Do you have any suggestions for specific trade shows, trade missions or events related to the food processing sector that the Region should participate in to further promote and develop the industry?

• one of Kind show and sale

• cpma – canadian producing marketing association • Federal government trade missions to usa

• canadian restaurant Food service association

• sial canada – salon international de l’agroalimentaire (international food and beverage exhibition) • Food procession alliance

• chFa national food trade show in toronto • canadian Federation of independent grocers • Fancy Food Festival

Durham region FeDeration oF agriculture – agri-FooD & agri-business br+e report 45

actions anD recommenDations

Action Item # 1 Enhance the Business Climate of Durham Region

business stability and a positive impression of the municipality indicate a generally supportive business environment in Durham region . in the survey sample, almost 70% of the businesses had been in operation for at least 11 years with 1/3 of those in place for more than 35 years . 89% of businesses surveyed rated Durham region as either an excellent or good place in which to do business and ninety percent plan to either maintain their size or expand .

the region should play a leadership role on several areas to ensure that this positive climate is maintained . businesses need adequate, well serviced space and facilities for growth and an efficient transportation infrastructure for movement of raw materials, products and employees . among other critical factors for business competitiveness, energy costs were identified as important by almost 100 percent of the businesses . there is an opportunity for businesses, both established and potential, to be more aware of and using more fully the talent and resources available through the Durham region economic Development and tourism Department (DreDt) . staff can play an even greater role in building business to business networks and in advocating on behalf of business needs .

Goals/Issue Proposed Actions Partners

1 . provide businesses with information and support to assist their expansion plans including: • site selection,

• facility expansion,

• maximizing current building and technology infrastructure, and

• exploring new business development in related transportation and storage sectors, packaging, raw products

2 . create linkages between the sector businesses and the regional resources of education and services to strengthen the business environment .

3 . build awareness of the impact and potential of the industry with local municipalities,

chambers of commerce and boards of trade to strengthen relationships and offer opportunities for managing business barriers related to development charges and other regulations .

• chambers of commerce • boards of trade • maintain a current directory of available

business space for lease/purchase

• play a proactive leadership role in the policy development, design and decisions regarding transportation including road, rail, water and air • continue to inventory manufacturing

infrastructure – warehouse, freezer facilities, refrigerated trucks and look for opportunities to connect the sector to these suppliers

• Facilitate discussions between business and power companies to ensure adequate and secure sources of energy are available • Work with region and local municipal staff to

identify and remove business barriers related to development charges and red tape especially in business expansion projects

46 Durham region FeDeration oF agriculture – agri-FooD & agri-business br+e report Action Item # 2 Work Force Attraction and Retention

businesses from the survey rated the workforce availability, quality and stability as fair to good . 70% of the survey respondents indicated that workforce planning and employee training and attraction are the primary way that local business and economic development associations could assist the business sector . in terms of future employee needs, 79% of the businesses indicated that they expect an increase in employee requirements and both general labour and skilled trades were identified needs for 60% of these businesses . Durham region and the gta have growing population bases that can easily accommodate this growth . top priorities for the development of the workforce include supervisory skill training and health and safety training along with business specific skill training and oral communications . currently, the majority of the training is offered “in-house” with the cost of training and the loss of productivity during training cited as the greatest barriers to employee training . information technology and manufacturing technology advancements will continue to play a significant role in the growth of this sector . opportunities exist to utilize it to enhance employee training in the workplace, re-skilling the existing workforce and making training more accessible .

sixty-one percent of the companies anticipate that new emerging technologies will change their primary product or how it is produced . as companies move towards greater automation and an increase in computerized operations within the work environment they will require a workforce with more specialized skills . Durham college’s courses in Food processing safety techniques and pharmaceutical and Food science technology provide excellent opportunities for training new entrants to the workforce or for upgrading certification for current employees . www .durhamcollege .ca

Goals/Issue Proposed Actions Partners

1 . explore new innovations for retraining the mature workforce including pilot “internships” for work experience for the over-40 age category .

2 . build connections between the sector and the workforce support systems to assist in the removal of barriers related to childcare and public transportation systems .

3 . play a liaison role to market Durham college and uoit to high school graduates and promote the opportunities that exist for employment within the food/ processing industry .

• Durham college • uoit • Durham immigration portal • trent university • explore opportunities for training supports e .g .

courses offered closer to business locations and on-site during/after work hours

• explore opportunities for enhancements in it- based training infrastructure to facilitate on-site training opportunities

• Work with business and region to mitigate public transportation barriers for employees • encourage joint ventures and new investments

in child care among adjacent businesses to support employee needs

• link sector businesses with Durham immigration portal initiative

• Work with local colleges and universities and business alliances to ensure an adequate supply of appropriately trained employees

Durham region FeDeration oF agriculture – agri-FooD & agri-business br+e report 47 Action Item # 3 Support Business Growth

the trend for total dollar sales has increased in the past three years and almost 80% of the companies anticipate this trend to continue for the next three years . over the next three years 55% of the businesses indicated that they plan to undertake an expansion . all of the expansions are expected to require investments in new technology that will lead to increases in the workforce, product lines and process improvements and all of the companies cited financing as a major barrier to these planned expansions . information technology applications continue to grow in use and importance to businesses . While the greatest use is in communications such as email (used by 94% of the businesses) other uses such as broadening market potential, (67%), customer service (72%) and government reporting and payments (78%) are significant for supporting business growth . When asked about factors important to maintaining the business competitiveness among the leading key factors cited were strategic marketing, product research and development and business planning . however over 60% of the companies spend less than 3% of their sales on research and development . While 74 % indicated they had a business plan, the numbers

reporting regular financial performance planning review are much lower . as well, a succession plan is in place for only half of the businesses . improvements in these particular aspects of business development and planning would assist owners in making strategic decisions and investments in the expansion and growth of their business .

the location of Durham college and the university of ontario institute of technology within the region and in close proximity to a large percentage of the industry businesses is a significant positive resource . in addition to linkages for skilled workers and retraining resources, there is an opportunity to tap into the research and business development services offered by these institutions . one business interviewed continually engages a student team to assist with business improvements .

Goals/Issue Proposed Actions Partners

• expand the sector investments through partnership with colleges, universities and other funding partners at the provincial and federal levels .

• collaborate with sector associations such as emc (excellence in manufacturing consortium) to identify new business opportunities to supply raw material or packaging to the established processors . • explore opportunities for collaborative research

projects with uoit and the sector .

• uoit

• Durham college • trent university • continue looking for partnership opportunities

through provincial and federal programs to support and leverage new business investments in it and technology • connect businesses to research and

development resources and services offered through the local and other provincial colleges and universities . e .g . business development support through graduate level students • build on relationships and established

programs to explore new opportunities for commercialization for business ideas • encourage businesses to increase research

and Development allocations

• offer regular industry education sessions utilizing the staff and programs from the university and college . topics could include: – opportunities for expanding technology – marketing and business planning – ict technology applications for business • support the development of a business

48 Durham region FeDeration oF agriculture – agri-FooD & agri-business br+e report Action Item # 4 Increase Capacity for Export Development

almost 50 % of the business’ total dollar sales were attributed to within the area (Durham region) while 37% were outside the area but within ontario and 6 % outside ontario but within canada . only 2% of the business was generated from the united states and there were no direct sales beyond the usa . there appears to be a strong potential to grow the export business for the agri-food industry in Durham region . sixty percent of the businesses felt that the development of export markets in the next three years will be important to ensuring that their business remains competitive .

over forty percent expressed interest in general information about tapping into the export market and learning more about provincial and federal support programs that could assist them in this area . better access to federally inspected meat plants located within the region would address that particular barrier to attracting foreign investment in food processing . additional barriers relating to regulations surrounding home-based food production businesses and “red tape” rules and regulations were also noted .

Goals/Issue Proposed Actions Partners

• broker solutions to barriers (i .e . federal inspection) facing new export development . • expand market reach beyond Durham region

and potentially to a wider north american market .

• Federal and provincial government • emc • champion the resolution of the issue of federal

inspection barriers to export development • Work with the industry to encourage the

recognition of ontario food safety standards as equal to federal standards

• continue to explore opportunities to grow the availability of local products for the further processing food sector

• provide support and access to new market exposure through strategic trade show attendance

• continue to initiate and encourage the development of joint ventures for marketing • offer training seminars to assist business in

assessing readiness for new export markets and to provide general export information as well as information on provincial and federal export support program

Durham region FeDeration oF agriculture – agri-FooD & agri-business br+e report 49 Action Item # 5 Business to Business Collaboration

both business networking sessions and the attraction of related supply and service businesses were identified as important by 60% of the businesses . the businesses also recognized that local business associations and economic development offices can play a key role in facilitating these relationships . the importance of business connections, networks and collaborations is echoed by the work of emc (excellence in manufacturing consortium) www .emccanada .org . the advanced Food sector peer-to-peer manufacturing network was launched in 2009 in partnership with the ontario ministry of agriculture, Food and rural affairs . the goal for this initiative is to assist food sector manufacturers and processors enhance their global competitiveness through training supports, networking opportunities and knowledge networks .

a number of businesses indicated that they would be interested in or available to act as a mentor to other business although time was mentioned as a barrier to participation .

there is an opportunity to expand the offerings of products and services locally to assist businesses who currently purchase these outside the region . leading this list of possibilities were packaging materials, glass jars/bottles, local pork and beef products processing tools and equipment and food additives such as whey, corn, spices etc .

Goals/Issue Proposed Actions Partners

• investigate new opportunities to provide a forum for networking and discussion with the sector and the community .

• enhance the linkages with the region’s primary producers to expand the use of local products in the food processing industry . • collaborate in trade show events to support

the development of alliances within the industry .

• emc • investigate new opportunities to provide a

forum for networking and discussion within the sector and the community including the education community

• continue to offer/support opportunities to connect the industry through formal and informal networks

• encourage business to take advantage of programs such as those offered by emc through the peer-to-peer manufacturing network

• Work with industry leaders to design and implement a business ambassador program to support new business recruitment efforts

50 Durham region FeDeration oF agriculture – agri-FooD & agri-business br+e report Appendix A - List of Participating Businesses – Agri-Food Sector

alan Kerr alan’s butcher shop Whitby

Kirk Kemp algoma orchards newcastle

Fred & sandy archibald archibald orchards & estate Winery bowmanville

rand russell atlas logistics ajax inc ajax

vic smith ball corporation Whitby

sean Kuzenko buckingham meat market brooklin

alison prentice creo mundi inc . oshawa

Dan milanovic D & s meats ajax

sam gerachi Derlea brand Foods inc . pickering

garry geissberger geissberger’s Farmhouse cider mitchell’s corners

clay taylor greenwood mushrooms ashburn

richard halenda halenda’s Fine Foods ltd . oshawa paul & betty ann harder harlaine maple products sunderland

Walter Knecht hermann laue spice uxbridge

brent herrington herringtons Quality butchers port perry Ken Koury home sweet home candy co . ltd . port perry

Dave Jackson maple leaf Foods port perry

Doug mcmillan meadwestvaco packaging systems ajax norma beecroft norma’s edible Flowers and herbs Whitby

Durham region FeDeration oF agriculture – agri-FooD & agri-business br+e report 51