Coping WiTh inCreased sTr ains on The gloBal Food supplY Chain: onTario has soluTions

The food and beverage sector in Canada is a powerhouse. It is the secondlargest manufacturing industry in the whole country, bringing in a total amount of $117.8 billion in 2019. This makes up approximately 17% of total manufacturing sales and about 2% of the national Gross Domestic Product (GDP).1 Ontario accounts for 62% of Canada’s total sales (which is approximately $47 billion)2 and is actually one of the largest food and beverage sectors in all of North America, housing 4,675 businesses.3 In Toronto alone, the Food and Beverage sector is responsible for employing more than 64,000 workers with annual wages equalling about $3.2 billion. Additionally, 50% of the Food and Beverage workforce in Ontario is made up of sector businesses within the city of Toronto.

Ontario is positioned well relative to the market. Located in the heart of North America, which is home to some of the largest urban centres in the world, Ontario has access to the entire North American market, including the United States’, which is worth $20 trillion. As well, Ontario has an expansive transportation network made up of 4 international and 300 regional airports, 250,000 kilometres of roads and highways, a dozen border crossings, and the 6th most internationally connected airport in the world. 4 There are plenty of options to get the products to and from where they need to go. Ontario’s Food and Beverage manufacturers also have trade agreements set in place with 50 countries across the world. This includes the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the CanadaUnited States-Mexico Agreement (CUSMA).

Ontario wants to ensure that the food and beverage sector continues to grow and flourish. In order to achieve their 10-year goal of increasing food growth, production, and manufacturing in Ontario by a certain percentage, the province has put forth a $25 million Strategic Agri-Food Processing Fund (SAPF) to enable farmers and processors to grow their businesses. Additionally, as stated on the Ontario Government page, these are a few of the actions they are planning to take to get closer to their goal:

• Partner with Supply Ontario to promote, track, and report agri-food procurement by Broader Public Sector Institutions

• Continue to improve service standards for agri-food businesses and reduce red tape by modernizing licensing processes with accessible, online application forms and electronic payments

• Invest $10 million in measures such as risk assessments through the Food Security and Supply Chain Fund to strengthen the supply chain

• Work with industry and build on the success of the SAPF to enhance processing capacity in Ontario through investments in major expansions and modernization of food processing facilities

• Promote open trade efforts and increase international and interprovincial market access for Ontario products

• Increase research partnerships and joint investments with the private sector

By investing in and supporting research and production of the food and beverage industry, Ontario will enhance their global competitiveness in the market and create an impenetrable supply chain to bring food to store shelves.

1 https://agriculture.canada.ca/en/canadas-agriculture-sectors/ food-processing-industry/overview-food-and-beverage-processing-industry

2 https://www.ontario.ca/page/grow-ontario-provincial-agri-food-strategy

3 https://www.ontario.ca/page/grow-ontario-provincial-agri-food-strategy

4 https://www.investontario.ca/ food-and-beverage-manufacturing#stable-place