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

2. 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

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

4. Zoom in on the Ontario Food Cluster 4 Welcome to the Ontario Food Cluster

5. The Ontario Food Cluster 5 Welcome to 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

6. A compelling opportunity for the global agri-food sector 6 Welcome to the Ontario Food Cluster 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

7. Our people story – Ontario’s #1 employer is the agriculture and agri-sector 7 Welcome to the Ontario Food Cluster 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

8. Ontario is the largest provincial economy in Canada – an aggressive trading nation 8 Welcome to the Ontario Food Cluster 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

9. Ontario’s top agri-food exports 9 Welcome to the Ontario Food Cluster Top agri-food exports, Ontario 2014 ($ millions) Baked goods (bread, pastry etc.) 957.0 Soya beans861.4 Food preparations382.7 Sweet biscuits350.0 Sugar confectionary without cocoa326.1 Pork cuts, fresh / chilled320.9 Waffles and wafers305.0 Mixes and doughs292.7

10. Ontario is Canada’s “business province” and has a strong entrepreneurial culture 10 Welcome to the Ontario Food Cluster 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

11. Canada has stellar economic fundamentals and is a G7 leader 11 Welcome to the Ontario Food Cluster 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

12. Zero-tariff approach to food processing and manufacturing inputs attracts FDI 12 Welcome to the Ontario Food Cluster 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

13. 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 13 Welcome to the Ontario Food Cluster

14. 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 14 Welcome to the Ontario Food Cluster Commitment to labour force & research expertise from Common University Data Ontario

15. 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 Welcome to the Ontario Food Cluster 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 15

16. Ontario offers excellent location and attitude for doing global business 16 Welcome to the Ontario Food Cluster 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

17. 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 17 Welcome to the Ontario Food Cluster Number of entrepreneurs as percentage of working population from OECD

18. Fast-track immigration process 18 Welcome to the Ontario Food Cluster 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. Are you hungry yet? The Ontario Food Cluster welcomes you! Join 3,200 globally recognized agri-food companies including: 19 Welcome to the Ontario Food Cluster 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

20. 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 20 Welcome to the Ontario Food Cluster 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

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