The Ontario Food Cluster advantage for 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 2 Welcome to the Ontario Food Cluster A two-hour flight from most major U.S. cities Zoom in on the Ontario Food Cluster 4 Welcome to the Ontario Food Cluster The Ontario Food Cluster • Eleven regional, city and community members • Three provincial and federal government partners • Countless benefits to locating a business in Ontario • www.ontariofoodcluster.com 5 Welcome to the Ontario Food Cluster A compelling opportunity for the global agri-food sector • 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 6 Welcome to the Ontario Food Cluster Our people story – Ontario’s #1 employer is the agriculture and agri-sector • 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) 7 Welcome to the Ontario Food Cluster Ontario is the largest provincial economy in Canada – an aggressive trading nation • • • • • 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 $9.91 billion Canada has the fastest employment growth in the G7 KPMG ranks Canada as the most competitive country in the G7 8 Welcome to the Ontario Food Cluster Ontario’s top agri-food exports Top agri-food exports, Ontario 2011 ($ millions) Baked goods (bread, pastry etc.) Soya beans Other food preparations Sweet biscuits Sugar confectionary without cocoa Pork cuts, fresh / chilled Waffles and wafers Coffee, roasted, not decaffeinated Tomatoes, fresh / chilled 648.8 572.3 349.5 348.1 282.4 277.4 257.7 256.3 226.6 9 Welcome to the Ontario Food Cluster Ontario is Canada’s “business province” and has a strong entrepreneurial culture • 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. 10 Welcome to the Ontario Food Cluster Canada has stellar economic fundamentals and is a G7 leader Soundness of banks world rank • • • • 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 11 Welcome to the Ontario Food Cluster Zero-tariff approach to food processing and manufacturing inputs • 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 12 Welcome to the Ontario Food Cluster 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 13 Welcome to the Ontario Food Cluster 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 Commitment to labour force & research expertise 14 Welcome to the Ontario Food Cluster Dedicated agri-food research and labour development institutes and networks The Ontario Food Cluster fosters a collaborative, innovation approach throughout the agri-food sector • • • • • • University of Guelph University of Toronto McMaster University (Hamilton) Ryerson University • • • • Conestoga College, Institute of Western University (London) • Ontario Agri-Food Technologies Programs in Food Safety, Nutrition and NSF International-Guelph Food Technology Centre • Greenhouse and Processing Crops Research Centre (Essex County) Laurier University (Brantford) Soy 20/20 Centre for Food and Soft Materials Science Regulatory Affairs University of Waterloo Food Processing Technology • • • Food Institute • Many more 15 Welcome to the Ontario Food Cluster Ontario offers excellent location and attitude for doing global business • • • • • 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 16 Welcome to the Ontario Food Cluster Ontario residents share in Canada’s excellent quality of life • • • Source: Statistics Netherlands 2011 • • 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 17 Welcome to the Ontario Food Cluster Fast-track immigration process • • • • 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 18 Welcome to the Ontario Food Cluster Are you hungry yet? The Ontario Food Cluster welcomes you! Join 3,200 globally recognized agri-food companies including: • • • • • • • • • • • • 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 19 Welcome to the Ontario Food Cluster 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 • Southwestern Ontario • • • • • Marketing Alliance (SOMA) Windsor-Essex Ontario Ministry of Agriculture and Food Ministry of Rural Affairs DFAIT Agriculture and AgriFood Canada 20 Welcome to the Ontario Food Cluster The Ontario Food Cluster advantage for global trade and investment March 2013