety.

ile foo an e erage ro uc s in e coun ry are safe ere are increasing cos s associa e i foo safe y rogra i le en ation for rocessors e ec nologies an ra i i enti cation are critical o rogra e ecti eness an us e resource a ro ria ely

• Canadian dollar fluctuation.

ig er Cana ian ollar resul s in ecrease e or s for n ario anufac urers an re uce co etiti eness for e n ario in us ry as a ole

• Shifting consumer preferences.

Consu ers are increasingly argeting eal ier foo an e erage o tions an in oing is are eco ing ore a are of e con en s of e ro uc s ey consu e Soug a er functional ualities e g glu en free ero rans fa are eing incor ora e in o rocesse foo s ro i ing anufac urers i o or unities o inno a e o e elo eal ier foo ro uc s a satisfy consu er references

• Expanding export opportunities.

ecognition of e oleso e an safe uali y of Cana ian foo ro uc s e gro ing o ulation in e elo ing coun ries an rising i le class in e erging coun ries are creating ne o or unities for foo an e erage anufac urers in n ario

• Changing demographics.

ro ing an e nically i erse o ulations in n ario an o er arke s a e genera e an in eres in inno ati e foo ro uc s Si ilarly e ageing o ulation ic is elie e o a e an un arallele le el of is osa le inco e is e ec e o al er consu er e an a erns ong er success of rocessing usinesses ill e en on eir a ili y o a a ro uc s o ee e e an s of c anging e ogra ics

• Contributions to sustainability.

Sus aina ili y continues o e a a or focus in e sec or as consu ers look for e i ence of social econo ic an en iron en al sus aina ili y e or s rocessors continue o ake con ri utions in is area as i irec ly rela e o arketing an sales o or unities

• The “buy-local” movement.

Concerns o er i or e foo a e encourage consu ers o urc ase locally ro uce ro uc s n n ario consu ers are en usiastic o su or local far ers an oos e local econo y y c oosing foo an e erage ro uc s ro uce in e ro ince

• Demand for innovative products.

T e anufac uring an ro otion of ne alue a an nic e ro uc s suc as foo s ro oting eal a ri u es can ro i e ne o or unities for rocessors in e ro ince

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ONTARIO’S FOOD AND BEVERAGE PROCESSING INDUSTRY STRATEGY | The NEW Engine of Ontario’s Economy

Industry Issues & Challenges A number of issues impact processor business growth and success in Ontario. Underpinning all the following issues is the importance of providing the sector with accessible funding programs and options to access capital.

The Right Ingredients for Market Development Ontario food and beverage processors are facing a number of challenges when considering market development options. Gaining access to new domestic opportunities in retail, food service and institutional settings can be difficult to navigate, and fewer companies in Ontario now export. Forging new collaborative relationships and understanding opportunities in developing and emerging markets are a must for long-term sector growth. T e a o ca uring ne arke s an reclai ing n ario s osition as a s rong e orting uris iction re uires an un ers an ing of a ro uc s are in e an a resources are nee e an a y e of facili ation can e ro i e y go ern en agencies Opportunity & Market Analysis rocessors nee o un ers an o ential arke o or unities in e ccess o arke infor ation in e for of arke analysis consu er references an glo al ren s is e rs s e o ne arke e loration

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ONTARIO’S FOOD AND BEVERAGE PROCESSING INDUSTRY STRATEGY | The NEW Engine of Ontario’s Economy

Developing Partnerships i increasing glo al co etiti eness in e foo in us ry s ake ol er ar ners i s a e eco e e ne nor al for usiness e elo en Tea uil ing ne orking functions an infor ation e c ange foru s are a ractical ay of in ro ucing e ers of e foo an e erage su ly c ain an ro i ing a la or for usiness e elo en Trade Facilitation ar ners i s i go ern en s are essential for n ario rocessors o access ne e or arke s successfully e ning e n ario ran i entifying ne arke s an facili ating ro us ra e agree en s a e o e acco lis e roug in us ry go ern en colla oration if ese initiati es are o succee Tra e issions are critical o su or e or ar ners i s

Access To Innovation & Technology Accelerating food and beverage processing innovation and access to new technology is a key competitive factor for Ontario processors. Over the last number of years a cultural shift has taken place where the sector is not only ready to embrace the concepts of innovation but is actively seeking access to innovations and new technologies. n ario rocessors un ers an a issues of eal sus aina ili y an consu er ren s

are c anging e co etiti e lan sca e s a resul ra i access o lea ing e ge infor ation la es inno ations an ne ec nologies is in e an Ontario Food & Beverage Research & Innovation Strategy esearc an e elo en is o en e un er inning o inno ation o e er ra i cos e ecti e co erciali ation is a us if en users are o gain access ong er in es en y go ern en aca e ia an in us ry is nee e o i le en a successful s ra egy a e nes researc an inno ation riorities for e sec or follo e y a lan o ei er e elo inno ati e solutions or e lore solutions alrea y a aila le un ing us e a e a aila le in a for a a orks for foo rocessing researc an e elo en Innovation Intelligence & Information rocessors nee o e a e a are of a aila le inno ations an ec nologies for a nu er of usiness reasons si le oin of en ry o e er infor ation on inno ati e solutions

for e foo an e erage rocessing sec or oul ai rocessors in un ers an ing o tions a aila le or curren ly e elo en Investment in Innovation n es en an i ro e coor ination are i or an o su orting e n ario foo an e erage rocessor in us ry s ransition o a fas ace en iron en for inno ation erfor ance T e sec or continues o lag in ro ucti i y gro en co are o o er anufac uring in us ries ic eans s all an e iu si e usinesses rail larger ore ro ucti e an inno ati e co anies

Attracting the Next Generation The food and beverage processing industry is one of Ontario’s major hiring sectors providing over 125,000 direct jobs. Not unlike other manufacturing sectors, processors are finding themselves in a growing employee deficit scenario. Jobs are available, however trained or experienced individuals are in shortage. n a ition in ouse o erational c allenges suc as skills raining for e loye in i i uals usiness es anage en ractices an succession lanning continue o i e e usiness gro es ecially in s all o e iu si e en er rises Education & Training Resource oo an e erage rocessing is a i ran sec or o ering a arie y of career a s for secon ary college an or uni ersi y e uca e

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ONTARIO’S FOOD AND BEVERAGE PROCESSING INDUSTRY STRATEGY | The NEW Engine of Ontario’s Economy

in i i uals oung eo le nee o un ers an e career o or unities an e rela e e ucation an raining o tions a aila le o e cen rali e e ase infor ation si e a ro i es for al curriculu infor ation in a ition o en ors i rogra s infor ati e e en u lic s eaking an a oc learning o or unities ill assis s u en s an ne en ran s o e in us ry in na igating roug o tions T is resource ill also e of alue o ork lace raining oar s sc ool counsellors an o er y es of gui ance su or

collecti e i ro e en s a e across e in us ry in er s of uil ing a cul ure of life long learning an e loyee re ention

a aila le is ne ork of e ertise coul e arnesse o len rain o er o e sec or roug e e elo en of usiness s ra egies an s ra egic inking

Closing Up Competitive Gaps

Resources & Investments ncreasing cos s of in u s an lack of a aila le ca i al u s any s all o e iu si e rocessors a a co etiti e isa an age By ooling resources an le eraging uying o er i is ossi le o raise e argaining osition of s aller anufac urers

Raising Awareness o unlike o er anufac uring sec ors suc as fores ry an ining e foo an e erage in us ry nee s an ou reac ca aign a is co re ensi e an ulti e ia ase o e ose an a rac young eo le o e nu er of e citing career a s a aila le o e in e sec or ca aign of is agni u e ill e far reac ing i e ri ary goal of ca uring e i agination of young eo le an ne en ran s consi ering eir fu ure an e o or unities a ea of e

However, as an export-trading region, Ontario suffers, as does Canada, with a trading deficit. In 2012, Canada’s trade deficit sat at nearly $6.5 billion. Add to this a strong bias to the United States as an export market and the sector is vulnerable to currency fluctuations and border threats. Domestically, imported product continues to be a challenge to local marketers.

Tools for Employers loyers o er e os irec an an s on a roac o su orting a eal y cul ure in e foo an e erage rocessing usiness rofessional e elo en o or unities suc as en ors i rogra s or es anage en ractices raining can e o er e isting e loyees o e er eir con ri ution o e sec or n i i ually eac foo an e erage rocessing usiness in n ario a s o e

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Ontario processors have some impressive business advantages – good location to reach consumers, access to 200 plus agricultural commodities, a strong provincial food safety and quality reputation, and the basis for robust relationships with supply chain partners.

S ra egies o i ro ing e co etiti e osition of n ario rocessors a e een ell ocu en e Ca uring ne arke s re ucing in u cos s o erni ing anage en sys e s an ysical lan asse s i ro ing ro ucti i y an ensuring e rig ra e agree en s are in lace all lay a role Access to Business Development Expertise n ario is o e o a nu er of usiness an econo ic e er s a ni ersities researc insti u es an non ro organi ations f a e

Strengthening Ontario’s Brand Ontario has food and beverage character and clout. Processors purchase over 65% of raw product from local Ontario farmers and product from Ontario is unique and well-recognized by the consumer. Thanks to regional and provincial consumer campaigns local product is in demand. Ontario and Canadian food and drink also hold a strong brand position in many export friendly markets. S reng ening n ario s ran as an e erience foo an e erage in us ry ro i ing oleso e ig uali y an safe foo ill s reng en cre i ili y for rocessors in local arke s su or access o ne arke s an a rac rocessor in es en o e ro ince Taking a colla orati e a roac i go ern en on engaging in e eal e a e ill also uil re u ation an consu er con ence

ONTARIO’S FOOD AND BEVERAGE PROCESSING INDUSTRY STRATEGY | The NEW Engine of Ontario’s Economy

Telling the Story T e n ario foo an e erage rocessing in us ry as an e citing s ory o ell T e sec or ro uces eal y ig uali y foo an e erages for a i erse an e an ing consu er ase is a ri ary career c oice for any n arians an is a a or con ri u or o e ro incial econo y T is is a s ory a nee s o e ol an ere are a nu er of in us ry a assa ors o can ake a lea ing role in uil ing consu er recognition an loyal y an engage younger generations of rofessionals

an a ress a ers of regula ory na igation a ro al rocesses an re un ancy c allenges continue o e is is o circu s ances a e unici al an fe eral le els on i e s suc as regula ory ar oni ation i key ra ing ar ners or usiness e ansion locally an e regula ory en iron en can e frus rating for rocessor usinesses

Defining Ontario T e uestion of a e nes n ario oge er i e esire y cer ain consu er seg en s o a e e aile infor ation on ro uc s as initia e an i or an con ersation a ou e ning an i entifying n ario foo i reference o s eci c a ri u es ssues of foo securi y au entici y an so ereign y can e itiga e an consu er loyal y en ance i a ro us sys e s eci c o e n ario foo su ly c ain

Understanding the Issues & Working Together ssues of la elling in er ro incial ra e su ly la our en iron en an ackaging all fall i in arious unici al ro incial an fe eral fra e orks rea er colla oration e een re resen ati es fro agricul ure an agri foo i all ree le els of go ern en can assis e sec or in orking oge er an in a alance anner en refor ing ol regula ory sys e s an i le enting ne

Streamlining Regulations A strong and effective regulatory system is an important part of Ontario’s brand. Ontario’s regulatory environment protects public safety and provides assurances to consumers around the world regarding the safety, quality and credibility of Ontario produced food and drink. However, many have observed that regulations can be cumbersome or obstructive by not keeping pace with market place changes, limiting production expansion and slowing business development. l oug ere a e een ositi e c anges i in e n ario go ern en o s rea line regulations

Ease of Use co le regula ory en iron en increases cos an slo s s ee of use for rocessors asy o use on line regula ory rocesses oul assis rocessors in eeting regula ory e ec ations ile a e sa e ti e ursuing usiness e elo en initiati es Regulatory Navigation T e in us ry nee s a single or of access o facili a e all regula ory na igation as i o en o s ruc s gro initiati es in es en an s ee o arke

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ONTARIO’S FOOD AND BEVERAGE PROCESSING INDUSTRY STRATEGY | The NEW Engine of Ontario’s Economy

THE NEW WAY FORWARD – TAKING ACTION – RECOMMENDATIONS The Ontario food and beverage processing industry is poised for growth. With the right investment, the right people and the right programs, creating a stronger, more competitive environment for Ontario food and beverage processors is within our reach. The following action plan is an important next step in meeting that challenge.

I. Establishing a Food & Beverage Innovation Centre Ontario needs a Centre dedicated to food and beverage processing innovation, business development and incubation to drive a new level of processor competitiveness both domestically and globally.

T is Cen re ill ro i e a ysical an on line s ace ere rocessors can access e ertise an resources o irec ly su or eir o n usiness e elo en i is Cen re in us ry ill n el in in estigating inno ations ec nology scouting accessing arke in elligence e elo ing ar ners i s an learning of ays o i ro e ro ucti i y T e Cen re ill also ro i e incu ation facilities an facili a e rocessor connections i ne orks in researc an inno ation co erciali ation an ro uc e elo en

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a ing access o ca i al is an i or an issue un er inning inno ation an usiness e elo en for rocessors T e Cen re ill assess an s rea line ca i al o tions for rocessors suc as angel or en ure ca i al e nancing e ui y nancing a aila le go ern en rogra s an e en consi er e e ing nancial ar ners in e Cen re Innovation Resource & Portal – the processor source for latest innovations and technologies. T e Cen re ill ro i e irec access ia a or al o an in en ory of e orl s es ec nologies inno ations arke infor ation anufac uring rocesses an ro uc ackaging an infor ation s a resource rocessors ill also a e access o regula ory infor ation la es scienti c researc an a ne ork of inno ation i eline con ac s n e ucation an raining rogra ill uil in ouse co any skills an assis infor ation an i ea e c ange i in an o en inno ation la or T e Cen re ill e elo a sec or

researc an inno ation s ra egy an uil ca aci y y ro i ing fee ack o in us ry fro inno ation successes an es ractices fro aroun e orl i is resource in us ry ill a e irec access o e ertise in o o eco e ore rocess e cien an ro ucti e

access o ca i al i entifying ar ners an facili ating ne su ly c ain e elo en o ential alue c ain ar ners ill e i enti e an gui ance ro i e on o o ini i e risk in colla oration an increase collecti e an in i i ual usiness re enue

Business Strategy & Market Development – experts in business development. ea ers in usiness an ran e elo en ill assis rocessors in e loring ne arke s an o or unities roug ren forecasting econo ic analysis case s u ies success s ories co any roa a s u orials an a erials T is resource ill assis rocessors in na igating ne is ri ution c annels an e an ing eir usiness

Incubator – pilot plant for small-scale manufacturing. T e Cen re ill ake a aila le a lea ing e ge e i le anufac uring facili y ca a le of s all scale ro uc s runs a can e con rac e y rocessors o in estiga e ne ro uc an rocess o or unities T e facili y ay e ol e in o a co ercial incu ation cen re for foo rocessing

Value Chain Development – finding the right partners to develop new supply chains. T e Cen re ill ro i e su or o rocessors in eir ransition fro s all o i si e co anies or i si e o large y facili ating

Ontario has a strong brand presence, and that brand can be leveraged by processor businesses as part of their market development strategy. By increasing the profile of Ontario’s assets related to food– a place for healthy, high quality food produced

II. Raising the Profile of Ontario Food & Drink

ONTARIO’S FOOD AND BEVERAGE PROCESSING INDUSTRY STRATEGY | The NEW Engine of Ontario’s Economy

in a safe food system – there is an opportunity to expand the reputation of Ontario product in developed and emerging markets. colla orati e initiati e e een in us ry s ake ol ers an e n ario inis ry of gricul ure an oo inis ry of ural airs s oul e initia e o ring clari y o n ario s ran follo e y esign an i le en ation of a ca aign a su or s ran e elo en in local an glo al arke s entifying n ario ran a ri u es an e o ential for a easura le ran i enti cation sys e is one ay of assisting foo an e erage rocessors in i erentiating eir ro uc i a ne i ension of uni ueness an cre i ili y racing e eal e a e oge er i go ern en using science ase o ecti e s ory elling ill e an essential ar of ain aining ran in egri y n a assa or rogra ere in us ry c a ions can ro o e n ario foo an rink in foreign arke s o su or ra e agree en s an a rac ne in es en o n ario ill also e a i al co onen of ran co unications

III. Developing Talent & A Future In Food

The food and beverage processing industry offers an exciting and diversified career environment but continues to be the industry’s best-kept secret. A

comprehensive communications and marketing campaign that engages the Ontario Ministry of Education, Ontario Ministry of Training, Colleges and Universities, Ontario Ministry of Agriculture and Food, industry associations and education stakeholders for the purposes of reaching the next generation workforce is an investment that must be made To n a ia le solution for sec or s eci c s eciali e skills a ro ince i e lan us also e i le en e T is lan ill ake action on e elo ing on si e raining rogra s ri ing colla oration across os secon ary insti utions o eli er rogra s ere skills raining is nee e an recrui o s ore seasonal su or ere ere is a local s or age or lack of in eres in e role

IV. Simplifying & Modernizing Regulations

Regulations are an essential and necessary part of ensuring a robust and safe Ontario food system but the cost, complexity and commercelimiting effect on the sector is a serious problem threatening retention, especially in large urban areas such as the Greater Toronto Area.

T e o ern en of n ario s en for Business s ra egy as een e ecti ely assisting in i entifying ro le s an s rea lining rocesses u ere is still roo o i ro e colla oration e een in us ry an go ern en efore regulations are enac e an en refor is nee e orking oge er akes co i en u i is e only ay o o e o a lan sca e of alance ecision aking in regula ory fra e orks

NEXT STEPS With the right measures and investment in place the Ontario food and beverage processing industry can grow by 2020 to 185,000 plus jobs and generate over $70 billion in revenues.

one in o a roac o regula ory na igation for all ree le els of go ern en oul also assis rocessors in s rea lining recor kee ing re ucing e a er ur en an accelerating regula ory a ro als T is a roac oul a e a secon ary ene of creating a colla orati e cul ure cross inis ry an cross e ar en a oul assis in reaking o n arriers an re ucing unnecessary re a e Cross go ern en colla oration oul also ork fa oura ly en en ea oring o align an ar oni e regulations i a or ra ing ar ners

T e ti e for action is no if e are o ee e nee s of n arians T e lliance of n ario oo rocessors is calling for e i e ia e creation of a Task orce o e resource y in us ry an go ern en The Task Force will: Create Implementation Teams for each of the four recommendations that will develop 3-5 year implementation plans identifying necessary resources, partners, timelines and execution structures. Complete and submit recommendations to the Premier of Ontario and other stakeholders by February 2014 to secure necessary investment and resources.

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