Domestic Market Unit PREDA membership meetingAlberta Agriculture and Forestry September 6, 2019

ALBERTA FOOD AND BEVERAGE SUPPLY TODOMESTIC AND LOCAL MARKET

DOMESTIC MARKET 2015Ontario is the number one supplier ($11 Billion), followed

by Quebec ($9 Billion) and Alberta ($6 Billion).

$-

$410

$2,452

$8,869

$172,645

$438,039

$871,049

$1,318,456

$1,900,508

$2,240,244

$3,478,460

$5,934,911

$8,966,115

$10,951,826

$- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000

Canadian territorial enclaves abroad

Northwest Territories

Yukon

Nunavut

Newfoundland and Labrador

Prince Edward Island

Nova Scotia

New Brunswick

Saskatchewan

Manitoba

British Columbia

Alberta

Quebec

Ontario

$ in thousand

Interprovincial Exports

LOCAL MARKETOntario’s supply to local market ($19 Billion) is almost doubled the

value of its supply to domestic market, an opposite scenario for Alberta.

$-

$837

$2,272

$6,623

$217,365

$287,346

$342,358

$384,592

$558,366

$626,175

$3,568,341

$3,639,955

$10,645,697

$18,985,164

$- $5,000,000 $10,000,000 $15,000,000 $20,000,000

CANADIAN TERRITORIAL ENCLAVES ABROAD

NORTHWEST TERRITORIES

NUNAVUT

YUKON

PRINCE EDWARD ISLAND

NEW BRUNSWICK

NEWFOUNDLAND AND LABRADOR

NOVA SCOTIA

SASKATCHEWAN

MANITOBA

ALBERTA

BRITISH COLUMBIA

QUEBEC

ONTARIO

$ in thousand

Local Market (Produced and consumed within the province)

0 5000000 10000000 15000000

Canadian territorial enclaves abroad

Northwest Territories

Nunavut

Yukon

Prince Edward Island

New Brunswick

Newfoundland and Labrador

Nova Scotia

Saskatchewan

Manitoba

Alberta

British Columbia

Quebec

Ontario

2016 Population

Domestic42%

Local 25%

Export32%

Alberta$14 Billion

Domestic27%

Local46%

Export27%

Ontario$41 Billion

LOCAL MARKET

Domestic35%

Local42%

Export23%

Quebec$26 Billion

Domestic38%

Local39%

Export 23%

British Columbia$9 Billion

Ontario, Quebec and British Columbia supply more food and beverages

to the local market than the domestic market and vise versa for Alberta.

ALBERTA’S FOOD AND BEVERAGE SOLD TO

THE DOMESTIC MARKET

MORE THAN TWO-THIRDS OF ALBERTA FOOD AND BEVERAGE PRODUCTS ARE CONSUMED IN CANADA

Supplied to other provinces$5.93 Billion

Exported to other countries$4.52 Billion

Supplied to local markets$3.56 Billion

Alberta food and beverage supply

DOMESTIC MARKETOntario is the biggest market for Alberta, followed by Quebec and

British Columbia. Together they account for 85% of Alberta’s supply to

domestic market.

$-

$2,267

$6,548

$9,052

$14,383

$32,915

$122,811

$137,226

$261,873

$290,209

$1,472,150

$1,589,765

$1,995,712

$- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000

CANADIAN TERRITORIAL ENCLAVES ABROAD

NUNAVUT

YUKON

PRINCE EDWARD ISLAND

NORTHWEST TERRITORIES

NEWFOUNDLAND AND LABRADOR

NEW BRUNSWICK

NOVA SCOTIA

MANITOBA

SASKATCHEWAN

BRITISH COLUMBIA

QUEBEC

ONTARIO

$ in thousand

Alberta's supply to domestic market

0.4% Atlantic Provinces

5.1%Manitoba

4.4%

Saskatchewan4.9%

British Columbia24.8%

Quebec26.8%

Ontario33.6%

ALBERTA’S FOOD AND BEVERAGE SOLD TO

THE LOCAL MARKET

ALBERTA’S SUPPLY TO ITS LOCAL MARKETFresh and frozen beef and veal account for almost one-fourth of Alberta’s supply to its

local market, followed by bread, rolls and flatbreads (9%) and processed meat

products, other miscellaneous meats and animal by-products (8%).

$88,145

$92,011

$92,827

$97,814

$102,770

$111,760

$131,383

$137,527

$183,205

$217,936

$224,690

$256,867

$276,526

$303,771

$838,009

$- $200,000 $400,000 $600,000 $800,000

Fresh vegetables (except potatoes)

Margarine and cooking oils

Snack food products

Other miscellaneous crop products

Flour and other grain mill products

Bottled water, soft drinks and ice

Preserved fruit and vegetables and frozen foods

Fresh potatoes

Processed fluid milk and milk products

Beer

Grain and oilseed products, n.e.c.

Fresh and frozen poultry of all types

Processed meat products, other miscellaneous meats and…

Bread, rolls and flatbreads

Fresh and frozen beef and veal

$ in thousand

Top 15 (highest value) Alberta food and beverage products sold locally

Others2%

3%

3%3%

3%

3%

4%

4%5%

6%6%

7%

8%

9%

Fresh and frozen beef

and veal23%

LOCAL MARKET 2015 Alberta’s supply to local market grew 19% ($578 million) from

2010, compared to British Columbia 28% ($793 million), Quebec 11%

($1 billion) and Ontario 8% ($1.5 Billion)

-50%-40%-30%-20%-10%

0%10%20%30%40%

2015 Local Market - growth against 2010

WHAT IS LOCAL FOOD?

Food grown, made and/or harvested in Alberta and then

marketed in Alberta

ALBERTA MARKET CHANNELS

Retail - independent, specialty, convenience, retail

chains and home delivery

Foodservice – restaurants, schools, institutions,

hospitals and catering operations

Direct-to-consumer – one or a group of businesses

selling food and agricultural products directly to

consumers, or the end users of those products

ALBERTA MARKET CHANNELS

• Retail $9.9B (Canadian Grocer 2018) Nielsen Canada All food

• All Foodservice $3.5B (Stats Can 2015) All food

• Direct-to-consumer $1.27B (AF 2016) All food

ALBERTA RETAIL GROCERY SECTOR

2017 Canadian grocery sales $97.5B

All AB grocery sales $14.6B (Canadian Grocer 2018)

AB retail food sales $9.9B

AB claim food sales 518.7M (UPC code only; excludes most meat and produce; excludes Walmart)

(Consumer Corner Issue 47 Sept 2018 using Neilsen Canada data 2018)

80% food sold in Canada is through 5 firms

Warehouse stores sell 53% of groceries purchased in Canada

ALBERTA FOODSERVICE SECTOR

$11B (Stats Can 2015)

Value of all food and beverages purchased by AB

foodservice sector $3.5B

AB made food and beverages est. 2017 $1.1B (technomic Canada)

Spending on food in Alberta restaurants has grown by 21 per cent, from $2,523 per year in 2010 to $3,059 in 2016. (Stats Can 2016)

ALBERTA DIRECT-TO-CONSUMER SECTOR

•Food sales through direct to consumer channels more than doubled since 2008 •Farmers’ Markets: $924.4 million; 81% on AB local food ($753.7M)

•Farm Retail: $303.7 million; 92% on AB local food ($279.3M)

•Consumer Supported Agriculture (CSA): $39.4 million

•Combined AB food 2016: $1.27B

•89% respondents accept the term local food as food grown or made in Alberta.

SIZE OF AB DIRECT-TO-CONSUMER SECTOR

40,638 farms in Alberta (2016 Census of Agriculture)

2062 farms in Alberta sell direct to

consumer (~ 5%)

424 farms have organic products for sale

DIRECT MARKETING IN ALBERTA

In 2015, 1 in 8 (12.6%) farm operations used direct marketing to sell to Canadians.

Alberta (2016 Census of Agriculture) Number of

Farms

Percent of

Total

Total number of Farms 40,638

Farms selling direct to consumer 2062 5%

Farms selling unprocessed products 1986 96%

Farms selling value-added products 197 10%

Farms selling farm gate, stands, kiosks, u-pick 1761 85%

Farms selling through farmers’ markets 425 21%

Farms selling through CSA’s 119 6%

Farms using other methods 94 5%

98% of Alberta households buy local food

78% of Alberta households buy from markets

Average spending per market visit = $70

Over 80% of expenditures on food

Alberta Farmers’ Market Opportunity

ALBERTA MARKET SITUATION

Alberta Approved Farmers’ Markets Public Markets

Government oversight of operation No government oversight

Non-profit No requirement for specific business

model

Minimum number of vendors Set own minimum number of vendors

80/20 Rule Set own vendor/product mix

Market must be insured No requirement for market insurance

Part 3 of Food Regulation:

food permit for market

Part 2 of Food Regulation:

food permits for vendors

Cottage wines, craft beers and spirits

allowed

Alcohol only allowed at “artisan” markets

Mandated market manager training No training for managers required

Encouraged to use Sunnygirl logo Use of Sunnygirl logo prohibited

CHANGE IN MARKET VENDOR POOL

Expansion-focused

operators

Small-scale operators

Hobbyists

TALK ABOUT LOCAL BUSINESS OPPORTUNITIES…DIVERSIFY…ADD VALUE

…SPECIALTY AND NICHE

LOCAL MARKET SPOTLIGHT MARKET GARDENS

• Summer’s Gold, Crooked Creek

• Red Willow Gardens,Elmworth

• Local Roots, High Prairie

• Christie’s Garden and Greenhouse, High Prairie

LOCAL MARKET SPOTLIGHT MARKET GARDENS

• Erdmann’s Gardens and Greenhouse, Westlock County

• Doef’sGreenhouses, Lacombe County

• Paradise Hill Farm, Nanton

LOCAL MARKET SPOTLIGHT DIVERSIFIED AG

• First Nature Farms

Goodfare

• Nature’s Way Farm

Grimshaw

• Armstrong Acres

Hythe

LOCAL MARKET SPOTLIGHT FLOUR & MILLING

• Peace Country Milling and Grain,Sexmith

• A & D Milling, Castor

• Highwood Crossing, High River

LOCAL MARKET SPOTLIGHT BEER

• Grain Bin Brewery, GP

• GP Brewing Co., GP

• Dunvegan Brewing Company, Rycroft

• Peace River Brewing, Peace River

• Heilan Beer House, Fairview

LOCAL MARKET SPOTLIGHT WINE & LIQUOR

• Shady Orchard & Winery, High Prairie

• Broken Tine Orchard, Beaverlodge

• Latitude 55 Distillery, Grande Prairie

• Broken Oak Distilling Co. Grande Prairie

• Rig Hand Craft Distillery, Nisku

LOCAL MARKET SPOTLIGHT CANDY & SWEETS

• Buttery Bites, Bay Tree

• Lazy Bee Honey, Irma

• Honey Bunny/ Wolfe Honey, Guy

• Confetti Sweets, Sherwood Park

LOCAL MARKET SPOTLIGHT MEAT PROCESSING

• Prairie Packers, La Crete

• Sunny Brook Sausages, La Crete

• Farm Fresh Lamb/ Black Sheep Farm Store, Falher

LOCAL MARKET SPOTLIGHT INNOVATION

• NAIT Food Innovation Hub

• Dana Gibson, Director of Business Development

• plant protein focus • Oat fractionation, vegan, gluten free products

• chef driven product innovation

“FRACTIONATED OATS CAN BE EMULSIFIED, THEY CAN FOAM, AND REPLACE EGGS AND

DAIRY IN SOME PRODUCTS.”

32

Local Food Infrastructure Fund- $50M/5 years

Stream 1: Will provide funding to local organizations to support small-scale capital investments in infrastructure and equipment to improve access to safe and nutritious food in their community (maximum of $25,000).

First round of application open August 15, 2019

Stream 2: Will support projects from groups and diverse organizations, to build or strengthen a local food system and reduce food insecurity in a sustainable way (maximum $250,000).

Currently we are seeking online consultation on this fund

HELP CANADIAN COMMUNITIES

ACCESS HEALTHY FOOD

LOCAL DOMESTIC MARKET OPPORTUNITY

Thank you.

Karen Goad Elaine Stenbraaten

780-538-5629 780-835-7531

Karen.goad@gov.ab.ca Elaine.Stenbraaten@gov.ab.ca

Farm direct marketing New venture/business development