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Food and Beverage Export Strategy Development
2018 to 2021
Overview The food and beverage sector in Atlantic Canada (excluding seafood) accounts for approximately $900 million in annual
exports responsible for 11,000 jobs in Atlantic Canada. Over 50% of these exports are frozen potatoes and blueberries,
with the vast majority of the remaining 260-400 processors currently not export ready. This sub-group of processors is a
key focus. As well – this strategy will follow the key objectives of ATIGS which by 2025 will:
• Double the number of exporters;
• Increase the value of Atlantic exports by 30%;
• Increase the percentage of Atlantic firms exporting to more than one market to 40% of exporters; and
• Increase foreign investment in Atlantic Canada.
Context CONDITIONS HOW DO THESE CONDITIONS IMPACT OUR
STRATEGY?
1. Fostering Innovation - Delivering the right product to the right market in the
most efficient way
- Product innovation, product renovation, automation of
product processes
2. Coordinating multi-
level government
supports and reducing
policy barriers
- A Pan-Atlantic approach to pathfinding to improve ease
and access for industry
- Coordinating programs and funding
3. Ensuring that key
infrastructure is in place
- Inventory: processors, capacity, infrastructure,
knowledge, export readiness
- Training and support programs
- Industry Export Association
4. Improving
management and
workforce skills
- Building a culture of export
- Increase export readiness
Methodology PHASE 1 Research/Industry Analysis based on information, reports, statistics, etc. provided by
the team members and or other resources (online, etc.)
PHASE 2 Stakeholder Engagement Interviews – processors (13), funders (5), importers (2),
matchmakers (3), trade commissioners (6) and
government partners
PHASE 3 Gap Analysis/Best
Practices
key areas of best practices identified – synopsis style –
i.e. Australia
PHASE 4 Strategy Development initial findings presented to the team on Nov. 28
PHASE 5 Review December 11 – December 22
PHASE 6 Final Draft Strategy January 5, 2018
The Total Sector
Without Seafood
Current Exports
Sub Sectors
Of the $242M in sector exports, the following are the sub sectors that
represent the industry in Atlantic Canada:
Animal Food
Grain and Oilseed
Sugar and Confectionary
Fruit and Vegetable (minus frozen potatoes and wild blueberries)
Dairy
Meat
Bakeries and Tortillas
Soft Drinks
Breweries
Wineries and Distilleries
Where Atlantic Canada Fits: PEI NB NS NL
Per capita food manufacturing sales 1ST 4TH 9TH 8TH
Growth in food manufacturing 1ST 3RD 9TH 7TH
Food manufacturing exports 1ST 5TH 7TH 3RD
Food manufacturing R&D
expenditures
2ND 3RD 6TH 9TH
SWOT STRENGTHS
o Value of the Canadian dollar
o Well-qualified workforce supplied by local universities and
colleges
o Access to local, essential raw materials
o Strength of “Canada” brand
o Plant efficiencies and increased automation
o Supportive government agencies/funders
o Atlantic Growth Strategy
WEAKNESSES
o Lack of market readiness/knowledge
o Lack of export savvy and entrenched attitudes limit
perspective and outward vision
o Value of the Canadian dollar
o Misalignment between small scale production and demands of
large European and Asian markets
o Lack of coordinated marketing efforts to foreign markets
o Under-utilized processing capacity
o Labour: low wages, aging workforce and high cost of labour
o Lack of consolidated innovation and product development
efforts
o Access to capital
o Competitiveness has stalled
o High energy costs
OPPORTUNITIES
o Growth through mergers and acquisitions
o Value-add food products
o Artificial Intelligence to maximize efficiencies
o Asia-Pacific and Euro zones (CETA)
o Segmented global food market
o Organic/health food markets
o Emergence and growth of global food value chains
o Growing protectionism in the USA (Mexico, Latin America
opportunities)
o Regional branding
THREATS
o Price and affordability dominate consumer demand
o Focus on healthier eating has led to decline of processed food
consumption
o Growing protectionism in the USA
o Existing and future trade regulations –
o Rising input costs
o Lack of cooperation between provinces
o “Founder” syndrome
Key Challenges (1-5)
1. The state of export readiness is overwhelmingly highlighted as the key
issue for the food and beverage processors in Atlantic Canada. Many
companies have had failed attempts at export because they were not prepared,
or did not have the ability/knowledge to follow through - but only discovered it
while already in the process.
2. A lack of innovation in product development is hindering export
opportunities.
3. A perceived unwillingness of processors to adapt their product offering, i.e.
flavor profiles, product positioning and/or branding.
4. Processors view their products as premium sector products and therefore
aren’t realistic when it comes to cost and expectations related to exporting.
5. Many companies are afraid of the idea of export and what it might do to
their business.
Key Challenges (6-10)
6. Many companies aren’t interested in exporting at all and only participate for
the network potential.
7. Capacity to deliver product and price competitiveness tend to be recurring
and dominating issues in many markets.
8. A lack of market knowledge has left many Atlantic Canadian companies
heading down the wrong path (wrong product for the wrong market at the wrong
time)
9. Export growth for Atlantic food and beverage companies.
10. Confusion over tools and services available.
Critical Barriers to Export
Development
1. Unique Selling Proposition of many Atlantic Products not as
strong as some processors think
2. Ability to compete on price
3. Capacity to deliver product volumes
4. Lack of market knowledge creates false expectations
5. Lack of willingness to modify products for certain markets
6. CETA – Increased domestic competition
7. Marketing/Branding (No one knows Atlantic Canada)
Slides for Reference Only
for Q&A
NAICS 3111 3112 3113 3115 3116 3118 3119 3121 TOTAL
Category
Animal
Food
Grain
and
Oilseed
Sugar
and
confectio
nary Dairy Animal
Bakeries
and
Tortillas Other Beverage
America
United
States 41,778,780 26,854,543 10,949,737 10,060,166 3,017,906 36,284,881 77,020,194 15,351,291 221,317,498
Mexico 1,302,159 1,579 - 652,001 290,398 2,766 978,001 - 3,226,904
Asia
China - 37 11,310 444 419,844 - 77,084 782,248 1,290,967
Asia (other) -
Philippines 427,788 242,662 8,842 - - 11,789 - 691,081
Taiwan 12,213 41 142,955 - 39,708 8,255 105,442 161,954 470,568
Hong Kong 122,270 11,948 - - - 15,944 34,910 185,072
Japan 51,772 14,456 729,941 492,568 - 51,839 26,131 1,366,707
Vietnam 43,362 3,829 - - - 5,105 - 52,296
Korea,
South 384,467 - 33,790 - 236,632 309,078 963,967
Europe -
United
Kingdom - 9,117 44,111 48,040 - - 23,378 144,580 269,226
European
Union
(Western) -
France 64,964 183,739 2,946,282 209,548 357,589 69,505 3,978,477 258,382 8,068,486
Iceland - 111,837 18,881 - - 149,390 13,136 8,239 301,483
Germany - 96,626 61,317 - - - 3,201 164,312 325,456
Netherlands - 13,649 883,647 - - - 1,178,196 3,319,964 5,395,456
Spain - - 127,306 - - - - - 127,306
Sweden - - - - - 42 30,975 - 31,017
Portugal - - - - - - 4,732 - 4,732
Switzerland - - - - - - 102 56,729 56,831
Denmark - - - - - - 40 - 40
Ireland - - - - - - - 89,393 89,393
Norway - - - - - - - 10 10
TOTAL 43,585,904 27,731,234 15,609,088 11,700,140 4,651,803 36,514,839 83,734,267 20,707,221 244,234,496
Powered by
Atlantic Food and Beverage Processors - Online Survey • Monday, January 08, 2018
• Date Created: Monday, October 30, 2017
37 • Total Responses
• Complete Responses: 32
Q1: Is your business in
food or beverage?
• Answered: 35 Skipped: 2
Q1: Is your business in
food or beverage?
• Answered: 35 Skipped: 2
Q2: What is your
position/title?
• Answered: 36 Skipped: 1
Q2: What is your
position/title?
• Answered: 36 Skipped: 1
Q3: How long has your
business been operating?
• Answered: 36 Skipped: 1
Q3: How long has your
business been operating?
• Answered: 36 Skipped: 1
Q4: How many employees
do you employ?
• Answered: 36 Skipped: 1
Q4: How many employees do
you employ?
• Answered: 36 Skipped: 1
Q5: What are your yearly
revenues?
• Answered: 36 Skipped: 1
Q5: What are your yearly
revenues?
• Answered: 36 Skipped: 1
Q6: Do you export?
• Answered: 37 Skipped: 0
Q6: Do you export?
• Answered: 37 Skipped: 0
Q7: Have you ever
considered exporting?
• Answered: 11 Skipped: 26
Q7: Have you ever
considered exporting?
• Answered: 11 Skipped: 26
Q8: Why don’t you export?
Check all answers that apply.
• Answered: 11 Skipped: 26
Q8: Why don’t you export?
Check all answers that apply.
• Answered: 11 Skipped: 26
Q9: What do you
think the biggest
barriers to export
are for Atlantic
processors?
Check all answers
that apply.
• Answered: 11
Skipped: 26
Q9: What do you
think the biggest
barriers to export
are for Atlantic
processors? Check
all answers that
apply.
• Answered:
11
Skipped:
26
Q10: What would it take for you to
consider exporting your products to
other markets? Check all answers that
apply.
• Answered: 10
Skipped: 27
Q10: What would it take for you to
consider exporting your products to
other markets? Check all answers that
apply.
• Answered: 10 Skipped: 27
Q11: Where
do you think
would be a
likely export
market for
your existing
products?
Check all
answers that
apply.
• Answered: 11 Skipped: 26
Q11: Where do you think would be a likely
export market for your existing products?
Check all answers that apply.
• Answered: 11
Skipped: 26
Q12: Could you see your business
developing new products to export?
• Answered: 11 Skipped: 26
Q12: Could you see your business
developing new products to export?
• Answered: 11 Skipped: 26
Q13: How long have you
been exporting?
• Answered: 21 Skipped: 16
Q13: How long have you
been exporting?
• Answered: 21 Skipped: 16
Q14:
Where are
you
currently
exporting?
Check all
answers
that apply.
• Answered: 21
Skipped: 16
Q14: Where are you currently exporting?
Check all answers that apply.
• Answered: 21
Skipped: 16
Q15: What
other markets
do you think
have potential
for you?
Check all
answers that
apply.
• Answered: 21 Skipped: 16
Q15: What other markets do you think
have potential for you? Check all
answers that apply.
• Answered: 21
Skipped: 16
Q16: What did you do to prepare your
business going into new markets? Check all
that apply.
• Answered: 21 Skipped: 16
Q16: What did you do to prepare
your business going into new
markets? Check all that apply.
• Answered: 21 Skipped: 16
Q17: What are
your biggest
challenges in
exporting
today? Check
all answers that
apply.
• Answered: 21 Skipped: 16
Q17: What are your biggest challenges in exporting
today? Check all answers that apply.
• Answered: 21 Skipped: 16
Q18: What percentage of your total
sales volume is from exports?
• Answered: 21 Skipped: 16
Q18: What percentage of your total
sales volume is from exports?
• Answered: 21 Skipped: 16
Q19: Do you have an
export plan?
• Answered: 21 Skipped: 16
Q19: Do you have an
export plan?
• Answered: 21 Skipped: 16
Q20: Has exporting
changed your business?
• Answered: 21 Skipped: 16
Q20: Has exporting
changed your business?
• Answered: 21 Skipped: 16
Q21: What are you doing to prepare to
go to market? Check all that apply.
• Answered: 20 Skipped: 17
Q21: What are you doing to prepare to
go to market? Check all that apply.
• Answered: 20 Skipped: 17
Q23: Do you invest in new product
development and R&D?
• Answered: 32 Skipped: 5
Q23: Do you invest in new
product development and
R&D?
• Answered: 32 Skipped: 5
Q24: If yes, please provide
estimated levels of investment.
• Answered: 26 Skipped: 11
Q24: If yes, please provide
estimated levels of investment.
• Answered: 26 Skipped: 11
Q25: Using a scale of not important to
very important, how important is product
innovation in your business?
• Answered: 32 Skipped: 5
Q25: Using a scale of not important to
very important, how important is product
innovation in your business?
• Answered: 32 Skipped: 5
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