FOR IMMEDIATE RELEASE
April 21, 2017
Food and beverage manufacturers convene session on business competitiveness in Ontario
Guelph, ON – On April 27th, food and beverage manufacturers are meeting to define what is needed to improve the business environment in Ontario. This consultation, hosted by Food and Beverage Ontario, will bring together start-up, small, medium and multi-national businesses from across all segments of the food and beverage sector. FBO will collect input from businesses on their priorities with respect to regulatory reform, r&d and innovation, market and trade development, skills gaps and workforce, environmental sustainability and the next Agricultural Policy Framework (2018 – 2023). The focus is on understanding what steps must be taken to foster a strong business growth environment for Ontario food and beverage manufacturers.
“As a small, family-run company started in 1983 we have experienced first-hand the ups and downs of operating a food business in Ontario,” said Will Rootham of Rootham Gourmet Preserves. “We know that success comes from smartly managing our business in tandem with a supportive economic environment. Connecting with other processor businesses to discuss what we need for success is an important step to communicating those needs to the provincial government. Later this month we will be meeting with our colleagues in the Ontario processing industry and in government to have this important conversation.”
Recent economic analysis completed by Food and Beverage Ontario using the most current 2015 statistics has provided insight on the state of the industry and the economic impact of Ontario’s 3,800 food and beverage manufacturing businesses.
- Approximately $71.8 billion in total output, consisting of direct output of $42.0 billion, indirect output of $24.5 billion and induced output of $5.2 billion.
- Approximately $28.5 billion in total GDP, consisting of direct GDP of $13.6 billion, indirect GDP of $10.7 billion, and induced GDP of $4.2 billion.
- Approximately 387,786 total full time equivalent (FTE) positions, consisting of 139,549 direct FTEs, 174,600 indirect FTEs, and 73,637 induced FTEs.
- Approximately $5.6 billion in total federal, provincial, and municipal tax revenue, consisting of direct tax revenue of $2.6 billion, indirect tax revenue of $2.2 billion, and induced tax revenue of $890.0 million.
“Since the previous economic impact study completed by Food and Beverage Ontario in 2012, the sector’s total output, GDP and government tax revenues increased by approximately 3 percent,” said, Norm Beal, CEO of FBO. “I am sorry to say, but this is really lackluster growth given the nominal GDP in Ontario increased 12 percent during the same time period. We are the number one employer in the province so why aren’t we performing better? Processors from across Ontario will be wrestling with this issue on April 27th.”
The announcement of the federal 2017 budget last month did signal a turning point for the food and beverage manufacturing industry nationally with commitments to innovation, discovery science, food industry eligibility as a supercluster, skills initiatives and new investments for food safety.
“There is every reason to be happy with federal budget 2017 and acknowledgement of food and beverage manufacturing as a key growth sector for the country. We have worked hard to reach this level of recognition. It is now incumbent on businesses to step up and identify specific priorities for success with an emphasis on pre-competitive issues that collectively will make our sector a global leader in areas like innovation and skills training,” said Rory McAlpine, Maple Leaf Foods
Ontario processors are invited to participate in Food and Beverage Ontario’s Consultation for Success on April 27th. To read the pre- consultation paper follow this link and for details on the consultation click here.
This project is funded in part by Growing Forward 2, a federal-provincial-territorial initiative.
About Food and Beverage Ontario
Food and Beverage Ontario is a not-for-profit, leadership organization dedicated to advancing the interests of Ontario's food and beverage processors. FBO’s focus is on the success, prosperity and growth of the food and beverage processing sector – a $42 billion industry and major contributor to the province’s economy.
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For media inquiries contact:
Director of Communications
Food and Beverage Ontario