Niagara's Agri-Business Sector Booklet

AGRI-BUSINE S S IN NI AG A R A , C A N A DA

NIAGARA’S AGRI-BUSINESS SECTOR

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INSIDE: 3 Greenhouses 4 Wineries 5 Carbohydrate Valley 6 Functional Foods and Nutraceuticals

7 Food Processing and Specialty Foods

8 Resources to Help Your Company

AGRI-BUSINESS SECTOR HELPS GROW A PROSPEROUS NIAGARA

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“Niagara’s agri-businesses are mature, diverse, and successful.

Greenhouse vegetable and floral products are enjoying growth in consumer and export markets.

Cottage wineries and upscale restaurants are attracting the discriminating tourist. Specialty food production is on the upswing.

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It’s a story whose time has come for the region.”

Margaret Walton Senior Partner Planscape www.planscape.ca

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iagara’s agri-business sector is a diverse and profitable segment of Ontario’s economy. Growers, manufacturers and service providers are thriving. The region is ideally positioned for agribusiness expansion, investment, and market development. It is located in southern Ontario within an established economic corridor connecting the Greater Toronto Area and upstate New York. A market of 125 million consumers is less than one day’s drive away, accessed within minutes, by six border crossings linked to continental trade corridors and transportation networks.

Local growers and industry champions have expertise to develop efficient, profitable product lines. A mature base

of agri-business operations spreads across the peninsula. It includes greenhouse growers and horticulture suppliers, wineries and specialty food producers, fruit and meat processing operations, and agri-tourism attractions.

The local supply of tender fruits, vegetables, grains and carbohydrate feed stock gives the region an abundance of primary resources to expand and create new products and new industry clusters.

With facilities to process agricultural products and a solid infrastructure of truck, rail and maritime carriers to source raw materials and distribute finished goods, the potential for growth and expansion of investment in secondary manufacturing is very attractive. Investigate what Niagara has to offer!

Niagara’s robust greenhouse sector is home to more than 18 million square feet of floral and vegetable greenhouse growing and distribution operations.

NIAGARA’S GREENHOUSE OPERATIONS ARE BLOOMING!

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iagara’s greenhouse sector is one of Canada’s most concentrated industry clusters.

With over 18 million square feet under glass or plastic, 265 operators annually generate $225 million in floral and vegetable product direct sales. The potential for expanding and developing new greenhouse products for consumer markets within Canada and the United States has yet to be fully realized.

Demand for quality greenhouse vegetable products, especially tomatoes, cucumbers and peppers, is on the upswing in the U.S. Likewise, with over twenty varieties of Ontario grown potted plants, wholesale buyer interest from North American garden centres, supermarket and discount chains, and

home centre stores continues to grow.

Expanding the export potential for floral and vegetable products is an ideal investment opportunity.

A local infrastructure of secondary agri-businesses supports the larger North American greenhouse industry.

Manufacturers such as Westbrook Greenhouse Systems Ltd.; equipment and service suppliers such as Priva Computers and Niagrow Systems; wholesalers, financial and marketing organizations, and training institutions offer a cluster of services to growers.

Niche investment opportunities abound for expansion and development of the region’s greenhouse industry.

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“The Niagara region is one of the major economic engines driving the $3.9 billion greenhouse industry in Ontario.

The industry consists of world leaders in the application of emerging technologies, in the development of quality new products for consumers, and in

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the advancement of secondary

agri-business services that reach into global markets.”

Dr. Irwin Smith Executive Director Flowers Canada Growers (Ontario) Inc. www.flowerscanadagrowers.com

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Collaborative efforts of winery and culinary stakeholders are helping to promote Niagara agritourism with many world-class wineries and upscale dining experiences.

WINERIES ARE DRIVING VALUE-ADDED BUSINESSES

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“Niagara is the heartland of the Canadian grape and wine industry. The majority of wineries and production facilities are located here. Over 70 wineries and smaller cottage operations produce much sought after vintages including internationally recognized Icewines.”

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Patrick Gedge Chief Executive Officer Niagara Economic Development Corp. www.niagaracanada.com

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ith over 80 percent of the nation’s cool climate viticulture acreage, Niagara is the country’s premier grape region.

Increasingly, local farmers are planting their acreages in grapes with more and different varieties coming on stream on a regular basis. Over 60 varieties of classical European grapes are grown in Niagara. This is possible in part because of the Niagara Escarpment running the length of the peninsula between Lake Erie and Lake Ontario, shaping a microclimate favourable for the grape growing sub-regions.

The Niagara wine industry has assumed a pre-eminent role in developing new wine products, profitable enterprise opportunities, quality standards, export markets, and signature, year-round, wine-related festivals and agri-tourism experiences. A well-marketed “Niagara Wine Route” guides visitors through

wineries nestled throughout rural Niagara. Many wineries, including Peller Estates Winery, Vineland Estates Winery, EastDell Estates, Hillebrand Winery, Strewn Winery, Peninsula Ridge Estates Winery, and Cave Spring Cellars showcase upscale regional cuisine in well-appointed, on-site restaurants.

The region’s current competitive market advantage and future growth is directly linked to favourable growing conditions, product quality, local industry leaders and competitive production cost structures. Capital investments in lands, plant and technology continue to reinforce Niagara’s reputation as the leading wine producing region in Canada. These assets represent unique and attractive service, processing, or related manufacturing opportunities for the international investment community.

Biotech innovators Biolyse Pharma Corporation and citric acid manufacturer Jungbunzlauer Canada Inc. are producing health and wellness products in the Niagara region.

Niagara’s “Carbohydrate Valley” ‘CARBOHYDRATE VALLEY’ STIMULATES DEVELOPMENT OF INNOVATIVE BIO-PRODUCTS

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he world’s carbohydrate economy is growing.

Products based on renewable agricultural inputs include fuel, cosmetics, pharmaceuticals, biodegradable ingredients for food and natural products. Agriculture-based manufacturing industries such as bioproducts derived from hydrocarbons are emerging and taking root in Niagara. Building upon the presence of Casco Inc. and Jungbunzlauer Canada Inc., part of Port Colborne’s ‘carbohydrate valley’, opportunities exist to expand and create a Niagara cluster concentration in this sector.

New biotech companies such as Biolyse Pharma Corporation are planting their roots in the region and finding that Niagara offers strategic advantageswater, energy sources, renewable

agricultural feedstock, transportation networks, easy access to North American markets, and educational programs to help expand this emerging regional bio-products sector.

Centres of excellence such as Brock University’s specialized science labs and PhD level bio-technology studies, and the Niagara College Teaching Winery support bio-product development.

As an active member of the Golden Horseshoe Biosciences Network, Niagara helps promote bio-product development. The Network engages a consortium of municipalities, universities and colleges, hospitals, government research labs, and private sector companies in the Southern Ontario Region.

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“Our decision to locate in Niagara was relatively easy! The weather is conducive for our experimental growing operations; the excellent transportation networks allow us to access an abundant supply of biomass materials from across Ontario; and the partnerships that we have established with regional universities links us directly to

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highly trained talent pools that are so essential in our business.”

Brigitte Kiecken President, Biolyse Pharma Corporation www.biolyse.ca

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Increased popularity of grain and soy-based products are opening new business and growing opportunities for Niagara farmers.

FUNCTIONAL FOODS AND NUTRACEUTICALS

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“The Niagara region is poised to create an impact in the nutraceutical and functional foods market. The strong local agri-food sector and keen research community excel in bio-processing and bio-product manufacturing. The GHBN is committed to enabling the players

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in this sector to compete globally and demonstrate the benefits of doing business in Niagara.”

Darlene Homonko, PhD Executive Director Golden Horseshoe Biosciences Network www.ghbn.org

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ncreasing consumer demand for healthy foods and beverages, coupled with scientific discoveries of certain ingredient properties in fruit and vegetables, such as tomatoes, juice grapes, and herbal products, have led to the development of functional foods and beverages. Merchandisers are responding to these trends and are now aggressively selling products that contain specific ingredients, such as Omega 3, that enhance specific mental or physical functions, such as boosting energy or lowering cholesterol levels.

Likewise, the market for nutraceuticals, or products frequently referred to as ‘nutritional supplements’, have been growing as people embrace the health and wellness of the whole body.

Niagara’s diverse agricultural base of fruit and vegetable commodities and its extensive greenhouse operations provide an exceptional opportunity for research, bio-product development and manufacturing, whether the focus be higher-yield commodities or plant-derived medicinal products.

Bio-product research or production companies may find Niagara fertile ground to expand the region’s agribusiness industry cluster.

Local entrepreneurs such as Niagara Presents are seizing opportunities to package and promote local specialty food products to discriminating consumer markets.

SPECIALTY FOODS TARGET NICHE MARKET OPPORTUNITIES

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iagara enjoys a cluster of companies that take advantage of the abundant supply of fruit and vegetable products grown throughout the region. Small batch production of niche market products, such as the award-winning sauces, jams, jellies and condiments that come from the commercial kitchens of Niagara Presents, a local specialty food producer, are finding their way into upscale consumer markets.

Manufacturers of boutique confectionary products, such as chocolates, candies and pure maple syrup novelties, attract tourists to the quaint villages of the region.

Processors of homegrown frozen fruits, fruit juices, cheeses, bakery products,

precooked meals and specialty meat products are enjoying success at local farmers’ markets and in domestic and international retail and wholesale outlets.

The growing number of immigrants settling in Canada is creating consumer demand for more alternative commodity crops, prepared ethnic foods, specialty retail stores and distinctive ethnic restaurants throughout the country.

Expanding products and services to these emerging markets represent exciting opportunities for the international investor.

The specialty food economy in Niagara is growing, led by entrepreneurial leaders, a diverse commodity base and leading-edge processing operations. It is a sector with deep historical roots.

Niagara is the largest poultry producing area in Ontario. It is distributed throughout the region with a concentration in the rural townships of West Lincoln and Wainfleet, and the towns of Lincoln, Pelham and Niagara-on-the-Lake.

Investment opportunities exist within the region to grow new agri-business enterprises and consumer products. Opportunities for processing operation expansion to develop economies of scale invite investor interest.

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Niagara is ideally positioned to serve the North American marketplace. Major road, rail, air, and water transportation routes connect Niagara to more than 125 million consumers within a day’s drive.

RESOURCES TO HELP YOUR COMPANY

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Niagara is open for your business!

Give us a call or visit our Web site.

See for yourself!

Niagara Economic Development Corporation 2201 St. David’s Road P.O. Box 1042 Thorold, ON CANADA L2V 4T7 www.niagaracanada.com Business Development Inquiries: e-Mail: info@niagaracanada.com Tel.: 905.685.1308 Fax: 905.688.5907

iagara offers research facilities and business development support to companies. Brock University’s Cool Climate Oneology and Viticulture Institute, Canada’s premier research facility devoted to grape growing and wine making, provide a vibrant centre of research excellence and business development support.

Niagara College offers a full range of practical skills training in agriculture, horticulture, agri-business, wine making and the culinary arts, and business support programs. It experiments with advanced technology applications in its greenhouses, manages 38 acres of production and research vineyards, and operates the Niagara College Teaching Winery, the only facility of its kind in Canada.

Innovative government programs and entrepreneurial financial institutions

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AGRI-BUSINE S S IN NI AG A R A , C A N A DA

help convert promising ideas into valued commercial products. Supportive municipal governments create a business climate that encourages growth and export market success. Bi-national trade and commerce organizations actively promote industry liaison and partnership development.

By locating in Niagara, these regional assets also become your competitive advantage.

Visit Niagara. We’re open for your business! We’ll arrange personal familiarization tours for you and your team. Our economic development staff and municipal officials will provide you with all the information you need to make important investment decisions.

Give us a call. Visit our Web site.

See for yourself !