Ontario’s Food and Beverage Processing Industry Strategy · Ontario’s Food and Beverage Processing Industry Strategy ... í î ñ U os are irecly roie roug ... ONTARIO’S FOOD

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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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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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

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 largesi 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

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

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


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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 e en iron en al scan

acili a e consul ation on c o er i in us ry lea ers fro across e sec or

ne o one consul ations i 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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SUB-SECTOR

$39,430,779

TOTAL 2011 REVENUE (’000)

$2,502,714

$4,356,472

$2,696,643$3,054,393

$4,920,944

$3,572,452

$4,674,096

$289,646

$8,180,793$5,182,626

Meat Products

Dairy Products

Beverage & Tobacco Manufacturing

Grain & Oilseed Milling

Other Food Manufacturing2

Animal Food

Sugar & Confectionery

Seafood

Bakeries & TortillaBakeries & TortillaBakeries & TortillaBakeries & Tortilla

Fruit & VegetablesFruit & VegetablesFruit & VegetablesFruit & Vegetables

ource tatistics Canada, urvey of Manufacturers and ogging

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:

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

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


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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 e erage anufac uring e or s

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

TOTAL REVENUES BY SECTORS (2005 - 2010)

BIL

LIO

NS

OF

DO

LLA

RS

($)

YEAR

70

60

50

40

30

20

10

0

2005 2006 2007 2008 2009 2010

Electrical Equipment, Appliance & Component Manufacturing

Agriculture

Food & Beverage Manufacturing

Motor Vehicle Manufacturing

n us ry Cana a n ernational Tra e

a a

TOTAL REVENUES BY SECTORS (2005 - 2010)B

ILL

ION

S O

F D

OLL

AR

S ($

)

YEAR

70

60

50

40

30

20

10

0

2005 2006 2007 2008 2009 2010

Electrical Equipment, Appliance & Component Manufacturing

Agriculture

Food & Beverage Manufacturing

Motor Vehicle Manufacturing

GROWTH TARGETSBY SECTORS (2010 - 2020)

BIL

LIO

NS

OF

DO

LLA

RS

($)

YEAR

70

60

50

40

30

20

10

0

2010 2020

Electrical Equipment,Appliance & Component

Manufacturing

Agriculture

Food & BeverageManufacturing

Motor VehicleManufacturing


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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

• Opportunities for commercialization. T ere are a un an o or unities for n ario

rocessors o ring inno ati e agrifoo 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

WEAKNESSES

• 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


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OPPORTUNITIES

• 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 enfree 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

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 ricesensiti i y resulting in lo er ro

argins for foo an e erage anufac urers in e ro ince

• 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


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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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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 rygo 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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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

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

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

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

Closing Up Competitive Gaps 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.

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.

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

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

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

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


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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

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

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

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

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

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


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

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

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

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

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

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

II. Raising the Profile of Ontario Food & Drink 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

14


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 sciencease 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 ors 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 commerce-limiting 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

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 Crossgo 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

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.

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.

15

oun ain S SouCa ri ge n ario

T e lliance of n ario oo rocessors is a non ro organi ation of foo an e erage rocessing co anies an in us ry organi ations

www.aofp.ca

info aof ca

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