Agriculture 2015 Perspective

AgriculturE FOOD & BEVERAGE MANUFACTURING

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A POST-SECONDARY EDUCATION The highest percentage in the G7

50% REDUCTION IN R&D COSTS Ontario’s R&D incentives are among the most generous in the world

26.5% CORPORATE TAX RATE Ontario’s combined provincial/federal corporate tax rate is lower than the U.S. federal/state average. Since 2010, it’s dropped 5.5 points to 26.5%

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All the right ingredients Expand your food and beverage business to Canada

T

he food and beverage processing industry is the largest manufacturing industry in Canada in terms of value of production with shipments worth $92.9 billion; it accounts for 16% of total manufacturing shipments and for 2% of the national Gross Domestic Product (GDP). It’s the largest manufacturing employer and provides employment for 290,000 Canadians.

It supplies approximately 75% of all processed food and beverage products available in Canada and is the largest buyer of agricultural production, using approximately 35% of its output. It is also the largest manufacturing employer in rural areas across Canada.

Exports of processed food and beverage products stood at $23.3 billion in 2011, an increase of 12% over 2010; accounting for 25% of production value.

Canadian processed food and beverage products are exported to some 190 countries with a significant proportion exported to a few countries. In 2011, almost 87% of the total went to six major markets:United States (67%), Japan and China (7% each), Russia, South Korea, Mexico (2% each).

Canada’s Meat Industry Whether you eat chicken, pork, beef or exotic meats you can be sure your meat has been produced with care from start to finish.

It starts with Canadian farmers commitment to the animals they care for.

Whether they raise their animals outdoors or in clean, well-ventilated facilities they pay attention to every detail, from temperature control to lighting and specialized animal feeding and nutrition.

Canada has strict rules to make sure animals are treated humanely whenever they are handled transported or slaughtered.

The government of Canada licenses and monitors all federally registered meat processing facilities and inspects them regularly to make sure health and safety practices are followed.

Canada’s Grains and Oilseeds Industry From one horizon to the other Canadian grain and oilseed farmers sow a tradition of safe, healthy food production. These producers are committed to excellence and grow crops that are carefully tended and of the highest quality. They work hard using certified seed quality assurance programs and other initiatives to grow products that meet the high standards of the Canadian Grain Commission.

Canada’s Horticulture Industry Canadian fruit and vegetable farmers produce world-class products for your table. Our country’s growing appetite for safe, healthy produce has inspired innovation and quality, from the field to the grocery store.

On the farm, producers use innovative integrated pest management practices such as naturally occurring beneficial soil fungus and insects both of which can kill pests which attack crops. These methods are reducing the need for pesticides.

Canada’s Dairy Industry Canada’s dairy farmers continuously provide Canadians with high-quality, safe, and nutritious dairy products. Careful on-farm practices and a strong commitment to food safety results in the very best products for you and your family.

The Canadian Food Inspection Agency and it’s provincial partners have established rules around food safetythat allow wholesome and safe dairy products to get from the farm to your table.

Guidelines on the care and handling of dairy cattle help Canadian dairy farmers manage their dairy cattle in a humane and efficient way.

Canadian cows produce top quality milk because our farmers provide them with high quality food and clean, comfortable living spaces.

There are over 1 million cows in Canada.

Our farmers use safe, on-farm practices and efficient technology to collect their milk.

Constant temperature control keeps the milk fresh.

Source http://www.agr.gc.ca

3

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1464 Cornwall Rd Suite 5, Oakville, Ontario, Canada L6J 7W5 1-866-779-7712 info@perspective.ca www.perspective.ca Publisher, CeO Steve Montague ViCe-PresiDeNT Ed Martin WriTer Ben Benedict Perspective™ Agriculture Food and Beverage Manufacturing was produced independently of the Government of Canada. Contents are copyrighted and may not be reproduced without the written consent of Perspective Marketing Inc. The publisher is not liable for any views expressed in the articles and opinions do not necessarily reflect those of the publisher or the Government of Canada.

– printed in Canada

Canadian industry profiles • Beverages ◆ Bottled Water ◆ Brewery ◆ Coffee ◆ Distillery ◆ Soft Drink ◆ Tea ◆ Wine • Cane and Beet Sugar • Fruits and Vegetables • Seasoning and Dressing • Snack Foods

Opportunities • Baked Goods and Bakery Products ◆ Ethnic, Gourmet and Specialty Foods ◆ Packaged Food ∙ Additives and Ingredients ∙ Animal Food and Pet Food ∙ Baby Food ∙ Condiments ∙ Confectionery ∙ Pasta and Noodles ∙ Snack Foods

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Canada’s functional foods & natural health products industry

W

ith strong regulatory and food inspection systems that support the production of world-class functional foods and natural health products, foreign direct investors can rely on Canada’s abundant agricultural product base, its network of research facilities dedicated to innovation and a collaborative environment supported by governments, universities, health institutions and industry.

QUALITY AND INNOVATION YOU CAN RELY ON Canada’s functional food & natural health products industry is a leading contributor to global innovation and growth. In 2011, Canada had over 750 companies specializing in functional foods and natural health products, generating total revenues of $16.4 billion.1 One advantage that foreign investors with established operations in Canada can rely on is a world-leading agriculture production and agri-food export base. In 2013, Canada produced almost 84 million tonnes of grains, oilseeds and specialty crops2 and, in 2012, was the world’s eighth-largest exporter of agricultural products.3 Foreign investors can also use Canada’s agriculturefocused infrastructure to both gain easy access to markets and efficiently export their products.

A WEALTH OF OPPORTUNITIES

CANADA’S KEY STRENGTHS

Foreign investors have already tapped into Canada’s vast agricultural and marine resources to produce functional foods and natural health products.

Companies in Canada are internationally recognized for their bioactive ingredients, including soluble fibre from oats, barley and pulses, omega-3 fatty acids from fish and flax oil, unsaturated fatty acids from canola oil, plant sterols and stanols from vegetable oils, and protein from soy.

The functional foods and natural health products industry is governed by the Food and Drugs Act and regulations in Canada, the major components of which are food labelling, standards, advertising and health claims.

This internationally respected regulatory system ensures worldclass standards and safe, effective products of the highest quality. So much so that, in many instances, approval for use in Canada results in faster approvals in other markets.

Rich, fertile land, abundant fresh water and vast natural resources An internationally recognized regulatory and food inspection system overseeing world-class standards and safe, nutritious, top-quality products A network of research facilities developing leading-edge products and technologies Public, private and academic collaboration encouraging the innovation, cultivation and manufacturing of diverse products with proven health benefits.

1 Statistics Canada, Results from the 2011 Functional Food and Natural Health Products Survey.

2 Statistics Canada. The Daily. Production of principal field crops, November 2013.

3 World Trade Organization.

International Trade and Market Access Data Online

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FUNCTIONAL FOODS & NATURAL HEALTH PRODUCTS CLUSTERS GREENLAND ALASKA (USA)

YUKON NORTHWEST TERRITORIES

NUNAVUT

NEW BRUNSWICK NEWFOUNDLAND & LABRADOR

BRITISH COLUMBIA ALBERTA

MANITOBA QUEBEC

Edmonton SASKATCHEWAN Saskatoon

Vancouver

ONTARIO

Calgary

PRINCE EDWARD ISLAND

Québec City Halifax

Ottawa

Winnipeg

UNITED STATES OF AMERICA

Montréal Waterloo

NOVA SCOTIA

Toronto Niagara

London

BRITISH COLUMBIA

ONTARIO

QUEBEC

» Key strengths: meat processing, greenhouse vegetables, blueberries

» Key strengths: dairy, soybeans, wheat and corn, meat processing, bread, tortillas and bakery products, sugar and confectionery products

» Key strengths: soybeans, hogs, hens and chickens, dairy, sugar and confectionery products

» L eading companies include: Calyx Bio-Ventures Inc., Forbes Medi-Tech Corp., Liannaeus Plant Sciences Inc.

PRAIRIE PROVINCES » Key strengths: grains and oilseed, cattle and hog breeding and meat production, lentils » L eading companies include: BioNeutra, Ceapro Inc., SinoVeda Canada Inc., Cargill Inc., General Mills Inc., Can-Oat Milling Inc. and Saponin Inc.

» Leading companies include: General Mills Inc., Kraft Canada Inc., ProSoya Inc., Nestlé Canada, Unilever Canada Inc.

» L eading companies include: Danone Inc., Micropharma Ltd., Soylutions Inc.

ATLANTIC PROVINCES » Key strengths: fish and seafood, potatoes, cranberries » L eading companies include: Chatham Biotec Ltd., Ocean Spray Inc., Ascenta Health, Ocean Nutrition Ltd., Cavendish Farms, Halibut PEI Inc. and AquaBounty Inc.

RECENT INVESTMENTS ■ Cargill Incorporated announced in 2012 an expansion of its Elva, Manitoba grain facility to meet increased demand for wheat, canola, barley and oats. Expansion includes increasing both storage capacity—from 14,500 to 24,500 metric tonnes-and rail handling capacity—from 56 to 112 cars.

■ Dr. Oetker selected London, Ontario for its largest ever investment outside Europe. The German food manufacturer is investing more than $50 million to build a frozen-pizza plant employing 130 individuals and supporting an additional 300 spinoff jobs in Ontario. Production at their cutting edge facility started in Summer 2014.

Saskatchewan: Ingredients for Success With a multi-billion-dollar agri-food industry, a highly competitive tax structure and one of the world’s most attractive investment environments, Saskatchewan is open for business.

Photos courtesy the Saskatchewan Trade and Export Partnership.

Saskatchewan is a leading exporter of the food, fuel and fertilizer the world needs. Its diverse sectors including agriculture, mining, oil and gas, and manufacturing provide the province with a strong competitive, economic advantage.

With a thriving, multi-billion-dollar agri-food industry, as well as 42 per cent of Canada’s arable land, Saskatchewan is feeding the world. Its agri-value sector is a leader in food ingredient production and exportation, continuously enhancing production techniques to meet the global food needs of a growing world population. In addition, 50 per cent of Canada’s certified organic land is situated in the province, providing the ability to produce and supply a variety of organic food in commercial quantities.

Agri-food products account for five of Saskatchewan’s top 10 exports. The top four products — wheat, oilseeds, vegetable oil and dry peas — are worth over $10 billion annually.

In addition, Saskatchewan’s $4.5 billion food processing industry employs over 5,000 people and ships products to markets across the globe. Vast opportunities in this processing industry abound, particularly in the following food sub-sectors: Cereals Saskatchewan produces 87 per cent of Canada’s durum wheat and supplies more than a third of the world’s total

saskatchewan.ca/invest |

to 36 different countries. The province is also the world’s number one exporter of oats, and is a leading exporter of rye and barley. Most of these cereals are exported, with fractions of the total amounts processed in Saskatchewan, leaving significant opportunities for investment and value-added processing in the province. Flour products, pasta, oatmeal and bakery mixes are only some of the many products that can be obtained from cereal processing.

Oilseeds Saskatchewan scientists helped invent canola, so it is no surprise the province produces about half of Canada’s total canola crop and is the world’s number one exporter of canola oilseeds, canola meal and canola oil. With more than 2 million tonnes of canola leaving the province unprocessed, significant opportunity exists to process this crop in province.

Saskatchewan also produces 70 per cent of Canada’s mustard and supplies 36 per cent of the world’s mustard exports. Thirty-six per cent of the world’s flaxseed exports also come from the province, with only 10 per cent of this processed in province.

Commercial processing opportunities exist with these oilseeds to extract proteins and produce powders, flours, oils, meals and cakes.

Pulses

as well as for manufacturing and processing equipment expenditures. Saskatchewan has also introduced two new Manufacturing and Processing Exporter Tax Incentives that will provide non-refundable tax incentives to eligible corporations in respect of each incremental full-time employee for each of the 2015 to 2019 taxation years.

Saskatchewan remains a global leader in the production of lentils, peas and chickpeas. It accounts for 95 per cent of lentils, 70 per cent of dry peas and 99 per cent of chick peas produced in Canada. More than 90 per cent (1.8 million tonnes) of Saskatchewan’s pea crop is shipped out of the province, leaving a huge opportunity to increase pea processing within the province. Various products can be made from these pulses, including protein, starch, fibre, pasta, flours and processed packaged foods.

Research and Development A leading centre of conventional agricultural research and biotechnology in Canada, Saskatchewan has:

• Two renowned research universities, three research

Specialty fruits

parks and numerous research and training institutions – all assets for industry development.

Hundreds of hectares of specialty fruits such as saskatoon berries, sour cherries and seabuckthorn are grown in Saskatchewan. The opportunity exists to process these super-fruits, which are high in antioxidants, vitamins and other nutrients. Juices, concentrates, powders, nutraceuticals and flavourings are only some of the food wand food products that can be made in commercial quantities from this sub-sector.

• Over 700 research scientists working in 30 private, public and academic facilities.

• Research and development infrastructure for crop production and processing.

Attractive business environment Centrally located, Saskatchewan has excellent road and rail transportation services with easy access to domestic and offshore markets. The province provides major utilities, ensuring competitiveness and stability in these costs.

A lower overall cost of doing business, use of farming precision technology and a skilled workforce all combine to give Saskatchewan a strong competitive advantage in the agriculture and agri-food sector. Moreover, with a government committed to creating a positive, businessfriendly environment and reducing bureaucracy, the province is home to one of the most attractive investment environments in the world.

With a highly competitive tax structure, Saskatchewan is open for business. The province offers a manufacturing tax rate as low as 10 per cent, no corporate or payroll taxes, tax credits for research and development,

With its abundant resources, strong and diverse economy, and attractive business climate, Saskatchewan is indeed a great location to live, raise a family and operate a business.

World’s Largest Exporter Lentils, dry peas, canola products, oats, flax, mustard seed

13.9 Billion

$

Agri-food exports in 2014

1 Agri-Food Exporter

#

In Canada

40% Increase

In value-added agriculture revenue by 2020 Target in Provincial Value-Added Agriculture Strategy

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Cooperation between Canada and the United States Continues to be Strong Market Overview U.S. companies looking to explore new markets to expand their international portfolios need to consider the tremendous business opportunities offered in Canada. A solid and integrated supply chain mainly in the automotive and aerospace sectors already make up roughly 30 percent of the $600 billion in bilateral trade recorded in 2011. New developments in shipbuilding, air-defense, safety and security, mining, and renewable energy, will create virtually limitless business opportunities.

In this revised edition of the Country Commercial Guide, you will obtain information about what you need to know and how to be prepared to maneuver in this vast ocean of export opportunities. Nevertheless, the business landscape is constantly changing and the U.S. and Canadian Governments, through the Beyond the Border Initiative, are committed to safely increasing the flow of people and goods across the border while maintaining the security and integrity at the border.

Governments are working to reduce outdated and unnecessary regulations through the U.S.Canada Regulatory Cooperation Council and enhanced IPR protection to support increased trade and investment.

Canada continues to hold a historic record as the United States’ largest export market, accounting for 20 percent of total U.S. trade. Total stock of Canadian foreign direct investment in the United States also ranked among the top four in the world.

Market Opportunities

Market Entry Strategies

Four trends are driving expanding market opportunities for U.S. firms in several key sectors.

By removing additional barriers to trade, the border and regulatory cooperation initiatives will make United States and Canadian supply chains more efficient and more integrated.

This will provide enhanced opportunities for U.S. firms seeking to enter the Canadian aerospace and automotive sector supply chains.

The continuing strength of the Canadian dollar will mean continued expansion in Canadian travel and tourism to the United States, including an expanding medical tourism component.

Continued high global prices for energy and other natural resources will drive increased development of Canadian energy and mining resources.

These developments offer substantial opportunities for U.S. renewable energy, mining, oil and gas, and environmentalrelated sectors.

For many companies (particularly in the manufacturing and construction sectors), frequent visits and establishing a local presence will be crucial to long-term market success. For many U.S. companies, joining in a U.S. delegation to a Canadian trade show can be the best first step.

For U.S. companies with limited budgets and marketing staff, we recommend: • a pilot program called Client Finder which uses advanced database tools to help identify potential Canadian clients and partners, and • working with the Commercial Service to seek potential sales to Canadian government entities.

U.S. companies new to the Canadian market should contact a CS Canada Commercial Service Officer to obtain information about resources and value added assistance. source: export.gov/canada

LET US INTRODUCE YOU TO THE OPPORTUNITIES • A population of more than 130 million people living within a one-day drive • Home to Lake Simcoe Regional Airport with on-site Canadian customs • Our region, which includes the Holland Marsh, known as the “Salad Bowl” of Canada, is one of the country’s most productive agricultural areas, growing more than 40 varieties of vegetables • More than 2,000 operating farms • Wide range of agri-food businesses ranging from breweries, distilleries, dairies, creameries, mills, food processing plants, and farm-gate operations, etc.

• Home to Georgian College, a leader in facilitating the development and success of food entrepreneurs within agricultural communities across Central Ontario

edo.simcoe.ca/international

SMALL IS A BEAUTIFUL THING IN THE DISTRICT OF LUNENBURG

Whether one is talking about small berries or small business, both are healthy and growing in the Municipality of the District of Lunenburg. Here small business is big business and that fits perfectly with the area’s entrepreneurial spirit and enviable quality of life.

To suggest that there is a “return to the land” movement taking place would be somewhat misleading because the simple truth is that many residents of our Municipality never left the land. In fact what we are experiencing is increased interest from new residents and younger generations in following a different lifestyle then what is afforded by the traditional workplace. Collectively known as “Lifestyle Entrepreneurs”, these individuals are often interested in running a business but not at the expense of their quality of life. The pursuit of an entrepreneurial lifestyle is one in which our Municipality is supremely well qualified to assist with and represents compelling opportunities.

Old farmsteads are being purchased and reactivated and new lands made ready for viable berry crops such as the Haskap berry, blueberry, cranberry, and others, or to coincide with the demand for organically grown produce. In addition, there are several vineyards now in operation in the Municipality growing grapes for wine production.

It is however, not just the harvest of new and existing berries that have brought new life to our Municipality but also the highly productive value added industry. By marrying the rich growing capacity of our LaHave Drumlins with secondary processing and expanding export markets we are seeing increased demand across many agricultural sectors.

The development of the Haskap industry is just one of many emerging success stories here in the Municipality. The Edible Blue Honeysuckle, or

‘Haskap’ as it is known, is one of the exciting new crops reigniting an interest in agriculture in the region. This new, versatile berry grows beautifully in the Municipality and has been recognised as valuable, not only for its taste and nutritional benefits, but also for its early ripening (end of June/ early July), allowing farmers to manage Haskap around their existing crops and extend their season.

Recognised as an important innovation in local agriculture, the development of the first brand of Haskap berry products outside of Asia is being pioneered by ‘haskapa’, a local company based in Blockhouse. All haskapa products are made locally and supply not only Atlantic Canada, but also Ontario, Quebec and beyond, with strong interest from the US and Europe.

Haskap product development is focussed on 3 key areas; Produce (jams, juices, jellies), Health Food (High antioxidant powders and supplements) and Alcohol (Liqueur, Gin and Vodka). The Municipality has existing resources and knowledge to develop all these products and create a valuable, premium market around this incredible new berry.

The District of Lunenburg’s strong primary food sector serves as a resource base for artisanal food and the local food industry. Longstanding strengths in seafood harvesting and agriculture are complemented by a robust food-related manufacturing base, with excellent capacity in food processing. Artisanal food products – including wine, the newly developed Haskap, and baked goods - showcase an increasingly sophisticated cultural component and capacity within the sector. It also has a number of community events that promote local food. All of which exists in close proximity to Atlantic Canada’s largest consumer market for food products, the City of Halifax and its adjoining urban areas .

We feel strongly with our micro climate and soil types that we have the best opportunities to expand this sector and add value to it! It is our value added berry producers that continue to develop new and highly productive export opportunities.

- Don Downe, Mayor

Municipality of the District of Lunenburg

SMALL BUSINESS IS BIG BUSINESS IN THE DISTRICT OF LUNENBURG Featured Businesses...

LaHave Forests Petite Riviere Vineyards is a destination winery in the LaHave River Valley Wine Region on Nova Scotia’s South Shore. They rely on the unique terroir of one North America oldest grape growing regions to make distinctive wines, and is noted for the quality of its reds. The unique features of the rocky soil, the slate in the stone, the ocean breeze and the Petite area’s micro climate contribute to wines that are distinctly Nova Scotian. www.petiterivierevineyards.ca

LaHave Forests was founded by a group of like minded friends, with a shared passion for berries.

These pioneers came together through a shared vision of finding the tastiest and healthiest berry to be grown naturally in Nova Scotia .

In 2011, the quest was complete with the discovery of the fabulous tasting Haskap berry from Japan & Siberia. Since this discovery we have grown considerably on the back of the ‘little present at the end of the branch’. Today we have over 40 acres of Haskap orchards, with another 20 acres planned for 2015. We intend to bring the best and tastiest Haskap products to markets under the haskapa brand. www.lahavenaturalfarms.com

Terra Beata Cranberry Farms

Lunenburg County Winery

Petite Riviere Vineyards

Founded in 1998, Terra Beata cleans, freezes, processes and markets cranberries. They operate their own farm, plus receive cranberries from about 25 other farms in Atlantic Canada, for a total of over 5 million pounds per year. Terra Beata runs their own cleaning and packing operation and make juice, preserves, dried fruit and packs of frozen berries. They recently received BRC certification, one of the most stringent food safety programs in the world. www.cranberryfarm.ca

Our winery is nestled in the heart of Lunenburg Region on a drumlin surrounded by lakes & forests. All wines are made using traditionally aged methods with only the best quality, fresh fruit in season, grown on our blueberry farm or from neighbouring growers in Lunenburg County, the Annapolis Valley and Nova Scotia.

While perhaps most well known for our Blueberry Wine, we also produce a variety of specialty fruit wines including Montbeliard Pear, Honey Moon, Bear River Cherry, Rous Brook Rhubarb, Fundy Peach, Kings Kiwi, Sou’wester Strawberry, and Lake Rossignol Cranberry! canada-wine.com

Visit Us Online...

Lunenburg and Queens County have some of the best soils not just in Nova Scotia but the best soils in the world for growing things. We have ideal conditions. You have a nice long, slow growing season. You get fully ripe, full fruit wines, so our wines are really pure and clean. We have three of the most beautiful beaches in Nova Scotia that are a five minute drive. It’s been just a great ride.

www.LunenburgDistrict.com

Sean Sears, Barbara Thomson Petite Riviere Vineyards

www.MODL.ca

www.LunenburgRegion.ca For further information or assistance please contact: Dave Waters Economic Development Officer Municipality of the District of Lunenburg

www.WhyHere.ca facebook.com/LunenburgDistrict facebook.com/vic.blockhouse

Phone: 902-530-3043 Cell: 902-521-5945 Email: dwaters@modl.ca

youtube.com/user/LunenburgDistrict

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Innovation plus Stability equals Profitability The Canadian agriculture and agri-food system is a modern, highly complex and internationally competitive part of the Canadian economy that is continuously responding to changing consumer demands, advancing technology and globalization A welcoming business environment - Canada is the best country in the G-20 to do business, according to both Forbes and Bloomberg.

Source: Forbes and Bloomberg A strong growth record Canada led all G-7 countries in economic growth over the past decade (2003–2012).

Source: The World Bank Unparalleled market access - Once CETA comes into force, foreign investors in Canada will have assured preferential access to both NAFTA and the EU – a vibrant market with a combined GDP of US$35 trillion, or nearly one-half of the world’s output of goods and services.

Source: The World Bank A highly educated workforce - Canada’s workforce is the most highly educated among members of the OECD, with half of its working-age population having a tertiary level education.

Source: Organisation for Economic Co-operation and Development Low tax rates - Canada’s overall marginal effective tax rate is by far the lowest in the G-7 - about 17 percentage points lower than that of the United States. Source: Finance Canada

Competitive R&D environment - Canada offers the lowest business costs in the G-7 for R&Dintensive sectors, with a 15.8 percent cost advantage over the United States.

Source: KPMG A great place to invest, work, and live - Canada is one of the globally most multicultural countries with world-class universities, a universal health care system and clean and friendly cities in addition to having the second highest standard of living in the G-20, as measured by GDP per capita.

Source: The World Bank

Financial stability - For the seventh consecutive year, the World Economic Forum has declared Canada’s banking system to be the soundest in the world.

Source: World Economic Forum

I am Brampton’s power snack.

NAFTA Foods and Packaging, making Brampton the gingerbread capital of North America.

Brampton is about you, about what you can be, about what we can be together.

A fusion of imagination, potential and entrepreneurship. Together, we will cook up new possibilities. Like the ones NAFTA Foods and Packaging uses at their state-of-the-art headquarters in Brampton, the gingerbread capital of North America. Discover what our fast-growing, people-powered Canadian city economy can do for you. Scan the QR code or visit peoplepoweredeconomy.ca

CLARINGTON Ontario • Canada

Building a Foundation in Food Processing

Your Eastern Gateway to the GTA Home to over 400 working farms, Agriculture/Food Processing is a leading economic sector in Clarington, Ontario’s growing business profile. With a mix of urban and rural, innovative and traditional opportunities, discover why Agri-Business calls Clarington home. Rooted in agriculture success - let’s talk business!

Discover Opportunity at www.cbot.ca/WhyClarington 905.623.3106 1.800.563.1195 www.cbot.ca

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Canada Continues to see Growth in Foreign Direct Investment from Asia

T

he Asia Pacific Foundation of Canada (APF Canada) is a notfor-profit organization focused on Canada’s relations with Asia.

Their mission is to be Canada’s catalyst for engagement with Asia and Asia’s bridge to Canada. They do this by partnering with both the private and public sector.

A leader in research and analysis on Canada-Asia relations for over thirty years, APF Canada has developed strong ties with policy-makers, business leaders, academics, and opinion makers in Canada and throughout the Asia Pacific region.

Our current themes are: • Promoting Trade, Investment, and Innovation • Building Skills and Competencies • Mobilizing Energy Assets • Understanding Asia Now

APF Canada are funded primarily by the proceeds of an endowment from the Government of Canada and by corporate and individual donors.

The affairs of APF Canada are governed by a Board of Directors.

An annual report is provided to the Minister of Foreign Affairs within four months of the end of the Foundation’s fiscal year (March 31). The Minister may table a copy of the report before each House of Parliament.

The structure and activities of the Foundation are governed by the Asia-Pacific Foundation Act (1985 as amended). See the Asia Pacific Foundation of Canada Act (R.S.C., 1985, c.A-13).

asiapacific.ca

Canadian Inward Foreign Direct Investment from Asia (C$ millions) 1980 Australia

1990

2000

2012

2013

2014

1,711

5,334

5,170

5,569

74

758

-

-

51

1,374

3,374

-

-

-

India

-

-

-

4,179

3,544

3,973

Japan

605

5,222

Malaysia

-

-

118

-

-

-

New Zealand

-

-

101

-

-

-

Philippines

-

-

2

-

-

-

Singapore

-

88

146

1,032

788

695

South Korea

-

312

232

4,827

4,135

3,839

Taiwan

-

19

97

-

-

32

Thailand

-

-

1

2

6

7

China Hong Kong, SAR

Total

730

192 11,619 20,424 25,080

8,041 17,374 15,847 17,479

7,773 14,015 44,367 49,914 56,674

Source: Adapted from the Statistics Canada CANSIM database http://cansim2. statcan.gc.ca, CANSIM Table 376-0051; the Statistics Canada Website on the National Economic Accounts module, http://www5.statcan.gc.ca/cansim/a26?lan g=eng&retrLang=eng&id=3760051&paSer=&pattern=&stByVal=1&p1=1&p2=1&tabMode=dataTable&csid, May 15, 2015; 1980 figures are adapted from Statistics Canada, Canada’s International Investment Position, 2001, Catalogue No. 67-202XIB 2001000 2001 March 27, 2002.

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Canada’s Advantages Rich, fertile land, abundant fresh water and vast natural resources COSTS

Canada offers a cost competitive environment for agri-food processors. According to KPMG Competitive Alternatives 2014, food processing facilities based in Canada typically enjoy a 12.8 percent savings on total labour costs (including benefits) relative to their U.S.-based counterparts.

In fact, when all cost factors are considered, Canada has the second lowest business costs among G-7 countries.

TAXATION

Progressive reductions in both federal and provincial taxes have created asignificant advantage for companies operating in Canada. According to KPMG Competitive Alternatives 2014, the effective corporate income tax rate for a typical food processing facility in Canada is 22.2 percent, the second lowest rate among the G-7 countries and 8.4 percent percentage points below that of the United States.

NATURAL RESOURCES

Canada has an exceptional abundance of natural resources, including fresh water and diverse plant, animal and marine life—essential raw materials for the production of high-quality foods, functional foods and natural health products.

WORLD-CLASS STANDARDS Canada’s internationally recognized regulatory and food inspection systems ensure worldclass standards and products that are safe, nutritious and of the highest quality.

ACCESS TO THE NORTH AMERICAN MARKET

Under the North American Free Trade Agreement (NAFTA), Canadian-based companies receive duty-free access to a market of more than 435 million consumers—many increasingly health-conscious and interested in food products that promote wellness. Further, once the Comprehensive Economic and Trade Agreement (CETA) with the European Union takes effect, Canada will have guaranteed preferential access to European markets. In addition, Canada recently concluded negotiations on a free trade agreement with South Korea, its first in Asia,

providing a strategic gateway to this dynamic and fast-growing region, and is also engaged in negotiations with India, Japan and the Trans-Pacific Partnership.

These trade agreements allow investors in Canada to benefit from integrated North American supply chains in the functional food sector and seize new export market opportunities.

www.investincanada.biz

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Cultivating success… one successful business at a time

I

t’s a big mistake to depend solely on a Highway 401 drive through ChathamKent, to gauge whether this area is a contender as your business location. Sure, you’ll see the wide expanse of land ideal for agriculture and industry and feel the wind blowing that drives its green energy industry. But you’ll miss the access to fresh water and natural gas, the relatively low tax rate, the skilled workforce, the innovative thinking and easy, affordable lifestyle that makes this community exceptional when it comes to growing and nurturing agricultural companies, industry, tech and energy businesses.

Chatham-Kent, with a population of 104,000 has 950,000 Canadians living with a one-hour drive. Over 60% of the US population lives within a sixhour drive of Chatham-Kent. The community is located in the heart of Southwestern Ontario with Lake Erie on the south and Lake St. Clair on the west. There are 7 major US border crossings within an hour’s drive accessible by rail, road and water.

Thanks to a unique combination of rich soil, fresh water, warm Canadian climate, brilliant research, tested knowledge, talented workforce

and simple desire to be the best…

Chatham-Kent is becoming known as a key location for not only agricultural companies, but also food processing.

International companies such as Dupont Pioneer, Cargill, and ADM work alongside locally-grown and respected businesses such as Great Lakes Grain, AGRIS,VERITAS, and Thompsons Limited to undertake research, grow and sell to the world from Chatham-Kent.

University of Guelph, Ridgetown Campus, is respected around the world for the cutting edge research it supplies companies from every corner of the earth to ensure seed development and techniques are further perfected for a growing world demand.

Available to new businesses is Chatham-Kent’s Bloomfield Business Park, approximately 120 acres of sites serviced by municipal water, storm sewers, natural gas, fiber optic cable and three-phase electrical services. The Park is very reasonably priced at

$50,000 per acre, compared to $0.5 Million – $2 Million per acre elsewhere in Ontario.Value pricing is available for larger acreage purchases. The Bloomfield Business Park is ideal for food production, manufacturing, major warehousing and distribution operations.

Families who move to Chatham-Kent due to business opportunities are delighted by the low cost of living for such a naturally beautiful lifestyle. Friendliness, real estate affordability, beaches and parks, proximity to international airports, and comfortable climate are just a few of the reasons people are choosing to leave behind big city living for the comforts of Chatham-Kent.

Don’t just drive on through, stop in and really get to know Chatham-Kent. Businesses and people make this home because this is where you can truly cultivate business success and live the dream without breaking the bank.

Perspective

TM

AGRI FOOD

21

Norfolk County is Ontario’s Garden Norfolk County is located on Lake Erie between Port Dover and Long Point.

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istorically, Norfolk County’s strength was in tobacco due to the mild climate and long growing season. Today, Norfolk County has become “Ontario’s Garden” with a flourishing fruit and vegetable agricultural base and some of the most fertile land in Ontario. With a reliable labour force, development incentives, low property tax rates, and an exceptional quality of life Norfolk County, it makes sense to locate your Agrifood business here.

“Our landscape is diverse – we have lakefront cottages, beautiful beaches, and pristine farms and forests,” says Mayor Charlie Luke. “You can choose from a wide variety of dining opportunities in Norfolk – from Lake Erie perch, to fine dining using fresh food grown right here on Norfolk farms. Stop and visit our Norfolk wineries – they produce some of the best wines in Ontario.”

Norfolk County is located on Lake Erie between Port Dover and Long Point and at $419 million in annual farm gross receipts, Norfolk County is the fifth largest agricultural region in Ontario, averaged on a per-farm basis. According to data from Statistics Canada’s 2011 Census of Agriculture, Norfolk County is the leading grower of many farm commodities, with Norfolk County being the Number One grower of peanuts, asparagus, sweet corn, cucumbers, peppers, cabbage, strawberries, sour cherries, ginseng, and pumpkin in Canada.

Recently, Norfolk County has begun using the promotional tagline of “Ideas grow here.

Entrepreneurs grow here,” as a way to attract those in the value added Agrifood sector. In mid-July 2015 Norfolk County’s Community Improvement Plan (CIP) established a framework for support and implementation of incentive programs. These local incentives include Study / Pre-Development Incentives (Architectural and Design Grant, Environmental Site Assessment Grant, Planning Application Fee, and Building Permit Fee Grant); Building / Property Improvement Incentives (Agricultural Buildings and Facilities Improvement Program, Building Façade Improvement Program, Landscaping, Signage and Property Improvement Grant, Structural Improvement Grant, and Residential Conversion / Rehabilitation Grant); and, Tax Increment Incentives (Property Tax Increment Grant).

“We have some leading edge Agrifood businesses doing some amazing projects locally.

The existing business climate

here is very innovative and we are trying to attract people who think that way,” says Clark Hoskin, Manager of Tourism & Economic Development for Norfolk County. “We grow these great ingredients and we’re looking for people who see the opportunity to create value added Agrifood entrepreneurial businesses here.”

Norfolk County is building on Canada’s creative culture and history, including its many entrepreneurs with an innovative mindset, and is dedicated to ensuring that the business environment locally is supportive to their endeavours.

While business continues to be recognized locally for their contributions, the Government of Ontario has also presented the Premier’s Awards for AgriFood Innovation Excellence to many Norfolk County businesses. It is also present in daily life with the many art galleries and museums.

More about food and agriculture in Norfolk County can be explored at www.norfolkbusiness.ca.

Jake Fenn, General Manager, LABATT LONDON BREWERY

When the world wants a cold one, they come to London, Canada.

Labatt is Ontario’s oldest and proudest brewer. Its first brewery was founded on London’s Simcoe Street before Canada was even formed.

“Labatt’s 400 London employees are innovative and passionate about brewing Canada’s most iconic beers,” Jake Fenn, General Manager.

D I S C O V E R T H E L O N D O N A D VA N TA G E AT W W W. L E D C . C O M

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The Ontario Advantage A Dynamic Economy and an Abundance of Natural Resources

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n today’s global business environment, large and small companies locate their businesses wherever they find the best combination of talent, costefficiency and market access.

With its innovative research climate, competitive costs and easy access to global markets, Ontario has emerged as an efficient North American hub for global business.

Multinationals have recognized the tremendous advantages of doing business here. In its forecast of the international business environment through to 2011, The Economist Intelligence Unit ranked Canada as the number one place in the G7 to do business,1 thanks to Ontario’s openness to foreign trade and capital, high-quality infrastructure and opportunities to reach the North American marketplace.

Ontario is Canada’s economic engine, the nation’s financial and manufacturing centre, generating almost 40% of the country’s GDP (gross domestic product).2 With one of North America’s top 10 economies,3 Ontario’s GDP of more than $587 billion4 is larger than that of Switzerland, Belgium, Greece, Sweden or Austria, to name a few.5 Ontario’s economy is tightly connected to global markets: an integral part of the North American Free Trade Agreement (NAFTA), Ontario offers direct access to the US$17-trillion-plus North American market and its population of 456.5 million.6 NAFTA rules allow goods to enter the United States and

Mexico duty-free when at least 62.5% of their content is manufactured here.7 In 2009, Ontario’s international exports were close to $147.7 billion,8 accounting for 41% of Canada’s exports.9 Ontario has forged strong trade partnerships with Europe and Asia: total trade with leading European countries has grown to $30 billion annually and to almost $40 billion with Asia’s leading countries.10 Ontario stretches more than one million square kilometres (415,000 square miles) – an area larger than France and Spain combined.

The northern edge of the province lies at roughly the same latitude as Copenhagen and the Alaskan panhandle.

The southern, more temperate border along the Great Lakes (one of the largest freshwater basins in the world) is on the same latitude as Rome and Northern California.11 Ontario also has almost 20% of Canada’s freshwater resources.12 The rich agricultural lands and mild climate of southern Ontario allow for the production of more than 200 agricultural commodities – a diversity unmatched in most parts of the world.

Many of these commodities are processed within the province; Ontario has a well-developed supply chain network of primary processors, ingredients manufacturers, specialty importers and value-added processors.

1 Denmark Remains on Top of the Economist Intelligence Unit’s Business Environment Rankings. Economist Intelligence Unit. April 21, 2008.

2 Real Gross Domestic Product, Expenditure-Based, by Province and Territory. Statistics Canada. November 2009.

3 Diversified and Growing Economy.

Ontario Ministry of Economic Development and Trade. March 25, 2009.

4 CIA World Factbook estimates of GDP from Mexico, USA, and Canada. The Central Intelligence Agency. (March 12, 2010).

5 Ontario, Canada: A Hub for Global Business. Ontario Ministry of Economic Development and Trade. 2008.

6 The World Fact Book. The Central Intelligence Agency.

7 An Ideal Location and Exceptional Talent. Ontario Ministry of Economic Development and Trade. March 2009.

8 Trade Data Online. Industry Canada.

March 2010.

9 Trade Data Online. Industry Canada.

March 2010.

10 Ontario, Canada: A Hub for Global Business. Ontario Ministry of Economic Development and Trade 11 Land and Freshwater Area, by Province and Territory. Statistics Canada.

12 Total Renewable Freshwater Supply,

by Country. Pacific Institute. 2008– 2009. http://www.worldwater.org/ data20082009/Table1.pdf (June 4, 2010). p. 197.

Smart KINGSTON CANADA

Business Works Here.

Sudbury 630km Toronto 264km

Chicago 1,086km

Cleveland 730km

Ottawa Montreal 200km 290km

Kingston Boston 725km New York 608km Philadelphia 620km Washington 810km

St. Louis 1,470km

Urban Hippie Granola

Atlanta 1,762km

Small batch artisan granola made from raw ingredients that are GMO-free and sulfite free.

Sun Harvest Greenhouses

Kingston’s leading independent four season greenhouse and garden centre.

Limestone Organic Creamery

Producing and retailing certified local and organic whole foods and milk products.

Pure Ingenuity

Coupling engineering with craftsmanship to design precision fabrication and manufacturing solutions.

Findlay Foods

Full service distributor of fresh, frozen and dry goods/protein for over 25 years.

Kingston Economic Development Corporation 945 Princess Street at Innovation Park Kingston, Ontario K7L 3N6 Tel: 613-544-2725 Toll: 866-665-3326 Email: business@kingstoncanada.com

Sensient Colors Canada

Unparalleled colour innovation for food and beverage applications.

Perspective

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AGRI FOOD

25

KINGSTON, CANADA: Strategically Located For Agri-Business Success

W

ith a regional population of over 160,000, Kingston is situated between the major hubs of Toronto, Montreal, Ottawa and New York State and serves a population of 1.6 million. With its central location, proximity to three uncongested border crossings into the United States, and opportunity for industry/ academic partnerships with three leading post-secondary institutions, Kingston’s advantages for high growth business success are plentiful.

Combined with first-class infrastructure, competitive tax rates and a skilled and motivated labour force, Kingston is the perfect place to grow agribusiness in North America.

As home to many of Canada’s brightest minds – students, researchers, and professionals – this vibrant and dynamic community is woven with innovative ideas and experiences.

Kingston was named one of the World’s 21 Smartest Communities in 2013 and Top7 Smartest Communities in 2014 by the Intelligent Community Forum, which highlights cities that harness information and communications technology to foster inclusive, prosperous and sustainable economies. Earning a place among the Smart21 and Top7 validates Kingston’s status as a smart city, adding to other related high-caliber accolades including being named one of the top Best Places to Live in Canada and being ranked as a Top Canadian Hotspot for Young, Talented Workers.

Kingston is situated between the major hubs of Toronto, Montreal, Ottawa and New York State and serves a population of 1.6 million.

The city has sustained its growth in part due to the stable and diversified public/private sector economy made up of smart and innovative companies who continue to make impacts in their fields at home and abroad.

Kingston is particularly attractive for food processing companies as it is part of a region that represents the largest food and beverage processing jurisdiction in Canada. Over 1,500 food processors are based in Eastern Ontario taking advantage of the quality of life, motivated workforce and access to markets.

Active private sectors also include advanced manufacturing, clean technologies, and defence and information communication technologies.

Companies in Kingston benefit from an active

labour force who are drawn to the region for the lifestyle, amenities and career opportunities. With a combination of quality of life, history and architecture, cultural and recreational amenities, education and healthy living options, the city is one of Canada’s premier communities.

The Kingston Economic Development Corporation will support your business with identifying funding opportunities, labour market support, knowledge sharing and industry/academic partnerships to ensure companies and individuals can develop and flourish. Choosing Kingston, Canada as your base for food and beverage process is the smartest decision you can make.

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Elgin County – The Progressive Forefront of Agri-food Technology

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n Elgin, we recognize the importance of sustaining our growth and driving new investment for our communities.

Innovative and forward-thinking interest from the public and private sector in the deployment of emerging technologies continues to grow. The time is now to make the move to Elgin County.

Elgin County is strategically located in the heart of Southwestern Ontario and is ideally suited to agri-business with some of the best growing conditions in Canada. There are currently over 130,000 hectares utilized in full agricultural production in the County, managed by 1,489 farms taking advantage of Elgin’s fertile soil and plentiful growing season.

Elgin County’s economy is largely driven by agriculture and ag-related businesses, providing 19.7% of the County’s jobs, and producing $558 million in sales annually from farms and businesses that purchase from or sell to farms. For every dollar in farm gate sales, an additional $1.13 is generated for ag-related businesses.

Agriculture and agribusinesses in Ontario are being transformed by technology and consumer demand, contributing to the growth of processed food and consumer-oriented food products. Elgin County’s location and competitive labour and business costs make it the ideal locale for smaller farms and companies to compete with larger operations for the growing consumer demand for innovative and higher-quality products.

Elgin’s local companies and farms are on the progressive forefront of new technologies being developed and used for food processing, greenhouse production, and organic farming.

Progressive Success Elgin County is known for being progressive by nature, and there is no exception when it comes to Agribusiness. Ontario Plants Propagation in Talbotville, Ontario provides greenhouse vegetable transplants for North America’s greenhouse vegetable producers. Employing up to 140 people during its busy season, Ontario Plants Propagation has over 15 acres under glass and the capacity to produce almost 15 million vegetable plants annually.

The business is well on its way to becoming Eastern North America’s premier supplier of greenhouse vegetable transplants.

Elgin Advantage Elgin County has convenient access to Highways 401, 402, and 403. The US border is

just a short 2 hour drive away, enabling fast transport of products. Air transportation is available at the St. Thomas municipal airport, with facilities to accommodate recreational and commercial activities.

Opening your business in Elgin County provides you with immediate access to a market of over 439 000 people, including the cities of St. Thomas and London. More than 10 million people are located within a 2½ hour drive.

Elgin offers a labour force ready to work for you with a steady population growth of 3.1% over the last decade.

The highest concentration of residents is between the ages of 25 and 44, many of whom are trained in the skilled professions, including healthcare, trades, and equipment operators, business and finance as well as sales and service.

To make your move into a dynamic new future for your innovative business choose Elgin County.

For more information visit www.progressivebynature.com

Food Safety Legislation in Canada Undergoing a Significant Overhaul

By Catherine Bate and Kelly Harris Catherine Bate Partner Toronto 416.595.8582 cbate@millerthomson.com

Kelly Harris Associate Toronto 416.595.8593 kharris@millerthomson.com

The new Safe Food for Canadians Act (SFCA), once in force, will consolidate into one regime the current Meat Inspection Act, the Fish Inspection Act, the Canada Agricultural Products Act, and the food provisions of the Consumer Packaging and Labelling Act. Thus the SFCA, will bring about sweeping changes impacting various producers, manufacturers, importers and exporters of ‘food commodities’ (which include ‘food’, as defined under the Food and Drugs Act; or, any animal or plant, or any of its parts, from which ‘food’ may be derived; or, anything prescribed by future regulations to be a food commodity).

The SFCA prohibits making deceptive representations about food commodities in manufacturing, importation, advertising, sales, labeling, and other analogous activities. It also prohibits tampering, threats of tampering, and creating the false impression that a food may have been tampered with, with intent, to render a food commodity injurious to human health. Further, the SFCA also specifically prohibits the use or advertisement of food commodities in connection with inspection marks or grade names, unless authorized by regulation, including marks misleadingly similar to inspection marks or grade names.

These requirements may not seem particularly surprising or onerous. The real challenges for industry, and in particular small business, may arise from the regulations under the SFCA. These have yet to be released in final form, but an overview provided by the Canadian Food Inspection Agency contemplates the following: 1

Licensing Virtually any party reaching outside of its own provincial boarders in respect to sale, manufacture or trade will be subject to licensing obligations. Specifically, any party importing, preparing food commodities for export or for inter-provincial trade, or exporting a food for which they are requesting an export certificate, must be licensed. Each license will be valid for two years. An inspection may be required prior to issuance, renewal or amendment of any license depending upon risk and compliance history (e.g., sectors previously subject to licensing and inspection obligations can expect similar standards to continue to apply).

Traceability Traceability standards will be imposed upon license holders. Traceability information will have to be provided electronically to the regulator, upon request, in plain text, in English or French. The intent is to allow for a more timely response during a food safety incident.

Food Safety Standards The regulations will set minimum requirements for food safety, regardless of the size of operation. The requirements, in addition to the standards already set in the Food and Drugs Act, will focus on good manufacturing and agricultural processes, including sanitation; hygiene; physical structure and maintenance; receiving; transportation and storage; and investigation/ notification / complaints and recall procedures.

Preventative Control Plan (“PCP”) Regulated parties will be required to establish a PCP, a systems-based approach to hazard management, based on HACCP requirements for identification, monitoring, corrective action and record keeping. The PCP would be subject to evaluation by an inspector evaluating compliance with the SFCA.

Increased Penalties Penalties under the SFCA will be significantly increased. Under the new regime, upon summary conviction penalties will be a fine up to $250,000 and/or up to 6 months imprisonment on a first offence, and $500,000 and/or 18 months imprisonment for subsequent offences. On an indictment, the penalties jump to $5 million and/or up to 2 years imprisonment. For non-compliance with the new food tampering prohibition (or acts/omissions that cause a risk of injury to human health), the penalties are even higher – a fine up to $500,000 and/or up to 18 months imprisonment on a first summary conviction, $1 million and/or up to 2 years imprisonment on subsequent summary convictions, and a fine in discretion of court and/or up to 5 years imprisonment on an indictment.

What next A comment period on a draft summary of the proposed regulations (and other documents incorporated by references) is open until July 31, 2015. Thereafter, the regulations will be published (possibly in 2016) with full implementation required sometime in 2017. It is expected that implementation will be staged, and no doubt additional guidance will come from the regulator as deadlines for compliance approach. Nevertheless, now is a good time to take stalk of what may be required of you as a producer, an importer or exporter, what exceptions may apply, and what measures will be required to bring your business into readiness.

We anticipate many operations to be left struggling at the last minute, with compliance issues holding up licensing and, therefore, disrupting business operations. Don’t be left behind the competition.

1 For further detail, see A New Regulatory Framework for Federal Food Inspection: Overview of Proposed Regulations, http://www. inspection.gc.ca/about-the-cfia/accountability/consultations/federal-food-inspection/overview-of-proposed-regulations/eng/1400451 508255/1400451811916#a1 last accessed March 15, 2015.

Food labelling is driving significant change in the complex multimillion dollar Canadian agri-food industry. It is only one of many critical issues facing businesses operating in this dynamic sector that now makes up 8.1%* of the country’s total GNP. Whether it’s food safety and production protocols, shipping and distribution agreements, or livestock and plant production, our Agribusiness clients count on our knowledge, perspective and experience.

With lawyers on the ground in the industry’s key regions, we understand your issues and are uniquely positioned to advise you.

Contact our Agribusiness and Food Group lawyers for a fresh legal perspective. www.millerthomson.com/agribusinessandfood

Making sense of food labelling.

* or $100.3 billion, according to Statistics Canada

Added experience. Added clarity. Added value.

Miller Thomson LLP

millerthomson.com

VANCOUVER

CALGARY

EDMONTON

SASKATOON

REGINA

LONDON

KITCHENER -WATERLOO

GUELPH

TORONTO

MARKHAM

MONTRÉAL

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Dufferin County Provides the perfect blend of urban and rural opportunities.

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n easy hour north of Toronto is Dufferin County, an almost 1,500-square-kilometre area that is a savvy alternative for small- and medium-sized business owners looking for lower operating costs and an attractive, safe and welcoming place to call home.

The region is comprised of approximately 58,000 residents who live in the urban centres of Orangeville, Shelburne, and Grand Valley, and the surrounding rural communities of Mono, Amaranth, East Garafraxa, Melancthon, and Mulmur. Dufferin County boasts a young, talented, and available workforce with a healthy and varied commercial/industrial business base.

Agriculture has strong roots in Dufferin with prized Honeywood silt loam – a better than class 1 soil, and plentiful water. This versatile ground supports a variety of farming opportunities, from crops to vegetables to cattle. In fact, almost 17% of the province’s total acreage for potato production is located in Dufferin County and various field crops, dairy, and livestock production offer even more agri-production opportunities. The combination of dairy and cattle production injects over $31 million in annual gross farm receipts into the local economy. The County also boasts a large concentration of horse farms and related businesses offering possibilities for economic development as well as recreational pursuits. The local food movement is thriving, as multi-generation and new generation farming opportunities,

farm gate sales, and farmers’ markets continue to grow across the County.

Dufferin County is home to approximately 4,600 businesses, primarily small business operations. The region’s urban hub, Orangeville, provides much of the infrastructure required for successful agri-food processing. Woolwich Dairy, an internationally renowned producer, began operations in Grand Valley and relocated to Orangeville with a recently expanded manufacturing plant and their international head office. Centrally located within the heart of Ontario’s agricultural hub with close proximity to the Greater Toronto Area, Dufferin County provides an ideal location between agricultural production and the North American market.

“We fell in love with the whole area,” said Tony Dutra, owner of Woolwich Dairy. “When the time came to build a new facility, we looked around and found what we needed right here.” For Woolwich Dairy, Orangeville’s industrial land offered everything that the business needed to expand. “The industrial land was well priced, it was close to Highway 10 to make shipping easier, and it’s a short trip to the major centres of Toronto, Brampton and Mississauga. When you’re hiring people, you want to make sure they have a good

place to live.You want them to have schools, day care, a hospital, and family neighbourhoods – everything they need for a good quality of life.” It is this supportive business environment that recently encouraged another Toronto area manufacturer, Quality Cheese Inc., to expand its operations into Orangeville. According to Quality Cheese Director of Operations Joe Borgo, “The Orangeville plant is ideally located in proximity to our milk suppliers and is wellappointed to support our future expansion plans.”

Dufferin County provides the perfect blend of urban and rural opportunities, a place where people can find small-town charm along with the unspoiled beauty and recreational amenities offered by one of the most scenic regions in Southern Ontario.

Affordable housing, diverse educational opportunities, and international calibre recreational and training facilities all contribute to a high standard of living.

The combination of lifestyle and business amenities, including commercial and industrial space that is affordable makes Dufferin County the ideal location for a new or expanding operation. Just an hour from the GTA, you’ll find everything you need for real work-life balance in Dufferin County.

canada’s food university Our experts know food, from fork to field. Access their knowledge through the Food Institute of the University of Guelph.

www.uoguelph.ca/foodinstitute

Invest in

• Leader in food production,

generating $1.5 million / day and employing 4,000 people • Home to numerous food processing companies including Sofina, Parmalat, Saputo, Maple Leaf, Heinz and Solis • Competitive business costs

• Infrastructure and logistics

support the food processing sector • Located in the heart of southwestern Ontario with access to major Canadian and US markets • 141 million consumers live within a day’s drive of Ontario

Reach out to us today.

Your business is our pleasure!

Kristin Sainsbury EcD, CEcD | Economic Development Coordinator Corporation of the County of Perth | 1 Huron St., Stratford, ON, N5A 5S4 T. 519-271-0531 x150 | C. 519-301-1962

www.perthcountybusiness.ca

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AGRI FOOD

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Strong support for research and development Government spending in support of research and development (R & D) in agriculture and agri-food is important for the future growth and competitiveness of the functional food and natural health products industry.

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his spending has increased over the past four years, and is estimated to be approximately $561 million for the 201112 fiscal year.1 As part of Canada’s collaborative approach to R & D in the functional food and natural health products industry, undergraduate and postgraduate programs in human nutrition and food science exist in several Canadian universities, including the University of Alberta, the University of British Columbia, the University of Manitoba, the University of Toronto and McGill University.

The University of Guelph—one of the world’s leading agricultural universities—offers a specialized program in “Functional Food and Nutraceuticals”.

Canada’s Scientific Research & Experimental Development (SR&ED) program provides income tax credits and refunds for expenditures on eligible R&D activity in Canada on wages, materials, some overhead and SR&ED contracts.

Foreign investors can also avail themselves of Canada’s Industrial Research Assistance Program (IRAP), which supports innovative R & D and commercialization

of new products and services by small and medium-sized firms.

Export Development Canada (EDC) and Business Development Bank of Canada (BDC) provide flexible

financing programs and solutions tailored to support foreign direct investment in Canada.

1 Agriculture and Agri-Food Canada. An Overview of the Canadian Agriculture and Agri-Food System, 2013.

Canadian universities house a number of globally recognized research institutes.

Richardson Centre for Functional Foods and Nutraceuticals (University of Manitoba, Winnipeg, Manitoba)

Department of Agricultural, Food and Nutritional Science (University of Alberta, Edmonton, Alberta)

Guelph Food Technology Centre (University of Guelph, Guelph, Ontario)

Institute of nutrition and Functional Foods (INAF) (Université Laval, Quebec City, Quebec)

Food Science Group and Human and Animal Nutrition Group (University of British Columbia, Vancouver, British Columbia)

Centre for Aquatic Health Sciences (University of Prince Edward Island, Charlottetown, Prince Edward Island)

Growing and processing with Canada’s closest access to U.S. markets

All the vital assets: human resources, location, climate, quality of life and the ability to manufacture and grow what the world needs.

INDUSTRY PROFILE

212 92 1900 $5.00

largest greenhouse research centre in North America

food & beverage processing companies

Food source traceability

acres of greenhouses and growing

Waste mitigation

$5.02

under national standard protocols

Integrated pest management limits need for pesticide use

comprehensive reduction, recycling and re-purposing capabilities

SECTOR WORKFORCE

3100 people employed in agriculture industry

3250

people employed in food and beverage processing

$77.6

$75

$70 $3.58 $3.18

$65

$60

$66.1

LEASE COST PER SF 50,000 SF building with 110 employees

Chicago

Toronto

$55

Windsor-Essex

$1.00

Toronto

$64.0

$2.00

Chicago

ESSEX

Harrow Research Centre

day growing season

$4.00

$3.00

AMHERSTBURG

I N N O VAT I O N & FOOD SAFET Y

Windsor-Essex

KINGSVILLE

LAKESHORE

LASALLE

LEAMINGTON

PELEE ISLAND

TECUMSEH

WINDSOR

AG R I - B US I N E S S I N W I N D S O R-E S S E X, ON TARI O CAN ADA

LABOUR COST PER EMPLOYEE in ‘000s of dollars

Source: 2014 KPMG Competitive Alternatives Study

choosewindsoressex.com

info@choosewindsoressex.com 519-255-9200 Toll Free 1-888-255-9332 /windsoressex

/weecdev

/windsoressex

It’s that close: the U.S. market sits less than a mile away, across the Detroit River.

Industry strengths • Food and beverage processing generates over $2 billion in revenue annually • World’s second largest greenhouse cluster • The region is surrounded by the Great Lakes freshwater system • Food processing is the region’s second largest manufacturing sector • Agri-business is a major driver of the regional economy

Supply chain and access to market

Most business-friendly location

• Located one mile from Metropolitan Detroit with 3.8 million population • Integrated temperature controlled transportation networks and distribution centres • Cross-border logistics operations facilitate access to massive U.S. market • Duty-free access to U.S., Mexican and European markets for agri-food products from Canada, the fifth largest exporter of agricultural and agri-food products in the world

• Business Ombudsman Initiative supporting investors and businesses • Serviced land costs among the continent’s most attractive • Lower Ontario corporate tax rate for manufacturers compared to U.S. • Housing costs among Canada’s most affordable • A diverse community with 22% of the population foreign born

ESSEX

BRONZE

/weecdev

/windsoressex

A GLOBAL PERSPECTIVE CHICAGO

LOS ANGELES

DALLAS

MONTREAL

TORONTO

NEW YORK

CENTRAL TO NORTH AMERICA

ON THE U.S. BORDER

CANADA

MOSCOW LONDON FRANKFURT PARIS ROME ISTANBUL

BEIJING SHANGHAI

SEOUL

WINDSOR-ESSEX TOKYO

DUBAI

MEXICO CITY

/windsoressex

700 California, Suite 200, Windsor, Ontario, Canada N9B 2Z2 519-255-9200 Toll Free 1-888-255-9332

choosewindsoressex.com

WINDSOR-ESSEX

AMHERSTBURG

2013

H O M E T O N AT I O N A L A N D I N T E R N AT I O N A L C O M PA N I E S S U C H A S :

KINGSVILLE

LAKESHORE

LASALLE

LEAMINGTON

PELEE ISLAND

TECUMSEH

WINDSOR

AG R I -BU S I N E S S I N W I N D S O R-E S S E X , O N TA R I O C A N A DA

USA

250 mi DALLAS

MUMBAI

MONTREAL TORONTO

CHICAGO NEW YORK

USA

SARNIA

CANADA

LONDON

500 mi 750 mi

DETROIT

MONTEREY

SAO PAOLO

SYDNEY

MEXICO CITY

1250 mi

WINDSOR-ESSEX

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37

European Commission Export To Canada

A

s a strong supporter of free trade, Canada has always been a natural ally and important trade partner for the EU. Strengthening the economic and trade relationship with Canada is therefore an important priority.

In 2014 Canada was the EU’s 12th most important trading partner, accounting for 1.7% of the EU’s total external trade. In 2013 the EU-28 was Canada’s second most important trading partner, after the U.S., with around 9.2% of Canada’s total external trade in goods.

The value of bilateral trade in goods between the EU and Canada was €59,1 billion in

2014. Machinery, transport equipment and chemicals dominate the EU’s exports of goods to Canada, and also constitute an important part of the EU’s imports of goods from Canada.

Trade in services is an important area of the EUCanada trade relationship.

The value of bilateral trade in services between the two partners amounted to €28,8 billion in 2013. Examples of often traded services between Canada and the EU are transportation, travel, insurance and communication.

The investment relationship is equally highly important. In

2013, European investors held investments worth €225.2 bn in Canada while Canadian direct investment stocks in the EU amounted to almost €117.0 bn.

EU-Canada “trade in goods” statistics Trade in goods 2012-2014, € billions Year

EU imports

EU exports

Balance

2012

30.3

31.4

1.1

2013

27.2

31.6

4.4

2014

27.4

31.7

4.3

EU-Canada “trade in services” statistics Trade in services 2011-2013, € billions Year

EU imports

EU exports

Balance

2011

9.8

16.1

6.3

2012

11.1

17.4

6.3

2013

11.4

17.4

6.1

Foreign direct investment Foreign direct investment 2013, € billions Year

Inward stocks

Outward stocks

Balance

2013

117.0

225.2

108.1

source: http://ec.europa.eu/trade/

Perspective

TM

Perspective

TM

AGRI FOOD AGRI FOOD

34

38

Middlesex at the thecentre centre MiddlesexCounty County is is at of of excellence excellencefor forAgribusiness Agribusiness

MM

iddlesex County is is iddlesex County to top-quality home home to top-quality food producers food producers and and other agricultural operations, other agricultural operations, centre of excellence a centrea of excellence for for we appreciate your business innovative farming science, innovative science, foodfarming processing, research and A recent Agri-Food Economic food processing, research development, technical expertise, A recent Agri-Food Economic Impactstudy study conducted conducted byby and development, technical Impact and the tools and services needed Synhesis Agri-Food Network notes expertise, the and toolseffective and farmingSynhesis Agri-Food Network for and efficient that “Agriculture is a cornerstone agribusiness operations. servicesand needed for efficient notes “Agriculture is a of of thethat economy of the County and effective farming and cornerstone of the economy Middlesex with over $1.2 billion Middlesex County is known agribusiness County of Middlesex total economic impact. This for its operations. abundant and prosperous ofinthe Middlesex County is known with overto$1.2 extends $547billion millionin in total Gross cattle, pork, and poultry/egg Domestic impact.

Product,This 7,822extends total jobsto for its abundant prosperous economic operations.and There are 2,352 and $290 million in wages and cattle, pork, poultry/egg million in Gross Domestic farms and in Middlesex County, and $547 salaries.”7,822 total jobs and 246,592 hectares of farmland, Product, operations.

There are 2,352 percent of farms inrepresenting Middlesex26.5 County, and $290 million in wages and business of in the County.

246,592allhectares farmland, salaries.”

Middlesex a prime representing 26.5County percentis of location to establish or invest in all business in the County. an agri-business operation for a Middlesex County is a prime host of compelling reasons. locationThese to establish invest include aorskilled in an agri-business operation workforce; strong rural work In 2013, Middlesex County ethic; for a host of competitive compellingand stable had farm cash receipts of $659.1 system; world-class reasons.marketplace These include a skilled million, with corn, soybeans, research facilities; workforce; strong rural abundant work pork, dairy and poultry making the arable land; high quality local ethic; competitive and stable largest contributions. food ingredients; low business marketplace system; In 2013, Middlesex Interestingly, fruits andCounty vegetables costs; access to world-class local trades researchpeople facilities; abundant had farm cash receipts of $659.1 are the sixth largest contributor – and services; and, easy arable land; quality local million, with soybeans, ahead of beef,corn, and wheat. accesshigh to North American Middlesex County also making food ingredients; low business pork, dairy and poultry markets through the regions a range of equine excellent transportation costs; access to local trades network theencompasses largest contributions. activities such as racing, directand, access to two Interestingly, people including and services; easy fruits and nonracing competition, pleasure major border crossings to the access to North American vegetables are the sixth largest riding, breeding stock, riding United States. markets through the regions contributor – ahead of beef, and school or riding lessons and other are lots of other places wheat. excellent “There transportation touristMiddlesex activities. County also could havedirect gone,access but the cost encompasses a range of equine networkweincluding The economic contribution of of doing business is so much to two major border crossings activities suchservices as racing, the various that nonsupport better in Middlesex County,” to the United States. racing competition, pleasure agricultural production and Agrisays Sean Pressey, Manager at “There arePlains lots Aqua of other riding food breeding businesses stock, in Middlesex Sand Culture. “A lot riding, County is also significant places we could have gone, but school or riding lessons and of our monitoring equipment is including: machinery and the costpretty of doing businessand is this area other touristFarm activities. sophisticated, equipment manufacturing; a veryineducated workforce so muchhasbetter Middlesex The economic contribution trucking from draw.”

County,” sayswhich SeantoPressey, of Specialized the variousfreight services that (nearly 29,000 truck-loads were Manager at Sand Plains support agricultural production Aqua Culture. “A lot of our and Agri-food businesses in monitoring equipment is pretty Middlesex County is also sophisticated, and this area has a significant including: Farm very educated workforce from machinery and equipment which to draw.” manufacturing; Specialized

freight to trucking (nearly required transport the 29,000 estimated 1.2 million metric to truck-loads were required tonnes produced in the County transport the estimated 1.2 ofmillion Middlesex in 2013); Finance metric tonnes produced and insurance; Auctioneering in the County of Middlesex in (Business-to-business electronic 2013); Finance markets, and agentsand andinsurance; Auctioneering (Business-tobrokers); and Veterinarians business electronic markets, (Other professional, scientific, andtechnical agents services). and brokers); and and Veterinarians (Other Middlesex County and professional, scientific, and its proximity to the City of technical services).

London offers a unique and Middlesex employment County and complementary its proximity toisthe Cityat of profile.

Middlesex strong the primary production end of the London offers a unique and scale whereas London is strong complementary employment inprofile. the Agri-food processing Middlesex is strong at sectors.

Together, the region end the primary production offers a solid base of business of the scale whereas London across many aspects of the Agriis strong in the Agri-food food industry. processing sectors. Together, “This combined and base of the region offersrural a solid urban atmosphere provides business across many aspects of Middlesex residents and the Agri-food industry. employers the advantage “This combination of of of a lower cost of living, ease rural and urban atmosphere transportation, access to top rated education health services, provides and Middlesex residents along with a vast array of and employers the advantage cultural and recreational of a lower cost of living, ease opportunities,” says Cara A. to top of transportation, access Finn, Director of Economic rated education and health Development, Middlesex services, as well as a vast array County. of cultural and recreational opportunities,” says Cara A. For additional information visit Finn, Director of Economic www.investinmiddlesex.ca.

Development, Middlesex County.

For additional information visit www.investinmiddlesex.ca.

Want to know what North American opportunities await you in Ontario Canada’s Bay of Quinte Region?

The Quinte Economic Development Commission (QEDC) will show you everything you need to know about doing business in Ontario, Canada: call +1-613-961-7990.

FOOD PROCESSING: HOW COMMUNITY SUPPORT CAN HELP YOU THRIVE IN A GLOBALLY COMPETITIVE BUSINESS CLIMATE Despite increasing pressure from international markets, Ontario Canada’s Bay of Quinte has managed to keep companies local, and to attract and retain multinationals like Nestlé and Kellogg’s. The Quinte Economic Development Commission (QEDC) says the key to the region’s success is the shared focus on collaboration—here’s how they do it.

1. Make Industry Needs a Priority. The Highway 401 Corridor, central North American location (between Toronto and Montreal), strong agricultural history, in-land Canadian Customs office and inexpensive cost of doing business (KPMG Competitive Alternatives 2014 Study) already attract food processors to the Bay of Quinte. QEDC works with community partners to make sure industry needs are a priority, removing obstacles like development charges.

2. Attract Complementary Services to Create a Sophisticated Supply Chain. The community has a strategy for the type of businesses to attract so that the existing clusters (Agriculture, Food Processors, Plastics, Packaging, Transportation and Warehousing) are able to drive the success of their verticals. World-class services are actively recruited to support the cluster.

3. Help the Labour Force enjoy their Work and Continue to Add value. Offering educational innovation is a cornerstone of the Bay of Quinte’s success. Loyalist College’s suite of manufacturing programs and Food Process Operator Apprenticeship (developed in response to industry needs) keeps the labour force ready to serve local business.

Plus, a blend of affordable urban and rural comforts create a high quality of life making for “happy, long-term employees” says Reid’s Dairy President, Stephen Quickert.

LEADING THE STRATEGY TO STAY COMPETITIVE Hosting job fairs, connecting competitively priced land to site selectors, and making introductions to valuable funding and supply chain partners takes community effort. “Working together to offer competitive advantages is a big part of QEDC’s three municipalities (Belleville, Brighton, and Quinte West) working together,” says Chris King, QEDC’s CEO. Community action plans help local business stay market-ready and internationally competitive.

QEDC also attends tradeshows to help local business extend their networks, long after site-selection.

“It’s a very proactive region that is always looking ahead and initiating things local industry might need,” says Kilmarnock Enterprises’ President, Isabelle Graveline.

Learn more about what it’s like to do business with North America from the Bay of Quinte: Call +1-613-961-7990 to speak with a member of the QEDC team.

www.QuinteDevelopment.com info@QuinteDevelopment.com

FROM

HAMILTON to YOUR PLATE =

AN

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ERE IN C

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=

Two slices of Dempsters Bread

Mustard (GS Dunn mills 90% of the world’s mustard seed)

Two slices of Salerno mozzarella cheese

Two slices of Maple Leaf Foods ham

One Tim Hortons Coffee (Canadian roasting operations in Ancaster)

One Karma Candy chocolate bar

THERE’S ROOM ON THE PLATE FOR MORE. Add your food processing plant to the international firms on the Hamilton menu.

investinhamilton.ca