The Ontario Food Cluster advantage for global trade and investment April 2015

The Ontario Food Cluster advantagefor global trade and investment

April 2015

Ontario Food Cluster

• The Ontario Food Cluster is among the three largest food and beverage processing jurisdictions in North America – and is the largest in Canada

• Ontario has a global reputation for food quality, processing methods, and safety standards

• The Ontario Food Cluster offers rapid access to trade and investment opportunities throughout the province’s agri-food and beverage sector

• We guide business to the Ontario regions that provide the best opportunities for agri-food success

• Our job is to make your job easier

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Welcome to the Ontario Food Cluster

A two-hour flight from most major U.S. cities

Zoom in on the Ontario Food Cluster

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The Ontario Food Cluster

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• Eleven regional, city and community members

• Three provincial and federal government partners

• Countless benefits to locating a business in Ontario

• www.ontariofoodcluster.com

A compelling opportunity for the global agri-food sector

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•Due to the North American Free Trade Agreement (NAFTA), Ontario enjoys access to over 460 million consumers and a combined GDP of $18.7 trillion across Canada, Mexico and the U.S.

•When CETA comes into force in 2016, almost 94 percent of EU agricultural tariff lines will be duty-free

•Manufacturing revenues from the Ontario agri-food industry currently total $36.9 billion from 3,200 companies

Our people story – Ontario’s #1 employer is the agriculture and agri-sector

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• 110,000 people in Ontario work directly in agri-food processing, and the agriculture, agri-food and beverage sector is one of Ontario’s top employers with 740,000 jobs

• Researchers and innovators are at work in 55 university and college programs from 25 institutions concentrating on agriculture, food science, nutritional science and culinary arts

• Canada’s R&D tax incentive program is one of the most generous in the world

Ontario is the largest provincial economyin Canada – an aggressive trading nation

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• More than $1.9 billion worth of goods cross the Canada‑US border every day

• Ontario has an export-oriented business culture: agri-food exports total $11.86 billion

• Canada’s business operating costs are second lowest in the G-7 and five percent lower than those in the U.S., according to KPMG

Ontario’s top agri-food exports

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Top agri-food exports, Ontario 2014 ($ millions)

Baked goods (bread, pastry etc.) 957.0Soya beans 861.4Food preparations 382.7Sweet biscuits 350.0Sugar confectionary without cocoa 326.1Pork cuts, fresh / chilled 320.9Waffles and wafers 305.0Mixes and doughs 292.7

Ontario is Canada’s “business province” and has a strong entrepreneurial culture

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• It takes only one procedure and five days to register a company

• The combined federal-provincial statutory general corporate income tax rate is an average of 26 percent, well below comparable rates in most other G-7 countries and more than 13 percentage points below the United States

• A 2013 KPMG study indicates that Canada’s corporate

income-tax rate has decreased more rapidly than that of any other country

Canada has stellar economicfundamentals and is a G7 leader

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• World’s soundest banking system six years in a row

• One of a handful of nations with Triple-A credit rating

• Tax credits can reduce after tax cost of $100 in R&D spending to less than $41

• Among the lowest tax rates on new business investment in G7

Soundness of banks ranking by World Economic Forum

Zero-tariff approach to food processing and manufacturing inputs attracts FDI

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• Tariff-free-zone for all manufacturing inputs, machinery and equipment

• 50% per year straight-line depreciation for food manufacturing and processing equipment

• Adds up to rapid profitability on new Canadian operations and steady increases in FDI

Inward FDI into Canadian food processing industry from Statistics Canada

Ontario’s agri-food sector strategic R&D and tax incentive programs

• Agriculture and Agri-Food Canada’s Growing Forward 2 program enhances the competitiveness of agri-food sectors. A federal-provincial-territorial initiative, it is a $3 billion initiative provided between 2013 to 2018

• Investing in Business Innovation is a FedDev Ontario initiative that boosts private sector investment in start-up businesses to accelerate the development of new products, processes and practices and brings them to market.

• See more government incentive programs at www.ontariofoodcluster.com/incentives

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Consider Ontario’s agri-food R&D advantages

• Lowest costs in G7 for R&D intensive sectors, with up to a 10.7% advantage over the U.S.

• 55 agri-food-specific university and college programs

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Commitment to labour force & research expertisefrom Common University DataOntario

Dedicated agri-food research and labour development institutes and networks

• University of Guelph

• University of Toronto

• McMaster University (Hamilton)

• Ryerson University

• University of Waterloo

• Conestoga College, Institute of

Food Processing Technology

• Western University (London)

• Laurier University (Brantford)

• Soy 20/20


The Ontario Food Cluster fosters a collaborative, innovation approach throughout the agri-food sector

• Food Institute

• Centre for Nutritional Modeling

• Canadian Research Institute for Food Safety

• Programs in Food Safety, Nutrition and

Regulatory Affairs

• NSF International-Guelph Food Technology

Centre

• Greenhouse and Processing Crops

Research Centre (Essex County)

• Many more

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Ontario offers excellent location and attitude for doing global business

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• Ontario Food Cluster communities are within a two hour or less drive of the U.S. border

• Recent multi-billion dollar investments in port, rail, road and air transport offer supply chain efficiencies

• One in five Canadians has a mother tongue other than English or French

• Asian and European languages spoken extensively

• Canada leads the G7 for the administration of justice and for offering equal opportunities to individuals

Ontario residents share in Canada’s excellent quality of life

• Among highest number of entrepreneurs in working population

• Clean air, water and land

• Cultural diversity within a tolerant society

• Many recreation options

• Publicly-funded healthcare

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Number of entrepreneurs as percentage of working population from OECD

Fast-track immigration process

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• Responsive to agri-food business expansion

• Uncapped number of work permits available to foreign workers

• Fast, straightforward process for intra-company transfers

• Special programs to help recruit R&D talent

Are you hungry yet? The Ontario Food Cluster welcomes you!

Join 3,200 globally recognized agri-food companies including:

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• General Mills Canada

• H.J. Heinz Company of Canada Ltd.

• Royal Canin Canada

• Dr. Oetker Canada

• Kraft Canada Inc.

• George Weston Ltd.

• Maple Leaf Foods

• Kellogg Canada

• Cargill Canada

• Purdy Fisheries

• Saputo Inc.

• Unilever

• Dare Foods

• McCain Foods

• Parmalat Canada

• Horizon Milling G.P.

• Wing’s Food Products

• Grissin Bon

• Ferrero Canada Ltd. / Ltée

• ConAgra Foods Inc.

• Vincor Canada

• Solis Mexican Foods Inc.

• Clovermead Bees and Honey

Get to know us at: www.ontariofoodcluster.com

• Greater Toronto Marketing Alliance

• City of Hamilton

• City of London

• Windsor-Essex

• City of Guelph

• City of Brantford

• Sarnia-Lambton

• County of Elgin

• County of Middlesex

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• Southwestern Ontario Marketing Alliance (SOMA)

• Ontario East Economic Development

• Ontario Ministry of Agriculture, Food and Rural Affairs

• Dept of Foreign Affairs Trade and Development

• Agriculture and Agri-Food Canada

The Ontario Food Cluster advantagefor global trade and investment

April 2015

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The Ontario Food Cluster advantage for global trade and investment April 2015