The Ontario Food Cluster advantage for global trade and investment April 2016

Ontario Food Cluster The Ontario Food Cluster is the 3rd largest food and beverage processing jurisdiction in North America – and is the largest in Canada Ontario has a global reputation for food quality, safety standards and processing methods The Ontario Food Cluster offers rapid access to trade and investment opportunities throughout the province’s agri-food and beverage sector We promote businesses by directing them to the Ontario region that provides the best opportunities for agri-food success Our job is to make your job easier 2 Welcome to the Ontario Food Cluster

Centrally located in North America

Ontario Food Cluster at a glance 12 regional, city and community members 3 provincial and federal government partners 4 Welcome to the Ontario Food Cluster

Opportunity for the global agri-food sector Ontario enjoys access to over 460 million consumers and a combined GDP of $18.7 trillion across Canada, Mexico and the U.S. due to the North American Free Trade Agreement (NAFTA) The Comprehensive Economic and Trade Agreement (CETA) comes into force in 2016, almost 94% of EU agricultural tariff lines will be duty-free Manufacturing revenues from the Ontario agri-food industry currently total more than $36.9 billion from 3,000 companies 5 Welcome to the Ontario Food Cluster

Ontario’s #1 employer – agri-food sector 96,700 people in Ontario work directly in agri-food processing sector Agri-food and beverage sector is one of Ontario’s top employers with 740,000 jobs Researchers and innovators work in over 55 university and college programs from an estimated 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 6 Welcome to the Ontario Food Cluster

Ontario is a great place to do business More than $1.9 billion worth of goods cross the Canada ‑ U.S. border every day Ontario has an export-oriented business culture: agri-food exports total $12.5 billion Canada’s business operating costs are amongst the lowest in the G-7 and 5% lower than those in the U.S. 7 Welcome to the Ontario Food Cluster

Ontario’s food & beverage processing industry Ontario generates about $34 billion in revenue from goods manufactured, accounting for about 40% of Canada’s total About $7 billion generated from export sales Food Processing Value of Shipments, Ontario, 2009 Welcome to the Ontario Food Cluster 8

Sectors with potential for global competitiveness Ontario’s most competitive food industries are: Meat products Bakery Sugar & confectionery Grain & oilseed processing Beverage Dairy These account for more than 60% of Ontario’s food exports Welcome to the Ontario Food Cluster 9

Exports Welcome to the Ontario Food Cluster 10

Ontario is Canada’s “business province” It takes only one procedure and 5 days to register a company The combined federal-provincial statutory general corporate income tax rate is an average of 26%, well below comparable rates in most other G-7 countries and more than 13% 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 11 Welcome to the Ontario Food Cluster

Canada is a G7 leader World’s soundest banking system 7 years in a row One of a few nations with Triple-A credit rating Tax credits can reduce after tax costs of R &D spending by more than 50% Among the lowest tax rates on new business investment in G7 12 Welcome to the Ontario Food Cluster Ranking by World Economic Forum

Zero-tariff approach to food processing Tariff-free zone for all manufacturing inputs, machinery and equipment 50% per year straight-line depreciation for food processing equipment 13 Welcome to the Ontario Food Cluster Inward FDI into Canadian food processing industry by Statistics Canada

Ontario’s tax incentive programs Growing Forward 2 - Enhances the competitiveness of the agri-food sector. This $3 billion initiative is provided between 2013 and 2018 Investing in Business Innovation - Boosts private sector investment in start-up businesses to accelerate the development of new products, processes, and practices and brings them to market See the OFC incentives Web page for more 14 Welcome to the Ontario Food Cluster

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 15 Welcome to the Ontario Food Cluster Commitment to labour force & research expertise by Common University Data Ontario

OFC fosters a collaborative innovative agri-food sector University of Guelph –Food Institute –Centre for Nutritional Modeling –Canadian Research Institute for Food Safety –Programs in Food Safety, Nutrition and Regulatory Affairs University of Toronto McMaster University Ryerson University University of Waterloo Conestoga College –Institute of Food Processing Technology Western University NSF-Guelph Food Technology Centre Laurier University (Brantford) 16 Welcome to the Ontario Food Cluster Dedicated agri-food research and labour development institutes and networks

Ontario - excellent location for global businesses Ontario Food Cluster communities are within 2 hours of the U.S. border Recent multi-billion dollar investments in port, rail, road and air transport offer supply chain efficiencies 1 in 5 Canadians are multilingual Asian and European languages spoken extensively Canada leads the G7 for the administration of justice and for offering equal opportunities to individuals 17 Welcome to the Ontario Food Cluster

Ontario’s excellent quality of life Clean air, water and land Cultural diversity within a tolerant society Publicly-funded healthcare Comprehensive business support networks Affordable housing 18 Welcome to the Ontario Food Cluster Number of entrepreneurs as percentage of working population by Organisation for Economic Co-operation and Development (OECD)

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 19 Welcome to the Ontario Food Cluster

The Ontario Food Cluster welcomes you Join 3,000 globally recognized agri-food companies including: 20 Welcome to the Ontario Food Cluster General Mills Canada Kraft Heinz Royal Canin Canada Dr. Oetker Canada George Weston Ltd. Maple Leaf Foods Kellogg Canada Cargill Canada Purdy Fisheries Saputo Inc. Unilever Dare Foods McCain Foods Parmalat Canada Ardent Mills Ventura Foods Grissin Bon Ferrero Canada Ltd. / Ltée ConAgra Foods Inc. Vincor Canada Sleeman Breweries Ltd.

Contact us: Ontariofoodcluster.com 21 Welcome to the Ontario Food Cluster Greater Toronto Marketing Alliance City of Hamilton City of London Windsor-Essex City of Guelph – University of Guelph Sarnia-Lambton County of Elgin County of Middlesex Wellington County 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 Waterloo Region Economic Development Corporation

The Ontario Food Cluster advantage for global trade and investment