Ontario’s Agri-Food Sector D R A F T

1. Ontario’s Agri-Food SectorD R A F T February 2008

2. Table of Contents • Ontario Agri-food sector overview • Focus on the Horticulture Sector • New and Emerging Opportunities • Mission to Chile

3. Ontario Agri-food Sector Overview

4. Ontario Agri-Food Overview • Sector includes the entire value chain from field to fork • Sector is notable for its diversity • more than 200 different commodities produced • sugar/confectionary products, baked goods and meat products accounted for almost half of the $6.5 B in food processing exports (2006) • Significant contributor to the economy • sales over $30 billion and 700,000 jobs

5. Ontario - Well Positioned in the North American Market 135 million consumers within a day’s drive of Toronto (representing 44% of U.S. population) Source: Source: U.S. Census Bureau, 2006 (3/2007) http://www.2ontario.com/welcome/oomp_401.asp

6. Selected Economic Indicators, 2006 • 10.6 % = Ontario agri-food goods as % of Ontario’s GDP from all goods-producing industries • 45.4 % = Ontario GDP from food, beverages and tobacco as % of Canada’s GDP from same • 23.6 % = Ontario agriculture as % of Canada’s GDP from agriculture • $8.93billion (CDN) = Total Farm Cash Receipts • Agri-food Trade: • Imports $13.46(billion $CDN) • Exports $8.59 (billion $CDN) • 11.5 % = Employment in agri-food as % of Ontario’s total employment

7. Ontario’s Agri-food Trade by Region/Country January – July 2007($CAN'000)

8. The Changing Ontario Farm l www.ars.usda.gov/is/graphics/photos/

9. Farm Cash Receipts Selected Commodities, 2006

10. Focus on the Horticulture Sector

11. The Horticulture and Greenhouse Industry Horticulture: • Horticulture is a $2B farm gate ($1B fruit and vegetables, $1B floriculture/nursery) • Ontario Horticulture industry represents over 40% of national horticulture crop production. Greenhouse Industry: • Ontario Greenhouse Industry = 1000 hectares • $1.1 Billion farm gate sales (flowers and vegetables) • $4 billion of additional industrial output and labour income province-wide • 51% of Canada’s greenhouse production in Ontario • #1 production of greenhouse vegetables and #3 of greenhouse flowers in North America • Significant reliance on exports to U.S. – High Can $ a big concern • Energy and labour highest input costs

12. Grape & Wine Industry • Over 60 wineries and 15,000 acres of grape • Represents more than 80% of Ontario’s $215 million industry • Significant contribution to Niagara tourism

13. Horticulture Sector Issues • Emerging Pests • Pesticide Issues (reduced-risk, minor use, data requirements, alternative fumigants, spray drift, pesticide by-laws, product re-evaluation and formulation changes) • Food Quality (Optimum quality for consumer, Need to identify Health benefits, Organic guidelines) • Post Harvest • Market Access • Winter Injury/Salt Damage • Land Use • Legislation – Clean Water Act • Water and waste management • Labour • Wildlife Damage • Food Safety and Traceability • Energy – increased heating, transportation, fertilizer, plastic costs • Research funding –decreased support for production and IPM, increased need for new crop research • Genetics: lack of control over germplasm, lack of new varieties being developed, importation of seed from China and GM0’s

14. Area, Production and Farm Value of Selected Commercial Fruit Crops, Ontario, 2006

15. Area, Production and Farm Value of Selected Commercial Vegetable Crops, Ontario, 2006

16. New and Emerging Opportunities

17. Agri-Food: More than Agriculture + Food • More than just primary production • Sector increasingly shifting to value-added products to capture niche markets • Pursuit of innovative production methods/products allows sector to maintain economic strength • Continued development of technologies and expertise to address emerging challenges and opportunities

18. Opportunities for Agri-Food • Energy • Environment • Consumer Trends • Science and Innovation

19. Opportunity: Energy • Three categories of renewable energy associated with the agri-food sector: • Biofuels - derived from starchy crops • Biomass - living and recently dead biological material used as fuel or industrial production • Other renewable sources– eg. solar, wind, anaerobic digesters www.sgaenergy.com

20. Opportunity: Environment To be sustainable, agricultural systems must be compatible with natural systems and processes: • Environmental Farm Management– optimize outputs; minimize inputs and environmental impacts • Air– reduction of effects on air quality • Climate Change - potential to provide a net reduction in atmospheric CO2 • Soil– practices to guard against soil degradation and loss • Biodiversity– safeguard existing natural/semi-natural habitats • Water– methods to maintain quality/quantity of supply

21. Opportunity: Consumer Trends Adaptation / adjustments to meet changing consumer preferences: • Convenience • Awareness of food origins • Formulated for children • Fresh produce • Functional foods • Lifestyle foods • Organics • Portion Control • Upscale / gourmet foods

22. Opportunity: Science & Innovation • Agricultural research (to date) that influences agri-food production & processing: • biotechnology • market development • novel technologies • processing technology • production systems • technology transfer

23. Example: Auto-parts Sector

24. Example: Construction Sector Biocomposite bridge was installed at the University of Guelph Arboretum, donated by PSA Composites LLC

25. Mission to Chile

26. Mission Vision Mission Vision: • A research project has been funded by the federal and provincial ministries of agriculture in collaboration with producer associations to carry out this analysis and to develop of a long term strategic plan for the industry. This work will be informed by best practices from jurisdictions that have well-developed horticultural sectors. • The following jurisdictions have been identified for the data-gathering phase of the project: Australia, California, Chile, Denmark, Holland, and New Zealand. • Mission teams will visit these countries and meet with industry, academia, and government officials to discuss best practices for the horticultural sector in research, innovation and commercialization and government support.

27. Mission Funding Partners and Mission Team Mission Funding Partners: • Agriculture and Agri-food Canada • Ontario Ministry of Agriculture, Food and Rural Affairs • Horticulture producer associations Mission Team: • Dr. Frank Ingratta, former Deputy Minister of the Ontario Ministry of Agriculture, Food and Rural Affairs, Principal Investigator of the project. • Ms. Brenda Lammens, President of the Ontario Fruit and Vegetable Growers Association (OFVGA). This 7500 member organization is responsible for advocating for industry needs. • Ms. Kate Steflemeyer, Research Associate with the George Morris Centre, Canada's leading agricultural think- tank. • Dr. Maurice Bitran, former Director of Research and Innovation at the Ontario Ministry of Agriculture, Food and Rural Affairs, the Ontario Ethanol Growth Fund, and the Ontario Research and Development Challenge Fund.

28. Websites Ontario Fruit and Vegetable Growers Association http://www.ofvga.org/ Ontario Ministry of Agriculture, Food and Rural Affairs: http://www.omafra.gov.on.ca George Morris Centre http://www.georgemorris.org