The Ontario Food Cluster advantage for global trade and investment March 2013

The Ontario Food Cluster advantagefor global trade and investment

March 2013

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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• Canada is a thriving market for food products. Due to the North American Free Trade Agreement (NAFTA), Ontario enjoys access to over 460 million consumers and a combined GDP of $17 trillion across Canada, Mexico and the U.S.

• Ontario has more of Canada's grocery and specialty food store market than any other Canadian province. Ontario’s retail grocery sales total $29 billion

• Manufacturing revenues from the Ontario agri-food industry are expected to hit $40 billion in 2013

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

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• 130,000 people in Ontario work directly in agri-food processing/manufacturing and wholesaling, and 483,000 more people work in related sectors such as food service, retail and specialty stores

• This makes the agriculture and agri-food sector Ontario’s #1 employer

• Ontario has the highest number of qualified engineers in the G7, report by Swiss-based Institute for Management Development (IMD)

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

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• 3,200 agri-food companies in the Ontario Food Cluster

• More than $1.5 billion worth of goods cross the Canada‑US border every day

• Ontario has an export-oriented business culture: agri-food exports total $9.91 billion

• Canada has the fastest employment growth in the G7

• KPMG ranks Canada as the most competitive country in the G7

Ontario’s top agri-food exports

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Top agri-food exports, Ontario 2011 ($ millions)

Baked goods (bread, pastry etc.) 648.8Soya beans 572.3Other food preparations 349.5Sweet biscuits 348.1Sugar confectionary without cocoa 282.4Pork cuts, fresh / chilled 277.4Waffles and wafers 257.7Coffee, roasted, not decaffeinated 256.3Tomatoes, fresh / chilled 226.6

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

• Canada’s corporate taxes heading down across a broad range of categories, and employers in Canada enjoy the lowest payroll taxes among their counterparts in G7 countries

• In 2013 Canada’s combined federal-provincial statutory general corporate income tax rate averages 26% – 13% less than the average U.S. rate.

Canada has stellar economicfundamentals and is a G7 leader

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• World’s soundest banking system

• Tax credits can save foreign investors, on average, up to 30 cents on each dollar invested in R&D in Canada

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

• Highest proportion of college and university graduates in the OECD

Soundness of banks world rank

Zero-tariff approach to food processing and manufacturing inputs

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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

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

• Agricultural Adaptation Council’s Canadian Agriculture Adaptation Program (CAPP) is a five year, $163 million initiative to help the sector adapt and remain globally competitive

• 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 expertise

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 Food and Soft Materials Science

• Ontario Agri-Food Technologies

• 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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Source: Statistics Netherlands 2011

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.

• Parrish & Heimbecker Limited

• 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

• Bonduelle

• 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 Area

• Guelph

• Waterloo Region

• Elgin County

• City of Brantford

• City of Hamilton

• City of London

• County of Middlesex

• Niagara Region

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• Southwestern Ontario Marketing Alliance (SOMA)

• Windsor-Essex

• Ontario Ministry of Agriculture and Food

• Ministry of Rural Affairs

• DFAIT

• Agriculture and Agri-Food Canada

March 2013

The Ontario Food Cluster advantagefor global trade and investment

Documents

The Ontario Food Cluster advantage for global trade and investment March 2013