Ontario Agriculture

PHOTO: QUEEN PRINTER FOR 2013 PHOTO: VINELAND CRI, ONTARIO The new face of the big farm next door Facing a huge budget deficit, Ontario's premier, Kathleen Wynne, has focused on the agri-food sector as the province's main economic driver, more than on the traditional automotive, energy and aerospace sectors. Ontario has an agriculture similar to that of Quebec, with the exception of horticultural production, the largest in the country.

Its larger garden is located further south. Importing new exotic vegetables to meet the strong Asian demand of the Greater Toronto area adds to the province's commercial agricultural deficit. Some immigrants of Chinese or Indian origin are growing the ranks of Ontario producers to produce locally okras or eggplants. At the same time, multinational Heinz and Kellogg are leaving the province, leaving hundreds of workers on the pavement.

In this context, Premier Kathleen Wynne challenged farmers and processors to create 120,000 new jobs and reduce the current agri-food trade deficit, which is more than $9 billion a year, by 2020. Can she hold her bet? In an exclusive interview, Agriculture Minister Jeff Leal explains the DNA of Ontario's horticultural agriculture strategy, which includes... Quebec! L-By Nicolas Mesly Okras and aubergines to conquer the palaces of the world "We brought 800 varieties of vegetable seeds from all over the world to assess their potential," says Dr. Michael Brownbridge, the world's agricultural product development programme manager at the Vineland Research and Innovation Centre (VRI).

Located in the Nia - gara region of southern Ontario, CRIV is at the heart of Ontario's largest horticultural production strategy in Canada, with a turnover of $2.2 billion. Dr. Brownbridge has only selected a variety-stain for the four vegetables imported and tested in the centre: l'okra, l'aubergine, asparagus bean and edible amarante. "We need to check which variety grows best in Ontario, which variety offers the best yield and which variety offers the best profitability for producers," he says.

The number of vegetable imports to the Ontario Food Market (OMTP), a sort of Toronto-based fruit and vegetable exchange, is $80 million per month, a large part of which is to meet the demand for ori - Chinese, Indian or Pakistani gine. At present, the researcher's attention is focused on two promising vegetables: lökra and löauber - gine. Statistics Canada estimates that since 2008, consumption of döokra has increased by 55% and that of eggplant by 27%.

According to a U.S. study, the variable cost profits were $3,950 per hectare for eggplant and $3,460 for lhe crop, much more ren - tables than sweet corn or potatoes. Dr. Brownbridge works with a handful of producers to see how these new productions are doing, and he plans to partner with seed producers to distribute the most promising varieties in the near future. The challenges of the field at Jason Verkaik Palace, a third-generation vegetable and fruit producer, operates the 125 ha family farm in Bradford, north of Toronto.

He is already supplying Sobeys with carrots and onions, MPAO and various food companies. For this Dutch producer, "the new vegetables of the world" are not really new. For 25 years, immigration from Indian origin has completely transformed the face of a nearby city, Brampton, which now has more than half a million inhabitants. One of the producer's employees, Gourmet Singh, suggested that he supply this market with seeds brought back by these new immigrants.

They all have a small garden in their home country, but selecting the best seeds according to L-Okra, or gombo, is widely consumed in Asia and Africa. Vineland also relies on eggplants to conquer the world's palaces. Ontario's premier, Kathleen Wynne, visits an agri-food company.

OCTOBER 2014: Agricultural Co-operator 4746 Agricultural Co-operators: OCTOBER 2014 Ontario Strategy PHOTO: VINELAND CRI, ONTARIO PHOTO: INGIMAGE.COM Ontario's California ambition Multinationals leave Ontario Over the past year, the neighbouring province has been hit by a series of multinational factory closures, such as Heinz and Kellogg, which have put hundreds of d'em - emplaced on the pavement.

"The Heinz and Kellogg plants were about 100 years old and 90 years old, respectively, and they had not received the necessary investment to ensure their continuity," says Peters. "The latter would like to remind us that not all Alliance members are multinationals, but mostly SMEs, as in Quebec. However, the Director General said, "the reasons for these recent closures, which he also believes are related to the costs of energy (natural gas) and water, two expensive production stations in the food processing sector, will have to be understood.

Peters, Queens Park will have to find solutions to reduce these costs to help achieve its objectives. Peters sees in the changing face of the province, due to immigration from Asia (China, India, Pakistan, Philippines), an opportunity for the development of channels. "We need to work on a strategy to replace imports and reduce the agri-food deficit," he says. John Kelly, Executive Vice President of Ontario Fruit and Vegetable Growers - Asso - cation, abounds in the same direction: "J-'ve seen a superb package of individually frozen d'okras in a grocery chain.

There is no reason not to produce this vegetable in Ontario!" Nutella is made entirely in Ontario! If some multinationals leave the province behind, others find it a good business climate. Kelly says she works, between over 3,000 businesses and a turnover that borders on $40 billion – almost twice as large as Quebec – the Ontario food processing sector is directly challenged by Ontario's premier, Kathleen Wynne.

"The province has a total of 65 percent of Ontario's agricultural production, which is trans-trained in the province, and we need to increase this percentage while exporting more processed products instead of just basic products," says Steve Peters, executive director of the Alliance of Ontario Food Processors. "The recipe for success, according to Dr.

Peters, among other things, is a step forward in the development of producers' chains to processors. Ontario producers supply more than 200 products to Ontario processing plants. The colour and size of a carrot is far from ensuring commercial success."I thought I had the most beautiful carrots in the world, but the taste was not there," says Verkaik.

I couldn't even have given them! This is the greatest lesson I've learned: you have to understand the other culture in order to be able to meet its expectations properly."In Indian culture, carrots are used to create many spicy salads or horsd'oeuvres, often served with yogurt, among other things during wedding ceremonies."Taste is vital," added Fr Brownbridge, whose work includes tastings by witness groups from the various cultural communities in Greater Toronto.

In addition to this crucial green light from consumers, producers face several challenges in the field itself. Planting eggplants or löokra does not require new machinery, which is an advantage. The reason is that these vegetables are fragile, and they require a lot of labour, because their harvest must be done by hand and cannot be mechanized.

In addition, when we have not grown up with these products, what is the best time to harvest them, when we know that within a few days the size, taste or colour can be altered? And agronomically, molecules to protect the growth of these new crops are often not yet registered. Shirley Mo, for her part, has no problem in growing and harvesting Chinese eggplants. Originally from Guangdong Province, in the Middle Empire, the producer and her husband settled in Simcoe, south of Ontario, in 1990, buying some 16 ha.

Unable to buy new land because of its exorbitant price, the couple today rents about 4 ha to meet demand. But it is the increase in the minimum wage from $10.25 to $11, decreed by the Ontario government last June, which hurts horticultural companies very badly. A commitment from the major food chains? Jason Verkaik employs 35 people to run his two vegetable packaging plants.

"Unlike other sectors, we cannot pass this increase in wages on to consumers, and food chains that are little - wind supply elsewhere in the world at lower costs," says the producer, who sees their thin profit margins melt. "Mr. Mo, for her part, hires five seasonal workers from Mexico to run her business."The government should close the borders during our harvest season to prevent the big chains from importing the same vegetables at lower prices," she said.

The producer says she loses several thousand dollars this year, because the Chinese d'auber - gines can sell 70 cents a pound, compared to $1 a pound last season. The sale and distribution of these new locally produced vegetables pose a huge challenge."I proved myself that I can grow l'okra and eggplants, but I did produce so much of it two years ago that Loblaw and Sobeys did not take half of my harvest," adds Verkaik. "I lost money."

The marketer says these major players will have to engage with Ontario producers by limiting their imports to gradually make room for more local production. The interest of the world's major food retailers for new vegetables is well present. Last July, Loblaw bought the largest Asian food retailer, T&T, which owns 17 stores in British Columbia, Alberta and Ontario, and a distribution centre in the latter province, rap - carries the CBC.

The challenge is how far Ontario consumers' pressure to buy locally will change the supply patterns. For his part, Fr Brownbridge seeks to raise Quebec's interest in producing these new vegetables by working with the Quebec Horticultural Council. Jason Ver - kaik, for his part, goes on to advise his peers: these new crops must be started by first growing a small garden of about 0.2 ha (0.5 acre) to familiarize themselves with it, before leaping to an area of 3 to 4 ha.

The Chinese, Indian and Pakistani communities have increased demand for eggplant by 27% since 2008. Ontario relies on its abundance of water to sustain its market gardening production. OCTOBER 2014! Agricultural Co-operator 4948 Agricultural Co-operators - OCTOBER 2014 Ontario Strategy The latest CRIV baby is the construction of a state-of-the-art, 0.4 ha, robotic greenhouse. If we built combine harvesters to harvest grain, this is another challenge in the horticultural sector, says Dr. Brandle.

So robots are being developed in this greenhouse to plant bulbs of tulips or cut stems. Some robots already exist to harvest mushrooms! "Mechanization is part of innovation," he says. "In horticulture, labour accounts for 40 to 60% of the operating costs."

He hopes to market his robots one day to allow this sector to no longer rely on foreign labour and thus become more competitive. He even plans to export his "made in Canada" machines to the rest of the world. PHOTOS: CRIV others, to the establishment of a hazelnut production line to supply Ferrero. Built seven years ago in Brantford, for a cost of $400 million, the Italian hazelnut chocolate factory employs 1,700 people.

The company imports all its avelines from Turkey (the world's largest producer), Oregon, Italy and Chile. To supply the plant, Kelly explains, three problems must be solved: 1) finding varieties resistant to the oriental burn of hazelnut, a devastating disease caused by a small fungus; 2) finding cold-resistant varieties; and 3) finding hazelnuts whose taste and chemical profile meet the needs of the company. After several years of testing, these varieties are now available.

And the Ontario Hazel - Nuts Association was established last year. It brings together producers, nursery practitioners, researchers, and representatives of Ferrero. Kelly, it grows barely 20 ha of hazelnuts in the province, while there is room to grow 8000. The estimated profits of hazelnut cultivation are about $5,000 per hectare.

The minimum wage, the black beast of entrepreneurs Last June, Ontario raised the minimum wage for farm workers from $10.25 to $11 per hour. Ontario producers employ 15,000 seasonal workers, especially in the horticultural sector."This wage increase will directly affect our producers and cause some to go bankrupt," says Kelly. "To counteract this increase, producers must control their production costs, mechanize, promote the stringent health standards that exist in Canada, and sustainable farm production practices," he says.

In addition to the competitive wage stake, the tax system will have to be modified to encourage on-farm processing."At this time, a producer who wants to turn fruit into jam is penalized because his small factory is taxed in the same way as a large industrialist," says Mark Wales, president of the Ontario Federation of Agriculture, the province's largest voluntary agricultural organization, with its 35,000 members. "Like the major processors, the Ontario government will have to look at a solution to reduce the costs of energy and water (d-irri - egation, among other things) on the farm if it wants to achieve its objectives.

Can Ontario replace California in part as the bowl of fruits and vegetables in North America? For several years now, the Golden State has been facing very serious drought problems due to climate change, and many American companies have been courting us as new sources of supply," says Kelly, who prefers to silence the names of these companies until trade agreements are implemented.

Even though Heinz has left the wine industry, Ontario relies on its abundance of water to perpetuate, for example, its tomato production (the Heinz plant was bought by Canadian society Highbury Canco). In addition, Premier Wynne announced the allocation of $400 million to the food processing industry, which is $40 million per year over the next 10 years. "We are refining the details of our strategy," says Steve Peters.

The aim is to diversify the destination of its agrifood exports, 80% of which are currently going to the United States.

Will Ontario win its bet? The province has several facts to do with it. It has developed a prosperous wine industry, with the climate of the Niagara Peninsula lending it. The annual turnover generated by its vineyards surpasses $100 million.

The same applies to ginseng produced on former tobacco lands around Lake Erie and whose sales in Asia are booming. So it is not impossible that the big farm next door will win its bet. u Vineland, at the heart of Ontario's horticultural strategy Since 2011, Vineland Growers Co-operative has been distributing and coordinating the distribution of the Canadian variety Sundown (small pear with firm green skin and sweet flesh) in eastern Canada and 70% of pears in Ontario. Sundown is the result of a trade agreement between the cooperative and the Vineland Research and Innovation Centre (VRI).

The program also includes new varieties of peaches, nectarines and plums developed in collaboration with the University of Guelph, Agriculture and Agri-Food Canada, and the Ontario Ministry of Agriculture. CRIV's team is also working on the selection of sweet potato varieties, a very promising crop; a grape drying process called appassimento, Ontario with the largest wine industry in the country; and greenhouse production of tomatoes, cucumbers and peppers, with the province hosting the largest - aunty production of vegetables in the greenhouse of North America.

o Canada's agricultural land area: 5,126,633 ha Quebec: 3,462,936 ha (Sources: Statistics Canada 2006, MAAARO 2011) Number of farms and operators Ontario: 51,950 farms, 74,480 farmers Quebec: 29,079 farms, 41,936 operators (Sources: MAAARO 2011, UPA 2012) Food processing Ontario: more than 3000 plants, 730,000 jobs, generates $34 billion, 65% of Ontario's processed production in the province Quebec: 2000 plants, 165,000 jobs, generates $22.3 billion, 70% of processed agricultural production in the province (Sources: Ontario Alliance Food Processors, CAGR) Food Exports Ontario: $11.86 billion (broadwood, soy, corn, furskins, pork, tomatoes) Quebec: $6.1 billion, soya, cocoa, vegetable oil, vegetable oil (Sources: MAAARO 2013, MAPAQ 2012) Food and beverage imports Ontario: $21.5 billion, Ontario's biofuels, soybeans, corn, furs, biscuits, tomatoes) Quebec: $6.1 billion, vegetable, soy, vegetable, vegetable, vegetable, vegetable, crop, crop, crop, Ontario, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food, food

"Apple imports are increasing, while our production is growing in size," he says. "There is something wrong with this equation." The goal is to replace two of the seven varieties of apples in a few years' time and find new ones. Ontario produces two thirds of the country's corn production (Quebec, 27%).

The use of this crop is as follows: 0.1%: Seeds 15.5%: Export 29.3%: Ethanol 55.1%: Human and Animal Consumption Source: MAAARO The Large Farm Next to the Farm 0.1% 15.5% 29.3% 55.1% OCTOBER 2014: The Farm Co-operator 5150 The Farm Co-operator - OCTOBER 2014 Ontario Strategy PHOTO: MINISTER LEAL CABINET The Farm Co-operator: Ontario's Premier, Kathleen Wynne, seems to consider the agricultural sector as an economic engine as important as the automotive industry. Jeff Leal: There is no doubt that agriculture has become one of the leading drivers of Ontario's economy for a decade or two.

This sector contributes $34 billion to the province's GDP and generates 740,000 jobs. Yes, it competes with the automotive sector, which has undergone a profound change since the economic crisis of 2008-2009. The agri-food sector is not only economically promising for Ontario, where the Prime Minister wants to create 120,000 new jobs by 2020, but also for Quebec. You also plan to reduce the province's agri-food trade deficit, which is $9 billion.

What is your strategy for achieving this goal? When we talk about food, not a country has as good a reputation as Canada. We see new emerging classes poinder in China and India. But we don't have a large presence in Africa outside of the Francophonie.

We must be more active in promoting processed products from Canada, Ontario and Quebec. We all recognize that the United States is our largest trading partner, but we must diversify. If I believe Prime Minister Harper, the agreement with the European Union will offer business opportunities, but that remains to be seen. If I understand correctly, Ontario will seek to diversify its agri-food exports, which, for the moment, are going to reach 80% in the United States?

Premier Wynne and my colleague Michael Chan, Minister of Immigration, Citizenship and International Trade, are to visit China in late October, early November, and Wynne intends to use the necessary spotlight to ensure the visibility of our agri-food companies in this huge market. Ontario's Federation of Agriculture says its members are able to achieve the prime minister's objectives, on three conditions: access to less expensive energy, tax reform and competitive wages for farm workers.

How do you plan to respond to these three demands? The energy sector is a key element of our electoral platform, for which Ontarians elected us on June 12. We intend to develop a natural gas infrastructure network in partnership with Enbridge and Union Gas, to supply rural communities and producers across Ontario. What about the possibility of importing electricity from Quebec to supply rural communities and Ontario producers at a lower cost?

Our Premiers, Mr. Couillard and Mr. Wynne, have been in serious discussions on this subject for several months. I believe that Canada needs national infrastructure from east to west to supply the country with electricity and that Ontario and Quebec have an important role to play in making this project a reality. Let's go back to tax reform for producers.

If, for example, a horticulturalist decides to turn his fruit into jam, his small factory is taxed at the same rate as a large industrialist. What solutions do you envisage? My ministry is working with the Ontario Federation of Agriculture to make the appropriate changes, and we will continue to do so. What about the recent increase in the minimum wage?

The current issue is the Temporary Foreign Workers Program, under federal authority, for which we are currently discussing. This program has a certain impact on our food processing and freezing companies, especially in the Greater Toronto area. What is the importance of the horticultural sector in your strategy? The more we will promote and highlight our local fruit and vegetables - and help to raise consumer awareness, the better.

People are encouraged to buy in rural markets. For example, we have been running a pilot Ontario wine sales project in these markets since May, and to date it has been sold for a quarter of a million dollars. So, the Ontario Motherland program is strategic for you? To give you an idea of its importance, the recognition of the Ontario Motherland brand in our province is on par with McDonald's.

I am returning to the recent increase in the minimum wage to $11 per hour for farm workers, and Ontario fruit and vegetable producers say that they cannot transfer this increase to consumers and that it is the survival of their businesses, and we are very sensitive to the increase in the minimum wage and its impact, and we continue to talk about it with the province's major agricultural organizations.

Would you consider pressing for a border closure for a period of time throughout the year to allow Ontario producers to sell their fruit and vegetables at a good price? We must be careful. Canada is a trading nation, and all provinces depend on international trade. Starting a trade war can have serious repercussions.

For example, we are trying to avoid this, and that is why we are encouraging our farmers to produce more fruit and vegetables to supply the market over the four seasons of the year. Several multinationals, such as Kellogg and Heinz, recently left Ontario, and meat processing plants have also been putting the key to the market. What are the reasons and what are you planning to do to keep them?

Many of these companies benefited from the exchange rate when the Canadian dollar was worth US 63¢. It was a 40% discount, which masked a lack of competitiveness and investment. But I recently visited Bonduelle's factory, rebuilt after a very large fire. Thanks to investments in technology and processes, the factory supplies all the canned vegetables with Green Giant and President Choice brands in North America.

These are initiatives like this that we want to support with our $40 million food processing fund. We announced this $40 million annual fund to support food processing – 400 million over 10 years – in our last budget approved by Parliament in July. We believe this is a way to ensure the success of our industry and to achieve the prime minister's goal of creating 120,000 jobs by 2020. Do you think Ontario can, totally or in part, replace California as a bowl of North American fruits and vegetables, because of the serious drought problems of the Golden State?

Climate change has a big impact on California, and the resulting droughts turn some of its water bodies into salt lakes. Ontario is looking vigorously for new markets, and if we hit our doorstep to meet US or global demand, we will be ready. L的Ontario and Quebec signed a Trade and Cooperation Agreement in 2009. What would you like to see in this partnership?

We believe that the prosperity of Ontario and Quebec requires collaboration between our two provinces. I have discussed with Minister Pierre Paradis and we have targeted in particular northeastern Ontario. We are doing ambitious drainage work to develop agricultural land. We want to work with Quebec because we have a common interest in agriculture.

Other Common Interests ? Ontario and Quebec are the two centres of supply management in the country. We must be vigilant that this system does not serve as a currency for exchange in the future."The prosperity of Ontario and Quebec requires collaboration between our two provinces."

Minister of Agriculture, Food and Rural Affairs of Ontario, Jeff Leal is the man appointed by the Ontario Premier to implement his agri-food strategy. In an exclusive half-hour telephone interview, he delivered the DNA of this strategy to us. He intends to develop Ontario agriculture with his Quebec counterpart, Pierre Paradis. Jeff Leal, Ontario Minister of Agriculture, Food and Rural Affairs OCTOBER 2014