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Diversity Is A Key Strength of Ontario
Some Multinational Food Companies Who Are Currently Operating in Ontario
Ontario’s Sugar Advantage: A Sweet Spot to Locate Your Business
High Fructose Corn Syrup, Glucose and other Corn-based Sweeteners
Strong Food Sector Organizations

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Overview of Ontario's Food Processing Industry
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Overview of Ontario's Food Processing Industry


A glance at a map of North America will show you that the province of Ontario, Canada is strategically located. And that is critically important for market reach.

map of distances from Toronto

Ontario also has characteristics and strengths for business that a map cannot show...

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Diversity Is A Key Strength of Ontario:

The Diversity of Our Economy
Ontario has one of the strongest regional economies in North America. Why? One reason is the last couple of decades of our government’s prudent financial decisions. A second reason is our very diverse economy which gives us the strength to withstand external economic shocks.

Economic diversity means that businesses benefit from having the “critical mass” of suppliers and customers right on their doorstep. This leads to convenient, natural and unique opportunities for collaboration in areas such as packaging and distribution logistics.

The Diversity of Our People
Ontario has an ethnically diverse population base that provides fuel for creative new food product ideas. We also have a supply of well-trained and thoughtful workers who are strongly linked to our broad mix of advanced educational institutions. Our universities give businesses a solid research base to draw from and to move corporate research projects forward.

The Diversity of Our Products
Ontario produces more than 200 agricultural commodities, a diversity unmatched in most parts of the world. The province is a world leader in food technology research and development, and the agri-food sector has a proven track record in successful export marketing with exports worth $8.5 billion annually, and accounts for 28% of Canada's total annual agri-food exports. The value of food shipments for 2005 was $32.5 billion.

Food Processing Value of Shipments, Ontario 2004

Producers:
 59,728 farms
 130,000 job equivalents
 $9.1 billion annual revenues

Foodservice:
 36,436 firms
 298,200 jobs
 $19.5 billion annual revenues

Food & Beverage & Tobacco:
 3,500 firms
 120,000 jobs
 $32.5 billion annual revenues

Food Stores:
 13,731 firms
 178,000 jobs
 $24.1 billion annual revenues

The province of Ontario is Canada’s major food cluster. We are home to more than half of Canada’s food processing companies. Food processing is the third largest manufacturing sector in Ontario, following transportation and electronics. There are estimated to be at least 3,500 food processing firms in the province generating over 120,000 jobs and more than $32.5 billion in annual sales. About one-third of those sales are generated by exports, mainly to our next door neighbour, the United States, but also to virtually every country in the world.

Food manufacturers are found throughout Ontario with a concentration along the major transportation corridors. These companies take advantage of the "400 series" highways which generally follow the Great Lakes and St. Lawrence Seaway. They have easy access to road, rail, and U.S. border crossings. They are also close enough to large urban centres to make transportation costs lower, yet are central enough to easily serve Ontario, the United States and other international markets.

image of processing plants map

The food processing sector has a strong supporting infrastructure including warehousing, distribution, retailing and food service. It often encourages growth in related services and industries to the sector such as food packaging, equipment, biotechnology, agriculture, specialized storage and transportation (i.e. refrigerated) food science and others.

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Some Multinational Food Companies Who Are Currently Operating in Ontario

AmBev (Labatt)Cadbury Schwepps plcCampbell Soup CompanyCargill Limited
Coca-Cola Company (Minute Maid)Corn Products International (Casco)Ferrero S.p.A.General Mills Inc.
H.J. Heinz CompanyThe Hershey CompanyJungbunzlauer Inc.Kellogg Company
Kraft Foods Inc.Maple Leaf Foods Inc.Mars, Incorporated (Effem Foods)McCain Foods Limited
Molson Coors Brewing CompanyPepsiCo Inc. (Hostess Frito Lay, Quaker Oats)Sapporo Holdings Ltd. (Sleemans)Saputo Inc.
UniliverWm. Wrigley Jr. Company  

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Ontario’s Sugar Advantage: A Sweet Spot to Locate Your Business

Ontario, and all of Canada, enjoys access to world price sugar, giving us a distinct price advantage over the United States with its protected domestic sugar market and higher domestic sugar prices. Companies manufacturing products with high levels of sugar, such as confectionery, find locating in Ontario makes extra good business sense. The sugar price advantage is always positive, although it fluctuates with commodity prices.

Redpath operates a sugar refining operation in Toronto, and is perfectly positioned for just-in-time delivery and custom refining. Two additional companies have manufacturing operations in other provinces which do sell into the Ontario market, and some refined sugar is imported as well.

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High Fructose Corn Syrup, Glucose and other Corn-based Sweeteners

Ontario also is home to Casco (owned by Corn Products International) which has three manufacturing facilities in Ontario which produce High Fructose Corn Syrup (HFCS), glucose, dextrose, and other corn sweeteners. Corn-based sweetener prices in Ontario are favourably priced compared to the U.S.

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Strong Food Sector Organizations

Food processing companies in Ontario benefit from membership in sector-specific associations, as well as umbrella organizations such as Food and Consumer Products of Canada, the Alliance of Ontario Food Processors and the Food Processors of Canada. Working together with other food processors ensures that common interests are strongly voiced and reflected in government policies, regulations and funding programs.

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