Grain Farmers of Ontario

Grain Farmers of Ontario
Importance of branding
• Branding more important today than ever before
• Internet has connected the world
• Many new markets and a growing middle class in places like
India, China, Brazil, etc.
• These consumers want to buy from reputable brands whether
company or country brands
• A brand can work for you or against you – important to build
and protect a positive reputation
Different approaches to branding
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•
•
•
Personal
Company
Provincial
Canadian
Economic impact
• 28,000 farmers
• 5 million acres of farmland across Ontario
• $2.5 billion in farm gate receipts
• $9 billion in economic output
• 40,000 jobs in the province
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6
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Ontario in the Canadian context
Gross Farm Receipts 2010, Statistics Canada
Average
production
$
Average
production
% of national
average
1. Ontario
$11.5 bil
23.1
2. Alberta
$11.4 bil
22.9
$9.4 bil
18.9
3. Saskatchewan
Source: Statistics Canada
Ontario grain production in the
Canadian context
2011 grain
production by
province
$
Alberta
wheat*
canola
barley
Saskatchewan
wheat*
canola
barley
Ontario
wheat*
corn
soybeans
2011 national
total grain
production
$
Average grain
production
% of national
average
Arable Land
24 million acres
$2,345,730,400
$3,091,226,000
$932,832,000
$6,369,788,400
$5,694,111,000
$8,215,410,000
$1,589,918,500
$15,499,439,500
41%
59%
38%
51 million acres
$2,256,698,600
$4,071,194,000
$499,892,500
$6,827,785,100
$5,694,111,000
$8,215,410,000
$1,589,918,500
$15,499,439,500
40%
50%
31%
5 million acres
$565,968,000
$1,737,432,000
$1,320,092,500
$3,623,492,500
$5,694,111,000
$2,565,288,000
$1,889,603,500
$10,149,002,500
Source: Agriculture and Agri Food Canada
* Excluding durum
10%
68%
70%
Promoting Ontario products
• Export
• Soybeans
• Wheat
• Domestic
Soybeans
Ontario soybean supply and demand
Planted acres 2012
Yield
Imports
Production
2,645,000
47.4
200,000
3,300,000
3,500,000
Crush
1,400,000
Exports
1,600,000
Seed
Demand
Carry out (tonnes)
60,000
3,060,000
440,000
Canada’s soybean production
4.9 million tonnes of
soybeans in 2012
22% non-GM
Manitoba:
759,300 tonnes
15% of Canadian production
Ontario:
3.3 million tonnes
67% of Canadian production
Source: Statistics Canada
Quebec:
825,000
17% of Canadian
production
PEI:
38,100
1% of
Canadian
production
Canadian soybean exports are Canada's 4th
largest agri-food export valued at approximately
$2 billion dollars
EU:
1,264,426
USA:
368,340
Other
Destinations:
193,700
Source: Statistics Canada
2012 Export data
China:
809,789
North Africa/
Middle East:
230,516
Region
EU-27
Asia
MENA
U.S.
Others
Japan:
373,993
Asia/Pacific
(excl. Japan):
125,911
Value ($CDN)
36.22%
44.69%
6.83%
10.45%
1.81%
Volume (mmt)
37.32%
42.54%
7.22%
11.12%
1.81%
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Canadian soybeans in a global context
2012 production
Canadian advantage
• The majority of Canada’s specialty soybeans, e.g. non-GM,
Identity Preserved (IP) are exported to world markets in
different streams
• Food grade to Japan, feed to the EU
• Important to focus on product attributes where Canada has an
advantage – the CIPRS brand
•
•
•
•
Differentiation
Segregation
Traceability
Quality
• Significant investments over the past 30 years in research
capabilities, production practices and grain handling and
processing infrastructure
Promoting the Canadian brand
• Important to continue generic market development programs to
promote the benefit of buying specialty Canadian soybeans,
building on the Canadian brand for quality and reliability
Wheat
Ontario winter wheat is produced within a few hours of
60% of Canada’s milling capacity and the largest soft
wheat mill in North America in Toledo, OH
440,000 MT
to local flour mills
+ 440,000 MT
to animal feed
+ 617,500 MT
overseas export
+ 262,100 MT
to nearby US
= 1,763,600 MT
winter wheat in 2011
Mills
Elevators
Value: $501,874,796
Employed: 4,075
It all depends on the size of the crop
Branding Ontario wheat
Domestic
Domestic marketing
1
Involvement pilot
initiatives to identify
potential products for
potential markets
2
Industry Development
Relationships with
processors, manufacturers
and retailers to increase
use of local supply
3
End-use specific varieties
and supply chains
Product segregation to
meet specific customer
needs
Awareness: Grains in Your Life
Industry development: partnerships
• Sunrise Soya Foods – developed new soy-based snack for
kids called Super Squeezies
• Linnaeus Plant Science – developed soy based Smart Earth
Lubricant as a replacement for WD-40
• Griffith Laboratories – increased volume of Ontario wheat in
two major production lines
• Hematite – developing wheel arch liners and dairy cow mats
using hulls from Ontario soybeans
New varieties: research
• Soybeans for better health – plant genetics research at
AAFC that could lead to the prevention of heart disease, lower
cholesterol and increase fatty acid metabolism
• Tailoring wheat quality – breeding “whiter wheat” to address
need for whole wheat products without bitterness associated
with red wheat
• Non-food uses – improving soy polyol design and engineering
of novel polyurethanes for greener auto parts
Grain Farmers of Ontario
100 Stone Road West
Suite 201
Guelph, ON N1G 5L3
Tel: 1-800-265-0550
Fax: 1-519-767-9713
www.gfo.ca
Thank you for your time