Why Toronto is so strong in the food processing industry

The Globe and Mail published an article a couple of weeks ago that surprised some people that I spoke to as they did not realize what a powerhouse Toronto is in terms of food production and processing.

The food processing sector is emerging as an unsung hero in Canada’s largest city and it has sales of almost $20 Billion a year.

There are close to 60000 people employed in the city and working for food processors which also includes

packaging, warehousing, distribution, retailing and food services.

Only Los Angeles has a larger food processing footprint within North America.

For every $1 input into the food value chain there is a $6 multiplier effect.

That multiplier is approximately twice the size of most industry multipliers so it is a great industry for a city to specialize.

Why Toronto?

1.

Besides the central proximity within Canada and the advantage of

being a major transportation hub and close to the U.S. boarder, Toronto also possesses some of the best consumer goods manufacturing processes and it has an abundance of skilled labour that for the most part has been internally promoted and seasoned within the industry.

This skilled labour is even specialized within specific areas of food processing which creates more food specialists per capita that most metropolitan cities.

2.

There is also a strong network of technology support as well as equipment manufactures and equipment supporters that are located in the local market.

This increases productivity and efficiency for the industry.

3.

The bulk of the Canadian CPG head offices are also in the GTA which leads to more knowledge and exposure to local and global requirements.

Unlike the U.S. where CPG head offices are scattered throughout 50 states, Toronto is the home for almost every major food company.

This means that there is much more probability for companies within the industry to get the opportunity to meet with key food stakeholders is much greater.

Companies within the industry are also receiving better Canadian and global intelligence from the CPG companies which can assist them with their planning and strategy.

Many of their U.S. counterparts are not even privy to this information or exposure because of the concentration of businesses as well as the fact that Canada is often a global testing ground for tier 1 strategies.

With the continued decline of trade shows and industry conference attendees, this is becoming a substantial advantage.

4.

Another key strength that Toronto has come from the international diversity of the city.

The city attracts a large array of global citizens who bring diverse experience, best practices and product knowledge for many of the largest global food trends.

It is not just a Canadian and U.S. product exchange anymore.

Companies must diversify and Torontonians are able to leverage the knowledge of new Canadians to help further establish Canada on the global stage.

An example is a client of mine who owns a small Canadian frozen food company.

He is now the market leader for his segment in Dubai and he achieved this by utilizing resources and intelligence from Toronto.

Farewell,

Mike