Food Processing

The Waterloo Region has an established foundation in food processing, built from a long tradition of agricultural processing in the Region.

Canada's Food and Beverage Industry is a key driver of the Canadian economy, providing one in seven jobs across the country. Canada is the 4th largest exporter of agri-food products in the world. The sector accounts for 9% of Canada’s Gross Domestic Product and 20% of Canada’s overall trade surplus. Ontario represents Canada's largest provincial sector presence.

Market Opportunity - Advanced Agricultural Technolologies

Advanced agricultural technologies represent unique opportunities for both Canada’s agricultural and high technology industries. Canada’s advanced food technology industry is producing new ingredients and food products based on solid scientific research. Advanced separation, extraction and processing technologies are creating new ingredients such as micro-encapsulated oils as health ingredients. Canadian scientists are learning more and more about food's nutritional components. Natural product research has resulted in alternatives to pharmaceuticals for the treatment and prevention of disease and illness.

A coordinated network of food technology centres helps Canadian companies commercialize scientific research and turn it into safe, healthy, high quality food products. Canada’s bioproducts industry is producing economically viable, environmentally friendly products and processes based on renewable resources. Companies are creating biofuels from biomass and oilseeds to lessen dependence on petroleum based raw materials. Green chemicals, bio-based polymers and advanced bio-composites are also being produced from renewable agricultural resources. And forestry companies are converting their waste materials into valuable products while reducing their environmental impact.

Canada has the world’s second largest agricultural biotechnology industry composed of both multi-national corporations as well as innovative small and medium sized companies. Over 190 companies contribute to this sector across the country. Canadian areas of expertise include genomics research, marine biotechnology expertise, plant and animal sciences, and forestry research.

Canada's Food Processing Business Advantages

• Canada’s agri-food processing sector enjoys a 4.7% cost advantage over the U.S.
• Canada’s average labour costs are lower than in the U.S., which are attributed to Canada’s lower salaries and wages combined with Canada’s universal health coverage.*
• Canadian electricity and gas costs are lower than those in the U.S. and most of Western Europe. Canada’s serviced industrial land and factor construction cots are lower than those in most of Western Europe and competitive with those of the U.S.
• The agri-food sector has access to a vast supply of of high quality, competitively priced ingredients (potatoes, canola, vegetables, wheat, etc), fresh water and land.
• A globally admired food inspection system (Canadian Food Inspection Agency) ensures safe products for consumers and facilitates access to international markets.
• Most of the world’s major agri-food MNE’s have operations in Canada which, in most cases, have a North American or global product-mandate.
• Costs of manufacturing confectionery products in Canada are 30-40% lower than those in the U.S.
• Manufactured products exclusively destined for exports markets may import duty-free ingredients used in the manufacturing processes.
• Canadian agri-food exports amounted to $26.5 billion in 2004, with 61% destined for U.S. markets. Other major export markets include Japan, the European Union, Mexico and China.
• Canada’s agri-food sector holds a total trade surplus of $6.0 billion in 2004.
• Agriculture and Agri-Food Canada (AAFC) offers firms dollar-for-dollar matching funds when they participate in qualifying collaborative research projects.

Src: Government of Canada, Department of International Trade, Investment, Science and Technology Branch