Agribusiness Value Chain Study

Agribusiness Value Chain Study
Calgary Economic Development

Phase 1 Report
February 2017
Table of Contents
3 Background and methodology
8 Introduction
15 Priority Sub-Sector Deep Dives
65 Next Steps
66 Appendix A: Detailed Sub-Sector Prioritization Framework
Appendix B: Value-Added Food Manufacturing
69 Additional Supporting Data
76 Appendix C: Selected Research and Educational Assets
87 Appendix D: Supplementary Employment Data

89 Appendix E: References
© Deloitte LLP and affiliated entities.

2
Background and Methodology
© Deloitte LLP and affiliated entities. CED Phase 1 Report 3

Project overview
Calgary Economic Development (CED) has engaged Deloitte to identify its competitive advantages and opportunities
in the agribusiness sector. The project is one of several initiatives that CED has undertaken to better position Calgary
for new investment in the agribusiness sector.
The key phases of this project include:
Identify priority
In-depth analysis of Review of global Identify target
agribusiness sectors to
priority subsectors context companies
focus on
Phase 1 Phase 2 Phase 3
This is the draft Phase 1 report of the overall project. This report is the result of an extensive review of the Alberta
agribusiness industry in which Deloitte identified five priority segments of the agribusiness sector that represent
current and future opportunities for CED to pursue. This report can be viewed as a resource for CED to understand
the key economic and market attributes of priority sectors.
This report centers upon data and insights collected relevant to the Calgary Census Metropolitan Area. Where
relevant, examples of regional and/or provincial initiatives or firms that interact with Calgary were included.
Agricultural production values in this report are from Government of Alberta figures, where possible segmented to
the Southern Alberta region in which Calgary sits. Where city level data was not available, Southern Alberta and/or
Alberta figures were cited.

Phase 1 approach and methodology
Priority subsector selection
We identified the Alberta’s overall agribusiness value chain to include 14 large segments as listed below.
The 14 segments of the Alberta agribusiness sector we reviewed were:
1. Primary crop farming 8. Dairy and eggs
2. Fruit and vegetable farming 9. Cattle farming
3. Food processing 10. Agri-finance
4. Value-added manufacturing 11. Crop, seed, animal sciences
5. Beverage manufacturing 12. Agricultural equipment and services
6. Meat and livestock slaughter and butchery 13. Agricultural technologies (software)
7. Meat manufacturing 14. Agricultural technologies (hardware)
These segments are comprised of industries and value chains that were large enough to be considered potential target sectors for
CED to pursue.
Research approach
These segments overlap, interact and combine with each other in several ways in the economy, and were chosen to structure
and organize our initial research and understanding of the agricultural sector in Alberta, and to ensure we were honing on
areas of the industry that had sufficient high quality data to review. In some cases, government and industry data did not fit
neatly into each category and required manual review and segmentation.
Key research sources reviewed in this stage included:
• Government of Alberta (Alberta Agriculture and Forestry)

• Research organizations such as the Conference Board of Canada, Food and Agriculture Organization of the United Nations)
• Statistics Canada
• Industry association publications and reports (e.g., Canadian Agri-policy Institute, Alberta Beef Producers, Alberta Food
Processors Association, AgFunder)
This research was complemented by a set of stakeholder consultations with key industry, business and research leaders in the
Canadian agribusiness sector.
Phase 1 approach and methodology
Developing a framework for assessment
Effective economic development strategy is built upon devoting resources and investment attraction efforts in high value,
sophisticated segments of the economy in which Calgary has defined strength or measures of competitive advantage. To identify
high priority segments, Deloitte developed a holistic scoring framework that was applied to 14 segments of Alberta’s agribusiness
value chain. The scoring framework was developed in collaboration with CED, and included an assessment of elements of both the
current state and future outlook of each segment reviewed.
Priority Subsector Scoring Framework

Presence in Availability of Spin off potential Best practices and Strong future Enabling public
Calgary today talent and research and outlook policy
expertise development
Examples
Headquarters Labor force survey Existing employment Linkage to Positive customer Government of
Anchor firms employment of key and supply chain, industry/academic and employment Alberta investment
Industry association jobs talent, customer research and demand or policy statements
touch points with development prioritizing specific
Sales/growth outlook Training, courses and CED priority Public, private value chains,
qualifications in and subsectors Ability to grow best investment to firms producers or skills,
around Calgary practice and new and/or supportive
product innovation institutions and International trade
Job creation and/or research activities deals
retention potential
Each category within the framework was assigned a weight between 1 and 6 points. Upon completing the necessary research and
analysis of each of the segments, we identified 5 priority, high value segments of the industry for CED to focus upon.
For a detailed overview of the scoring framework, please see Appendix A.

Calgary’s priority sub-sectors
Selecting high value targets
Upon our review of Alberta’s agribusiness sector, we identified 5 priority sub-sectors for CED to focus on in investment attraction
efforts. We have taken a portfolio approach and included established areas of scale in which Calgary currently shows talent and
industry expertise, and newer, future oriented subsectors which will be increasingly relevant in the years to come.
1 2 3
Established areas of scale
Value-added food Beverage manufacturing Crop sciences and

and meat animal genetics
processing/
manufacturing
Emerging opportunities
4 5
Agri-technologies Agri-finance and
business services

27
Introduction
The Canadian context
The current macroeconomic outlook for the agribusiness industry is largely positive
Export success Food and beverage manufacturers are seeking to

address productivity gaps
Canada is a net exporter of agricultural commodities. 58%
of the industry’s value is through exports (1). Canada was Canadian food and beverage manufacturers have
the world's 5th largest exporter of agriculture and agri-food traditionally lagged their international peers in productivity.
products after the European Union, the United States, Since 2000, productivity performance has begun to
Brazil and China in 2014. Canadian export sales grew by accelerate in the sector. These changes can be attributed
12.0% over 2013 levels to $51.5 b in 2014, increasing its to the adoption of new forms of automated manufacturing
share of total world agriculture and agri-food exports to processes, and modern farming and supply chain
3.6% ( 2). management techniques that can reduce the number of
steps required to produce final goods (3).
Strong demand for key Canadian crops Developing countries a key global demand driver
Alberta is positioned well due to the growing global demand Expansion of the middle class in developing markets is
for Canadian crops. Key crops including oilseed vegetable oil expected to increase demand for agricultural products.
(for food use), oilseed protein meal (for animal feed), wheat, For example, per capita meat, and consumption is
barley, and canola are critical components to Canada’s export expected to continue to expand between now and 2025,
success. Importantly, Alberta is the largest exporter of high providing Canada a strong global demand market to take
demand pulse crops in Canada which are increasingly in advantage of. Developing markets can offset fluctuating
demand as consumers look to incorporate plant based consumer preferences in developed markets (2).
proteins into their diets (2).

Alberta context
Alberta’s agribusiness sector is sophisticated and has experience success recently
Diversified strength Export success National leader in livestock
Alberta’s agribusiness sector is Alberta exports to over 150 countries. Alberta continues to be the largest
diversified and includes raw feedstock In 2015, Alberta exports of primary beef producing province in Canada.
advantages, and a strong processing and processed agricultural and food The province leads the country in
sector. Within the value-added food products set another record at $10.2 b, cattle and calf inventory, accounting
products sub-sector, Alberta is up 4.5 per cent from 2014 (4). for 41.1 per cent of the national herd,
dominated by meat processing and and is third in sheep and lamb
grain and oilseed milling. Increasingly, inventories, and fourth in pig
the province is growing capabilities inventories (4).
pulse crops, and other niche specialty
crops.
Alberta agricultural workers work Small and Medium Enterprises Food manufacturing sales have
longer than the national average (SMEs) dominate the sector now overtaken refined petroleum
as the largest manufacturing sector
Median retirement age for agricultural A majority of Alberta agricultural
workers in Alberta is 11.4 years longer businesses are SMEs, ranging from 20- In 2016, Alberta’s food manufacturing
than the average Alberta Canadian 500 employees (71.8%). Firms with sales was 21% of total manufacturing
worker in other sectors (4). more than 500 employees represent sales in the province, followed by
only 10% of the total sector (4). refined petroleum manufacturing sales
of 20% (5).

Calgary agribusiness ecosystem
As an urban center, Calgary has several nodes of a supportive agribusiness
ecosystem
Specialized skills and training

Proximity to high value farm land Post-secondary institutions in and around Calgary
are educating the next generation of agricultural
A distinguishing feature of Southern
leaders. Specialized research and training in fields
Alberta’s farm land is it that it is
such as horticulture, food safety and quality,
irrigated. Southern Alberta has 12
livestock genetics, crop science, and veterinary
irrigation districts, including one
sciences all contribute to a vibrant talent base for
spanning the city of Calgary. In
agricultural employers in the region to draw upon.
addition, irrigation can enable the
growing of specialty niche products
such as hybrid canola seed, sugar
beet or potatoes. Strong research capacity
Alberta has approximately 55
researchers across several universities
Presence of Anchor firms and colleges focused on food research
and innovation. In addition, the
Calgary is home to a number of province is home to approximately 15
multinational industry leaders such as centers, institutes and teams that play
Dow AgroSciences, Bayer Crop important roles in food research and
Science, Agrium, Old Dutch and innovation (7).
Cargill. In many cases, these firms
represent premiere employers of high
value jobs in the sector.
Distribution advantages
As an urban hub, Calgary based distribution Established strength in food processing
centers can reach a market of 4 million
Calgary is home to several food and beverage
consumers within a typical one day round
processing and manufacturing companies
trip with international access to major export
including large scale meat processors such as
markets through Calgary’s International
Harmony Beef and Cargill and a diverse range of
Airport, Canada’s fourth busiest airport in
small to medium processing firms.
2015 (6).
Crop production values
Calgary sits in some of Southern Alberta’s most fertile agricultural land
Southern Alberta Principal Field Crop Production - '000 tonnes
Crop Southern Alberta Production % of Province Alberta Production

Barley 2,289,900 53% 4,289,200
Canola 1,684,100 31% 5,443,100
Chick peas 0 0% 0
Flaxseed 65,600 78% 83,800
Lentils 129,900 94% 138,000
Mustard seed 30,600 96% 31,900
Oats 34,500 9% 393,300
Peas, dry 727,400 55% 1,314,500
Rye, fall remaining 14,400 44% 33,000
Wheat, all 3,717,700 45% 8,290,000
Wheat, durum 815,300 100% 816,500
Wheat, spring 2,697,000 37% 7,247,600
Wheat, winter remaining 205,600 91% 225,900
Mixed grains 3,489 29% 12,200
Corn for grain 60,632 69% 87,600
Corn, fodder 709,386 64% 1,115,800
Beans, all dry 22,407 47% 47,900
Sugar beets 503,500 100% 503,500
Triticale 11,156 77% 14,500
Tame hay 2,987,846 60% 4,971,400
Fababeans NA NA 81,600
Total 12,992,516 48% 26,851,300
Government of Alberta Data, provided by CED (9).
Notes: Southern Alberta consists of Census Agricultural Regions 1,2,3 according to Government of Alberta’s geographical boundaries.

Key distribution and transportation routes
Calgary has several locational advantages relevant to the agribusiness sector
Road Calgary is intersected by Highway 1 (Trans Port The Calgary region sees a large share of
Canada – East/West) the worlds longest highway and activity from Canada’s busiest port, with 40 per cent
Highway 2 (CANAMEX Corridor – North/South) the of imports through Vancouver being distributed
6,000 km free trade corridor that extends from Alaska through Calgary.
to Mexico.
Calgary Logistics Park: In 2013, CN opened the Calgary CTrain Rapid System: Calgary’s urban light rail
Logistics Park which is located adjacent to intermodal system connects neighborhoods within city limits.
rail yards, reducing container turn times. The Park has The light rail system is in addition to an extensive bus
future planned specialized services for liquid/bulk trans system of over 160 bus routes.
loads.
Rail The Calgary region is a major rail freight hub that Air In 2015, the Calgary International Airport was
is serviced by two class 1 railways (CP and CN). This the fourth busiest airport in Canada and has direct
provides access to markets in North America and flights to both Asia and Europe (6). Over 75 per cent
abroad through the ports of Vancouver and Prince of Alberta’s air cargo shipments are transported
Rupert. Major air cargo and courier services including though YYC (134,695 tones of cargo transported in
CargoJet, DHL, FedEx, Purolator and UPS operate from 2015).
the airport.

Agribusiness locational advantages
Calgary has specific advantages relevant to the agribusiness industry
Quality of life can attract talent Low yield high value goods Secondary meat processing
transported by air
Stakeholders noted that Calgary’s Once animals are slaughtered, timelines for the
position as an urban hub in Western For much of the agribusiness combination of processed meats with other
Canada can court top talent for industry, rail and/or trucking ingredients are short. For most meat products,
employment roles in agri-finances as remains the most cost competitive shelf life is limited, requiring access to
well as crop and food sciences. For and effective way to transport warehousing and consumers. For niche meat
example, Calgary’s ability to court goods. For low volume, high yield products, such as dried meat products (e.g.,
graduates from specialized niche goods that are in demand in jerkies, chipped beef) Calgary’s location can
agricultural educational backgrounds global markets (e.g., animal serve as a hub for longer shipping routes
in Saskatchewan and Manitoba was genetics) transport via planes can
seen as strong, and an asset to the be critical, and affordable based on
industry. In segments of the industry premium prices commanded in the
that are based in rural Alberta, market for goods. For example,
attracting talent remains a challenge. Bouvrey Meats exports small Highly productive farm land
shipments of horse meat to Europe Calgary sits in high value, irrigated crop land.
via air and is able to do so based Importantly, irrigated land is able to sustain
In research intensive segments of the on the premium prices paid for specialty crops such as mint onion, sunflower
industry, location close to urban meats, and relatively low volume seeds, hybrid canola seed, potatoes, sugar
centers can be critical in attracting requirements. beets and forage for intensive livestock
top talent and creating opportunities
operations were examples of new, niche crops
for industry collaboration.
that could be sustained by farming in irrigated
land.

Priority
Sub-Sector Deep Dives

Understanding priority sub-sectors
Identifying potential opportunities for CED
For each of the 5 priority sub-sectors, we have identified a set of verticals and/or product categories which
represent segments of sub-sectors that are potential opportunities for CED to focus its investment attraction,
lead generation and marketing activities.
Selecting priority verticals Identifying examples of success
In each case, we have selected verticals and As part of our research, we identified examples of
product categories based on extensive research of Calgary firms currently engaged in or adjacent to
demand drivers, and taken into consideration priority verticals. These firms can be incorporated
Calgary’s current educational, talent, supply chain into future marketing tactics, and are a snapshot
and anchor firm capabilities that could position the Calgary’s current capabilities in each vertical.
city favorably in the future.

Va l u e - a d d e d f o o d a n d m e a t
p ro c e s s i n g / m a n u f a c t u r i n g
Value-Added Food/Meat Processing and Manufacturing
Key highlights
• Value-added food processing and manufacturing includes taking raw and/or semi finished vegetable, meat, grain,
and other food ingredients and applying processes, or steps that result in a higher value edible food products. This
sector is inclusive of food processing and manufacturing plants, and corporate functions related to food processing
and manufacturing.
• Alberta ranks 3rd in Canada ($13.6 billion) in contribution to total Canadian food manufacturing sales of $95.7billion,
following Ontario and Quebec.
• Value-added food processing and manufacturing employees approximately 18,600 people in Alberta annually,
representing 14.1% of a Alberta’s manufacturing workforce.
• The sector is export-oriented. In 2014, the sector set a record of $9.7 billion, up from 11.6% in 2013. Favorable
livestock prices and the low Canadian dollar can be attributed to the generally larger export quantities. Interestingly,
gains were reported both in primary commodities (i.e., animals and crops) as well as value-added processed
products (8).
Key stats Key products and services

CED estimation of CED estimation
• Ready to eat packaged food and food
Production / Alberta export values
contribution to GDP of # of products and ingredients
Sales figures
companies • Meat processing and manufacturing
• Emerging niche and premium categories
$13.6b (5) $9.7b
including:
$1.6b1 5921 (total food
in sales (8)
• Snack and indulgence foods
manufacturing sales • Naturally healthy and organic
in 2015)
• Reformulation “better for you” products
• Functional foods (e.g., pea fibre fortified
breads, probiotic yogurt)
Sources: • Plant based protein products
1. Provided by Calgary Economic Development

Value-added meat processing/manufacturing
Reinforcing strength and diversifying offerings
Key insights
• Meat processing and manufacturing includes the slaughter and value-added processing of meats including beef, pork, poultry and
others.
• Alberta has established strength in beef processing. Calgary is in the heart of much of this action, with proximity to key Alberta
cattle farms and feedlots. In addition, major anchor meat processing firms such as Cargill, JBS and Harmony Beef are industry
leaders in meat processing with large, sophisticated contracts with major retailers and restaurants.
• The industry has encountered significant challenges due to rising production costs, and closure of feedlots.
• Attracting large scale, net new meat manufacturing operations will be challenged by rising operating costs and changes in
consumer demand.
Potential opportunities
• The opportunity in this sector includes expansion and retention of current beef processing and manufacturing capabilities.
• Niche meat processors to respond to demand for specialized meats (bison, elk, horse ) in developed markets could leverage
Calgary’s existing talent and logistical advantages.
• Ready made food products that include meat and other ingredients (e.g., frozen ready meals, savory meat based pastries, meat
based snacks such as jerkies, beef chips).
• Asian customers will create opportunities for specialized products such as:
• China’s market for bone-in frozen beef products. In 2016, access to this market was restored following a 2003 ban based
on cases of Bovine Spongiform Encephalopathy (BSE)
• Niche meat products such as cow hoofs, cow tongues.
• Domestic demand for certified organic meats has experienced rapid growth in the past decade, and is well positioned for
continued expansion.

Value-added meat processing/manufacturing continued
Niche meat processing companies Established anchor companies

Carmen Creek Gourmet Meats is a JBS Food is one of the largest employers in
manufacturer of quality hormone and Southern Alberta and one of Canada’s largest
antibiotic free bison. beef producers in Canada. JBS operates a
beef processing facility in Brooks, Alberta and
directs distribution via Calgary.
Foothills Custom Meats is a provincially
inspected facility that provides farms and
ranches with meat processing needs, and
specializes in custom meat orders Cargill meat solutions operates a beef
including beef, lamb, elk, buffalo and llama packaging facility in Calgary with end-to-end
meat. The company provides slaughter, meat supply chain.
curing and sausage making capabilities.
Bouvry Exports LTD operates one of the Harmony Beef is a beef processing plant
largest horse slaughter plants in Canada located
approved to export horse meat to the near Balzac, where it has a 150,000 square
European Union. The plant is located near foot facility and processing capacity of 800
Fort Macleod, a small town in Alberta. head a day.
Bouvry Exports owns about 2,000 acres of
land around Fort Macleod, where they
fatten US and Canadian horses in feedlots.
The majority of these horses appear to be
Belgium draft horses and Percherons.
Boury also leases property at the Peigan
Indian Reservation near Summerview,
where they keep up to 4,500 horses.

Plant based proteins
Alberta is poised to take advantage of booming global demand
Key insights
• Plant based proteins have experience global growth. These products are derived from non-soy plant protein such as field peas,
dry beans, chickpeas, lentils, faba beans, soy beans and minor pulses such as legumes, nuts, seeds and algae In addition,
processing, distribution and manufacturing of pulse crops (e.g. field peas, dry beans, chickpeas, faba beans and lentils) are being
used as components for animal feed.
• In 2015, Canada exported 6 million tons of pulses worth more than $4.2 billion (10).
• Canada now accounts for approximately 35 percent of global pulse trade each year (Pulse Canada) with more than 85 percent of
Canadian pulse production is exported around the world with key export markets in India and Bangladesh.
• For the Southern Alberta and Calgary region, key pulse crops in which Alberta has an established advantage include field peas,
dry beans, chickpeas, lentils and faba beans.
• Please see Appendix B for map of key pulse growing regions in Canada
• Currently, there is limited presence of plant based protein manufacturing and value-added processing in Calgary. Key
opportunities for CED to consider include:
• Attracting and scaling the production of locally produced pulses, algae, hemp, cereals and integrating these ingredients
into food, beverage, personal care and industrial markets
• Food processing of key products or food with ingredients such as hummus, quinoa, edible seeds/seed products, plant
based protein supplements and tempeh
• Specialized pulse product marketing, distribution and warehousing capabilities to enable export of pulses. These
capabilities may increase in demand if key global trade deals such as TPP and CETA are implemented
• Ready meals :Alternative meat products (e.g., pre packaged plant based burgers, salad kits and/or smoothies) sold at retail
or food service outlets are increasingly in demand.

Plant based proteins continued
Examples of innovative activities in Calgary
Pulse crop activity in and around Calgary

Alberta Pulse Traders Inc. specializes in the marketing of split pulse products, and provides
services such as custom packaging, transportation and pricing of pulses for international markets.
Northstar Seed trades forage seeds, legumes and grass seed products around the world, and
operates a warehouse to reach customers across Canada in Calgary.
In 2015, Viterra opened a pulse cleaning facility, focused exclusively on lentil processing and
cleaning in Tempest, AB.

Talent profile
Key insights from stakeholders

• Core processing, packaging related roles (e.g., bottling, liquid storage and mixing) had similar talent and skills profiles as
other spaces in food manufacturing.
• Specialized expertise in alcoholic beverage production including skill sets such as malting, fermentation was seen as a
combination of a knowledge of chemistry, and food/cooking based skill sets.
Examples of key training / educational assets

Chemical Engineering
Mechanical Engineering
Brew Master and Brewery Operations Management

Agricultural Management-Production Major Diploma
Food and Beverage Leadership Certificate of Achievement

Bar Mixology Course
Heavy Equipment Technician Apprenticeship
*Please see Appendix C for comprehensive list of examples of additional education and research assets in Calgary

Niche and premium foods and specialty ingredients
Staying responsive to consumer demand
Key insights
• Niche premium food products are typically produced in relatively low volumes or batches and can command a premium in the
market place based on specific nutritional or flavour profiles. Some examples in this category are ethnic foods (halal/kosher),
snack and indulgence foods, naturally healthy and organic, reformulation “better-for-you”, functional foods, intolerance foods
and food that meet special dietary needs.
• Specialty ingredients include production of processing of ingredients such as hemp, cereal grains for the nutrition and personal
care industry. There is increasing demand and customer awareness of the potentials uses for these types of ingredients in
consumable products.
• Niche and premium food market is driven by changes in the ethnic and cultural demographics in major urban centers across
Canada, as well as the brand awareness and marketing of indulgent snack foods, and the introduction of new flavour profiles for
packaged foods.
• Key product categories with forecast demand include:
• high protein snacks (e.g., jerkies, meal replacements)
• ethnic foods including Halal/Kosher meat based products, and/or pre packaged foods such as ethnic meal/spice
marinades and/or frozen foods
• functional foods include glucosamine, whey protein, plant sterols, probiotics and omega-3 fatty acids and;
• intolerance and specialty foods to meet niche dietary requirements including gluten, lactose free or diabetic / milk
alternative based products.
• These categories are in addition to a sustained demand for organic and healthy alternatives to traditional food products in the
domestic market.

Niche and premium foods - continued
Examples of innovative activity in Calgary
Innovative activity in Calgary Innovative activity in Calgary
Naturally healthy and organic Snacks and indulgence foods
Baby Gourmet is a Calgary based baby Foothill Creamery produces dairy

food manufacturer that offers organic products such as butter, ice cream, and
meals and snacks for babies. frozen yogurt from its Calgary plant.
Snack and indulgence foods Functional foods
Condillo Foods, a subsidiary of Old Dutch Sunora Foods Inc. is a Calgary based
Foods, is a manufacturer of snack foods food oil entity that is involved in trading
that include potato chips and corn chips. and supplying canola oil, corn oil,
Its state-of-the-art manufacturing facility is soybean oil, olive oil and speciality oils.
located in Airdrie.
Personal care industry
Functional foods
International Laboratories Canada (LLC)
Parmx Cheese Company’s facility in is a private label hair and skin product
Calgary covers 28,000 square feet with a contract manufacturer, specializing in
production capacity of over 40,000 formulating, manufacturing, packaging
kilograms of various products per week. and labelling.
Niche food distribution Nutraceuticals
Elite International Foods is the western InovoBiologic Inc. provides solutions, as

partner of Canada Food Group that has a well as unique ingredients for the natural
national network of distributors that health, nutraceutical and functional food
provide premium and ethnic foods across industries. The company also offer to
Canada. The company has a distribution package products in soft gels, hard
center in Calgary. capsules or tablets.

Regulatory environment
Alberta Environment Federal establishment license
• Canadian Food Inspection Agency (CFIA)
• Alberta Environment requires all food
• Federal regulations cover meat
processing facilities to be registered or
products, diary products, fish
approved with their department for the
products, shell and processed eggs,
protection, enhancement and wise use of
fresh and processed foods and
the environment
vegetables, honey and maple
products that are sold interprovincial
and internationally
Food safety requirements Packaging and labeling

• Public Health and Food Regulation (AR • Canadian Food Inspection Agency (CFIA)
31/2006) enforces:
• Administered by Alberta Health • Consumer Packaging and Labeling
Services (“AHS”) Act,
• Inspection by AHS is required prior to • Food and Drug Act,
commencement of operations • Canada Agricultural Products Act,
• Required to obtain a food sales permit • Meat Inspection Act
from AHS
Provincial license / inspection CFIA Organic products regulations

• Dairy Processing
• Alberta Agriculture and Rural
Development administers regulations • To maintain organic integrity of a processed
pertaining to the Dairy Industry Act product, processors must adhere to national
and National Dairy Code standard and be certified.
Some regulations include:
• Processed Meats and Poultry • Organic products can’t be mixed with
• Alberta Agriculture and Rural non-organic during storage and
Development approves, licenses, and transport
inspects processes in accordance with • Only permitted food additives and
Mean Inspection Act and Regulations processing aids can be used during
(AR 42/2003) processing
Canada’s Livestock Transportation

Canada’s Transportation Code
Certification Program
The Transportation Code has important While not a regulation, the Program provides is led
guidelines and regulations on the by an industry initiative to address the need for
transportation of livestock and food products increased accountability and improved handling
that can have significant impact on supply practices in livestock transport. Increasing numbers
chain management and logistics of livestock of processing facilities across North America are
and food products. demanding proof of competence/certification in
livestock and poultry hauling, and the CLT program
addresses this demand.
CLT training is not limited to drivers. Training is
Alberta Bill 6 – Farm and Ranch beneficial, and in some instances required, for
Workplace Legislation livestock and poultry handlers, dispatchers and
others that are involved in the production system.
Facility managers and key decision makers, while
Alberta farm and ranch producers with paid
they may not spend time working directly with
employees who are not the owner or related to the
animals, also benefit from the knowledge gained
owner will be affected by Bill 6. Key aspects of the
from taking this course.
regulation include payment of waged workers,
protection and compensation of non- family farm
and ranch employees, and workplace safety
measures. The legislation requires farms and ranches
to follow basic health and safety regulations, allows
paid workers to join a union to bargain for wages
and benefits, and provides training and the ability to
refuse unsafe work without being fired. It allows
inspectors to enter a farm site to do inspections and
impose penalties as necessary when a worker is killed
or injured on the job. Family farms without
employees Since enactment, in the first 6 months of
2016, Workers Compensation Board claims have
more than doubled.
Talent profile
• Attracting talent into core food manufacturing roles was identified as key challenge for the food processing industry. Historically
roles are often lower skilled and in challenging working conditions. New Canadians and/or temporary foreign workers were cited
as core talent sources vital to the competitiveness of the sector.
• Talent with experience in management and business administration roles in the value-added food processing industry were
characterized as of very high value to employers. Retaining talent with this profile is very important to employers and as a result,
skilled experts may not move employers as often as other segments of consumer packaged goods. Stakeholders noted that larger
processors and manufacturers are often able to court talent from other international or Canadian offices to Calgary based on the
city’s high quality of life.
• Core skill sets included knowledge of consumer packaged goods industry dynamics, supply chain management, logistics
planning, financial and business management skills. Stakeholders noted those in the ‘food industry’ often remain in the industry,
acquiring skill sets and experience in different segments of the industry.
• Food scientists, and/or chemical skill sets required to innovate ingredients and ensure compliance with food safety regulations
were viewed as niche expertise that is highly sought after.

Meat Processing Certificate
BASc Agribusiness Degree
Agricultural Management-Production Major Diploma
Food Processing Research
Carcass and Meat Science Research
PhD in Food Science and Bio-resource Technology

Beverage Manufacturing

Beverage Manufacturing
Key highlights
• The manufacturing of non alcoholic such as fruit and vegetable juices, soft drinks, flavored water and sport drinks as
well as the manufacturing and distilling of alcoholic beverages ( such as beers, spirits, wines)
• The beverage industry represented 7.4 percent of total Alberta food and beverage sales in 2014 (4).
CED estimation of
CED estimation of Production / Alberta export values • Craft/premium beers
# of companies Sales figures
contribution to GDP
with employees
• Premium spirits (e.g., whiskey,
vodka, rum)
• Cottage winemakers (dessert,
fruit wines)
$228m1 631 $1.01 b(5)* $9.7 b(8)** • Energy/sport drinks
• Flavoured waters
• Ready to drink smoothies, fruit
juices
• Medicinal/mineral botanical
nectars
Sources:
1. Provided by Calgary Economic Development
* Alberta data is available for 2014 only. Total 2015 Canadian beverage manufacturing was equal to $10.4 billion, according to
Agriculture and Agri-Food Canada.
**Export values for beverages are grouped in with food exports by the Government of Alberta

Niche-alcoholic beverages
Scaling Alberta’s success in the production of locally sourced niche
Key insights
• Strong consumer market: Alberta represents a growing and stable consumer market for alcoholic beverages.
• In 2014/15, over $500 million in wine receipts and $745 million in sales of hard spirits were recorded (49).
• The 2014/2015 year capped a banner period of growth where Stats Can reported $1.1 billion in beer sales in Alberta (49).
• Rapid growth in niche beer:

• In less than three years, the number of craft breweries and small brewpubs (defined as producing less than 300,00
hectoliters per year) has almost quadrupled. (50)
• At least 10 additional breweries are in active planning stages (as of September 2016).
• There is growing consumer appetite for ‘Made in Canada’ and locally brewed beverages. There is also an international
recognition of the quality of Canadian spirits.
• Distribution and feedstock advantages: beverage processing:

• Calgary’s proximity to core farming land for wheat, barely, hops, potatoes and rye and location as an urban consumer
hub make it well suited for production facilities of all sizes.
• Building and expanding Calgary’s growing distillery, brewery and micro-brewery base are key opportunities.
• Scaling agri-tourism (e.g., craft beer tours, promotions with premiere restaurants) can create new opportunities that impact
the hospitality, restaurant and food and beverage manufacturing sectors.
• Growing consumer consciousness and preference for locally sourced beverages and Alberta’s feedstock advantages can
drive demand for Alberta made spirits such as vodka, whiskey and premixes.
• Ready to drink niche non-alcoholic beverages such as such as ready made smoothies, premium fruit and vegetable juices,
sport/performance beverages and/or electrolyte replacements.

Niche alcoholic beverages
Anchor firms in Calgary – brewery & distillery
 Based in Strathmore, AB
Brewery in Calgary  Alberta’s first cottage winery
Calgary, AB & Vancouver, BC
 Largest and most award-winning artisanal wine
Seasonal, Signature Series, Barrel Aged, Cider producer in the province
Series, Pull Tab Series  Wines are produced from Alberta grown crops
of raspberries, strawberries, wild black cherries,
black currants and Saskatoon berries
Startup craft brewery in Calgary, AB
Established micro-brewery in Calgary since 1996
Calgary-based microbrewery set to launch in

2016
Distillery in Calgary
Alberta Distillers Limited (Calgary, AB)
• One of the oldest distilleries in Western Canada
• Export success to over 30 countries
• ADL’s Alberta Premium was named Canadian Whisky of the Year in 2006, 2007, 2008 and 2010.
Eau Claire Distillery (Turner Valley, AB)
• Three point vodka, parlour gin, prickly pear equinox, gin rummy, Christmas gin, single malt whisky
Calgary
• Suite of products including vodka, rum, gin, liquors, and premixes.

Premium non-alcoholic beverages
Shifting consumer preferences are introducing new products to the
market
Key insights
• Global production of health and wellness drinks using fruit and vegetable ingredients and proteins are introducing new types
of products to market.
• Consumer preferences have shifted away from traditional soft drinks towards low sugar, ‘natural’ tasting juices/drinks.
Beverage producers are responding by developing new products using fruit and vegetable based inputs, and emphasizing
‘natural’ flavour profiles in products.
• Demand for ready to consume smoothies and pressed juices that can be snack supplement has grown. Key Alberta feedstock
relevant to these types of product includes hemp, fruits, and honey and dairy. Companies in this space have business models
that include local production of beverages, and distribution to niche, local retailers in urban settings. The display and sale of
these types of beverages contributes to health and wellness branding and marketing of retailers and service providers.
• Nutraceuticals / herbal wellness beverages
• Vegetable and fruit juices produced and/or distributed to urban
consumers and retailers
• Ready to consume smoothies (vegetable and fruit based, with
protein complements such as nut extracts)

Premium non-alcoholic beverages continued
Innovative activities in Calgary
RE7
Started in Acadia Valley, AB
• Sports and performance drinks that do not contain artificial flavours, sweeteners, colours or
preservatives
• All natural/11 vitamins & minerals/no caffeine
Flora Beverage Company Ltd. (Calgary, AB)

• Natural liquid herbal beverages with health benefits
• Botanical drinks and tinctures such as Mojave Nectar and Hoxsiac
Lassonde Western Canada
• With some 50 employees, Lassonde Western Canada in Calgary is Lassonde’s first acquisition in
Western Canada. Formerly McCain Foods (Canada), a division of McCain Foods Limited, the
company has more than 25 years of experience in manufacturing and marketing ready-to-drink
fruit juices and drinks.
Herbal Healing (Calgary)
• Herbal Healing Inc. is a 12 year old herbal manufacturing and retail company featuring superior
quality loose-leaf therapeutic herbal tea blends, tinctures, salves and personal care products for
the natural health market.
Juice Because
• Juice Because is a Calgary based company specializing in cold pressed juices and juice cleanse
products focusing on enhancing metabolism and digestion. The company’s products are sold
and distributed through a network of local retail and restaurant outlets.
Municipal zoning
Federal establishment license
• Municipal land zoning bylaws can determine if • Municipal land zoning bylaws can determine if
land can be used for alcoholic production land can be used for alcoholic production
facilities and brew pubs in or near populated facilities and brew pubs in or near populated
commercial areas commercial areas
• In Calgary, land use designation laws were
recently amended to open up opportunities for
more breweries and micro pubs in the city.
Food safety requirements Alberta gaming and liquor commission

• Public Health and Food Regulation (AR • The AGLC establishes the rules and defines the
31/2006) range of public establishments in which liquor can
• Administered by Alberta Health Services be sold or consumed
(“AHS”) • Companies are required to register as liquor
• Inspection by AHS is required prior to suppliers, and seek authorization to serve,
commencement of operations warehouse or distribute liquor with private
• Required to obtain a food sales permit operators
from AHS • The Commission also manages the provincial
markup rate schedule which is a key driver of the
price of beverages
Fire and building codes ‘Soda Tax’

• Depending on the concentration of alcohol,
• Several health industry and consumer advocacy
breweries/ beverage manufacturing facilities
groups such as the Alberta Coalition for Chronic
face varying levels of fire code provisions
Disease Prevention have pushed federal and provincial
• Mandatory inspections and reviews to ensure
policy makers to consider a tax on sugary drinks
fire safety regulations are met are authorized
• While some jurisdictions (e.g., Mexico) have
by municipal governments
implemented these measures, there is considerable
debate over the efficacy of these measures
• For beverage producers, a tax could lead to lower
sales and/or substitution of sugary drinks for other
products

Regulatory environment continued
Labelling Requirements for Alcoholic Beverages
Alcoholic beverages are subject to the Food and Drug

Agency (FDA), the Food and Drug Regulations (FDR)
and the Consumer Packaging and Labelling Act (CPLA)
and Consumer Packaging and Labelling Regulations
(CPLR). Depending on the type of alcoholic beverage,
other federal Acts or Regulations not enforced by the
Canadian Food Inspection Agency (CFIA) may also apply,
such as the Spirit Drinks Trade Act. In addition, provincial
and territorial regulations may have labelling
requirements for alcoholic beverages that must be met
for products sold in that province or territory.
The labelling requirements detailed in the following
sections are specific to alcoholic beverages.

Talent profile

• Core processing, packaging related roles (e.g., bottling, liquid storage and mixing) had similar talent and skills profiles as
other spaces in food manufacturing.
• Specialized expertise in alcoholic beverage production including skill sets such as malting, fermentation was seen as a
combination of a knowledge of chemistry, and food/cooking based skill sets.

Brewmaster and Brewery Operations Management
Agriculutral Management-Production Major Diploma
Food and Beverage Leadership Certificate of Achievement

Bar Mixology Course
Heavy Equipment Technician Apprenticeship
BS Chemical Engineering
BS Mechanical Engineering

Crop Science | Animal Genetics
Crop science and animal genetics
Key highlights
Crop Science: The development of new seeds and crops, with enhanced health, disease resistance, and yield capabilities. This
sub-sector includes the production of seed, soil, pesticides and fertilizer products relevant to growing.
Animal Genetics: The production and sale of products related to veterinary health of animals for food and breeding. This sub-
sector includes the collection, distribution and sale of animal genetics (e.g., semen, embryos, live animals for breeding).

Soil and Crop Technology:
CED Estimation of CED Estimation of Production/Sales Export Figures (11)
Contribution to GDP # of Companies Figures • Genetically modified seed crops
• Breeding and research and development
expertise
• Biological/chemical crop inputs and
TBD TBD N/A $311 m treatments (e.g., fertilizers, herbicides)
(animal genetic
exports only)
• Genetic modification, engineering and
mutagenesis of new crops and seeds
Animal Genetics:
• Animal breeding facilities
• Animal/genetic material storage and
distribution
• Import and export expertise
Food Science
• Application of genomics, metabolomics, and
nanotechnology in food innovation for flavor
and nutritional enhancements.

Crop sciences
Calgary has an established presence of leading crop science innovators
Key insights
• Innovation in soil, feed and genetically modified crops or breeding technologies are primarily driven by growers’ desire for higher yields.
• A smaller subset of research and development devoted to nutritional enhancements of core crops to meet consumer preferences.
• Disease resistance and impacts of climate change will drive innovation and new product offerings (e.g., research in drought resistant traits).
• Development and production of new seed innovation for core Alberta crops that can enhance yield and sales for farmers/producers.
• Identifying linkages between weed and pest detection/monitoring technologies currently being develop that can assist in research and
development on crop health and disease resistance.
• Southern Alberta’s proximity to a diversified group of crops to conduct research and integrate new products on. In addition, the region’s
locational advantages create opportunities to store and export seeds.
• Product innovation in the processing and reformulation of edible oils with improved nutritional profiles, and enhanced functionalities to
provide ‘healthier’ solutions.
Innovative activity in Calgary
Bayer CropScience’s Canadian headquarters develops a suite of fungicides, herbicides, insecticides, and
grower tools for farmers. Crop seeds service major segments of Alberta’s industries, including canola,
soybeans, pulse crops, cereal grains and some fruits. Included in their expertise are breeding stations, and
grower programs and business planning capabilities.
Headquartered in Calgary, Dow AgroSciences has a major seeds and trait portfolio and disease resistance
and safety products for major crops.
Agrium produces and markets a suite of seeds and seed trait technologies, crop nutrients and crop
protection products such as fertilizers.
Working as part of a research consortia, University of Calgary researchers are advancing research in stress
tolerance, herbicide tolerance and water use efficiency of plant systems and conducting research on
developing drought tolerant crops including over a dozen durum wheat varieties and canola. The company
plans to get into commercial seed production of new types of crops and seeds.

Animal genetics
Niche opportunity: low volume, high value premium animal related exports
Key insights
• Innovation and scientific development related to veterinary health of animals for food, and collection sale of animal genetics (e.g.,
semen, embryos, live animals for breeding).
• Calgary’s airport is a critical infrastructure asset relevant to this sub-sector, as firms typically produce low volume, premium
products to international clients. Firms in this space are able to command premium prices due to the strong genetic profile of
Alberta animals.
• In 2015, Canada exported over $311 million in animal exports where bovine semen was one of Alberta’s top exports (11).
• Given its proximity to core farm land, Calgary has an established niche strength in export of animal genetics with a specialty in
cows, bulls and studs. Calgary is home to specialized capabilities in animal in-vitro fertilization, embryo collection and transfer, and
genetic material storage
• Specialized animal genetic collection and transfer companies focused on cow, calves and bulls
• Expansion and retention of current animal sciences capabilities
Innovative activity in and around Calgary
Bowden, AB
Sheep and goat genetics reproductive services management.
Rocky View County, AB
Beef genetics product portfolio management.
University of Alberta
Bovine genomics research and technology development.
Crossfield, AB
Offers a broad base of livestock experience and expertise including purebred and commercial
cattle production, sale of animal semen, embryos and specialized services to facilitate import and
export.
Brooks, AB
Offers complete embryo collection and transfer services on farm and at a donor center; in 2014,
opened an export approved bull stud that can distribute semen within Canada and abroad.
Regulation of genetically modified food Animal export (e.g. live animals, animal
Canada products, embryos, semen)
• Food and Drugs Act (Health Canada) • Health of Animals Act and Regulations,
• Division 28 of Part B of the Food and Drugs Section 69
Regulations (Novel Foods) • Must be accompanied by a health
• Seven to ten year process to research, develop, certificate or endorsed by a Canadian
test and assess the safety of new genetically Food Inspection Agency veterinary
modified food inspector
Alberta Soil and fertilizer regulation

Canada
• Alberta Agriculture and Forestry is responsible for
ensuring safety in food products and production • Canada Food Inspection Agency Fertilizer
practices throughout the supply chain in Alberta Program
• Alberta Health administers the Public Health Act Alberta
and Food Regulation • Soil Conservation Act and Regulations: Every
• Alberta Health Services (AHS) enforces regulations landholder has a duty to prevent soil loss or
outlined by Alberta Health deterioration
• Irrigation Districts Act and Regulations:
Labelling of genetically modified food Control the conveyance and delivery of water
Canada
Pest management
• Food and Drugs Act
• Shared responsibility between Health Canada and • Pest Management Regulatory Agency
Canadian Food Inspection Agency (CFIA) (part of Health Canada)
• Labelling is mandatory if there is a health or safety • Science-based process and competent
issue with a food
Talent profile
• ‘Solution Sales’: crop science companies seek sales workers with knowledge of the farm, and agribusiness industry, including
specialized understanding of farming best practices, crop breeding, food and beverage processing requirements and
conventional sales techniques. Salespeople who could “ talk to farmers” and sell integrated products and services (e.g.,
customized seed blends, fertilizers, and machine equipment) were highly sought after.
• Sought after employers: Employers such as Dow AgroSciences and Bayer Crop Science were seen as top tier employees
due to their scale and exposure to international markets. Employers typically require university degrees, with a premium
placed on bioengineering skill sets. It should be noted these types of employers also seek top talent in legal, financial and
management related roles.
• Trained certified agronomists: Agronomy designations such as certified Canadian Crop Advisors and Professional
Agronomists, were viewed as high value to the sector, and require a university degree and can include the requirement for
other types of training and designations.
Crop sciences Animal genetics

Key skill sets for crop sciences: Key skill sets for animal genetics
• Agronomy • Veterinary medicine, breeding
• Soil nutrition • Expert level understanding of animals, including
• Pest control animal management, knowledge of animal genetics,
• Horticulture management feed transfer
• Bioengineering/ biotechnologists • Bioengineering
• Sales agronomists • Animal reproductive health/medicine
• Crop nutrition • Animal breeding technologies
• Plant breeding • Specialized transportation and storage of genetic
• Biotechnology material
• Plant genetics • specialized sales experience and knowledge of global
animal genetics demand

Talent profile continued
Grain and Oilseed Production, Marketing and Trade research

Agricultural Bio-Technology research
BSc. In Agricultural Biotechnology
Field Crops and Horticulture research

Reclamation and Remediation research
Compost research
Agronomy Certificate Levels 1 and 2
Agricultural Sciences (Animal Science Major)
Agricultural Sciences (Plant and Soil Major)
Masters and PhD in Animal Science programs

PhD in Plant Bio Systems program
PhD in Food Science and Bio-resource Technology program
BSc. in Crop Science program
BSc. in Animal Health program
Plant Breeding and Genetics research

Crop Biotechnology research
Oilseed Biotechnology research
Biosafety of Transgenic Crops research
Livestock Genomics research
Nutrition and Metabolism research
Feed Processing research

Agri-technologies
Agri-technologies
Key highlights
• Agri-technologies includes the development, design, testing and production of specialized software and hardware to
support core agricultural activities. This sub-sector can be seen as an enabler that touches upon several verticals.
• Agri-technologies enable critical functions for the industry such as plant, animal health monitoring, inventory/product
management, aerial weather and field monitoring, biometric and food safety quality testing.
• Alberta farmers adopting new technologies including precision farming applications. Between 2011 and 2013, approximately
half of Canadian farms adopted at least one type of new or significantly improved product or process (2)
• While the market for new agri-technologies continues to grow, at the farm level, financing and affordability was identified as
the most important factor in farm operators’ decision to implement innovation (2).

CED estimation CED estimation of # CED estimation total Decision support technologies
Alberta or Canada
contribution to GDP of companies with # of employees • Software and data analytics to enable agriculture
export values
employees Sensor and tracking technologies:
• Optical sensors to monitor crops, fields and soil conditions
• Machine-to-machine communication capabilities for farm
TBD TBD N/A N/A equipment
Livestock biometrics and food traceability:
• GPS and RFID systems to track inventory and safety of live
animals and food through processing value chain
Smart equipment and machinery and robotics
Equipment risk and maintenance monitoring
Precision agriculture is the future
•
• Food and beverage automation/robotic manufacturing
The total global market size for precision agriculture is expected technologies
Unmanned Aerial Vehicles (UAV) and driverless farm
to reach $4.55 b by 2020 (12) •
equipment
• Automated variable rate seeding technologies
Vertical Farming technologies
© Deloitte LLP and affiliated entities. 46
Aggressive global investment in agri-technologies
Private investment is centered on software capabilities and drone technologies
Key insights
• As of mid-2016, at least $1.8b in global investment in agri-
technologies was recorded (307 deals) (Ag Funder). The top 5
categories were:
• Food Ecommerce (32%)
• Biomaterials and Biochemicals (14%)
• Soil and Crop Technology (9%)
• Decision Support Technology (8%)
• Drones and Robotics (8%)
• Despite the fact that Canada is a small player in agri-
technologies, with 5 per cent ($91m) of total global agri-
techologies investment was awarded to Canadian agricultural
start-ups in H1-2016.
Precision Agriculture Spotlight

• Precision agriculture is a farming management concept based
on observing, measuring and responding to inter and intra-field
variability in crops.
• Precision agriculture captured 19 per cent ($333m) of total agri-
technologies investments in H1-2016 (13).
• Within Precision agriculture, drone (34%) and software (28%) Precision agriculture spotlight
technologies have dominated private venture capital funding by Agtech Investing Report Mid-year 2016 (13)
mid-2016.

Digital farming
Calgary has the capabilities to grow capacity in digital farming
• Livestock biometrics, tracking and traceability: Technologies that can assist animal farmers to manage herd health and
inventory, and track animals as they move through the value chain. Data collected by these devices/software can be stored in
central databases for operators to automate report generation for farmers and/or regulatory bodies.
• Food safety and quality monitoring : Nano devices and software to monitor microbial pathogens, disease, contaminants or
spoilage of food are increasingly relevant to the food industry, as well as food storage and distribution firms.
• Courting start-ups: Digital farming technologies are being developed by specialized start-up companies which are seeking to
be acquired or sell technologies to established agricultural equipment and servicing companies.
• Research and development mandates in Calgary anchor firms: Large crop sciences and agricultural equipment and
manufacturing firms are expanding their technology development portfolio. DuPont, Dow AgroSciences and Syngenta may
consider following Bayer CropScience’s steps and expanding internal search and testing capabilities in precision agriculture.
• Farm/facility business management: Enterprise business software that can enable farmers to remotely monitor work flow and
production patterns (e.g., platforms that collect data relevant to marketing, regulatory compliance and capacity reporting).
• Redeployment of existing capacity: Calgary’s existing engineering, wireless and telecommunication capabilities are home to the
necessary skills and qualifications to develop and implement technologies in the sector.

Digital farming continued
Calgary has the capabilities to grow capacity in digital farming
Innovative activity in Calgary
Irricana, AB
• A suite of software enabled capabilities including GIS mapping, soil testing and seed run
time reporting.
Calgary, AB and Vancouver, BC
• Provides a cloud-based operations management solutions for field managers to enhance
human and capital resource management and execute tasks remotely.
Calgary, AB
• Electronic design services
• Partnering with Canadian Cattle Identification Agency to develop data logger for livestock
tracking.
Calgary, AB
• Web-based platform for growers, agronomic field advisors and agri-business managers to
remotely manage farm operations including crop production and grain marketing.
Calgary, AB
• Bayer CropScience is taking the initiative in digital farming. The Calgary office is testing and
developing Bayer’s digital farming capabilities at a pilot site near the city. The company also
acquired Zoner, a precision agricultural start-up from Calgary.
Calgary, AB
• OPI Advanced Grain Storage Management specializes in grain management system
strategies, wireless solutions, temperature, moisture monitoring technologies and alarms
and fan controls.

Unmanned Aerial Vehicles (UAV) and driverless equipment
Growing demand for the application of UAV technology in agribusiness
Key insights
• The development, testing, design and manufacturing of unmanned aerial and/or driverless vehicles and components with applications such as
crop, livestock management and monitoring.
• Aerial imagery increasingly seen as most productive way to collect farming data. It is anticipated that UAV spending will nearly double over the
next decade, growing from worldwide expenditure of $6.4 b to $11.5 b annually (51).
• Alberta has over 70 companies, military agencies and educational institutions working on UAV research, testing, and manufacturing (52).
• Similar technologies are being integrated to power unmanned farm equipment (e.g., driverless tractors) which can execute tasks such as tillage,
mowing, baling and picking up rocks at a low speed. Strong synergies with development of driverless cars, and use of artificial intelligence and
geospatial technologies that can ‘train’ vehicles to execute defined tasks. Key innovators in this space include Kubota (Japan) and Fendt
(Europe) and New Holland.
Potential opportunities Innovative activity in and around Calgary

Key technical capabilities relevant to the agribusiness The Canadian Center for Unmanned Vehicle
sector include: Systems is a national center of excellence
• Systems integration (i.e., software and hardware nexus) that provides support to the UAV industry,
• UAV testing, development and manufacturing including providing testing and development
• Avionics navigation systems support, as well as business support services
• Integrated pest management and detection systems including to Canadian and international companies.
aerial imagery
• Automatic driving, navigation and sensing capabilities installed
on farm equipment Mechatroniq designs and builds remotely
• Geo-fencing/ virtual barrier technologies (i.e., technologies to operated and unmanned vehicles with turn
ensure unmanned vehicles do not pass physical barriers) key solutions for plant automation,
• Satellite imagery and agro climactic monitoring technology environmental monitoring and pipe leak
• App development to monitor and operate automated vehicles detection .
remotely

Food and beverage automation technologies
Key insights
• Reduction of waste, process inefficiency and increases in input costs (including labour, energy and transportation) are challenging
the agribusiness sector to produce food and beverages in more efficient ways.
• According to International Federation of Robotics statistics, the Food and Beverage Processing sector is the second largest
manufacturing market for robotics (9% of 2012 robot sales) in Canada, just after the automotive industry. (53)
• To address critical productivity challenges, automation technology is modernizing the agribusiness sector. The Conference Board of
Canada attributes adoption of automated processing in food and beverage manufacturing to recent moderate gains in total factor
productivity, but notes internationally, the Canadian agribusiness sector lags in productivity, creating a market opportunity for
producers of effective technologies that limit transition costs from older modes of production.
Potential opportunities Innovative activity in Calgary

• Attracting specialized automation, and With a location in Calgary, Autopro automation
servicing companies that can upgrade has a dedicated line of agri-related technologies.
or service existing facilities. Key technologies include predictive maintenance
and performance monitoring, automation
• Automation technologies are most engineering that are customized to meet safety,
easily applied to food processing quality and regulatory requirements
capabilities that are high yield, with low
Delco Automation offers skilled technical that can
levels of variance in raw inputs (e.g.,
service and customize control panels, and
size, texture). In meat processing for
automated power products for the food and
example, differences in cow size are
beverage industry. Key capabilities include grain
greater than that of poultry, lending
handling and storage control systems, and the
chicken and turkey related processing to
development of greenhouse infrastructures.
be easier to apply new automation
technologies. TWD specializes in the development,
implementation, optimization and upgrading of
food and beverage processing facilities. A key
client of the company includes Molson Coors.
Vertical farming
Calgary’s position as an urban center could position it to take hold of
emerging manufacturing and next generation farming activities
Key insights
Vertical farming is the practice of producing food using controlled environment agriculture (CEA) technology that enables
suitable farming conditions indoors. The key inputs required for this approach to farming include greenhouses, water purification
processes, artificial lighting(grow lights), and metal refractor technologies.
• Vertical farming can be seen as a niche opportunity that complements an established base of traditional farming.
Opportunities include:
• Engineering and development of key inputs: Calgary’s manufacturing and engineering capabilities position it well to
invest in and grow expertise in the manufacturing of the key equipment and hardware components of vertical farming.
• Joint ventures and distribution partnership for vertically farmed foods : Vertical farming companies with specialized
niche capabilities could establish joint ventures with local indoor growers, and food distribution networks. For example,
encouraging partnership between vertical farmers and supermarkets that are seeking new ways to interact with
customers and demonstrate commitment to locally sourced foods presents as an opportunity for established Calgary
food retailers and restaurants.

In 2016, Vertical Designs Ltd (headquartered in British Columbia) incorporated in
Alberta under the name Vertical Designs Alberta and plan on building a full scale
vertical farm in Alberta under a non-exclusive licensing agreement purchased
from Affinor Growers Inc.
Urban Green Produce is a Calgary based company that distributes locally grown
produce, as well and sells grow equipment such as induction lighting for growers,
bulbs and lighting fixtures and hydroponics gardening systems.

In-land fish farming
A nascent opportunity with key demand drivers for CED to consider
In-land fish farming and aquaculture includes the cultivation of
animals and plants in commercial tanks or enclosures for food.
In 2013, the industry brought roughly $10 million and is poised to

grow as fish consumption grows globally (14).
Key demand drivers:
• Sustained demand: Global demand for fish exceeds that of beef.

• Cost efficiencies: Internal local fish farming can reduce distribution
costs, and carbon footprint associated with meeting consumer
demand for fish and fish products.
• Consumer preferences: concern for environmentally sustainable
fishing approaches can equate to a premium on in land farmed World farmed fish demand has experienced growing
fish products. demand.
• Spin off potential: An interesting spin off opportunity associated
with in land fish farming is aquaponic systems which are
approaches that use waste produced by farmed fish or other
aquatic animals to supply nutrients for plants grown
hydroponically, which in tern purify water.

Additional examples of agri-technology capabilities for CED to consider in
investment attraction activities
Technologies being developed outside of Calgary today Potential applicability in Alberta
• Fredericton, NB • Southern Alberta’s strong crop base a sizeable market for this type of
• Integrates large scale cloud-based data analytics with sensor technology
fusion and robotic platforms for real-time crop
management
• Englewood, NJ • Southern Alberta farmers and researchers can use technology capabilities
• Monitoring and communication solutions for assessment of soil health, real time weather, water quality, maintenance
• Traceability schedules, crop maturities and equipment status updates
• Montreal, Quebec • Hardware components can also assist in vertical/indoor farming (e.g., air
• Technology makes automated adjustments to crop growing, temperature, humidity and light control) capabilities
and provides notification on key growing risks
• Detroit, MI • Urban aeroponics and cloud technology can scale low cost indoor
• A controlled environment agriculture (CEA) company agricultural capabilities in Cities such as Calgary
deploying an innovative network of franchised inner-city • Technology sold, developed or expanded into Calgary to address interest in
farming facilities vertical farming
• Fargo, ND • Automating repetitive time consuming tasks on farms can reduce

• Autonomous Tractor Corporation: Tesla for the tractor has dependence on unskilled labour and lower operating costs
stand alone technologies that can be applied to tractors • For farmers in rural Alberta, where attracting talent can be difficult,
automation technologies can play a central role in enhancing
competitiveness
• Bible Hill, Nova Scotia • Provides technology platform for vertical farming
• Smart Plant Systems • Multilevel farms can be built anywhere to grow products locally reducing
• Multi-level farming technology to create efficient, controlled reliance on imported produce. Linkages to e-commerce and retail touch
indoor farms points in and around Calgary provide opportunity
• Australia • Alberta farmers and/or processors looking to monitor inventory or address

• Automated data processing and analytics platform productivity gaps can map crop and field variability, automatically track
• Deliver agronomic data and insights from in-field machinery inventory management and create rate prescriptions to send wirelessly and
directly to grower’s smartphones and tablet farm remotely

Driverless farm equipment Commercial UAV operation

• Technology for self driving farm • Transport Canada oversees use of
equipment's is estimated to be a few commercial drone / aerial imagery
years away from commercial viability technology
• Provincial driving and public safety • Currently, regulations overseeing remote
regulations would need to be created operation of drones beyond visual line of
that authorize the use of these site of an individual operator
technologies on private property • Regional Transport Canada office review
(e.g., farms) and roads and approve applicants on a case-by-case
basis: “Special Flight Operations Certificate”
• US FAA passed Part 107 to reduce
regulatory uncertainty surrounding UAVs
Traceability requirements Data security

Alberta • As technologies collect and analyze data,
• Animal Health Act ensuring consumer and user privacy will be
• Premises Identification Regulation critical to adoption
• Traceability Cattle Identification • Open Ag Data Alliance (OADA) is a global
Regulation organization that is organizing to create
• Livestock Identification and Commerce common information sharing standards
Act • In the coming years, government oversight
Canada of data collected by companies will be
• Livestock Identification and Traceability increasingly relevant
Program (Canadian Food Inspection
Agency)
• Health of Animals Regulations

Talent profile
• Engineering : Both hardware and software related engineering skill sets drive much of the technology innovation in this sub-sector.
Stakeholders noted that fields such as mechatronics, advanced computing or software engineering were ‘cross cutting’ and that often,
engineers in agri-technologies have experience in the resource industry broadly (e.g., technology development in oil and gas, mining).
• Amongst graduates, there is a perception that the oil and gas and/or mining fields would pay greater wages than engineering related
roles in agriculture.
• Specialized sales: Analogous to crop sciences, the sales force for agri-technologies requires specialized knowledge of the food value
chain, with an emphasis on understanding the capital and machinery requirements for producers. As the industry pushes for ‘integrated
offerings’ (i.e., software platforms that can manage entire farm operations, or multiple segments of supply chain’ this perspective will
become increasingly important.
• Entrepreneurs and business acumen: The agri-technologies space can be split into two segments – medium to large established firms
with diverse product offerings and small start-ups. For many start-ups, the goal is to sell technologies to larger players as a means to
maximize impact in the market. Stakeholders noted that while technical engineering capacity is strong, the complementing business
acumen required to identify how and when to commercialize is a critical skill set often missing from start-ups. Attracting business and
marketing skill sets to agri-technology companies was viewed as critical to the future of the sector.

Faculty of Engineering (e.g., Geomatics Engineering, Software Engineering, Mechanical Engineering,
Software Engineering etc)
Water Supplies and Competing Demand research
Agriculture, Development and Food Security research
Innovation and Entrepreneurship in Agri-Business research
Lacombe R&D Centre Making Crop Production Systems More Efficient research
Food Safety and Quality First (Livestock Focus) research
Heavy Equipment Technician Apprenticeship program
Diesel Equipment Technician program
Agricultural and Heavy Equipment Technician program

Agri-Finance & Business Ser vices
Agri-finance and business services
Key highlights
• Agri- finance and business services includes specialized financial, business and consulting services that enable critical
financing, business transactions, management, and investment that enables the agribusiness sector. This sector includes
multi-industry service providers (e.g., banks and legal services firms) with specialized staff or expertise in the
agribusiness sector, as well as agricultural specific financial products and services.
Calgary has an established presence in the financial services sector:
• Calgary is Canada’s western financial capital, with established capabilities and a strong talent base with 1,347
financial services businesses in Calgary.
• During 2006-2015, the financial services sector in Calgary experienced significant growth with 3,400 jobs created,
an increase of 19.1 per cent in employment (54).
• Calgary ranked #28 out of 86 on the global financial centers.
Key products and services
• Insurance products (e.g., crop, hail
Key stats insurance)
• Farm business management advisory
(e.g., farm asset management, human
CED Estimation of CED Estimation of Production/Sales Alberta or Canada Export resources, machinery and equipment
Contribution to GDP # of Companies Figures Values management)
• Commodity trading and specialized
crop marketing
• Food product marketing
TBC TBC N/A N/A • Export/new market entry advisory
• Dedicated agri-financing vehicles (e.g.,
venture capital)
• Supportive business and financial
services (E.g., banking, strategy
advisory)
Insurance services
Agricultural insurance products and expertise are critical to ensuring the success
of the industry
Key insights
• In Alberta, AFSC dominates crop agricultural insurance products.
• Private sector providers (e.g., Co-operators) also provide offerings relevant to the sector.
• Forecast increase in demand: Following several years of very high crop production and low insurance payments, crop
insurance is forecast to increase in the near term.
• New products are being developed to respond to the sector (i.e., coverage for new forms types of crops).
• There is an opportunity to expand and grow private agri-insurance, mainly private crop and hail insurance. The number
of producers opting for additional private insurance has been increasing over recent years.

New products are being
developed to respond to the
sector. In 2016, AFSC unveiled the
New Crop Insurance Initiative
covering non-traditional crops
currently not covered by
traditional insurance, and
insurance coverage for malting
end-use for growers of malt
barley contracts.

59
Agri-financing
Calgary has a broad range of financing capabilities, including niche agri-
financing expertise
Early stage Mature
Venture Private Mezzanine Specialty
Capital Equity Debt Lending Term Loans
• Deal flow level for venture capital in and around Calgary remains robust, and a suitable environment for new
entrants.
• Specialized agri-finance venture firms are highly specialized in nature. Stakeholders noted that deal flow in
agribusiness alone in and around Southern Alberta is limited. However, Calgary’s position as an urban hub of
talent can make it attractive to new markets.
• Proximity to core feedstock or agri-innovation was not identified as a key locational determinant for ag-
financiers. Instead, reinforcing existing investment expertise and the talent base in Calgary can help court
potential new participants in the field.
• Firm support of venture capital initiatives : Companies such as Agrium and Bayer Crop Science are investors in
the Finistere Fund, and are adopting in house innovation incubators and funding initiatives. Working with
anchor companies and organizations such as Innovate Calgary to encourage the development of this type of
activity.
60
Supportive business and professional services
Calgary’s established financial and business service sector is an asset to the
agribusiness sector regionally
Key insights
This sub-sector will grow and evolve alongside key business, market and regulatory changes that impact the agribusiness industry.
Key demand drivers from the sector that will generate opportunity for the expansion of services include:
• Farm asset management
• Succession planning of family farms
• Advisory services to address productivity gaps (e.g., effective human resource deployment
• Enterprise wide technology and machinery planning
• Export and new market access planning and strategy
• Marketing initiatives and support for new products and services
• Legal or regulatory compliance advisory.
• Expansion of Calgary’s existing base of excellence
in accounting, tax, consulting, legal, financing, IT
and management related services and
development of niche capabilities and expertise in
agriculture.
• Attraction of medium sized niche business support
firms dedicated to supporting the
agriculture/resource sectors (e.g., human
resources, marketing, strategy advisory).

Supportive business and professional services
AgCall provides project management, digital marketing, and human resource
support, crop inspection, farm call sales call, field edits and sales support to the
agribusiness sector across Canada.
AdFarm’s Calgary office provides customized marketing, communication
specialized to the agribusiness industry.
Serecon specializes in farm asset management with services including commodity

marketing, and advisory on biosecurity and food safety risk analysis.
FBC specializes in small business and farm tax advisory services, including annual
tax planning.
AgriClaim Canada Inc. specializes in farm business consulting, new venture

planning, market research and intellectual property protection. AgriClaim's
strategy is to grow as knowledge based agribusiness operation by bringing new
service delivery model to Canada's innovative agriculture industry and promoting
commercialization of Canadian innovation worldwide. They provide strategic
consulting to farm producers, agro-industry including farm input manufacturer,
suppliers, and large consulting firm.
Louis Dreyfus Company is one of the world’s leading merchandisers and traders in
agricultural commodities – from farm to consumer. The company trades and
markets grains, oilseeds, rice, sugar, ethanol, coffee and cotton, and processes
citrus fruits, oilseeds, sugar cane and biofuels.
In Alberta, Agrocorp Processing has a plant in Innisfail, AB. The Singapore-based
firm is one of the largest pulse trading houses in the world, trading in excess of 5
© Deloitte LLP and affiliated entities. million metric tons of diverse agricultural commodities each year.
62
Agricultural Financial Services
Alberta Securities Commission Regulation
• Responsible for the administration of Alberta securities laws in Overview of regulated insurance offerings:
accordance with the Securities Act (Alberta), RSA 2000 CS-4. • Lending and Financial Assistance
• Limit to maximum of $25 million or 80% of the value of
Professional services: the project
• Unless you are a registered a person or company, you cannot • Must be a primary producer
act as a dealer, advisor or investment fund manager. • Resident/incorporated in Alberta
Public offering: • Canadian citizen or have 80% equity shares held by a
• Any issuer whose securities are publicly traded must file a Canadian citizen who ordinarily resides in Canada.
prospectus. No person shall trade in a security unless a Crop Insurance
preliminary prospectus has been filed. • Insurable crops are: wheat, oats, barley, mixed grain, rye,
canola, triticale, flaxseed, mustard, corn, carrots
rutabagas, cabbage, beans, broccoli, cauliflower,
Office of the Superintendent of Financial cucumbers, pumpkins, squash, onions, peas, chickpeas,
Institutions (OSFI) potatoes, alfalfa seed, fescue seed, strawberries, sugar
beets, sunflowers, lentils, fababeans, safflower or timothy
• Regulates and supervises all banks in Canada, and all federally seed.
incorporated or registered trust and loan companies, insurance • Application must be made before May 1 in the crop year
companies, cooperative credit associations, fraternal benefit • Must insure entire area that the person seeds to that crop
societies and private pension plans. • Coverage levels and prices for insured crops are set by
OFSI Mandate: annual schedule of rates.
• Ensure that federally regulated financial institutions and Livestock Price Insurance
pension plans are financially sound and meeting minimum plan • Available for beef cattle or hogs
funding requirements respectively, and are complying with their • Insurance covers livestock for price variations
governing law and OSFIs requirements; • Coverage levels and insured values set in schedule of
• Promptly take action or advise institutions to take prompt rates.
corrective action when material deficiencies have been Wildlife Crop Damage
identified; • Available when crop is damaged by big game or upland
• Build and maintain a regulatory framework that promotes the game birds resulting in yield loss or market value loss.
adoption of policies and procedures meant to control and Farm Income Disaster Compensation
manage risk; • Provides compensation if margin for a particular year is
• Monitor and evaluate system-wide or sectoral issues that may less than 70% of the applicants reference margin.
impact institutions negatively. Canadian Agricultural Income Stabilization Program
• Stabilizes the net farm income of producers
• Provides timely response to producers facing income
disaster
Talent profile
• Financial and business qualifications : A majority of roles in this space will require finance and/or business management education (i.e.,
accounting, finance, actuarial sciences).
• Specialized consulting: There are opportunities to court people to transition from food and beverage production or processing into
professionals services as experts in fields such as farm asset management, succession planning and other specific challenges faced by
the agribusiness industry.
• ‘Agricultural lens’ – Stakeholders noted that with the exception of specialized actuarial skill sets and commodity trading, employers look
to exposure to the agribusiness industry through work experience as a distinguishing factor when hiring.
Examples of key training and educational assets

University of Calgary Haskayne School of Business (e.g., Masters of Business Administration,
Financial Management)
University of Calgary Faculty of Law
Agriculture, Development and Food Security

Innovation and Entrepreneurship in Agri-Business
Agricultural Business Risk Management program
Agricultural Management (Production, Finance and Marketing majors)

BASc In Agribusiness program
Agronomy Certificate Levels 1 and 2
Rural Finance and Entrepreneurship Certificate (Online Course)
BA in Agricultural / Food Business Management program
BA, MA, PhD in Agricultural and Resource Economics programs
University of Alberta School of Business (e.g., Bachelor of Commerce, Masters of Business
Administration, Masters in Financial Management)
University of Alberta Law School
Appendix A
Detailed sub-sector prioritization
framework

Framework for sub-sector prioritization
To identify Calgary’s competitive positioning and strength in the Canadian Agribusiness sector, we worked with CED to identify the
most relevant research criteria to confirm target sub-sectors for investment and expansion. Below, we provide an overview of our
sub-sector prioritization criteria, and example research indicators.
Sub-sector prioritization criteria Research indicators Scoring tier

Presence: Evidence of an existing or growing Factors such as: 1
mass of specialized firms, industry associations • Number of companies within Calgary (as measured by
and anchor companies that are clustered in and Canada Business Patterns data or industry association 2
around Calgary directories) 1
• Presence of supporting industry associations 1
• Presence of key anchor or headquarter firms 1
• Commodity/ livestock production/yield figures for Southern
Alberta and/or Canada
• Applicable sales revenue figures, or crop receipts
• Provincial export values (where applicable).
Available talent: Evidence of the presence of • Calgary 2015 Labour Force Survey employment figures within 1
trained workers in key sub-sector occupations, key sub-sector occupations. 2
and the presence of educational training • Availability of sub-sector specific training, courses and
institutions to ensure the future of sub-sector qualifications in and around Calgary.
work force
Spin off potential: Existing alignment or • Supply chain or customer touch points with Calgary 2
potential synergies with Calgary’s competitive Economic Development’s focus areas (e.g., energy, renewable
locational advantages, or in other established energy, technology, financial services, manufacturing,
areas of expertise, talent and strength in transportation and logistics). 2
Calgary’s economy • Ability to leverage Calgary’s specific competitive advantages
supporting transportation, warehousing, infrastructure or
Calgary’s locational advantages.

Framework for sub-sector prioritization continued
Sub-sector prioritization criteria Research indicators Scoring tier

Research and development intensity : We looked for • Evidence of current and future requirement for academic or 1
segments of the sector in which both industry and industry research to drive demand for new products and
academia are engaged. processes. 1
• Ability to bring best practices, knowledge, or specialized
research expertise into Calgary.
Strong future outlook: We reviewed Canadian and • Review of relevant global/Canadian consumer/buyer trends 1
global investment, consumer, policy and industry for evidence of positive growth potential, and ability to
trends to assess if sectors were positioned to grow in provide long term value add to Calgary. 2
demand in the future. • Evidence of a positive consumer/producer profitability and
demand outlook for sub-sector products.
• Evidence of recent private, public, and venture investment
in technologies and processes.
Enabling public policy frameworks: We reviewed the • Identification of Government of Alberta incentives, 2
extent to which sub-sectors were supported by programs and policies that directly support actors within
specific incentives and public policy by the sub-sectors 2
Government of Alberta. In addition, we did a high • High level assessment of the net benefit of proposed.
level assessment of the macro effects of key trade international trade deals and could enable entry into
deals provided by CED. Calgary market over competitors.
Within each of these criterion, weights were assigned the to level of importance of each metric. Primary metrics, were assigned a score
between 1-6 (1= low level of alignment or strength, with 6 the highest). Secondary/ complementary metrics which were complementary
indicators of strength were assigned scores from (1 = low level of alignment of strength, with 3 the highest).

Appendix B
Value-added food processing and
manufacturing supporting data

Supporting labour and manufacturing statistics
Alberta Food Manufacturing Labour Statistics (2006-

2015)
20,000
• In 2015, food
15,000
manufacturing
represented 14.1% of
Number of people
Grain and oilseed milling

10,000 Alberta’s
Animal food manufacturing
Bread and bakery manufacturing manufacturing
5,000 workforce
Other food manufacturing
Meat product manufacturing
-
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: Statistics Canada. Table 281-0024
Alberta Food Manufacturing Sales

Other food by Type, 2015
manufacturing, 5.9% Bread and… • Alberta’s food manufacturing
industry is concentrated in
Animal food,
two segments: meat product
7.7%
manufacturing and grain and
Dairy
products,
oil seed milling
10.6%
Grain and
oilseed Meat
milling, products,
12.3% 53.3%
Alberta employed labour force in the agri-food industries

Appendix: value-added food processing and manufacturing
Canadian Meat Market Value Forecast
30,000
The Canadian Meat Market is

25,000 forecast to grow by a CAGR of
3.75% by 2019.
20,000
CAD ($ millions)
15,000
10,000
5,000
-
2014 A 2015 F 2016 F Cooked
2017Meats
F 2018 F 2019 F
Alberta Pulse Production
Ambient Meat - Counter
Cooked Meats - Packaged Frozen Meat 3,000,000
Chilled Raw Packaged Meat - Whole Cuts Chilled Raw Packaged Meat - Processed
Fresh Meat (counter) 2,500,000
Source: Canadean - Meat Market in Canada Market Snapshot. August, Tonnes (in Thousands)
2016. 2,000,000
1,500,000
1,000,000
Alberta has experienced significant
growth pulse production with peas 500,000
and lentils leading the growth.

-
2010 2011 2012 2013 2014 2015 2016
Peas, dry Lentils Chick peas Beans, all dry Fababeans

Source: Statistics Canada. Table 001-0010
CED Phase 1 Report 71
Pulse growing regions in Canada
Calgary and Southern Alberta is in proximity to key pulse growing regions in
Canada positioning it competitively to respond to global demand for plant
based proteins
Calgary is in proximity to key pulse growing

regions in Alberta
Field peas Southern and Central
Alberta and Peace River
region
Dry beans Southern Alberta
Chickpeas Southern Alberta
Lentils Southern Alberta
Faba beans Central and North-Central

Alberta
Source: (10)

Value of manufacturing sales for food industries by type 2013-16
Alberta Value of Manufacturing Sales for Food Industries by Type, 2013-2016

Year-to-date
Dec-13 Dec-14 Dec-15 Jun-16
All Manufacturing Industries 73,429,848 78,940,773 68,044,552 29,755,511
Food manufacturing 11,498,620 12,675,266 13,630,907 6,613,484
% of all Alberta manufacturing industries 15.7% 16.1% 20.0% 22.2%
Animal food manufacturing 891,487 1,019,607 1,126,173 544,338

Grain and oilseed milling 1,692,287 1,621,938 1,623,224 831,554
Flour milling and malt manufacturing - - - -
Starch and vegetable fat and oil manufacturing 1,264,860 1,228,184 1,161,827 608,837
Breakfast cereal manufacturing - - - -
Sugar and confectionery product manufacturing - - - -
Fruit and vegetable preserving and specialty food manufacturing 383,688 - - 88,272
Dairy product manufacturing 1,654,688 1,390,110 1,447,431 757,880
Meat product manufacturing 5,651,116 7,015,440 7,663,376 3,564,048
Animal slaughtering and processing 5,651,116 7,015,440 7,663,376 3,564,048
Animal (except poultry) slaughtering 4,743,093 6,117,658 6,676,989 3,102,183
Rendering and meat processing from carcasses 161,440 - 80,390 -
Poultry processing 250,874 - 67,398 -
Seafood product preparation and packaging - - - -
Bakeries and tortilla manufacturing - 419,075 463,242 -
Bread and bakery product manufacturing 345,326 380,505 434,685 252,493
Cookie, cracker and pasta manufacturing - 38,571 28,557 4,108
Cookie and cracker manufacturing - 1,079 1,063 430
Flour mixes, dough, and pasta manufacturing from purchased flour - 37,490 27,493 3,881
Flour mixes and dough manufacturing from purchased flour - - - -
Dry pasta manufacturing - - - -
Other food manufacturing 738,035 780,469 839,326 424,838
Snack food manufacturing 581,981 611,593 686,540 347,175
Coffee and tea manufacturing 6,143 7,382 8,875 -
Flavouring syrup and concentrate manufacturing - - - -
Seasoning and dressing manufacturing 45,000 - - -
All other food manufacturing - - 107,717 -
Source: Statistics Canada, CANSIM Database Table Number 304-0015

Employed labour force in Alberta food and beverage industries

Appendix C
Selected education and research
assets

Calgary’s priority sub-sectors
1 2 3
Established Areas of Scale
Value-Added Food/Meat Beverage Manufacturing Crop Sciences and

Processing and Manufacturing Animal Genetics
Emerging Opportunities
4 5
Agri-Technologies Agri-Finance and
Business Services

Selected educational institutes and research offerings
Research offering University / educational body Subsector
Plant Breeding and Genetics: Development of canola germplasm for increased

seed/oil yield, better agronomy, disease resistance and improved seed oil and
meal quality using conventional breeding methods and biotechnology University of Alberta 3
techniques. Conventional breeding of wheat and agronomy and breeding of
wheat for organic agricultural environments.
Rangeland Ecology and Management: Improving the productivity and long-term
sustainability of rangeland plant communities and ecosystems with studies in
University of Alberta 3
rangeland management and planning, monitoring and assessment, and
rangeland improvement and restoration.
Crop Biotechnology: Application of proteomic and genomic techniques to
identify, characterize and validate novel genes for crop improvement through
genetic engineering with particular emphasis on canola and other crops of
economic importance to Alberta and Canada.
Oilseed Biotechnology: Understanding biochemical and genetic regulation of lipid
synthesis in oilseeds including understanding the molecular mechanisms
accounting for the preferences of oil building enzymes for different fatty acid University of Alberta 3
chains. This information serves as a basis for modifying seed oil formation to
produce value-added specialty oils for better health and industrial applications.
Biosafety of Transgenic Crops: Understanding how genes can be transferred from
transgenic crops to non transgenic crops and identifying measures to prevent University of Alberta 3
transfer from happening.

Agricultural Entomology: Understanding the ecological patterns and processes

among insects inhabiting various Canadian agroecosystems. Development of
integrated management strategies for managing infestations of insect pests in
Canola and other crops. A major outcome has been the development of new
crop cultivars resistant to attack by some insect species and improved
understanding of the mechanisms of host plant resistance in crop plants.
Plant Pathology: Understanding host-parasite interactions, particularly on the
role of host-specific toxins in fungal pathogenicity and plant disease
development. Investigations on clubroot of crucifers, an emerging disease of University of Alberta 3
canola in Alberta, including development of integrated management strategies
for control of clubroot on Canola.
Weed Ecology: Understanding the biological and ecological constraints on weed
population and community dynamics, competitive interactions between crop
and weed populations, and using the acquired knowledge in the design and
development of sustainable weed management strategies.
Livestock Genomics: Identification of genes related to economically important
traits in cattle, swine, and other livestock species and application of this
knowledge for improved production efficiency, animal health, and environmental
sustainability.
Nutrition and Metabolism: Better understanding of nutrient digestion and
metabolism leading to improved production efficiency, animal health, new meat University of Alberta 3
and dairy products, and agricultural sustainability.

Research offering University / educational Body Subsector
Nutritional Immunology: Understanding the relationship between nutrition and

immune response and how this contributes to the development of major University of Alberta 3
diseases affecting livestock species.
Reproductive Physiology: Understanding the mechanisms controlling
reproduction and early embryonic development with application to issues of University of Alberta 3
importance to the livestock industry such as improved reproductive efficiency.
Feed Processing: Accurate ingredient evaluation and optimization of feed
processing leading to predictable performance of agricultural species.
Carcass and Meat Science: Understanding the effects of ante-mortem and post-
mortem factors on carcass and meat quality. Also the study of meat processing
and products technology leading to improved meat quality and new product
development.
Food Processing: New knowledge and technical innovations in food chemistry,
food and materials physics, sensory and consumer science, and food processing
engineering (including new processing technologies such as supercritical fluid
extraction and fractionation, membrane processes, extrusion processing, novel
emulsion technologies, modified atmosphere packaging, and minimal
processing). Outcomes include new processing technologies for improved
efficiency and recovery of high value components, development of value-added
products from plant proteins, lipids and by-products for food and non-food
applications, and development of novel food and nutraceutical products from
meat, milk and eggs.

Selected examples of coursework

Department of Biological Sciences – Biotechnology research University of Calgary 3
Environmental Issues: Pharming the Future University of Calgary 3
Plant Biology: Department of Biology University of Calgary 3
Food Microbiology: University of Alberta 3
Bioresource Engineering: University of Alberta N/A
Livestock Production, Marketing and Trade University of Lethbridge 3
Grain and Oilseed Production, Marketing and Trade University of Lethbridge 3
Government Interventionism in Agri-Food Markets University of Lethbridge 5
Economics of Food Safety, Quality and Health University of Lethbridge 5
Water Supplies and Competing Demand University of Lethbridge 4,5

Agricultural Bio-Technology University of Lethbridge 3
Cattle Health University of Calgary 3
Veterinary Medical Sciences Graduate Program University of Calgary 3
Field Crops and Horticulture (Crops and Horticulture research services are openly
accessible to companies, entrepreneurs, and researchers on a fee-for- service
Olds College 3
basis. Services include: testing new varieties, trials of novel fertilizers, pesticide
trials, data collection, Analysis
Compost: receives and recovers the organic matter from fruits, vegetables and
plants through a natural cycle (OC Composting Centre feature). Collection of
those materials from the towns of Olds, Didsbury, and Sundre, contribute to the
Olds College 3
compost distributed back to the communities through year round compost sales.
Area gardeners and homeowners can return the valuable organic matter and
nutrients to the earth as part of a healthy food cycle.
Reclamation and Remediation: research work on bioremediation of
contaminated soil and water, reclamation of previously disturbed sites, and the
University of Lethbridge 3
use of native plants and organic amendments including biochar and compost.
This work has been conducted both locally and internationally.
Making Crop Production Systems More Efficient Lacombe RandD Centre 3,4
Food Safety and Quality First (Livestock Focus) Lacombe RandD Centre 3,4

Selected examples of educational institute coursework offerings
Course / program offering University / educational body Subsector
Masters and PhD in Animal Science University of Alberta 3
Undergrad in Animal Health University of Alberta 3
PhD in Plant Bio systems University of Alberta 3
PhD in Food Science and Bio-resource Technology University of Alberta 1,3
Undergrad, Masters, PhD in Agricultural and Resource Economics University of Alberta 5
Undergrad in Crop Science University of Alberta 3
Undergrad in Agricultural/Food Business Management University of Alberta 5
University of Alberta, University

Undergraduate in Chemical Engineering 1,2,3,4
of Calgary
University of Alberta, University
Undergraduate in Mechanical Engineering 1,2,3,4
of Calgary

Prairie Hort Certificate (Fruit and Vegetable, Greenhouse crop production,

Olds College 3
nursery crop production)
BASc.- Agribusiness Olds College 5
Agricultural Management-Production Major Diploma Olds College 1,2,3,4,5
Beer Sciences: Practical Microbiology for the Craft Brewer (2 day course) Olds College 2
Animal Welfare and Human Slaughter (Online Course) Olds College 1
Agronomy Certificate Levels 1 and 2 Olds College 1,5
Rural Finance and Entrepreneurship Certificate (Online Course) Olds College 5
Livestock (Continuing Education Development) Olds College 1,3
Grain Grading Workshop Olds College 4

Heavy Equipment Technician Apprentice SAIT 1,2,4
Diesel Equipment Technician SAIT 1,2,4
BSc./BA Agricultural Studies University of Lethbridge 1,3,4,5
BSc. in Agricultural Biotechnology University of Lethbridge 3
Agricultural and Heavy Equipment Technician Lethbridge College 1,2,4
Agricultural Business Risk Management Lethbridge College 5
Agricultural Sciences (Animal Science Major) Olds College 3
Agricultural Sciences (Plant and Soil Major) Olds College 3
Farm Business Management University of Lethbridge 5
Agriculture, Development and Food Security University of Lethbridge 4,5
Innovation and Entrepreneurship in Agri-Business University of Lethbridge 4,5

Appendix D
Supplementary Employment Data

Appendix D over view
This document is an Appendix to Deloitte’s Phase 1 report delivered to Calgary Economic Development (CED) on September 29th, 2016. The
purpose of Appendix D is to identify relevant occupations in each priority sub-sector, and provide average wages for these roles.
This appendix completes step 1.2B: Employment our project plan as agreed to by Deloitte and CED.
• We used 4-digit National Occupational Classification (NOC) system to identify job

categories that were relevant to priority sub-sectors identified in Phase 1*.
• We assigned priority sub-sector(s) relevant to each job category. There are several instances
Identify agribusiness roles where roles are applicable in many sub-sectors. CED can update the data using this source.
• For each job category, we included a sample of example job titles that were deemed most
relevant to the agribusiness sector.
• We determined the number of workers in both the Calgary Metropolitan Area (CMA) and
Alberta using 2015 Statistics Canada Labour Force Survey data.
Number of workers • For each job category, we calculated the proportion of workers in CMA as a fraction of those in
Alberta to show the scale of Calgary’s talent pool relative to the province.
• To calculate the average wage, we used the following approach:

• We identified hourly wage ($/hr) per NOC code occupation and average hours worked
Calculating average wage (hr/wk), per NOC code occupation. We calculated the average salary by multiplying these two
figures**.
• We provided a high-level assessment of the linkage to the oil & gas industry by:
1. identifying the transferable skills from each job category ,
Linkage to oil & gas industry 2. assessing the job definition and,
3. identifying potential synergies between the skills and competencies of
the agricultural and oil and gas industry.
*1 = http://www5.hrsdc.gc.ca/NOC/English/NOC/2011/Welcome.aspx
**2 = http://occinfo.alis.alberta.ca/occinfopreview/info/browse-wages.html
Key considerations
1. We have assigned some labour related occupations (e.g., harvesting labourer) to value-added food processing and
processing/manufacturing and/or beverage manufacturing. Some of these roles are more directly related to segments of the
agribusiness industry that are not priority sub-sectors for CED (i.e., farming).These roles are important to an assessment of the
agribusiness sector as:
• they are critical to farming of inputs into food and/or beverage processing/manufacturing,
• industry stakeholders referenced labour related roles as an important component of the agribusiness sector and,
• labour related roles could be transferred to segments of the agribusiness industry from other sectors (e.g., oil and gas).
2. Calculations of average wage are for directional purposes only, and do not reflect factors that can influence compensation
such as:
• niche industry or subject matter expertise
• commission based forms of supplemental compensation (i.e., bonuses)
• alternative forms of compensation (e.g., stock options)
• overtime pay (where relevant).

Appendix E
References

Endnotes – Phase 1
1. Montel, B. (2016). Assessment of the Economic Contribution of Agricultural and Agri-Food Exports to the
Canadian Economy. The Canadian Agri-Food Trade Alliance. http://cafta.org/wp-
content/uploads/2016/10/CAFTA-_-Facts-Figures-Agri-Food-Exports-the-Economy-_-2016-1.pdf
2. An Overview of the Canadian Agriculture and Agri-Food System. (2016). Agriculture and Agri-Food
Canada. http://www.agr.gc.ca/eng/an-overview-of-the-canadian-agriculture-and-agri-food-system-
2016/?id=1462288050282
3. Canada’s Food Manufacturing Industry. (2016). The Conference Board of Canada.

http://www.conferenceboard.ca/e-library/abstract.aspx?did=8305
4. Agriculture Statistics Yearbook 2015. (2016). Economics and Competitiveness Branch: Statistics and
Data Development Section. Alberta Agriculture and Forestry.
http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/sdd16172/$FILE/2015_ag_yearbook.pdf
5. Table 304-0015: Manufacturing sales, by North American Industry Classification System (NAICS) and
province. (2016). Statistics Canada. http://www5.statcan.gc.ca/cansim/a26?lang=eng&id=3040015
6. Wadlow, Tom. (2016). Top 8 Busiest Airports in Canada. Canada Business Review.
http://www.businessreviewcanada.ca/leadership/1700/Top-8-busiest-airports-in-Canada
7. Food Innovation Plan, 2014-2017. (2014). Alberta Innovates.

http://bio.albertainnovates.ca/media/64670/alberta_innovates_food_innovation_plan_2014-17_final.pdf
8. Agri-food: About the Industry. (2016). Government of Alberta.

http://www.albertacanada.com/business/industries/agrifood-about-the-industry.aspx

9. Table 001-0071: Estimated areas, yield and production of principal field crops by Small Area Data
Regions, in metric and imperial units.(2016). Statistics Canada.
http://www5.statcan.gc.ca/cansim/a26?lang=eng&id=10071
10. Canada’s Growing Regions. (2017). Pulse Industry. Pulse Canada.

http://www.pulsecanada.com/canadas-growing-regions
11. Canada’s animal genetic exports (for breeding purpose). (2016). Agriculture and Agri-Food Canada.
Government of Canada. http://www.agr.gc.ca/eng/industry-markets-and-trade/statistics-and-market-
information/by-product-sector/animal-genetics/statistics-publications-and-reports/canada-s-animal-
genetic-exports/?id=1382649715183
12. Digital Agriculture: Improving Profitability. (2015). Accenture Digital.

https://www.accenture.com/_acnmedia/Accenture/Conversion-
Assets/DotCom/Documents/Global/PDF/Digital_3/Accenture-Digital-Agriculture-Point-of-View.pdf
13. AgTech Mid-Year Investing Report – 2016. (2016). AgFunder. https://agfunder.com/research/agtech-

investing-report-midyear-2016
14. Six trends shaping animal agriculture in Alberta. (2013). Alberta Venture.
https://albertaventure.com/2013/06/six-trends-shaping-animal-agriculture/
48.Pulse Industry (2017) Pulse Canada. http://www.pulsecanada.com/pulse-industry
49.Bottoms Up! Alberta drinking more booze in bad times. Calgary Sun.
http://www.calgarysun.com/2016/05/11/bottoms-up-alberta-drinking-more-booze-in-bad-times

50. Alberta’s Craft Beer Industry: Small brewers are creating big business. Edmonton Journal.
http://edmontonjournal.com/business/local-business/albertas-craft-beer-industry-small-brewers-are-
creating-big-business
51. Teal Group predicts worldwide UAV market will total $91 billion in its 2014 UAV market profile and
forecast. http://www.tealgroup.com/index.php/about-teal-group-corporation/press-releases/118-2014-uav-
press-release
52. Unmanned Aerial Vehicle Systems Industry Overview. http://www.ccuvs.com/industry/
53. Technology readiness assessment of automation and robotics in the food and beverage processing
sector in Canada. Government of Canada. http://www.ic.gc.ca/eic/site/026.nsf/eng/00121.html
54. Financial Services. Calgary Economic Development.

http://www.calgaryeconomicdevelopment.com/industries/focus-areas/financial-services/

Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting,
and financial advisory services. Deloitte LLP, an Ontario limited liability partnership, is the
Canadian member firm of Deloitte Touche Tohmatsu Limited.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited
by guarantee, and its network of member firms, each of which is a legally separate and independent
entity. Please see www.deloitte.com/about for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms.
The information contained herein is not intended to substitute for competent professional advice.
Agribusiness Value Chain Study
Phase 2 Report
Calgary Economic Development
February 2017
Table of Contents
3 Executive summary
6 Financial landscape
15 Global investment context
28 Market access opportunities
44 SWOT analysis
61 Key stakeholder insights
67 Conclusion
71 Appendix 1: Supporting statistics
90 Appendix 2: List of stakeholders consulted
© Deloitte LLP and affiliated entities. 92 Appendix 3: References Deloitte CED Phase 2 Report 2
Executive Summary
© Deloitte LLP and affiliated entities. Deloitte CED Phase 2 Report 3

Executive Summary
Assessing Calgary’s agribusiness sector
The agribusiness sector in Southern Alberta is made up of complex integrated supply chains that include input and service
suppliers, primary producers, food and beverage processors, food retailers and wholesalers and food service providers.
Surrounding these players is a network of business, financial, research and development and innovation activity that enables the
sector to grow and meet consumer demands.
To better understand this ecosystem, Deloitte has been retained by Calgary Economic Development (CED) to identify priority sub-
sectors of the agribusiness sectors, and conduct research and analysis on the key economic and market attributes of these sectors.
This research is meant to be an input into ongoing investment attraction and marketing efforts.
Our work for CED:

Review financial and
Review Alberta’s Identify and examine SWOT analysis of Identify priority leads
international context
agribusiness sector priority sub-sectors priority sub-sectors for CED to pursue
of sub-sectors
Phase 1 Phase 2
In our Phase 1 report, based upon our review of the agribusiness sector in Southern Alberta, we identified the following sub-sectors
as segments of the industry that are opportunities for further investment by CED. These sub-sectors should be viewed as spaces in
which Calgary has existing scale, or resource, logistical, talent, supply chain and/or market advantages that could provide
investment opportunities in the medium to long term.
Value-added food and meat Beverage manufacturing Crop sciences and

processing/ manufacturing animal genetics
Agri-technologies Agri-finance and business

services
Executive Summary
Research Approach
To identify Calgary’s position in Southern Alberta’s agribusiness sector, we conducted extensive research on Government of Canada
and Government of Alberta data sets and policy commitments, key agribusiness industry association reports and issues analysis.
For relevant employment, import, export and sales values, we accessed Government of Canada and Government of Alberta data
sets, and reviewed global trade value in resources such as Intracen and global trade reports. Where possible, Alberta and/or
Southern Alberta data was reviewed and analyzed. In instances in which local data was unavailable or dated, national level data was
reviewed.
CED contributed research and analysis on key elements of our work, including the following elements of the Phase 1 and Phase 2
report:
• Estimation of sub-sector GDP
• Estimation of the number of companies within each sub-sector
• Identification of relevant stakeholders to interview
• Development of an overview of key crops grown in Southern Alberta
• Estimation of production values of key commodities
• Research on the impact of selected trade deals on the agribusiness sector
In addition, initial findings and an overview of priority sub-sectors was presented to CED’s Agribusiness Advisory Committee in
September 2016. Feedback from this presentation was incorporated in all phases of our report.
To complement these research streams, we conducted extensive stakeholder consultations with leaders in priority sub-sectors, as
well as from within the Deloitte network of internal subject matter experts. For a full list of stakeholders consulted, please see slide xx

Financial landscape

Financial needs in the sector
The agribusiness sector has diverse financial needs
What are the key capital needs of the industry?
The factors that affect the financial performance of the sector and thereby the requirements for financing and capital vary across
the industry. Across the sector, companies access debt and equity markets in different ways. The sector continues to be
supported by the banks and specialized agricultural lenders that have robust lending and advisory capabilities. Also, the seasonal
nature of the agribusiness sector results in seasonality of cash flows where, for example, primary producers have lower cash
inflows during the production phase and high cash flows at harvest or marketing.
Broadly, the key examples of capital needs relevant to the sector are:
1. Fixed capital acquisition and maintenance (i.e., machinery and equipment)
2. Working capital, for inventories and payment management
3. Land (i.e., farm land, commercial real estate and warehousing facilities)
4. Funding for innovation and technology development, including research and development activities (i.e., venture capital
and research funding)
5. Futures and forwards (i.e., lock in selling prices for commodity products, lock in inputs for producers and manufacturers
who purchase commodities) (1)

Key investment patterns
Capital investment expenditures
Key insights Capital investment expenditures, 2015

(% share of investments in agribusiness industries)
• Generally, the Canadian agribusiness sector typically has a capitalization
ratio slightly higher than the average for the overall economy (1). Food Beverage
industries industries
• However, relative to other parts of the economy, capital investment 9.2 2.5
Support
agribusiness is relatively small. In 2015, the capital investment expenditure
services
in Canadian agri-food industries was 2.4% ($1,826.2 m) of that in all
0.6
industries ($74,926.5 m).
• Within the Canadian agribusiness sector, the primary production (e.g.,
farming) sectors show the highest level of capital investment due
extensive land and machinery and equipment requirements for crop
production (1).
• This holds true in Alberta. In 2015, the Alberta crop production sub-
sector had the highest level of capital investment, accounting for 39.3%
of all capital investments in agri-food industries.
Animal
• From 2014 to 2015, total share of capital investment in capital investments production
Crop
in crop production (0.5%) and animal production (1.6%) remained 20.5 production
relatively stable.
39.3
• In the same time period, the biggest changes in capital investment
occurred in the food and beverage manufacturing industries including:
• Capital investment in the Food Industries decreased by 24.9%
while that in the Beverage Industries increased by 44.1%. Capital investment expenditures above refers to the cost of procuring,
constructing and installing new durable plants, machinery and equipment,
(2) whether for replacement of worn or obsolete assets, as additions to
existing assets or for lease or rent to others (2).

How are capital needs funded?
Farmers and growers are well supported
Primary agriculture activities (i.e., farming) is heavily impacted by commodity prices which have a direct impact on farm-level performance
as measured by net cash income. Managing operating costs is also a critical component of primary producers’ financial planning. Access to
capital in this segment of the sector is critical to the performance of value-added food and beverage manufacturing, ensuring farmers
have adequate capital to meet consumer demand, and are given assistance in times of market fluctuations impact access to required
feedstock to support the production of food. In a 2013 overview of the agribusiness sector by the Conference Board of Canada, access to
financing was identified as the primary factor influencing farm operators’ decision to implement innovation (e.g., new machinery and
equipment)(3). Interestingly, a greater share of million dollar farm operators stated financing was a critical factor to their success, relative to
smaller farm operators (3). Below we profile some of the key examples of financiers available to farmers.
Credit Unions Lending services credit unions provide to farms and to rural businesses are critical. In 2014, the credit union
system’s share of the agricultural lending market (outside of Quebec) was 10.8 per cent. (3). Credit unions are
also involved in the delivery of government programs (e.g., AgriInvest Program, and Canadian Agricultural
Loans Act programs) (3).
Farm Credit Canada FCC is Canada’s largest agricultural term lender with a mandate to enhance rural Canada by providing
specialized and personalized financial services to farming operations, including family farms. Although once
exclusively a farm lender, FCC is now also organized to provide funding to enterprises that are closely related
or dependent on farming. Its small and medium business focus is shown by its average loan disbursement of
approximately $150,000.
Farmland investment Farmland investment funds raise capital by selling units, typically with minimum investments ranging from
funds $10,000 to $150,000 and invest in farm land. In Canada key players in this space are Bonnefield, Assiniboia
Capital Corporation and Agcapital. Major pension funds around the world are also increasing their exposure
to farmland. Examples include The Teachers Insurance and Annuity Association-Colleges Retirement Equities
Fund (TIAA-CRED) and Second Sweden National Pension Fund.
Major Banks Canadian banks healthily support all segments of the agribusiness sector, including farms and growers with a
suite of specialized lending and financing capabilities.
ATB Financial ATB Financial is a financial institution and Crown corporation owned and governed by the Government of
Alberta. The institution is a major player in financing Alberta’s farming operations (e.g. buying land, purchase
equipment, manage cash flow, selling). Good2Grow is a program to provide the financing needs to enter or
grow agriculture operations.
Specialized venture capital players are emerging
Key insights
• Agricultural technology (‘agri-tech’), as a segment of the technology sector has been growing steadily. Global investments
in food and agriculture technology startups nearly doubled in 2015 from a year earlier to $4.6 billion (4).
• New entrants are entering the market. In the first half of this year, at least 12 new agri-tech startup accelerator programs
have launched globally (4).
• In addition, large anchor firms are increasingly participating in funding vehicles (e.g., Bayer CropScience). These activities
are an additional source of capital in the market, and key touch points between innovators and prospective end users and
buyers.
• Increasingly, venture capital funds are showing further interest in investments in biotechnologies and agri-innovations
related to alternative fuels, nutraceuticals and precision agriculture.
Canadian context
• According to the Canadian Venture Capital Association (CVCA), Canadian venture capital firms invested $153 m (20 deals)
into the agri-businesses sector YTD Q3 2016. In terms of deal value, the sector placed fourth after Information and
Communications Technology (ICT), Life Sciences, and Clean Tech.
• Until recently, the Canadian market had only two VC funds – Avrio Capital and Bioenterprise Captial. Now, the capital in
the agriculture space is diversifying with the entrance of new funds such as Verdex Capital (AVAC Ltd.).
• Attracting new entrants to the market with a specific agribusiness focus may be challenging, given the highly specialized
requirements for legitimacy in the market (successful VC track record and subject matter expertise in agricultural
innovation and market place characteristics).
• In 2015, $2.3 b in venture capital was invested in Canadian companies. A majority of investment was in Ontario and
Quebec, with Alberta accounting for approximately 5 per cent ($108) in Canada (across all industries) (55).
• Information communication technologies related companies dominated Canadian venture capital 2015. The agribusiness
sector is a very small component of Canadian venture capital funding, approximately 4 per cent of 2015 Canadian deals
(55).

Capital most prevalent in the sector
Like other niche sectors, Agritech has a small group of core investors
Firm Brief description Firm Brief description
Avrio capital - Established in 2006 to identify and invest in Cultivian Sandbox - A venture capital firm focused on food and
innovative food agricultural companies that agriculture technology companies with focus areas
provide solutions to global challenges in the areas including:
of health, wellness and sustainability. - Animal health & protein production
- In 2015, Avrio ranked 8th out of the top 10 most - Crop production
active VC private independent firms as measured - Food technology & safety
by total deals and (CVCA, 2015). - Sustainables
- Offices in Calgary, Montreal, Toronto - Water technology
- Office in Chicago, IL
AVAC Ltd. - A Canadian venture investor with over 18 years of Anterra capital - Sector specialist firm that finance companies
active investment in early stage technology operating in the food & agricultural sectors
ventures - Focus on companies headquartered in Europe or
- Recently established Verdex Capital a dedicated North America
agricultural technologies investment arm of the - Offices in Boston, MA and Amsterdam, NL
company
- Verdex Capital partnered with Finistere Ventures
to assist with the management of the Finistere FVII
Fund which is is focused on life sciences and
sustainability
- Head office in Calgary
Middleland capital - Private investment firm focused on global early- S2G ventures - A multi-stage venture fund investing in food and
stage technology opportunities in the agricultural agriculture companies whose products and
technology services meet shifting demands for healthy,
- Office in Washington, D.C. sustainable, and local food
- Office in Chicago, IL
Closed loop - An early-stage venture capital platform investing New crop capital - Provides early-stage investments to companies
capital in agriculture technology and food system that develop cultured and plant-based meat, dairy,
innovation in the United States and Canada and egg products, as well as service companies
- Office in Radnor, PA that facilitate the promotion and sale of such
products
- Office in Washington, D.C.
Capital most prevalent in the sector
Like other niche sectors, Agritech has a small group of core investors.
Firm Brief description Firm Brief description
Pontifax AgTech - Invests globally in the food and agriculture Omnivore Partners - A venture capital firm that invests in startups from
technology sectors with experience in the life India developing technologies for food and
sciences, food & nutrition, information agriculture
technology, precision farming, supply chain - Offices in Mumbai, New Delhi, Bengaluru
- Office in Santa Monica, CA
Finistere Ventures, - Invests in companies across the agricultural Powerplant Ventures - Finances emerging plant-centric companies
LLC and food value chains - Office in Los Angeles, CA
- Focus on life science, IT and sustainability
- Office in San Diego, CA
AgFunder - Premier marketplace for the most promising Greensoil - First venture capital fund with an exclusive focus on
Ag and AgTech startups seeking to raise Investments Israeli agricultural and food technologies
capital from accredited investors - Offices Israel and the Netherlands
- Office in San Francisco, CA
Tsing Capital - Leading cleantech venture capital firm in Bioenterprise Capital - Invests in agri-based technologies and businesses
China that promote human health, and lower global
- The company’s portfolio includes companies energy consumption
in areas of new energy, energy efficiency, - Offices in Toronto, Guelph, Geneva
environmental protection, cleaner
production, sustainable transportation, new
materials and sustainable agriculture
In addition to the above noted specialized players, the Canadian marketplace is of interest to foreign venture capital firms seeking to invest
in new technologies. Moreover, the CVCA has highlighted the following firms as the most active foreign firms in 2015 (as measured by deal
values, including all participating investors) (55):
• In addition, Richardson Capital is the private equity division of
• Horizons Ventures Limited (Hong Kong) Richardson Financial Group (RFG)
• Ff Asset Management LLC (New York) • Richardson International is Canada’s largest agribusiness and
• GE Ventures (California) is a handler and merchandiser of all major Canadian-grown
• Social Starts LLC (San Francisco) grains and oilseeds.
• Richardson Financial Group is Canada’s preeminent
independent wealth management firm
Government support of the sector is robust
Funding source Brief description

ATB Financial • ATB Financial is a financial institution and Crown corporation owned and governed by the Government of Alberta.
The institution is a major player in financing Alberta’s farming operations (e.g. buying land, purchase equipment,
manage cash flow, selling). Good2Grow is a program to provide the financing needs to enter or grow agriculture
operations.
Agriculture Financial Services Corporation • Provincial Crown corporation with a private sector Board of Directors that provide farmers, agribusinesses and other
(AFSC) small businesses loans, crop insurance and farm income disaster assistance.
• Provided Alberta famers with hail insurance for over 75 years
AgriInvest • Stabilization programs such as the the AgriInvest Program that is designed to help producers deal with price
fluctuations. Famers make annual deposits and receive matching contributions from the federal, provincial and
territorial governments.
• The Programs include a savings account with government contributions developed to assist producers when facing
small income declines and to support investments in risk mitigation and improved market income.
Scientific and Research Development Tax • Administered by the Canada Revenue Agency, SRED credits are a federal tax incentive program designed to
Incentive (Sr&ED) Program encourage Canadian businesses of all sizes and in all sectors to conduct research and development in Canada.
Alberta Crop Industry Development Fund • An independent, not-for-profit company owned by organizations in Alberta’s crop industry
(ACIDF) • Invests in research, development and pre-commercialization projects and activities to the benefit of producers and
industry in Alberta.
Business Development Bank of Canada (BDC) • Offer business loans and advisory services to help Canadian businesses grow, both at home and abroad
• BDC capital, a subsidiary, offers a full spectrum of specialized financing, including venture capital, equity as well as
growth and business transition capital
Export Development Canada (EDC) • Canada’s export credit agency provides insurance and financial services, bonding products and small business
solutions to Canadian exporters and investors and their international buyers
• Supports Canadian direct investment abroad and investment into Canada and a key resource for Canadian
companies seeking export.
Farm Credit Canada (FCC) • Financially self-sustaining federal Crown corporation that reports to Parliament through the Minister of Agriculture
and Agri-Food
• $29 b portfolio and 23 years of consecutive portfolio growth

Key characteristics of mergers and acquisition activity in the sector
The agribusiness sector’s composition can lead to large scale mergers
Key insights
The Big Six
• Globally, the agricultural input industry is highly centralized with ‘the big six’ (Syngenta, Dow, DuPont, Monsanto, Bayer and
BASF)These players control 75% of agricultural input sales globally and 65% of the seed market. (Food Security Canada) .The
sector has seen several high profile mergers (i.e., Dow and Dupont, Bayer’s acquisition of Monsanto, and ChemChina’s
acquisition of Syngenta. Large players can create barriers to entry for new players and/or Small and Medium Enterprises. The
Big Six firms specialize in proprietary seed and chemical combinations that work in a ‘package’. Some industry advocates
have expressed concern that mergers in this sector will reduce farmers’ choices of suppliers for seeds and crop protection
products. The Big Six presence in Canada has limited research and development presence relative to other locations. Post
merger, it is unclear if Canadian locations will continue to undertake core innovation activities.
Food retail consolidation
• Mergers and acquisitions are key to retailers’ strategies. Canadian food retailers are funding transformations through capital
markets. Key examples include the 2013 acquisition of Safeway Canada by Empire Company Limited and Loblaws’ acquisition
of Shoppers Drug Mart Corporation (3)

Global investment context

Investment into agriculture was 0.042% of total foreign direct
investment (FDI) into Canada in 2015.
Key insights
• Total FDI in Canada was dominated by the manufacturing [NAICS 31-33] industry,
Industry [NAICS] representing 26.7% of total activity.
A Agriculture, forestry, fishing and hunting [11] • Food and beverage manufacturing represented 4.52 % of total FDI into Canada
B Mining and oil and gas extraction [21] • Food manufacturing [311] = $28.1 b
• Beverage and tobacco manufacturing [312] = $6.60 b
C Utilities [22]
• The data demonstrates that the primary agribusiness sector (e.g., agricultural
D Construction [23] production) is a very small share of inward FDI.
E Manufacturing [31-33] N O A
M
F Wholesale trade [41] 4,591.0 9,378.0 326.0
138,334.0 B
G Retail trade [44-45]
L 157,983.0
H Transportation and warehousing [48-49] 22,134.0 C
I Information and cultural industries [51] 3,301.0
J Finance and insurance [52] K

7,346.0 Foreign direct investment D
K Real estate and rental and leasing [53]
into Canada, 2015
5,669.0
L Professional, scientific and technical services [54] (millions of dollars)
J
M Management of companies and enterprises [55] 97,998.0
N Accommodation and food services [72]
I
O All other industries
7,389.0 E
H 204,981.0
Source: (5) 11,707.0 G
39,303.0 F
58,028.0 Deloitte CED Phase 2 Report 16
Investment into agriculture was 0.43% of total Canadian direct
investment abroad in 2015. Key insights
• Canadian direct investment abroad was dominated by the finance and insurance
[NAICS 52] industry which represented 41.5% of total activity.
• Food and beverage manufacturing represented 0.674 % of total activity
Industry [NAICS] • Food manufacturing = $5.28 b
A Agriculture, forestry, fishing and hunting [11] • Beverage and tobacco manufacturing = $1.49 b
B Mining and oil and gas extraction [21] • Agriculture (as measured by NAICS 11) represents a very small segment of total
Canadian investment abroad. While NAICS 11 does not include all of our priority sub-
C Utilities [22] sectors (e.g. Agritech and crop/animal science), the data demonstrates that overall,
D Construction [23] agriculture represents a very small share of Canadian outward investment abroad.
E Manufacturing [31-33] M N O A
119,280.0 4,591.0 19,955.0 4,366.0
F Wholesale trade [41] B
G Retail trade [44-45] L 179,173.0
15,880.0 C
H Transportation and warehousing [48-49]
27,460.0
I Information and cultural industries [51] K
48,499.0 D
J Finance and insurance [52]
Canadian direct 1,147.0
K Real estate and rental and leasing [53] investment abroad, 2015 E
L Professional, scientific and technical services [54] (millions of dollars) 75,453.0
F
M Management of companies and enterprises [55]
10,981.0
N Accommodation and food services [72] G
O All other industries 9,556.0
H
J 33,043.0
Source: (5) I
417,289.0
40,460.0
The export picture
Top 5 agri-food exports from Alberta
• While inward FDI represents a small Top 5 agri-food exports from Alberta ($ thousands)
share of economic activity in the
Canadian agribusiness sector, exports 2015 % Change. ‘15/’14
are an important contributor of value
and market opportunity for the sector. Top five exported products in 2015 6,849,997 +2.0
• In line with the national context, 1. Wheat 2,422,649 +3.6

Alberta’s agribusiness sector is export 2. Beef (fresh/frozen/chilled; includes offal) 1,696,488 +18.7
oriented, and connect into global supply 3. Canola seed 1,676,864 -5.1
chains.
4. Live cattle (excluding purebred) 585,111 -18.1
• In 2015, the total value of agri-food
5. Pork (fresh/frozen/chilled; includes offal) 468,885 +0.4
exports from Alberta was $10.2 b (6).
Source: (6)
• The top 5 agri-food export commodities
(listed on the right) made up 67.3% of
total agri-food exports from Alberta (6).

Key exported commodities
Within key segments of the agribusiness sector, 2015 showed some significant
variations in export values
Key insights
• In 2015, Alberta exported more than $10 billion CAD worth of agri-food products to international markets.
• Alberta is the largest cattle-producing province in Canada with nearly 5 million head or 41 per cent of the national total. The province is
also among Canada’s leaders in hog production with 1.5 million head.
• Several of Alberta’s top export commodities are present in or around Southern Alberta (e.g., wheat, canola seed, barley, beef etc)
• Major gains were seen in some of Alberta’s ‘staple’ commodities such as cereals, and canola. These gains can be attributed to strong
increased market demand from emerging markets.
• Major decreases in export values were seen in the purebred cattle, fur skins and dairy produce commodities. This can be attributed to
declining livestock prices and increased supply in the US.
Animals and crops Products of manufacture Crude animal and

plant products
Top 5 export products Top 5 export products
1. Wheat: $2,442.6 m 1. Beef (fresh, chilled, frozen, incl. offal): Top 5 export products
2. Canola seed: $1,676.9 m $1,696.5 m 1. Raw hides and skins: $221.1 m
3. Other cattle (excl. purebred): $585.1 m 2. Pork (fresh, chilled, frozen, incl. offal): 2. Peat moss: $80.6 m
4. Barley: $194.8 m $468.9 m 3. Other crude animal products: $69.6 m
5. Hay and fodder (incl. Dehy Alfalfa 3. Processed potatoes: $328.8 m 4. Seeds for sowing: $51.3 m
Cubes): $96.1 m 4. Canola/mustard oil – crude: $324.2 m 5. Bovine semen: $47.3 m
5. Animal feed preparations: $316.9
Key export value change from 2014 to Key export value change from 2014 to Key export value change from 2014 to
2015 2015 2015
• Purebred cattle: -73.5% • Vegetables and fruit preparations: +133.7% • Fur skins undressed: -97.8%
• Other cereals unmilled: +197.7% • Fruit and vegetable juices: -99.9% • Other crude animal products: +31.9%
• Lentils: +138.6% • Dairy produce: -91.9% • Nursery stock: +47.6%
• Vegetables and fruits: -57.1% • Canola/mustard oil – crude: +75.3% • Peat moss: +47.3%
• Linseed: +73.1% • Other beverages (excl. fruit juices): +69.6% • Seeds for sowing: +19.2%
© Deloitte LLP and affiliated entities. Source: (2) Deloitte CED Phase 2 Report 19
Key export markets
Alberta’s core agribusiness export markets are large, developed markets
Alberta’s Top Seven Agri-Food Export Markets in 2015 (%
Key insights Share)
Source: (2)
Regional variances:
• At the regional level, the largest exports were reported for North America Other
and Asia. Exports to Asia rose 11.2 per cent to $3.9 billion or 39.0 per cent 22.7
of Alberta’s total agri-food exports.
• The highest growth occurred in exports to Western Europe (22.6 per cent),
Oceania (17.5 per cent), Africa (8.3 per cent) and Central America (7.9 per
cent). On the other hand, total exports to Eastern Europe, the Middle East United States
and South America declined (7). 39.3
EU
3.7
• Growth: In 2015, Alberta exports of primary and processed agricultural and
food products (agri-food) set another record at $10.2 billion, up 4.5% from
2014. Contributing factors to these gains included low Canadian dollar and South Korea
strong livestock and meat prices contributed to the increase. 2.3
Mexico
• Gains are lead by value-added products: Gains were reported mainly in 5.6
exports of value added products such as meats, processed potatoes,
crude canola oil, prepared animal feed and malt.
Japan
• Exports of beef were almost 19% higher in value, while quantity
10.8
grew just over 2.0%. The growth in beef exports was a result of China
high prices and increased demand from the United States, China 15.6
and Mexico.
The United States continues to be Alberta’s largest export
• In contrast, exports of primary commodities fell about 2.0%, market, followed by China, Japan and Mexico. Other markets
primarily due to lower values and quantities of canola seed, hay can include specific EU countries and/or smaller markets in
and fodder and live cattle. Wheat remained the number one Asia.
export product, with canola seed ranked second. For the fourth
consecutive year, China was the largest customer of canola seed,
followed by Japan.

European Union
Key export markets

Highest growth (22.6 %) in agri-food
exports occurred in Western Europe
Alberta exports across the globe Top export market in the EU in 2015
1. Italy ($95 m)
2. France ($58 m)
3. United Kingdom ($50 m)
China
4. Germany ($34 m)
United States 5. Spain ($29 m) 15.6% of total agri-food exports
in 2015 ($1.6 b)
39.3 % of total agri-food exports Alberta’s main exports in 2014
in 2015 ($4.0 b) 1. Wheat ($167 m) Alberta’s main exports in 2015:
2. Prepared Animal Feed ($49 m) 1. Canola seed ($690 m)
Alberta’s main exports in 2015 3. Horse meat ($16 m) 2. Beef ($235 m)
1. Beef ($1.2 b) 3. Canola/mustard oil - crude
2. Other cattle ($584 m) ($198 m)
3. Wheat ($259 m)
Substantial increases occurred in
exports of value added products
such as meats, crude canola oil,
prepared animal feed, french
fries and processed cereals
Japan
10.8 % of total agri-food exports
in 2015 ($1.1 b)
Mexico Alberta’s main exports in 2015:

1. Canola seed ($357 m)
5.62 % of total agri-food exports in 2. Pork ($199 m)
2015 ($572.5 m) 3. Wheat ($160 m)
Alberta’s main exports in 2015
1. Canola seed ($252 m)
2. Beef ($143 m)
3. Wheat ($93.4 m) South Korea
India
2.28 % of total agri-food exports
0.30 % of total agri-food exports in 2015 ($232.5 m)
in 2015 ($30.9 m)
Alberta’s main exports in 2015
Source: (8), (9), (10) Canada’s main exports to India 1. Raw hides and skins ($64.5
in 2015 m)
1. Lentils ($964 m) 2. Canola/mustard oil - crude
2. Peas, Dried ($547 m) ($50.3 m)
© Deloitte LLP and affiliated entities. 3. Crude canola oil($6.5 m) 3. Pork ($43.2 m) Deloitte CED Phase 2 Report 21
The export picture continued
Calgary’s locational advantages have led to export success
Calgary’s export success
Given Alberta’s logistical advantages, several companies in Calgary have enjoyed export success. Calgary’s air, rail and road access
to key Western Canadian and US markets enable local firms to sell abroad seamlessly. Below we profile examples of success.
Examples of exporters Brief description Examples of exporters Brief description

in Calgary in Calgary
Baker Boys - Specializes in thaw and sell/serve gourmet cinnamon Echelon Foods - Manufacturer of premium quality turduckens
rolls Turduckens and Roasts and turducken roasts
- Established in 1993 and currently operates out of a - Exports to United States
30,000 square foot commercial bakery in Calgary
- Currently exports to United States
All 4 Water - Produces Canadian bottled glacier water Sunora Foods - Internationally recognized for its canola oil
- Water source comes from the Columbia Icefields just and related canola products and is a major
outside Banff National Park Canadian exporter of food oil
- Water plants are located in Edmonton and Calgary - Exports to approximately 30 countries
- Exports to China, Japan, Taiwan, India
Carmen Creek Gourmet - Produces Bison products that do not contain additives, Thumbs Up Foods Inc. - Manufactures gourmet ethnic Indian style
Bison hormones or antibiotics speciality foods
- Exports to France, Germany, Italy, Belgium, Switzerland, - Exports to United States
the Netherlands, United Kingdom, Denmark and Czech
Republic
Hi-Hog - Offers a wide selection of premium quality livestock Alta Exports International - Established in 2000, Alta Exports International
handling equipment and horse stalls (AEI) offers full-service import and export
- Canada’s largest producer of livestock handling consulting and markets livestock, embryos,
equipment genetic technologies and semen to the
- Products designed and manufactured in Calgary international market
- Exports to United States, Finland, Russia - Exports to over 80 countries, including
Kazakhstan, and China

The import picture
Imports represent a small component of trade flows in the Alberta
agribusiness sector
Key insights
• The agribusiness sector is a net exporter in Alberta. Imports of raw commodities and inputs are a relatively small segment of
Alberta’s trade relationships.
• Identifying import data into Alberta at the product level is difficult. In our review, we found that a majority of the top imports
into Alberta were not applicable to the agribusiness sector. In 2011, of the top 25 import commodities for Alberta, only two were
directly related to agribusiness (tractors, and grape wines) while four were indirectly related to the sector, including enabling
equipment and industrial machinery relevant to the oil and gas industry that could also have applications in agribusiness.
• Developing local supply chains to substitute imports in these products would require long term strategy and may not reflect
areas of specialization or competitive advantage in Southern Alberta.
Alberta’s top import commodities relevant to agriculture, 2011

Rank Product groups (HS4 codes) relevant to Value in thousands
agriculture sector of CDN dollars
14 8701 - Tractors $323,323

Directly relevant to
agriculture industry 17 2204 - Grape Wines (Non Aromatic) and Grape $265,596
Must
4 8481 - Taps, Cocks, Valves and Similar Appliances $643,063
For Pipes, Boiler Shells, Tanks, Vats and The Like
13 7306 - Other Tubes, Pipes and Hollow Profiles $357,372
Indirectly relevant to Nes of Iron or Steel
agriculture industry
16 7307 - Tube or Pipe Fittings of Iron or Steel $306,179
Source: (11)
18 9015 - Surveying, Hydrographic, Oceanographic, $252,367 Please see Appendix 1 for an overview of
the top 10 import markets in Canada and
Meteorological or Geophysical Instruments Alberta.

The import picture in Alberta
Overview of key import markets for Alberta
The United Kingdom European Union
The second largest importer France, United Kingdom and Italy are
of brewery related inputs key markets for beverage and tobacco
imports into Alberta.
The United States

The United States is the
largest importer of goods
in the agribusiness sector
including the following
sub-sectors: New Zealand
- Food manufacturing The second largest import
- Animal production market for meat product
- Crop production manufacturing.
(inclusive of fertilizers) India
- Beverage and tobacco The second largest
product sugar manufacturing
manufacturing source market for
- Agricultural Alberta. Key product
implement categories include
manufacturing chocolate products
Mexico
- Meat product derived from cocoa.
Key imports from
manufacturing
Mexico include
- Vegetable and melon
animal slaughtering, Above we present a snap shot of key agribusiness import source markets
farming
rendering and for Alberta. This information comes from the Government of Canada Trade
- Animal aquaculture
processing
capabilities, animal
Database, which identifies top source markets based on select NAICS
aquaculture. codes only. For a detailed overview of product level information, please
Source: (42),(56)
see Appendix 1. For a breakdown of the top ten import markets in food
© Deloitte LLP and affiliated entities. and beverage manufacturing please see Appendix 1. Deloitte CED Phase 2 Report 24
Exploring new trade frontiers
Trans-Pacific Partnership (TPP) agreement and agriculture
Potential Pros
• Duty-free market access for most agricultural and agri-food products and to a market valued at over 900 million people and a
combined GDP of $28.5 trillion (12).
• The livestock sector could see substantial gains, as tariffs on pork and beef of around 30% in Vietnam and Malaysia. Japan,
Canada’s third largest export market would also reduce pork and beef tariffs.
• Enhanced opportunities in the beef industry can be expected to produce positive spinoffs across the sub-sectors (i.e., feedstock,
feedlot and animal genetics segments).
• Nearly all tariffs cut to zero and many do so on entry into force (EIF).
• TPP would allow Canadian producers to gain advantage in the region over other key agricultural markets, including Europe,
Russia and Argentina, particularly for wheat and barley
• Reduction on tariffs of key manufacturing or machinery components could decrease prices in the long term. Manufacturing
exports in Canada are expected to increase as well.
• Value –added processed foods are expected to benefit from new market access opportunities, particularly in markets in which
demand for ready made food is growing.
Potential Cons
• Australia, and the U.S, large, diversified competitors to Canada would also see tariffs reduced. Canadian exports to TPP regions
will need to be differentiated and price competitive in order to gain market share.
• Varying timelines for tariff reduction will delay market opportunities in some sub-sectors. For example, Alberta whiskey producers
will need to wait up to 15 years to access opportunities in Malaysia and Vietnam.
• While some import restrictions were lifted in the dairy sector, overall, supply managed sectors of the Canadian agribusiness
sector (e.g., eggs, dairy and poultry) the impact of TPP on supply managed sectors will be relatively limited. While this may
ensure stability for producers, it may also limit new product innovation opportunities.
• Some exclusions may limit opportunities. For example, Canada’s sugar beet producers did not secure increased market access to
the United States
*for an overview of export values to the TPP market please see Appendix 1.

*At the time of the delivery of this report, political support and ratification of the TPP is in flux. Forthcoming changes or amendments to
the scope of TPP may impact the content stated above.
Exploring new trade frontiers – CETA
Opening new opportunities in Europe
Potential Pros
• On the day CETA enters into force, 98% of all EU tariff lines will be duty-free for Canada (effectively opening up 9,000 tariff lines
for Canada) and this includes 94% of agricultural tariff lines. CETA will eliminate tariffs on almost all of Alberta’s key exports.
when CETA comes into force and provide access to new market opportunities in the EU (13).
• The EU is already Alberta’s fourth-largest export destination (across all sectors) after the United States, China and Japan and
third-largest trading partner, after the United States and China. Exporters will also benefit from other CETA provisions that will
improve conditions for export—provisions, for example, that ease regulatory barriers, reinforce intellectual property rights and
ensure more transparent rules for market access (13).
• This duty-free access will give Canadian agricultural goods, including a specified amount of Canadian beef, pork and bison,
preferential access to the EU market and a competitive advantage over producers from other countries that do not have a free
trade agreement with the EU (13).
• Additional key commodities that may be positively affected by tariff elimination include:
• Durum and high-quality common wheat
• Fresh and frozen fruits and vegetables
• Processed fruits and vegetables
• Oils, including canola oil
• Processed products, including pet food
• Other grains, including oats, barley and rye
• Maple syrup
• Processed pulses and grains
(CED analysis)
• Alberta canola growers can expect changes to tariff rules will see market gains in their sector double, from $90 million to $180
million. Those added exports will mostly be used in Europe’s growing biodiesel sector (14).
• CETA will have little effect on Canada’s supply management system. The vast majority of supply-managed products is expected
be exempt from increases in market access, with small concessions to allow for entry of foreign competition. For dairy and
poultry producers, this is expected to ensure supply managed industries are able to retain existing market share.
Exploring new trade frontiers – CETA
Opening new opportunities in Europe
Potential cons
• On October 30, 2016, Canada and the EU signed the CETA during the EU-Canada Summit.
• While the EU market is an important export market, in some commodities Canadian producers compete with European
counterparts. To remain competitive, the Canadian sector will face pressure to innovate new products that appeal to EU
markets.
• For livestock producers and the meat industry, CETA will change some standards related to animal health and meat
products. Animals must be raised according to specific protocol that meets certain EU requirements (e.g. ban on growth
hormones in beef production.
• Only 10% of geographical indicators (GIs), names or signs used to identify products that correspond to a specific
geographical location, are protected in CETA. In some cases, this could compromise food brands’ capabilities to provide
locational markets of food products that would differentiate products against competitors.

SWOT analysis
Key findings

Purpose and background
Our approach to SWOT analysis for CED
Investment attraction lens
To expand upon the analysis provided in our Phase 1 report, we have conducted an analysis of the Strengths, Weaknesses,
Opportunities and Threats (SWOT) in each of our priority sub-sectors. The following SWOT analysis is taken through the lens
of investment attraction, and company expansion/retention, and does not represent a comprehensive analysis of all economic
and market conditions of the priority sub sectors. For each quadrant, trends and insights on priority sub-sectors relate to the
push and pull factors that may impact current and future economic growth and job creation. In addition, larger, macro level
trends in priority sectors that reflected long term growth or pressures on sub-sectors were also included in this section of the
report.
Research approach
To complete the SWOT analysis, we undertook comprehensive research that included sources such as:
• Government reports and data (e.g., Government of Alberta, Agri-Food Canada and Statistics Canada)
• Relevant industry association reports (e.g., Pulse Canada, The Canadian Cattlemen’s Association)
• Industry outlooks (e.g., Conference Board of Canada, Government of Alberta reports)
• Input from industry, academic and government subject matter experts
For a full list of stakeholders consulted please see Appendix 2: Stakeholders Consulted

Value-added food processing and manufacturing
Strengths & weaknesses
Strengths Weaknesses
• Established scale: Southern Alberta is home to a • Productivity challenges: Historically, Canadian food
strong and diversified base of value-added food processing plants are smaller and less productive than
processing and manufacturing capabilities with U.S plants (1).
supportive supply and distribution networks. • Challenges in food processing roles: Key roles in food
• Growth in value-added exports: In 2014, value added processing are often lower skilled job profiles. Food
exports grew by 16.9%. By comparison, commodity processors compete for this type of talent with other
exports rose 8.2%, suggesting continued focus on segments. Several voices in the industry have identified
ensuring food and beverage manufacturers are access to labor as a future challenge to the
connected to export opportunities will be critical to competitiveness of the sector.
the sector (8) • Cost pressures: Food processors are challenged to
• Investment rebounds: Capital spending in food reduce operating costs in the face of higher input costs,
manufacturing has turned the corner, rebounding innovate new products and ensure a high quality work
sharply after a pronounced descent between 2005 environment for staff. These pressures can lead to a
and 2010. Investment hit $177.5 m in 2013, the lack of available capital for investment in new
highest level since 2000 (15). technologies.
• Alberta has a reputation for high quality, safe food • Supply management system can be a barrier to entry:
and beverage products. The food processing industry Supply managed commodities such as milk, chicken,
is highly regulated, ensuring common standards of turkey and eggs are regulated heavily, with detailed
quality and safety. rules for processor’s access to feedstock. This can
• Calgary distribution advantages: Proximity to the prevent the development of new, differentiated
airport and key rail routes across Canada are products.
locational assets that position Calgary well to serve • Location decision making factors do not always suit
Asian markets. large cities: Food processors and manufacturers require
large plots of land, water/utilities access, roads for large
trucks and adjacent warehousing capabilities. Often,
rural or suburban centers are better suited for these
types of investments due to zoning, costs and/or traffic
regulations in cities.
Value-added food processing and manufacturing
Threats & opportunities
Opportunities Threats
• Non-meat manufacturing: In recent years, international • Food safety: The industry is prone to reputational and
markets have fuelled growth in non-meat food market losses if food safety protocols are breached. Large
manufacturing. The strongest contributor has been grain scale food processors in particular are susceptible to food
and oilseeds industry, where sales have surged 6.4% per safety risks.
year and real GDP by 10.9% a year over the past decade. In • New product categories can challenge food manufacturing
addition, Alberta’s animal food manufacturing exports to facilities: Transitioning manufacturing lines to suit demand
the United States have increased nearly 10 fold since 2003 for organic and niche foods (e.g., organic foods, lean
to almost $100 m (15). meats) can be costly. These types of foods can require
• Alberta pulse growers are responding to international specialized equipment's to allow for ingredient separation
demand: Producers have been increasing acreage for pulse to prevent cross contamination. For some processors, lack
production and are working to increase international trade of access to capital can prevent their ability to quickly
of pulses. Alberta grows a variety of pulse crops, with a adjust service lines to meet new demand.
strong focus on bean, lentil and field pea production. • Competition from the U.S.: Canadian food processors
• Technology adoption acknowledged as critical by the compete directly with American processors. On average,
industry: In a 2011 CFIC Industry Food Survey, food American plant sizes are larger than Canadian counterpart,
processors were the segment of the food industry that and show higher levels of capital investment (1).
were most likely to respond that investing in new • Subsidiaries are challenged to make business cases to
machinery and equipment was critical to their success in parent companies: For companies not headquartered in
the next 5 years indicating an available market demand Calgary, to justify capital investment in Calgary, the
(16). threshold for competitiveness against other locations is
• Further developing a ‘Made in Canada’ brand: Working very high. A business case that can demonstrate that
with industry associations, expanding awareness of Calgary would have advantages to other locations
Alberta’s leadership can help develop the ‘Made in Canada’ including:
brand abroad. • Shorter production runs;
• Medicinal crops: Recent pushes to enable the production • Innovation capabilities;
of poppies in Southern Alberta (Lethbridge) could position • Closeness to end market;
the region to be a national leader in the regulated growth • A hospitable regulatory and tax environment and
of poppy processing for medicinal inputs. • Cost competitive, highly skilled labor (including low
wage, core processing skills)

Meat processing and manufacturing
• Established strength: In 2014, meat product • Integrated supply chain shocks: Meat processors and
manufacturers, which still make up half of Alberta’s manufacturers can be exposed to fluctuations in
food manufacturing shipments (17). cattle price, supply, the success of feedlot operations,
• Calgary’s proximity to feed lots an important consumer preferences as well as animal health and
locational factor: For meat processors, being close to disease risks. Taken together, shocks or fluctuations
feed lots and kill sites can be a critical component of in one space, can significantly impact other segments
supply chain management and food safety. of the value chain almost over night.
• Calgary’s locational advantages: Large processors • Limited growth: Alberta’s meat manufacturing
have greater presence around distribution hubs and industry, in contrast, has seen little growth over the
major population centers, as they provide a larger last decade, with sales increasing 1.3% per year since
market reach. 2003 (17).
• Projected stability in poultry: As the Poultry sector is a • Export challenges: GOA reports that exports of
supply managed segment of the meat industry, it is livestock declined, mainly due to low cattle prices and
relatively sheltered from macroeconomic fluctuations. high input costs such as feed prices (17).
For example, poultry farmers in Canada recover their • Domestic preferences are shifting: In developed
costs of production from processing plants. Farmers markets, consumer preference has shifted towards
are, therefore, largely sheltered from the impact of lean and organic meats, putting pressure on
fluctuating feed costs. traditional producers.
• Poultry will most likely continue to be competitively • Public perception: Concerns over the level of rising
priced and an attractive substitute to other pricier carbon dioxide and methane levels, animal safety and
meats. welfare (i.e., free range farming, the use of antibiotics)
have challenged the industry’s touch points with
consumers.
• Beef industry must seek ‘social license’ as consumer
preferences change: In addition to changing
consumer nutritional and taste preferences,
expectations of the beef industry to ensure animal
welfare, reduce impact on the environment have lead
to reputational and cost pressures.
Meat processing and manufacturing
Opportunities & threats
• Niche and exotic meats and meat products: In • Land pressures challenge herd expansion: A major
Canada, consumption of less traditional meats like challenge facing the cattle industry is competition for
horse, venison, camel, rabbit and game grew an land from other agricultural entities – particularly the
average of 10.6 per cent a year between 2010 and cropping sector. With limited land, there is also a
2015, according to estimates from market research limitation on herd expansion which is a necessary
firm Euromonitor International (57). Mainstream condition of the meat processing and manufacturing
grocery chains have also gotten into the exotic meats industries.
game. The market price for bison has grown in • Key closures of feedlots: Southern Alberta’s "Feedlot
Canada. Alley" near Lethbridge is considered the fourth- or
• Growing research and development addressing fifth-largest cattle-feeding center in North America,
critical challenges in the industry: Industry- academic ranking behind Texas, Nebraska, Kansas and
collaboration such as ALMA’s work with Olds College sometimes Iowa, and its financial health is vital to the
state-of-the-art meat laboratory, offers students an Canadian beef business (18). Recent closures of several
opportunity to acquire specialized skills in quality feedlots have raised the level of uncertainty in ensuring
assurance and value-added processing. ALMA’s lean that adequate cattle finishing capabilities will be in
automation support programs are instrumental in place to supply Alberta’s meat processing industry.
increasing production efficiency, alleviating reliance Alberta’s relatively high-cost tax and regulatory
on low-skilled labour and improving ergonomics and environment has been identified as a driver of feedlot
safety of workers. These types of initiatives would be closures. The closures may significantly decrease the
well suited to Calgary’s urban setting. region’s ability to attract new investment and have
• Government support: In 2016, Canada’s Department significant supply chain impacts.
of Agriculture and Agri-Food provided $4 m in
funding to the Canadian Cattleman’s Association to
fund innovation projects in the beef sector. Areas of
focus include developing new was to give consumers
access to beef information, and technology
development.

Beverage manufacturing
SWOT analysis
• Feedstock strengths: Alberta is home to key • Lack of food innovation hub: Calgary lacks a
ingredients used in alcoholic and non-alcoholic dedicate food and beverage research innovation
beverages such as wheat, barely and malt. space (i.e., Leduc’s Alberta Agribusiness
• Bottle recycling regime: In 2016, the GOA Incubator). This type of facility would significantly
announced it had reached its stated goal of an enhance the ecosystem for beverage and
85% return rate for the beverage container ingredient innovation and could attract new
recycling industry. Alberta has one of the entrants to invest.
highest return rates in North America.
• Investment in niche alcoholic beverages: Southern • Changes to markup for beer: Alberta Small
Calgary’s feeds Brewers Development (ABSD) Program
• New product options: To increase sales and commenced on August 5, 2016 to reimburse
respond to consumer preferences for low calorie, some of these charges, in recent news coverage
low sugar non alcoholic beverages large industry of the impacts of the changes, industry has
players such as flavoured water lines, functional expressed concerns over a lack of certainty and
beverages including protein based smoothies with the impact to consumers.
soluble fiber from oats, and chia seeds. • In response to these changes, effective August
• Leveraging Alberta’s growing distillery scene to 2016, the Alberta government announced a $1.25
develop agri-tourism spin-offs. per liter markup for beer sold in Alberta
regardless of the producer’s size or location. The
Please see page 43 for further insights on agri-tourism opportunities. charge will also be applied to imported beers
(19).

Spotlight
Employment challenges in food and beverage manufacturing
Labour challenges
We uncovered a common challenge faced by value-added food and beverage manufacturers that could threaten the sectors’
long-term success: the industry has struggled to attract, retain and manage key processing and manufacturing roles. Today, food
and beverage processors struggle to retain workers that often seek other forms of employment in other sectors, or in different
segments of the industry upon gaining initial experience.
Access to production workers High turnover Downturn in Oil & Gas
Access to production workers Due to grueling work conditions, Traditionally, the oil and gas and
A large proportion of jobs food processors often struggle construction sectors have been
required in these sectors are with high turnover, particularly in able to pay competitive wages,
lower-skilled, entry-level jobs. meat processing New Canadians attracting workers to remote
(20). Traditional sources of these often use initial positions in food locations across Alberta. With the
types of roles have been new and beverage processing as a downturn in the oil and gas
Canadians and lower- skilled stepping stone, leading to sector, there are some
workers. Restrictions on the another source of turnover. opportunities to re-profile
Seasonal Agricultural Worker workers into food processing.
Program (SAWP) and Agricultural However, in ‘front-line’
Stream which provides rigid processing roles (e.g., meat
criteria on eligibility (e.g., source processing) oil and gas workers
market, work to be undertaken in accustomed to higher pay in
a specialized commodity list). parts of the province where cost
of living is relatively low may not
be attracted to the sector.

Agri-finance and business services
SWOT analysis
• Multiple entry points: The agribusiness sector is a • Attracting industry-focused new players may be a
long value chain, with many places to invest in. challenge: Given requirements for specialized expertise
• Established presence: Calgary has a significant and competition from established ‘general’ business
presence of specialized financial, business and and professional service providers (e.g., banks, private
consulting firms that support the agribusiness sector. equity firms and/or professional services)
• Presence of supportive government anchors: the • Assisting early stage developers: In Canada, there is a
Agri-financers sector is well supported by limited number of financing alternatives available to
government assisted programs and associations (ex. early stage companies seeking venture capital funding,
AFSC, Farm Credit Canada, etc.) private equity and mezzanine debt.
• Strong demand for agricultural insurance products: • Perception as Calgary as home to oil and gas only:
There is projected increase in demand for crop and Calgary is home a strong center of business and
hail insurance products available in in Southern financial expertise in the oil and gas sector. Attracting
Alberta. agricultural expertise or knowledge will require
• Farm resourcing and succession planning: 98% of competitive job offerings that can beat established
Canadian farms are family owned. However, less than hubs such as Guelph, Ontario and Winnipeg,
a third of farms have an identified successor (21). Manitoba.
• Specialized export access expertise: Demand for firms • Proximity to feedstock and/or entrepreneurs not
that can provide tax, supply chain, strategy and/or identified as a locational factor: The agri-finance
marketing support for producers seeking to enter or community identified proximity to other investors,
grow their presence in new markets is anticipated to and qualified talent rather than the agribusiness
grow as a result of expected trade deals. industry as key site selection determinants.
• Food marketing: New and emerging food product • Less reliance on bricks and mortar: With the rise of
categories require marketing and branding services agile work environments, this sector can serve a
as a means to gain new customers. market remotely, without establishing a local
headcount until a sufficient scale of business has
been established.
Agri-technologies
• Sustained growth in agri-innovation: Investor interest in agri- • Dedicated agri-innovation support needs to be scaled in
technologies is growing globally. The number of investment Calgary: Currently, Calgary’s ecosystem for agri-innovation can
deals in the sector grew 7% year-over-year 2016. In addition, be scaled further to better connect start-ups with prospective
the number of investors coming into Agtech sector climbed buyers, and integrate local universities and colleges. Relative to
52% in H1-2015 to H1-2016 (4) other priority sub-sectors, Innovate Calgary’s work with the
agribusiness sector is nascent. Lack of interest from agri-
• Growth in agri-tech venture capital: Canadian agtech startups
innovators and/or formalized touch points with the industry
had a strong showing in mid-year 2016 with 22 deals raising a
were cited as a key driver of this.
total of $91m (4)
• Canadian dollar: A lower Canadian dollar has made imported
• Canadian agri-financiers are seeing success: In 2016, Avrio
agricultural hardware (i.e., tractors) more expensive than
Capital announced it had deployed $15 m of capital from its
before. This can cause producers to delay the purchase of
third institutional late stage venture fund, Avrio Ventures
machinery with new capabilities that could enhance
Limited Partnerships. Included within this portfolio was an
productivity (22).
investment in Cadcan Marketing and Sales Inc (operating as
CheeCha Puffs), a manufacturer of healthy nutritious snack • High level of product liability: Technologies applied in the
food products. sector operate in a highly regulated environment in which
errors, and/or data breaches could compromise food or animal
• Adoption of precision agriculture inputs can align with Calgary’s
safety. For these reasons, agri-innovators may see resistance in
IT talent base: Precision agriculture technologies are used by
testing or protoyping of new tools.
large companies as it requires a robust IT infrastructure and
resources to do the monitoring. • Attracting research and development mandates: While Alberta
is able to attract seed companies to sell into the Canadian
market, attracting multinational research mandates is a
challenge. Players in this sector is courted by public subsidies in
other jurisdictions, and often co-locates research and
development presence close to headquarters.

Agri-technologies continued
Opportunities
Opportunities Opportunities
• Opportunities in traceability: The market for tracers is • Multiple market opportunities: Several segments of
far from saturated. Consumers are demanding new the agribusiness sector can adopt drone and
types of technologies with features such as (small, satellite technology, creating a strong, stable market
biodegradable, secure, easily detected/read, cheap). for agri-innovators in this space.
Alberta’s access to core costumers (e.g., feedlots) • Synergies from oil and gas sector: Technologies and
could incentivize producers to test, sell or develop tools developed in the oil and gas sector (i.e.,
technologies in and around Calgary. water/waste water management, aerial scene
• Software innovation in the meat industry: As a means monitoring, climactic and/or geological threat
to stay competitive, technologies such as Computer monitoring) can be applied easily in the agribusiness
Visioning Systems (CVS) that can provide detailed sector.
image of carcasses to test for tenderness, lean yield, • Greenhouse technologies: Alberta consumers are
bruising and fat color. Recently, the Canadian increasingly interested in where food comes from.
government provided $1.1 m in funding to the As demand for locally produced foods grows,
Canadian Cattleman’s Association to explore how CVS opportunities for the development, distribution and
could be applied to improve the quality of meat. sale of vertical farming and greenhouse
• Larger more advanced farms: consolidation and push technologies (both hardware and software
to achieve economies of scale in production has lead components) could be positively impacted.
to fewer, larger more advanced farms in Canada.
Growth in larger farms has been accompanied by
increased capital investment in the sector to manage
more advanced farming operations (23).

Agri-technologies continued
Threats
Threats
• Corresponding regulatory framework can delay
adoption: A supportive regulatory framework to
enable driverless tractors in and around public
roads, flying drones beyond-line-of sight and/or
data storage and security are examples in which
enabling regulatory frameworks will need to be
adopted before the full impact of technologies is
realized.
• Concerns over data security and ownership: While
these concerns may not prevent farmers from
adopting new technologies, companies will need to
be transparent and provide clear guidelines on data
ownerships in order for growers to feel confident.
The Grower Information Services Co-operative
formed in Texas is an example of the industry
organizing and raising concern over these issues.
• Lock in with large ‘one-stop-shop’ product offerings:
Companies are providing a suite of data analytics
capabilities. Farmers may face challenges in data
portability (e.g., transfer of data from one system to
a new system).

Crop sciences
SWOT analysis
• Established ecosystem: Southern Alberta home to key • Weakening fertilizer demand: Demand for fertilizers has
anchor firms (e.g., Bayer CropSciences), Lacombe’s Field been down in the US and Brazil in 2016, partially offset by
Crop Development Center and highly specialized increases in China and India. Lower overall global demand
educational offerings that can create a hospitable and increased mine capacity has affected the price of
environment for further growth in the sector. potash, and is likely to continue to pressure prices down
• Yield enhancement drives innovation: technologies through 2016 (24).
and/or products related to crop yield enhancement and • Lag between innovation and supporting regulations:
creates a self reinforcing market for agri-technologies. Researchers in this space are constrained by significant
health and environmental regulations. Recent innovation
in transgenic-derived barley at the Lacombe Field Crop
Development Centre for example, is not yet approved for
growers in Alberta.
• Nutritional and/or taste variance: Currently a majority of • Public concerns over the use of pesticides and genetically
industry and academic research is centered upon modified crops: While pesticides pass rigorous Health
enhancing crop yield for producers. The application of Canada safety standards, public concern over the long
nanotechnologies to enhance taste or flavor attributes of term impacts of pesticides has driven growing demand
key crops is an area of emerging interest for researchers. for organic goods. Currently, the organic market
represents a small fraction of overall production.
• Encouraging research from Calgary’s players: Calgary has
However, to remain favorable, the industry will need to
an established base of players in crop sciences.
prioritize public awareness and education.
Expanding research and development activities
undertaken in Calgary locations could help to create • Public perception: consumer and public acceptance of
product innovation spin offs and develop local expertise. the power of transgenic and genome editing has not yet
become main stream.
• Established centers of excellence across Canada: Calgary
competes against clusters in Manitoba, Saskatchewan
and Guelph, Ontario for industry and academic research
and investment in this space.
Animal genetics
• Calgary is a hub of the industry: Calgary’s proximity to key • Livestock prices: Several livestock sectors have faced price
feedlots, and the presence of anchor firms and key industry declines over the last year. Hog prices have been seesawing
associations/breed council offices make it a central node of since the outbreak of the PED virus in 2014, and cattle prices
the industry. have fallen largely due to higher live weights and strong meat
• Established strength: Calgary has a base in cow semen, and supply in the U.S (24). These fluctuations create a fair degree
embryos, including a host of purebred certified producers of volatility and unpredictability for animal genetics
that can command premiums across global markets. companies.
• Access to talent: Calgary’s proximity to the University of • Fragmented animal semen industry: In Alberta, the industry is
Calgary Veterinary school as well as other highly skilled dominated by large players (e.g., Alta Genetics) and small
scientific professionals is a competitive advantage for independent companies with low volumes. This can be
Calgary in this space. attributed to high input and export distribution costs and the
need for highly specialized labor. Scaling small companies is a
• Calgary’s airport a critical distribution node: With
challenge for the sector, and opportunities to court medium
international clients, animal genetics is a low yield, high
sized firms are limited given the dominance of anchor firms.
value commodity that relies upon air transit to international
clients. • Nascent supportive cluster: Integration and alignment
between industry, the University of Calgary Veterinary School,
• Reputation for safety: Alberta leverages Canada’s
and cattle and/or genetic research initiatives is in early days.
reputation for animal health, use of bio-security and
Further linkages to create a supportive ecosystem could assist
monitoring techniques to ensure traceability and disease
the industry grow.
prevention.
• Limited entry points: Animal genetics is a highly specialized
• Indirect trade impacts expected: Multilateral trade deals
field requiring access to high quality live stock, supportive
such as CETA and TPP are expected to benefit the animal
veterinary expertise, storage and export expertise.
genetics sector indirectly. Projected increased demand for
feedstock could have a positive effect on the price of beef • Feedlot closures: Recent cost pressures on feedlot producers
which could enhance the financial position of commercial have had a negative effect on heard and investor confidence
producers to spend money on genetic services. in the cattle industry and could decrease prices for feedstock.
As a result, the ability of feedstock producers to access animal
genetics services may be limited.

Animal genetics
Opportunities & threats
• Leveraging veterinary sciences and genetic research: To grow • American competition: Alberta competes with the U.S that has
and differentiate Southern Alberta's animal genetics a strong industry profile including large established firms, and
capabilities, advancing linkages in veterinary, herd health, diversified genetic stock.
genotypic research in a manner that aligns to the needs of • Swine and poultry genetics verticals have little room for entry:
industry and customer segments could develop a Calgary Stakeholders noted limited opportunities for new entrants in
based cluster of expertise. the poultry and swine genetics space, as the space is
• Development of a genotypic database: Akin to the dairy dominated by a small set of global corporations with patented
industry, the animal genetics industry could benefit from genetic breeds in demand.
standardized detailed data collection on the genetic profile of • Smaller players taking on marketing activities independently:
animals and outcomes of animal selection to identify the most in the animal embryo space, it is common for small firms with
competitive gene profile of animals in demand by the market. specialized offerings to operate with very low yields.
• Genetic mapping: Industry and government are increasingly Increasingly, these types of firms are using direct social media
interested in investing in genetic mapping activities that can channels to seek customers, reducing their reliance on
identify genetic markets for specific traits that are important in specialized firms’ marketing capabilities.
beef production. Based on mapping exercises, these traits can
be tested for on young animals to predict if animals will have
those traits in the future.
• Applications of transgenic technologies: new developments of
transgenic technologies that could enable new specifies/traits
can diversify the genetic profile of Southern Alberta’s animal
base.
• In-vitro fertilization: Adoption of in-vitro fertilization within the
animal embryo industry is in early stages. However, as the
technology continues to be refined and scaled, Calgary’s
existing embryo players could lead in the adoption of these
sought after capabilities.

Spotlight: Agri-tourism
SWOT analysis
 Alberta has nascent strength in this space, • Key agri-tourism offerings in Alberta are typically
Alberta Open Farm Days is a two-day event in short in duration ( a weekend) and related to a
locations across the province seasonal theme (e.g., fall harvest). As a result,
 Food and beverage related events can have opportunities for sustained year-round influx of
minimal negative impact to the environment and tourists and associated spending has not yet
contribute to sustainable development and developed
improve international (host-guest) relations. • To date, Alberta’s agri-tourism sector relies on
local and regional markets for visitors, with
relatively limited exposure to large international
tourist markets (25).
 Canadian travelers are increasingly interested in  Canada has established agri-tourism offerings
agri-tourism activities such as spending the day that would compete with new offerings in
on farms, apple picking, county fairs and Alberta. Key examples include Ontario’s wine
agricultural festivals. route, Nova Scotia’s 4 day Apple Blossom Festival
 International visitors are expressing interest in and British Columbia’s Okanagen-Similkameen
accessing and exploring rural settings. region’s Tours of Abundance .
 Incorporating agri-tourism as a marketed
offering for Alberta tourists. This can be achieved
by fostering partnerships between established
tourism assets (e.g., national parks, the Calgary
Stampede) and artisanal growers and/or farmers
that could take on, or scale existing agri-tourism
activities.

Spotlight: Food retail
SWOT analysis
• Calgary is an important consumer and • Limited points of entry: Over half of the Canadian
distribution node for the food retail industry: For food retailing market is controlled by three
grocers, proximity to large consumers and companies (Loblaw Companies Ltd., Empire
distribution centers are critical location Company Limited (Sobey’s), and Metro
requirements that can be found in Calgary. Incorporated.
• Diversified offerings: in addition to stand-alone • While there is an opportunity in niche and
full service supermarkets, Calgary’s location is premium food products, retailers are increasingly
suitable for niche cafes, boutique stores/service demanding to pay less for products to remain
providers with ready to go food offerings that are competitive. Hence, smaller processors face
increasingly in demand. challenges entering the market against large
competitors.
• Testing and scaling new experiences in Calgary: • Labor challenges: Consistent with other lower
Canadians are changing the locations where they skilled roles in the agribusiness sectors,
buy food. Food sales at convenience stores have stakeholders noted access to crane and forklift
grown, and traditional grocers are relying upon operators and warehousing staff as an example
new and creative ways to add value to food of jobs that may be difficult to staff in the near
products and access customers (e.g., hot food term, as talent looks towards higher skilled jobs.
bars, in-store eateries, community events and
automated/online shopping) (26).
• Automation technology development : Grocers
are challenged to sort through products in
warehouses, the integration of technologies such
as automated storage and retrieval system
cranes, can help increase productivity of food
warehousing and distribution.

Key stakeholder insights

Key stakeholder insights
The industry’s voice is not currently unified
Fragmented industry associations
• In the agribusiness sector industry associations/organizations often organize themselves on specific grounds. For example,
organizations self-identify as advocates of specific processes, commodities in Alberta.
• While this high degree of specialization is a sign of clusters of expertise, it can also limit the ability to establish a consensus
view of the sector.
• Stakeholders noted that the industry does not often segment itself around regional geographies. Developing a Calgary voice
of the industry would require coordination with Calgary based firms/producers directly first, rather than through a web of
industry associations across Alberta and the nation.
Championing the sector
• Calgary’s central challenge in supporting the agribusiness sector was orienting public perception away from oil and gas.
• Industry stakeholders emphasized the need for the City to demonstrate an ‘open for business’ attitude to the agribusiness
sector.
• Recent perceived difficulty related to the establishment of new food processing plants, were cited as examples where Calgary
officials were seen to be unhospitable to the sector.
• One way to do this was identifying and supporting a high level industry or political champion that could be the ‘face’ to the
industry.
• This role could be integrated into international marketing efforts (e.g., provincial and federal trade missions, or direct
advertising campaigns).
• Recent interactions between the food and beverage processing industry and Harmony Beef were identified as an example of
the ‘need for a champion’ to rebuild engagement between industry and the City of Calgary. Structured engagement and
dialogue with the sector as a follow up to this report was identified as a worth while activity by industry stakeholders.
Key stakeholder insights continued
The sector is confronted with complex reputational challenges
A lack of public awareness and understanding of the sector
• A majority of stakeholders identified large misconceptions consumers’ have on the dynamic of food production and quality that affects the
industry’s ability to connect customers and engage effectively with government.
• For example, consumer perception of the use of antibiotics in the meat industry were viewed as not reflective of current Canadian farming
practices.
• Misconceptions were also noted in schools and universities, in which employment opportunities in the agriculture sector were often not
fully understood.
• Further communication and information sharing between the industry and the post secondary students was identified as an area of
opportunity to ensure top talent enters fields such as agronomy, horticulture, supply chain management and animal sciences (e.g., animal
genetics, veterinary sciences).
• Similarly, showcasing the applicability of oil and gas skill sets and qualifications to the sector was identified as a key theme to be reinforced
in upcoming trade shows and/or job fairs.
Transitioning workers from the oil patch
• There are multiple points of convergence in the skill sets and qualifications in Alberta’s oil and gas sector with the agribusiness sector.
Areas of expertise such as software engineering, supply chain management, the development of drone technologies and water/waste
water management can be seen as examples of expertise both industries require.
• However, given the relatively high level of industry specialization opportunities to successfully transition workers from oil and gas to
agribusiness were clustered around lower wage, laborer roles or highly skilled engineering capabilities.
• For example, critical segments of the agribusiness work force (e.g. agronomists, horticulturalists, specialists in food and beverage
marketing, product development or sales) require specialized training and experience and may not be areas where oil and gas workers
could be re-profiled.
• For lower skilled workers, the Calgary region was noted to typically rely on new Canadians, rather than workers from other segments of the
economy. Historically the oil and gas sector has paid competitively, and been able to attract talent to remote areas of the province based
on pay. While the agribusiness sector’s ability to do so is not as strong, the current downturn in the industry may be able to encourage
workers to consider the sector.
For a detailed overview of select oil and gas roles applicable to the agribusiness sector, please refer to Appendix D of ourDeloitte
Phase 1 report.
CED Phase 2 Report 47
Key stakeholder insights continued
There are many ways to encourage food and technology innovation in
the sector
Establishing an agribusiness incubator in Calgary
• The Alberta Agribusiness Incubator ( the ‘Incubator’) was identified as a national asset to the industry.
• The Incubator was identified as a key asset that should be emphasized in international marketing efforts based on its proven
success in working with international researchers and firms.
• In our conversation with the Center, representatives noted that the initiative is a high cost activity for the government to fund.
For the government to consider another type of facility in Alberta, the business case would need to include a strong rationale
and identification of niche area of expertise that could be grown from such an investment.
• Instead, a more viable and practical path in the short term for CED to consider is building a consortia of innovation in Alberta
by developing niche expertise in Calgary that could work in harmony with the Incubator in Leduc.
• For example, Calgary’s proximity to the meat industry and the rise in demand for software based traceability tools was
identified as an example of an area of expertise that could be considered an area of innovation that could be scaled and
centralized in Calgary. Given Southern Alberta’s excellence in almost all segments of the meat processing value chain, focusing
efforts on animal and/or meat product innovation was viewed as an area of high opportunity.
• Given recent fluctuations in the meat processing industry, expanding or reinforcing current genetic, veterinary and animal
tracking capabilities was viewed as area in which Calgary could leverage its existing capabilities into future opportunities.
• Developing structured partnerships and touch points between industry and the University of Calgary or other relevant
universities and colleges undertaking research was identified as an activity that would be greatly beneficial to the sector.
Cooperation and collaboration between the University of Calgary and the Southern Alberta agribusiness sector was viewed as
‘nascent’ or ‘developing’.

The role of CED
When asked what the role of CED in supporting the agribusiness sector
was, we heard several responses Targeting headquarters
• In investment attraction
Considering a national approach activities, CED was
Working with anchor firms to extend their encouraged to prioritize
• Stakeholders encouraged CED to potential head quarter
presence
consider formal partnerships with investments.
economic development and/or • One area of opportunity was
In addition to expanding employment and
industry entities in other agribusiness attracting start-up head
capital investment footprints, stakeholders
hubs such as Edmonton, Guelph or quarters which could be
encouraged CED to focus on enhancing the
Saskatoon. expected to grow over time.
type of activities undertaken by Calgary based
firms. Examples of priority activities include:
• encouraging research mandates;
Prioritizing research mandates • facilitating business-to-business matching; Leading the coordination of efforts
• connections to start-ups and
• CED was encouraged to develop a • coordination of international missions etc). • CED was encouraged to work with
strategy to increase the level of other city officials to advocate for a
agribusiness research undertaken in hospitable regulatory (e.g., fast
and around Calgary tracked permitting and zoning)
• Such a strategy would require frameworks that could encourage
coordination from local university and investment.
industry partners • The University of Calgary was
• Key objectives of the strategy could identified as an anchor stakeholder
include courting leading scientists to that could be integrated into
work in Calgary, developing business marketing and investment attraction
cases for government support, efforts. Specifically, continued
expanding Innovate Calgary’s role in expansion of touch points between
the agribusiness sector and ensuring the university’s veterinary, genetics
university research is aligned with and agriculture-related research
industry where possible. initiatives was viewed as critical.

Potential challenges for CED
Stakeholders identified key challenges CED may face in supporting the
sector
‘Wait and see’ approach Focusing on headquarters
Identifying and supporting an
agribusiness champion
Stakeholders were receptive and supportive to In investment attraction activities,
CED’s efforts to focus on agribusiness as a means CED was encouraged to prioritize
Given CED’s mandate, identifying and
to diversify the Southern Alberta economy. Some potential head quarter
supporting an agribusiness
industry academic stakeholders were cautious investments. One area of
‘ambassador’ was seen as a potential
about CED’s ability to convene partnerships, opportunity was attracting start-up
challenge. CED’s relationships in
funding or buy-in from other government and head quarters which could be
industry were viewed as a means to
industry partners as some may be ‘waiting’ for the expected to grow over time.
identify candidates to take on this
oil and gas industry to return. CED was Nationally, attracting head quarters
role.
encouraged to emphasize the need for long-term across industry is a challenge,
planning, and growing Calgary’s role in the given Canada’s relatively small
supporting (non-production related) segments of market size and large geographic
the industry. reach, which makes it difficult for
companies to ‘saturate’ Canadian
Perceived lack of coordination supply networks with one
centralized location. HQ
While stakeholders were supportive of Vancouver and the Netherlands’
CED’s initiative to identify opportunities in food and beverage manufacturing
the agribusiness sector, ensuring the City of Labour shortages cluster around low skilled cluster were identified as examples
Calgary , and Government of Alberta are workers of public policy directed towards
made aware of CED’s investment priorities attracting head quarters and
and active partners was viewed as critical. Some stakeholders viewed Calgary as anchor firms that were viewed as
Examples of municipal cooperation uncompetitive relative to other locations in effective.
included ensuring hospitable zoning and Canada for critical lower skilled workers in and
permitting regulations relevant to around Calgary.
establishing new food processing facilities,
and enhanced marketing of Southern
Alberta’s agricultural assets. *Please see Appendix D of Phase 1 Report for further
data and insights

Market Access Opportunities

Market access opportunities
Selecting priorities
Market access opportunities for CED to consider
As CED pursues investment attraction and economic development efforts in the agribusiness sector, targeting activities is a critical
component of success. The following section we highlight a set of 10 markets that could align with Calgary’s commodity and
capability advantages. Our selection of markets can be used by CED to prioritize up coming investment attraction, trade
mission/marketing activities and future research endeavors.
We have selected these markets based on consultation from a robust literature of government and industry analysis identifying
Canada’s key global agricultural markets, and a review of the priority export markets the Government of Alberta has identified for
the sector. We complemented this research by seeking insight from industry stakeholders on key opportunities and attributes
within each market.
In Appendix 1 we present a comprehensive raw data set of key government statistics and figures that can be used by CED to
further understand and contextualize the global market, and in future research initiatives.

China
Overview of opportunities in China
Market insights
• While not included in TPP, China is a critical market for Canadian farmers given its size and scope, and plays a key role
determining the price of key commodities, such as soy, potash, oil, and other agricultural inputs.
• China is the world’s largest consumer of food. China has 20 percent of the world’s population, and only 7% of the world’s arable
land (60). China is Alberta’s second largest market for agri-food exports, valued at $1.6 billion in 2015 (an increase of 19 per cent
from 2014) (59).
• Canada’s exports to China are dominated by commodities and primary processed products. Secondary processed foods
represent just over 1% of the total value of our exports (27). Alberta’s key agribusiness commodities to China include:
• Canola seed - $690 m
• Beef - $235 m
• Canola oil - $198 m
• Raw hides and skins - $138 m
• Wheat - $120 m (27)
• The main destinations for Chinese outward FDI (across all industries) are the United States, Australia and Singapore.

China continued
Overview of opportunities in China
Potential opportunities and key considerations

• Aggressive investment: In 2016, the Agricultural Development Bank of China announced a loan of at least 3 trillion yuan by
2020 for the modernization of China’s agricultural industry. Key objectives of this loan include supporting the sector in doing
business overseas and further developing China’s seed industry (60).
• Shanghai iPilot Free Trade Zone: The Chinese government has set up a zone that enables imports, by streamlining business
regulations, customs clearance, offers warehousing and waives customs and import duties if goods are re-exported to other
countries.
• ‘Made in Canada’ packaged foods: Leveraging authenticity in food products exported to China is a critical component to
Canadian success in the market. Processed foods produced and packaged in Canada within an efficient import supply chain
can confer market advantages as demand for authentic imported foods increases (27). Alberta and Canada’s brand as
producing safe foods resonates with Chinese buyers. China’s growing middle class will continue to increase the demand for
Canadian food, especially high quality, premium food products. These consumers are located primarily in cities, where the
number of urban households keeps climbing along with disposable income (28).
• Fluctuations in the pork industry: China is a leading global producer and consumer of pork. Rabobank estimates that the
supply gap for pork will reach 2 m tons which means the country will need to import an additional 30%. Today, the European
Union is the main exporter of pork and variety meat to China. However, industry observers note significant opportunities for
Canadian producers in the future (29).
• Local knowledge and relationships are key: due to the complexity of the Chinese market. CED can leverage a set of formalized
partnerships and cooperation agreements between Alberta and/or Canada and China. Notably, in 2013 Alberta renewed a
five-year agreement with China’s Ministry of Agriculture to expand the scope of the agricultural sector.

China
Consumer tastes and preferences vary by region and should be taken into
consideration in lead generation and marketing activities
Key insights Key product categories by region in China (29)
• China has seen an increase in demand Region Product categories

for convenient packaged foods,
especially baby food. East China • High-end and branded products
• Chilled processed food
• Nationwide trends, such as health and • Ready-meals
wellness and concern for food safety, • Packaged food sales in large cities (e.g. Shanghai, Ningbo,
have increased consumer demand for Qingdao) are dominated by well-known international brands.
trusted brand-name products, as well • Domestic manufacturers are focusing on lower-tier, smaller
as new domestic and imported food cities, such as Nanjing and Suzhou, and Linyi.
products. Mid China • Consumer preference for strong tastes and spicy food
• Baby formula and ice cream
• Consumers in urban cities have higher
• Lower-end products are expected to diminish on store shelves
income levels and greater ability to
in large cities.
purchase imported food, while
consumers in rural areas tend to have North and Northeast • Denser spoonable yogurt preferred over yogurt beverages
China • Premium packaged food lines, especially high quality baby
lower income levels and focus on
products
purchasing essential food items. The
income gap is expected to narrow in Northwest China • Halal products
the future.
• Less-expensive food products
• Quality baby food products
• Rural consumers also prefer non- • Condiments, herbs and spices
perishable food since they have less South China • Health and natural food products
access to refrigeration. • Sweet products
• Baby food
• The Chinese government is focused • High quality packaged food products
on developing smaller, second-tier
cities. This is considered a significant Southwest China • Snacks; heavy tasting, spicy foods
• Baby food
market that has been largely • Chilled processed food
untouched by Western products.
Deloitte CED Phase 2 Report
Indonesia
Overview of opportunities in Indonesia
Market overview
Indonesia is the world’s fourth most populous nation, and a large consumer market for Canadian exporters. The country is the
biggest agri-food and seafood importer from Canada in the ASEAN market with a CAGR of 16.4% from 2010 to 2015 (57). To date,
Indonesia was excluded from the recently concluded Trans-pacific Partnership (TPP), but has stated its interest in joining the
agreement and will likely remain an important export partner with Canada in the future.
• Sustained export opportunity: Indonesia is a key import market for Canadian imports in which Alberta has competitive
strengths. Examples include dried peas, non-durham wheat, dried peas and soybeans.
• Demand for soybeans: More than 60 per cent of Indonesia’s soybean consumption is sourced from imports. Alberta’s strong
presence in this commodity position it competitively to access the market. (30).
• Animal feed: Animal feed is the second most important Canadian import into Indonesia. Alberta’s capabilities in these space are
mature and can be used to tap into the Indonesian market.
• Food service industry: Indonesia has the largest foodservice market among all ASEAN countries. The sector is diversified, and
increasingly opting for western menus. Key food ingredients, preservatives and/or packaged goods that could be sold to
regional franchises, niche cafes appealing to ex-patriates are also opportunities to consider.
For a detailed overview of Indonesia’s top 10 agri-food and seafood imports from Canada please see Appendix 1.

India
Overview of opportunities in India
Market overview and trade profile
• Food security drives India’s imports: The Food and Agricultural Organization estimates that India's daily average food energy intake per
person is below 2,500 kcal. This compares to over 3,500 kcal on average for Canadians (61)
• Alberta’s key agricultural exports to India include peas, lentils, and vegetable oils and derived solid residues (31).
• India is the third highest importer of edible oils in the world, including palm, soybean and sunflower oil.
• India is the largest importer of pulses in the world and Canada is its main supplier with more than $1 billion CAD in pulse sales to India in
2015 (31).
• In addition to demand for commodities such as lentils and canola oil, the maturing consumer base and change in India’s standard of living is
leading to increase in popularity of new food choices, prioritizing healthier lifestyles.
• Plant based proteins: India’s demand out look for the import of lentils, peas, and oatmeal is expected to remain strong in the coming years
(31).
• Pulse and grain storage: In addition to export opportunities, due to dry climate conditions, storage of pulses and grains remains a challenge
in India. Southern Alberta firms with storage best practices, technologies or specialized equipment could leverage this opportunity to grow
business in India. These opportunities are in line with recent innovation in agribusiness, with new technologies in grain and oilseed storage,
gradation, remote sensing technology, seed management systems, soil health, nutrition management and insecticides and pesticides as key
areas of product innovation relevant to Alberta (31).
• Non-beef proteins: Due to the ban on eating beef, opportunities exist to expand pork as a protein alternative (31). In 2016, the Canadian
government secured export market access for Canadian pork and pork products to India.
• Best practices and agri-innovation: India is seeking to modernize its agricultural industry which could create opportunities for specialized
agricultural consulting, food processing technology (e.g., pilot plants), biotechnology, and/or agri-technology firms. The refurbishment and
distribution of small precision agricultural equipment's sold directly to the market is an area of opportunity for Calgary area producers.
• Import and distribution of ethnic foods: As an urban center with strong air logistical advantages, Calgary could serve as a key distribution
hub for Indian ready made foods and/or ingredients.

Mexico
Overview of opportunities in Mexico
Market overview
• Mexico is the world's ninth-largest importer of agri-food and seafood products, with Canada consistently ranking as its second-largest
supplier. However, the United States, the top-most supplier to Mexico, dominates the market, leaving little share to be gained by others.
• For Alberta, Mexico is its fourth largest export market, rose 6.6 per cent to $572 million in 2015. In 2015, larger exports of beef, pork, malt,
milled cereals and canola seed, partially offset lower exports of wheat. Beef exports grew 4.6 per cent to $143 million, and canola was up 1.6
per cent to $252 million. Canola seed, beef and wheat combined, made up 85.2 per cent of Alberta's total agri-food exports to this markets
(32).
• Animal genetics: Mexico is a mature market for the import of global animal genetics. Currently, Canada’s position as the second largest
supplier of animal genetics to Mexico after the U.S., which is the largest international competitor in the Mexican livestock genetics market.
Mexican livestock ranches, stockbreeders, dairy and meat cattle raisers are the main potential buyers of breeding animals and animal genetic
products. These buyers are manly situated in the northern and central regions of Mexico, where intensive cattle production systems are
located (32).
• Continued focus and expansion of efforts in this market will be important, and faces competition from New Zealand.
• GOA advice on Alberta entry points: In an overview of Alberta – Mexican trade relations, GOA recommended industry to consider targeted
visits to meet specific buyers, distributors, associations and other key players in Mexico and establish contact and develop relationships with
relevant industry associations. In regards to livestock genetics, the GOA viewed establishing contact with Mexican companies specialized in
providing artificial insemination and embryo transfer services for livestock producers as a means to capitalize on Mexican demand (32).
• The beef trade has resumed between Mexico and Canada. The Canadian Meat Council estimates that the new market access will provide a
market opportunity of $10 m annually to the beef sector (58).
• In many of the regions of Mexico , Canada has the opportunity to export to Mexico its agri-technologies such as advanced data acquisition
systems and automation tools for livestock to increase productivity and modernize farming.

Mexico continued
Consumer tastes and preferences vary by region and should be taken into
consideration in lead generation and marketing activities
Key product categories in demand by region in Mexico (33)
Key insights
Region Product categories
• There are five major regions in the
Mexican market each with distinct Northern • Sonora: meat, grapes, seafood
features. • Sinaloa: meat, corn, potato, tomato
• Baja California: tomato, seafood, meat livestock, dairy products, seeds
• In most of the regions, Canada is the • Baja California Sur: seafood
second supplier of agri-food products • Chihuahua: green chilies, meat, nuts, tomato
after the US. • Coahuila: cattle, nuts, vegetables, corn, wheat, malt for feed
• Tamaulipas: meat, tomato, lemon, feed (sorghum and other grains)
• Durango: apple, nuts, fruits, feed, grains
• Nuevo Leon: meat, tomato, chilies, agri-tech
Pacific • Nayarit: mango and other fruits, plants, seeds, agri-tech

• Colima: fruit, fish, seed
• Jalisco: agave, berries, vegetables, meat, seeds
• Michoacán: avocado, strawberry, raspberry, mango, seeds, agri-innovation
Central • Zacatecas: meat, cattle, vegetables

• Aguascalientes: vegetables, meat
• San Luis Potosi: tomato, plants, soy, corn, meat
• Queretaro: tomato, chilies, animals, dairy products, agri-innovation
• Hidalgo: vegetables, cattle
• Estado de Mexico: tomato, meat, flowers, seeds, dairy, wheat
• Guanajuato: fruit, vegetables, flowers, corn, seeds
• Tlaxcala: meat, flours
• Puebla: vegetables, tomatoes, meat
• Morelos: plants, vegetables, meat, dairy
(33) • Distrito Federal (Mexico City): flowers, corn, coffee, wheat, dairy
Gulf • Veracruz: sugar cane, fruits, coffee, tobacco, grain

• Tabasco: fish, cocoa, banana, meat
• Campeche: seafood, honey
• Yucatan: seafood, fish, feed
• Quintana Roo: fish, seafood, culinary tourism
South • Guerrero: fruits, coffee, fish, seafood

© Deloitte LLP and affiliated entities. • Oaxaca: fruit, seafood, dairy, agri-innovation Deloitte CED Phase 2 Report 59
• Chiapas: coffee, fruits, agri-innovation (corn)
Japan
Overview of opportunities in Japan
Market overview
• In 2015, Japan was Alberta’s third largest market for agri-food products at $1.1 billion, behind U.S and China. Alberta is
approximately one third of Canada’s total agri-food exports to Japan, which were valued at 3.6 billion in 2015 (34).
• Key exports Alberta export products include canola seed, pork, wheat, malt, beef and hay fodder. Other key products include
processed potatoes, tallow, horse meat, processed meats and honey. Approximately one third of agri-food exports are value-
added products (34).
• Key TPP market: Among the current TPP participants, Japan is the key market for Canadian agricultural exporters. Preferential
access will be granted with a major opportunity with beef and pork exports (34).
• Heavy dependence on food imports: Japan has the lowest rate of food self-sufficiency among G8 countries and boasts a large
agri-food trade deficit. The country’s agriculture is constrained by low arable land and farm labor scarcity (34).
• Organic foods: A new organic equivalency arrangement, the Japan-Canada Organic Equivalency Arrangement (JCOEA), came
into effect on January 1, 2015. The Arrangement recognizes the organic production and certification systems in each country,
making it easier to sell organic products (e.g. plants including fungi and processed foods of plant origin) in either country (34).
*for an overview of Japan/Alberta trade values please see Appendix 1.

South Korea
Overview of opportunities in South Korea
Market overview
• South Korea’s largest agribusiness import market is the United States with exports valuating $8.7 billion in 2015. Canada’s total
agri-food exports in the same year were $541 million (35).
• Despite a relatively modest share of South Korea’s overall agri-food imports, South Korea is Alberta’s fifth largest export market
and Canada’s seventh largest trading partner (35) and leverages a growing trade relationship solidified by the Canada-Korea
Free Trade Agreement (CKFTA) (35).
• Key exports in the agribusiness sector include cereals, pulses, oil seeds, wheat canola oil, pork, wheat and malt (35)
• Alberta’s key direct imports from South Korea did not include agribusiness commodities/products, and are focused primarily on
machinery and industrial equipment (35).
Potential opportunities and considerations

• Large import demand: South Korea imports over 70 per cent of its food consumption requirements, with a small domestic
agricultural industry that consists of a small set of commodities (35).
• Key product categories in demand by South Korea include swine genetics, pork, wheat, wheat flour, raw hides and skins, forage
seeds, and beef (35).
• Leveraging the ‘Canadian’ brand: analogous to China and other Asian markets, as incomes rise, South Koreans are demanding
high quality and safe food products. Canada’s overall reputation in the Korean market as a clean and safe supplier is a theme
that should be emphasized in investment attraction activities (35).
• Edible oils: South Korea’s edible oils industry is increasingly sourcing a variety of healthier edible oils, including canola oil. South
Korean industry has increased the importation of refined canola oil due to their lack of capacity to crush canola seed or to
process large quantities of crude canola oil (35).This opportunity is enhanced by South Korea’s decision to harmonize tariff rates
for refined edible oils, placing refined canola oil on par with competing refined edible oils (inclusive of soybean oil).

Brazil
Overview of opportunities in Brazil
Market overview
• Latin America shows varying levels of opportunity for Alberta. In several Latin American markets, Canada is a net importer (i.e.,
Chile, Costa Rica, Paraguay).
• In mature markets, such as Brazil, Canada plays a dual role of export partner and competitor. Brazil for example, is a power
house in global agricultural and is a competitor to Canada, limiting opportunities for foreign direct investment or becoming
crucial trade partners. Canada represents 1.4 per cent of total agri-food and seafood products (36). In markets in which Canada’s
balance of trade is positive (i.e., Peru, Venezuela) Canada’s largest exports are clustered in commodities including non-durum
wheat, durham wheat, and pulses rather than value-added, differentiated products.
• The main imports from Brazil to Alberta included bulldozers, oil and gas equipment, telecommunications equipment, machinery
and mechanical parts.

• Maintaining export relationships: Pulse crops in Brazil: Brazil if the fifth largest market in the world for fortified/functional foods
• Increasing Alberta’s share of Canada’s largest agri-food exports to Brazil including durum wheat, animal feed, lentils and bovine
semen. While Canada is a relatively small trade partner, Alberta is well positioned to contribute to Canada’s trade relationships
with the market. :Alberta’s key exports to Brazil in the agribusiness sector include wheat, potash, malt, and bovine semen (36).
• Pet foods: Brazil’s imports of pet foods have risen steadily since 2007, with the only exception being a drop of US $15 million in
2008. Brazilian pet owners are increasingly taking on North American consumer preferences when selecting pet foods (e.g.,
demand for high quality, nutrient rich foods) (59).

European Union
Overview of opportunities in European Union
Market overview
• Overall, Canada is the 17th largest source market for agri-food imports into the European Union.
• Alberta’s largest agri-food export markets are Italy, the United Kingdom, Belgium, France, Germany and the Netherlands.
• Canada’s top imports from the European Union are concentrated in the beverage sector, including wines, vermouth, cider,
vinegar, spirits and liquors.
• Given the EU’s diverse agribusiness sector and developed manufacturing capabilities, Canada’s major exports to the EU are
clustered in raw commodities with wheat (33%), soybeans (15%) and oilseeds other than soybeans (9%) of total (60).
• High growth Canadian exports: Between 2014 and 2015, the fastest pace of growth in Canadian exports to the EU was in oil
seeds (34.2%), pet food (34.5%), offal, animal fats and other meats (46.7%). In each of these spaces, Southern Alberta producers
have established capabilities that could meet European consumer demands. Conversely, Canadian exports to the EU drastically
declined in cereals (-73.8%) and raw hides, skins and furskins (-50%) during the same time period (60)
• High value low yield products: With the exception of raw commodities (i.e., wheat, and canola seed), several of Alberta’s key
exports to the EU are value-added products that require specialized ingredients, and can command a premium in markets.
Examples include animal feed, whiskey, horse meat and bovine semen (37). Alberta’s capabilities in these product categories is
highly differentiated, positioning the province for comparative market place advantages.
• Importing best practices and machinery: The European Union is home to centers of excellence in agricultural machinery and
equipment used in food and beverage processing using the latest in automation technologies.

The Netherlands
Overview of opportunities in the Netherlands
Market overview
• Alberta’s total agri-food exports in the Netherlands are relatively small in comparison to other key markets, valued at $15.4 m
in 2013, consisting mainly of bovine semen, sowing seeds and mustard seeds (61)
• While export opportunities in the Netherlands will likely grow upon ratification of CETA, an interesting area of opportunity for
CED to consider is in developing relationships and linkages with the Netherland’s ‘Food Valley’ cluster of value-added food
processing and research and development capabilities.

• The Netherlands is known to produce 80% of the world’s capacity of poultry processing machinery, with pronounced strength
in cheese, potato machinery. Key areas of expertise includes design and process innovation related to hygienic design,
integral design, methodic engineering and ‘green’ or ‘efficient’ production.
• Twelve of the top 40 global food processing companies have R&D centers located in the Netherlands including Heinz Europe.
The Netherlands is known around the world for a strong supportive knowledge infrastructure anchored by Wageningen
University and Research Center, with its TI Food and Nutrition laboratory.
• An area of improvement highlighted by stakeholders has been the effective integration of local universities, public and
industry research assets and industry.
• As CED considers next steps with the University of Calgary and/or other local institutions, establishing relationships and/or
partnerships with the Netherlands cluster may facilitate sharing of best practices.

United States
Overview of opportunities in the United States
Market overview
• The United States (U.S.) continues to be Alberta's largest trading partner, accounting for 39.3 per cent of the total agri-food
exports. In 2014, exports to this market were almost $4.0 billion (38).
• Canada is the top agricultural export market for 29 U.S. states. Bilateral trade in agriculture and agri-food was over $47 b in 2015
(39).
• The top U.S. exports to Canada in 2015 were fruits and nuts ($3.5 b), vegetables ($2.7 b), prepared vegetables, fruits and nuts
($1.9 b), beef and pork ($1.6 b), and beverages ($1.0 b). Increases occurred in exports of value added products such as meats,
crude canola oil, prepared animal feed, French fries and processed cereals. These increases moderated declines in primary
commodity exports (39)
• Top U.S. imports from Canada in 2015 were beef and pork ($2.4 b), animal feed ($1.7 b), baked goods, pasta, mixes, doughs ($1.6
b), vegetables ($1.5 b), and cereal grains ($1.4 b) (39).
• Exclusive relationships: The US remained Alberta's sole export market for non-purebred live cattle and hogs and accounted for
almost 70.0 per cent of the province's total beef exports (quantity) (38).
• Continued expansion: The USA remains Alberta’s key import and export partner across the sector. Ensuring Albertan market
share of key commodities is retained is of pivotal importance to producers and manufacturers across the sector.
• Health focused agri-food: In March 2016, Alberta Agriculture and Forestry (AF) coordinated a delegation of five companies to
the Natural Product Expo West (NPEW) show, the largest health focused agri-food show in North America. The food and
beverage market in the Pacific Southwest is a top importer of Canadian agri-food products, purchasing over $1.6 b of Canadian
agri-food exports. California accounts for 84% of the total imports in 2015 (38).
• Gluten free products: The U.S. gluten-free market is still growing in excess of 25% year on year, slower than before (40%), but still
generating double-digit growth (40).

United States – regional trends
Consumer preferences in key regions vary
Key product categories by region in the US
Key insights
Region Eating preferences and key product categories
• The US is generally broken down into
nine different regions (see map East South • Prefer frozen shellfish and finfish over fresh
• Fresh meat preferred over frozen meat
below). Central
• Prefer canned over fresh or frozen vegetables
• The US is a diverse country comprised • Sandwiches, bread, potatoes, eggs / omelets, soup, beef
of distinct regions, each with their West North • Less willing to pay higher food prices for food and convenience
unique consumption habits. Central • Fewer meals made with organic products and fewer organic beverages consumed
• Prefer fresh over frozen foods
• In many of the regions, Canada is the • Fruit, sandwiches, vegetables, ready-to-eat cereal, salty snacks, bread, potatoes, salads, poultry, eggs
major supplier of food products; / omelets
however, there is competition from Mid-Atlantic • Greater preference for fresh over frozen or canned products (e.g. meat, fish)
Mexico and Latin American countries. • Leaner, smaller cuts of meat preferred
• Fruit, sandwiches, vegetables, ready-to-eat cereal, salty snacks, salads, ice cream / frozen novelties
South • Price-conscious and less willing to pay a premium for organic and convenience foods
Atlantic • Prepared more meals made with frozen meats than fresh
• Consumers are demanding leaner, fresher meats
• Consumers are looking for products that are low in sodium, salt, cholesterol, and fat
East North • Consumers ate more frozen meals compared to the rest of US
Central • More likely to consume frozen finfish and shellfish than fresh seafood
• More likely to consume lean, fresh meats over frozen
• More organic meals consumed than the rest of US
• More organic beverages consumed than the rest of US
West South • Consumers value convenience and freshness; more likely to eat fresh meats and shellfish
Central • Canned vegetables were the most popular
• Organic products; products adapted to Hispanic tastes
(41) New England • Consumers preferred fresh over frozen and canned meals
• Consumed more shellfish; fresh, leaner and smaller cuts of meat preferred
• Willing to pay higher prices for organic products
For supporting data sets including a detailed overview of the • Older population presents opportunities in health and wellness products
top 3 Canadian exports by U.S region please see Appendix 1.
Mountain • Consumers prefer fresh foods over other forms except for frozen beef, sausages, and shellfish
• Sweet baked goods; favor purchasing food items to make fresh, quick-to-prepare meals

Conclusion

Calgar y’s position in the agribusiness sector is nuanced
Calgary is a critical node in Southern Alberta’s agribusiness sector with
unique attributes
Calgary’s role
In our review of Calgary’s position in Southern Alberta’s agribusiness sector, Calgary’s role in the agribusiness sector can be synthesized
into the following attributes:
• Knowledge cluster: Calgary’s role in the sector does not stop at being home to key manufacturers and producers. Calgary has an
opportunity to position itself as a center of excellence in best practices related to veterinary science, traceability, food innovation and
agri-technologies. Building notoriety of these capabilities would require coordination across industry and sustained marketing efforts
that highlight the research, analytical and scientific skill sets that bring farming to life.
• Hub in the meat processing and manufacturing industry: Calgary’s proximity to ‘feedlot alley’ and key manufacturers makes it the
heart of Canada’s eminent meat processing and production clusters. Linkages between cattle farmers, the meat industry and animal
genetics capabilities are very well developed.
• Location and distribution hub: Calgary’s airport and rail access are key assets to the agribusiness industry. For most producers
and manufacturers, rail and trucking routes are the most critical assets. For low volume, niche exporters, Calgary’s airport is an
important asset.
• Calgary’s innovation ecosystem in agribusiness is nascent: Establishing an innovation model in the agribusiness industry that ties
together established manufacturing and processing capabilities with academic and industry research is a key opportunity for Calgary,
given its ability to attract top research talent. New food product innovation, animal traceability and genetics and hardware capabilities
are areas in which Calgary’s existing talent base and consumers could grow capabilities.
• Export oriented: The Southern Alberta agribusiness sector is a net exporter. Generally, companies are productive than non-exporters.
Over the long-term exporters can drive job creation by growing their customer base abroad (Deloitte Future of Productivity,2014).
• The impact of multilateral trade deals: The sector is expected to grow and be a net recipient of future multilateral trade deals. In addition
to opening access to new customers, in the medium to long term, demand for supporting warehousing, distribution, transport and
management capabilities to facilitate exporting can be expected.
• Spin-off potential is very high: The agribusiness sector is a key customer of well developed nodes in Calgary’s economy (e.g.,
distribution and logistics, agribusiness and financial services, and marketing). As a result, growth in the sector could positively impact
demand for other services in and around Calgary

The time is now
To lead Calgary’s success in the sector, CED should work with
stakeholders to refine and expand the City’s reach
Goals need While Calgary’s value proposition in the agribusiness

industry has established strengths and emerging
to be set opportunities, Calgary has strong competitors that may
challenge segments of the industry in the years ahead.
For optimal success, CED should consider setting clear
goals for growth and/or development in the sector.
Grow Canada’s domestic market is small in comparison to opportunity in

Asia, Europe and North America. Fostering export relationships
global links and industry connections aboard are critical to the success of all
segments of the industry.
For many, Calgary’s leadership position in Alberta’s agribusiness

Spread the sector is not yet known. Growing Calgary’s public profile as a
center of talent, research, export success, product and innovation
word would be beneficial to the industry in the years ahead as it vies for
investment and skilled workers.

Further exploration of the agribusiness sector
The agribusiness sector is complex, and merits sustained research efforts
Additional research for CED to consider
• Benchmarking Calgar y’s position: Understanding Calgar y’s cost, logistical, talent and capabilities relative to key
competitors can enable CED to provide tangible examples of competitive advantages with prospective investors.
• Sur veys of the sector : The agribusiness sector is diverse, a sur vey distributed to specific sub-sectors and/or leaders across
the agribusiness value chain could provide up-to-date information to including but not limited to:
• The number of companies in and around Calgar y in specific sub-sectors;
• Average size, sales and/or employment foot print;
• Characteristics or attributes of companies not easily captured by NAICS codes (e.g., dedicated agri-technology
companies);
• Over view of supplier and customer segments (i.e., where typical customers are located, where specific inputs are sourced
from) and/or
• Identification of gaps or challenges the sector is facing (i.e., supply chain gaps, cost disadvantages).
• Understanding opportunities to transition oil and gas workers: As part of our work, we identified examples of talent profiles and
skill sets applicable in the oil and gas industr y that could be relevant and redeployed in the agribusiness sector. Further
discussions with the agribusiness sector to confirm and verify the viability of transitioning workers could enable CED to connect
local agribusinesses with available talent in the market place. This work could also inform local training, skills upgrading and
educational institutions on the needs of the agribusiness sector.

Appendix 1 – Supporting statistics

The import picture
Top 10 countries for Alberta’s imports
Key insights: Alberta’s Top 10 Import Markets in 2015 (Value in Thousands of CDN Dollars)
• In 2015, the total value of Alberta’s NAICS 311- Food Manufacturing (42)
imports to the top 10 markets was
$4.5 b for food manufacturing. 3,000,000
• The United States is the top import 2,511,538

market for Alberta’s food 2,500,000
manufacturing goods.
2,000,000
• NAICS 311 does not include all of the
priority sub-sectors (e.g. Agritech,
crop/animal science). 1,500,000
1,000,000
(42) 619,712
488,314
500,000
221,716190,525 236,072
107,682
35,996 28,582 27,853 23,476
0

The import picture
Top 10 countries for Canada’s imports
Canada’s Top 10 Import Markets in 2015 (Value in Thousands of CDN Dollars)
NAICS 11- Agriculture, Forestry, Fishing and Hunting (42)

9,000,000
8,000,000 7,666,284
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,413,929
2,000,000 1,509,194
1,000,000
399,293 391,241 358,036 313,331 310,656 256,382 233,736 224,765
0
United Mexico Colombia Guatemala Chile Poland China Peru Costa Rica Brazil Other
States
NAICS 11 does not include key CED priority sub-sectors such as agri-technologies.

The import picture
Top 10 countries for Alberta’s imports
Key insights Alberta’s Top 10 Import Markets in 2015 (Value in Thousands of CDN Dollars)
• In 2015, the total value of Alberta’s NAICS 3121- Beverage Manufacturing (42)
imports to the top 10 markets was
$90 b for beverage manufacturing. 70,000,000
64,116,071
• The United States is Alberta’s top 60,000,000

5,760,278
import market for beverage
manufacturing goods. 50,000,000 5,121,215
4,737,979
• NAICS 3121 does not include all of
40,000,000 2,396,192
the priority sub-sectors (e.g.
2,056,898
Agritech, crop/animal science).
30,000,000 988,570
933,113
20,000,000 789,100
(42)
754,919
10,000,000
3,100,613

Top 25 Alberta Imports HS4 Product Groups
HS4 Code – Product Group Value in Thousands of Canadian Dollars
2710 - Preparations Of/Non-Crude Petroleum Oils and Oils Obtained from

1951705.343
Bituminous Minerals
2711 - Liquefied Petroleum or Hydrocarbon Gases 1457484.997
8413 - Pumps For Liquids; Liquid Elevators 646858.235
8481 - Taps, Cocks, Valves and Similar Appliances For Pipes, Boiler Shells,
643063.949
Tanks, Vats and The Like
7304 - Tubes, Pipes and Hollow Profiles (Seamless) of Iron (Excl. Cast Iron) or
634936.681
Steel
8517 - Telephone Sets; Other Apparatus For Trans/Recep of
629302.906
Voice/Image/Data, O/T 84.43,85.25,85.27,85.28
8802 - Helicopters, Airplanes and Spacecraft 516554.683
2709 - Crude Petroleum Oils and Oils Obtained from Bituminous Minerals 469016.231
8431 - Parts Suitable For Machinery of Headings 84.25 To 84.30 431739.169
8471 - Adpm & Units,Magnetic/Optical Readers,Machine Transcribing Data To
415063.155
Media in Code & To Process, Nes
8421 - Centrifuges; Filtering or Purifying Machinery and Apparatus For Liquids
413322.123
or Gases
8429 - Self-Propelled Bulldozers, Scrapers, Graders, Levelers, Shovel Loaders,
359100.765
Taping Machines and The Lik
7306 - Other Tubes, Pipes and Hollow Profiles Nes of Iron or Steel 357372.66
8701 - Tractors 323323.327
8703 - Motor Vehicles For Passenger Transport (Other than Buses/Public
313628.624
Transport)
7307 - Tube or Pipe Fittings of Iron or Steel 306179.255
2204 - Grape Wines (Non Aromatic) and Grape Must 265596.647
9015 - Surveying, Hydrographic, Oceanographic, Meteorological or
252367.187
Geophysical Instruments
8704 - Trucks and Other Vehicles For The Transport of Goods 237414.621
4011 - New Pneumatic Tires of Rubber 235428.368
8411 - Turbo-Jets, Turbo-Propellers and Other Gas Turbines 219778.091
8207 - Interchangeable Tools Nes; Blow Lamps; Anvils, Portable Forges,
216735.139
Grinding Wheels and The Like
8479 - Machines and Mechanical Appliances Having Individual Functions, Nes 212680.605
8716 - Trailers and Other Wheeled Vehicles Nes 206416.908
2901 - Acyclic Hydrocarbons 194439.394
Sub-total 11909509.06
Others 13122639.53
Total (All Products) 25032148.59
© Deloitte LLP and affiliated entities. Source: Trade Data Online (accessed: October 11, 2016) Deloitte CED Phase 2 Report 75
Alberta Agri-Food Exports to Trans-Pacific Partnership Countries, 2006-2015
(44)

Indonesia’s Top 10 agri-food and seafood imports from Canada ranked in
export value
Indonesia's Top 10 Agri-food and Seafood HS6 Import from Canada Ranked in Export Value, 2014, In US$ Millions
Commodity Description 2010 2011 2012 2013 2014 %CAGR 2010-14

Source: Global Trade Atlas 2016
Harmonized System (HS)
Compound Annual Growth Rate (CAGR)
Not calculable (N/C)
100199 No-durum 0.00 0.00 389.46 545.91 466.17 N/C
wheat
230990 Animal feed 29.65 25.62 33.57 43.44 38.12 6.48

except dog or
cat food in
package
030614 Frozen crabs 6.95 12.25 13.37 16.85 19.82 29.93
040210 Skim milk 4.36 9.86 7.18 11.94 14.43 34.91

powder <= 1.5%
fat
120190 Soybeans 0.00 0.00 4.60 2.60 13.20 N/C
200410 Frozen fries 2.51 2.43 4.40 10.96 8.06 33.88
100830 Canary seeds 0.96 1.81 1.81 4.96 7.02 64.52
071310 Dried peas 0.35 1.14 3.76 1.85 5.09 95.86
070190 Fresh potatoes 5.13 7.43 5.76 12.72 3.63 -8.32

without seeds
030616 Frozen cold- 0.00 0.00 3.42 3.27 3.60 N/C

water shrimp
(45)

Global investment picture
China at a glance
Canada-China Agri-Food Trade (CDN$ million)
2013 2014 2015
Domestic Agri-Food Exports: 5,186.117 4,743.470 5,615.735
Agri-Food Imports: 727.669 804.819 946.931
Agri-Food Trade Balance: 4,458.448 3,938.651 4,668.803
(46)

Global investment picture
China at a glance
Canadian Top 5 Agri-Food Exports (CDN$ million)
2013 2014 2015
Domestic Agri-Food Exports: 5,186.117 4,743.470 5,615.735

Canola seeds, low erucic acid 1,772.083 2,285.512 2,045.109
Soybeans, other than seed for 434.124 301.347 588.363
sowing
Canola oil, low erucic acid, crude 1,001.004 467.706 545.046
Non-durum wheat, other than 274.673 105.885 333.455
seed for sowing
Peas, dried, shelled 400.299 303.779 314.248
(46)
Canadian Top 5 Agri-Food Imports (CDN$ million)
2013 2014 2015
Agri-Food Imports: 727.669 804.819 946.931

Dried vegetables and mixtures 28.954 31.550 38.677
Apple juice, unfermented 51.096 41.608 36.335
Prepared pasta 28.279 30.210 35.636
Sugar confectionery, no cocoa 29.486 28.844 32.562
Garlic, fresh or chilled 21.692 20.151 28.761
(46)
Export picture – Alberta / China trade relations
Alberta agri-food exports to China, 2006-2015
(44)

Key Chinese expenditure values by province
China’s consumer expenditure on food and non-alcoholic beverages by
province
(47)

Export picture – Alberta / United States trade relations
Alberta agri-food exports to United States, 2006-2015
(44)

Top Canadian exports by region: East South Central & West North
Central
Top Canadian agri-exports to East South Central Top Canadian agri-exports to West North Central,
region, 2011 (C$ million) 2011 (C$ million)
Commodity Value Commodity Value
Canola, colza oil and its fractions, low erucic 176.8 Canola seeds 360.3
acid, refined
Oats 260.1
Whiskies 66.3
Canola, colza oil and its fractions, low erucic 252.7
Food preparations, not elsewhere specified 51.9 acid, crude
Cereals, excluding maize (corn), in grain form 35.6 Durum wheat 124.2
or flake form, pre-cooked or otherwise
prepared, not elsewhere specified Bovine cuts boneless, fresh or chilled 97.2
Mixes and doughs for the prep of bakers' 31.9 Soya beans 92.7
wares of heading No 19.05, not elsewhere
Linseed, broken and unbroken 92.3
specified
Wheat, not elsewhere specified and meslin 83.2
Coffee, roasted, not decaffeinated 28.7
acid, refined
acid, crude
Cereal groats and meal, not elsewhere 34.4
Chewing gum containing sugar, except 26.2
specified
medicinal
Canola, colza oil and its fractions, other than 24.1 (41)
low erucic acid, crude

Top Canadian exports by region: Mid-Atlantic & South Atlantic
Top Canadian agri-exports to Mid-Atlantic region, Top Canadian agri-exports to South Atlantic region,
2011 (C$ million) 2011 (C$ million)
Canola, colza oil and its fractions, low erucic 193.3 Wheat not elsewhere specified and meslin 90.9
acid, refined
Food preparations, not elsewhere specified 87.3
Potatoes prepared or preserved other than by 179.9
vinegar or acetic acid, frozen Frozen Lobster and Shell 70.1
Sugar confectionery, not elsewhere specified 155.7 Sweet biscuits 59.1

(including white chocolate), not containing
cocoa
vinegar or acetic acid, frozen
Bovine cuts boneless, fresh or chilled 149.9
Swine cuts, fresh or chilled, not elsewhere 141.8 acid, refined
specified
Malt, not roasted 45.6
Communion wafers, empty cachets for pharm 137.5
Chocolate and other food preparations 38.3
use and similar product and bakers' wares, not
containing cocoa weighing more than 2 kg
elsewhere specified
Hams, shoulders and cuts thereof, of swine 35.8
Chocolate and other food preparations 129.5
bone in, fresh or chilled
containing cocoa, not elsewhere specified
Mixes and doughs for the preparation of 99.3 (41)

bakers' wares, not elsewhere specified
Beer made from malt 98.9

Top Canadian exports by region: East North Central & West South
Central
Top Canadian agri-exports to East North Central Top Canadian agri-exports to West South Central
region, 2011 (C$ million) region, 2011 (C$ million)
Canola, colza oil and its fractions, low erucic 244.5 anola, colza oil and its fractions, low erucic 115.2
acid, refined acid, refined
Communion wafers, empty cachets for 213.3 Canola, colza oil and its fractions, low erucic 100.7
pharmaceutical use and similar products and acid, crude
bakers' wares, not elsewhere specified
Canola, colza oil and its fractions, low erucic 176.9 vinegar or acetic acid, frozen
acid, crude
Food preparations, not elsewhere specified 173.3
Whiskies 29.5
Sweet biscuits 165.2
Soya beans 18.1
Swine cuts, fresh or chilled, not elsewhere 160.8
specified Waffles and wafers 17.3
Sugar confectionery, not elsewhere specified 156.4 Food preparations, not elsewhere specified 16.9
(including white chocolate), not containing
Bovine edible offal, fresh or chilled 16.1
cocoa

(41)
Tomatoes, fresh or chilled 127.2

Top Canadian exports by region: New England & Mountain
Top Canadian agri-exports to New England region, Top Canadian agri-exports to Mountain region, 2011
2011 (C$ million) (C$ million)
Chocolate and other food preparations 191.6 Swine cuts, fresh or chilled, not elsewhere 34.9
containing cocoa weighing more than 2 specified
kilograms
Lobster, not frozen 120.3 acid, refined
Frozen lobster and shell 55.5 Bovine cuts boneless, fresh or chilled 27.4
Maple sugar and maple syrup 50.6 Food preparations, not elsewhere specified 20.7
Potatoes prepared or preserved other than by 46.1 Chocolate and other food preparations 17.2
vinegar or acetic acid, frozen containing cocoa, not elsewhere specified
Maize (corn), not elsewhere specified 36.7 Potatoes prepared or preserved other than by 12.9
Swine cuts, fresh or chilled, not elsewhere 31.1
specified Peppers of the genus Capsicum or of the 11.9
genus Pimenta, fresh or chilled
Mushrooms, fresh or chilled 11.6
Crabs in shell, frozen 25.3
Whiskies 11.1
Lobster 24.4
(41)

Export picture – Alberta / Japan trade relations
Alberta agri-food exports to Japan, 2006-2015
(44)

Export picture – Alberta / Mexico trade relations
Alberta agri-food exports to Mexico, 2006-2015
(44)

Export picture – Alberta / South Korea trade relations
Alberta agri-food exports to South Korea, 2006-2015
(44)

Appendix 2: List of stakeholders
consulted

List of stakeholders consulted
Name Organization
Dr. David Chalack Alta Genetics
James Thangaraj Innovate Calgary
Mark Carlson Verdex Capital
Connie Harder AgCall HR
Gordon Cove Alberta Livestock and Meat Agency Limited
Ted Bilyea Canadian Agri-Food Policy Institute
Ed Knash AFSC
Ken Gossen & Dan Alberta Agribusiness Incubator

Graham
Garth Hodges Bayer Crop Sciences
Bryan Walton Alberta Cattle Feeders Association
Kim McConnell ADfarm Online
Dr. Roger L Davis Davis Rairdan International

Appendix 3: References – Phase 2

1. Butler, E., Grant, M. (2013). Funding Food: Food and Capital Markets in Canada. Centre for Food Canada
– The Conference Board of Canada. http://www.conferenceboard.ca/cfic/research/2013/fundingfood.aspx
2. Agriculture Statistics Factsheet. (2016). Government of Alberta.

http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/sdd12807/$file/AgStats2016_853.pdf?OpenE
lement
3. Annual Reports. (2016). Credit Unions of Alberta. https://www.albertacentral.com/Who-is-Alberta-

Central/Our-Publications/Annual-Reports/
4. AgTech Mid-Year Investing Report – 2016. (2016). AgFunder. https://agfunder.com/research/agtech-

investing-report-midyear-2016
5. Table 376-0052: International investment position, Canadian direct investment abroad and foreign direct
investment in Canada, by North American Industry Classification System (NAICS) and region. (2016).
Statistics Canada. Government of Canada.
http://www5.statcan.gc.ca/cansim/a26?lang=eng&id=3760052
6. Alberta Agri-Food Industries Data and Trends. (2016). Alberta Agriculture and Forestry, Economics and
Competitiveness Branch. Government of Alberta. http://open.alberta.ca/dataset/50025329-a528-441b-
b78c-2e996b896d96/resource/75595194-c38d-4c4f-ac64-
da4a892e6266/download/agrifooddatatrendsjuly2016.pdf
7. Export Agriculture and Food Products from Alberta. (2016). Agriculture and Forestry. Government of
Alberta. http://www1.agric.gov.ab.ca/$Department/deptdocs.nsf/all/trade14247
8. Alberta Agri-Food Exports, 2006-2015. (2016). Agriculture and Forestry. Government of Alberta.
http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/sdd16029
9. India – At a Glance. (2016). Agriculture and Agri-Food Canada. Government of Canada.

http://www.agr.gc.ca/eng/industry-markets-and-trade/statistics-and-market-information/agriculture-
and-food-market-information-by-region/asia/trade-data-and-analysis/india/?id=1410072148240
10.Europe – Alberta Agriculture Highlights. (2015). Alberta Agriculture and Forestry. Government of Alberta.
http://www1.agric.gov.ab.ca/$Department/deptdocs.nsf/all/trade11209/$FILE/ag_europe_2015_final.pdf
11.Canadian International Merchandise Trade Database. (2016). Statistics Canada. Government of Canada.
http://www5.statcan.gc.ca/cimt-cicm/home-accueil?lang=eng
12.Trans-Pacific Partnership (TPP). (2016). Global Affairs Canada. Government of Canada.

http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/tpp-
ptp/index.aspx?lang=eng
13.CETA: A progressive trade agreement for a strong middle class. (2016). Government of Canada.
http://www.international.gc.ca/gac-amc/campaign-campagne/ceta-aecg/index.aspx?lang=eng
14.Resilient: 2015 Annual Report. (2016). Canola Council of Canada.

http://www.canolacouncil.org/media/575447/ccc_2015_resilient.pdf
15.Economic Trends: Alberta economy sustains momentum. (2014). Treasury Board and Finance.
Economics, Demography and Public Finance. http://open.alberta.ca/dataset/188558e3-185c-4145-a617-
bbe3730223b9/resource/d8656314-8888-490e-b5d0-67cb2a4090e6/download/5874657-2014-05-
Economic-Trends.pdf.
16.Forging Stronger Links: Traceability and the Canadian Food Supply Chain. (2012). Trade, Investment
Policy and International Cooperation. Centre for Food in Canada.
http://www.gftc.ca/uploads/userfiles/files/13-087_foodtraceability.pdf
17. About the Industry: Agri-Food. (2016). Business in Alberta. Government of Alberta.
http://www.albertacanada.com/business/industries/agrifood-about-the-industry.aspx
18.Healing, D. (2016). Cattle feeders in heart of Canada’s industry say tax threatens survival. CBC News.
http://www.cbc.ca/news/canada/calgary/southern-alberta-feedlot-alley-tax-threat-1.3781221
19. Albert Small Brewers Development (ASBD) Program – Terms and Conditions. (2016). Government of
Alberta. http://www1.agric.gov.ab.ca/general/progserv.nsf/all/pgmsrv457/$file/absd-terms-Conditions-
Schedules-a-b-c_2016.pdf?OpenElement
20. Employing a Diverse Workforce: Making it work. (2008). Human Resource Strategies for Employers.
Government of Alberta. https://www.albertacanada.com/files/albertacanada/employdiverse.pdf
21.Pre-Budget 2016 Consultation. (2016). Canadian Federation of Agriculture.

http://www.parl.gc.ca/Content/HOC/Committee/421/FINA/Brief/BR8092652/br-
external/CanadianFederationOfAgriculture-e.pdf
22.DePratto, B., Fillier, N. (2016). Push Me Pull Me: The Outlook for Canadian Manufacturing. TD Economics.
https://www.td.com/document/PDF/economics/special/MfgPushMePullMe2016.pdf
23. Investing in Canadian Agriculture: Why It Makes Sense. (n.d.). Bonnefield Financial Inc.
http://bonnefield.com/uploads/pdfs/Investing%20in%20Canadian%20Agriculture.pdf
24.Ignjatovic, D. (2015). Canadian Agriculture Sector: Prices Down, But Loonie Providing Some Offset. TD
Economics. https://www.td.com/document/PDF/economics/special/Canadian_Agriculture.pdf

Endnote – Phase 2
25. Kidney, D. (2001). Agri-tourism: Rural Festivals and Special Events. Ag-Ventures. Alberta Agriculture, Food and
Rural Development. http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/agdex1364/$file/888-
3.pdf?OpenElement
26. Hui, A. (2016). How the Food Industry is Using Canadian’s Changing Eating Habits to Market to Different
Generations. The Globe and Mail. http://www.theglobeandmail.com/news/national/how-the-food-industry-is-using-
canadians-changing-eating-habits-to-market-to-different-generations/article32316327/
27. Competing in the World’s No. 1 Emerging Market. (2015). Chinese Food Retailers, Consumers and Canadian Food
Exports. The Canadian Agri-Food Policy Institute. http://www.capi-icpa.ca/pdfs/2015/CAPI_ChinaReport_ENG.pdf
28. Gervais, J.P., Roberts, M. (2016). China or India: Who’ll be bigger for Canadian exports?. Farm Credit Canada.
https://www.fcc-fac.ca/en/ag-knowledge/ag-economist/china-or-india-who-will-be-bigger-for-canadian-
exports.html
29. Consumer and Retail Trends in China. (2014). Agriculture and Agri-Food Canada. Government of Canada.
http://www.agr.gc.ca/eng/industry-markets-and-trade/statistics-and-market-information/agriculture-and-food-
market-information-by-region/asia/market-intelligence/consumer-and-retail-trends-in-china/?id=1421864821481
30. Agricultural Commodities: Indonesia Highly Dependent on Soybean Imports. (2015). Indonesia Investments.
http://www.indonesia-investments.com/id/news/todays-headlines/agricultural-commodities-indonesia-highly-
dependent-on-soybean-imports/item6274?
31. India – Alberta Agriculture Highlights. (2016). Alberta Agriculture and Forestry. Government of Alberta.
http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/trade13644/$FILE/ag_india_jul2016.pdf
32. Mexico – Alberta Relations. (2016). Alberta Agriculture and Forestry. Government of Alberta.
http://economic.alberta.ca/documents/Mexico-AB.pdf

Endnote – Phase 2
33. Market opportunities for Canada in Mexican states. (2013). Agriculture and Agri-Food Canada. Government of
Canada. http://www.agr.gc.ca/eng/industry-markets-and-trade/statistics-and-market-information/agriculture-
and-food-market-information-by-region/united-states-and-mexico/market-intelligence/market-opportunities-for-
canada-in-mexican-states/?id=1410083148559
34. Japan – Alberta Agriculture Highlights. (2016). Alberta Agriculture and Forestry. Government of Alberta.
http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/trade11307/$FILE/ag_japan_nov2016.pdf
35. South Korea – Alberta Relations. (2016). Alberta Agriculture and Forestry. Government of Alberta.
http://economic.alberta.ca/documents/Korea-AB.pdf
36. Market Overview – Brazil. (2016). Agriculture and Agri-Food Canada. Government of Canada.
market-information-by-region/latin-america-and-the-caribbean/market-intelligence/market-overview-
brazil/?id=1477421182357
37. Europe – Alberta Agriculture Highlights. (2015). Alberta Agriculture and Forestry. Government of Alberta.
http://www1.agric.gov.ab.ca/$Department/deptdocs.nsf/all/trade11209/$FILE/ag_europe_2015_final.pdf
38. United States – Alberta Agriculture Highlights. (2016). Alberta Agriculture and Forestry. Government of Alberta.
http://www1.agric.gov.ab.ca/$Department/deptdocs.nsf/all/trade11412/$FILE/ag_united_states_nov1_2016.pdf
39. A Strong Partnership in Agriculture. (2016). Agriculture and Agri-Food Canada. Government of Canada.
http://www.agr.gc.ca/resources/prod/Internet-Internet/MISB-DGSIM/ATS-SEA/PDF/5777-eng.pdf
40. Watson, E. (2016). Enjoy Life Foods: The US gluten-free market is still growing in excess of 25% year-on-year.
Food Navigator. http://www.foodnavigator-usa.com/Markets/Enjoy-Life-Foods-explores-US-gluten-free-market-
trends

41. American Eating Trends. (2012). Agriculture and Agri-Food Canada. Government of Canada.
market-information-by-region/united-states-and-mexico/market-intelligence/by-market/?id=1453917274849
42. Search by industry (NAICS Codes). (2016). Trade Data Online. Government of Canada.
https://www.ic.gc.ca/app/scr/tdst/tdo/crtr.html?&productType=NAICS&lang=eng
43. Search by product (HS Code). (2016). Trade Data Online. Government of Canada.
https://www.ic.gc.ca/app/scr/tdst/tdo/crtr.html?&productType=HS6&lang=eng
44. Highlights on Alberta Agri-Food Exports in 2015. (2016). Government of Alberta.

http://www1.agric.gov.ab.ca/$Department/deptdocs.nsf/all/sdd16029/$FILE/2006-2015AlbertaExpReport.pdf
45. Foodservice Profile – Indonesia. (2016). Agriculture and Agri-Food Canada. Government of Canada.
market-information-by-region/asia/market-intelligence/foodservice-profile-indonesia/?id=1468950411582
46. China – At a Glance. (2016). Agriculture and Agri-Food Canada. Government of Canada.
market-information-by-region/asia/trade-data-and-analysis/china/?id=1410072148234
47. Consumer Profile – China. (2014). Agriculture and Agri-Food Canada. Government of Canada.
market-information-by-region/asia/market-intelligence/consumer-profile-china/?id=1415982366546

41. American Eating Trends. (2012). Agriculture and Agri-Food Canada. Government of Canada.
market-information-by-region/united-states-and-mexico/market-intelligence/by-market/?id=1453917274849
42. Search by industry (NAICS Codes). (2016). Trade Data Online. Government of Canada.
https://www.ic.gc.ca/app/scr/tdst/tdo/crtr.html?&productType=NAICS&lang=eng
43. Search by product (HS Code). (2016). Trade Data Online. Government of Canada.
https://www.ic.gc.ca/app/scr/tdst/tdo/crtr.html?&productType=HS6&lang=eng
44. Highlights on Alberta Agri-Food Exports in 2015. (2016). Government of Alberta.

http://www1.agric.gov.ab.ca/$Department/deptdocs.nsf/all/sdd16029/$FILE/2006-2015AlbertaExpReport.pdf
45. Foodservice Profile – Indonesia. (2016). Agriculture and Agri-Food Canada. Government of Canada.
market-information-by-region/asia/market-intelligence/foodservice-profile-indonesia/?id=1468950411582
46. China – At a Glance. (2016). Agriculture and Agri-Food Canada. Government of Canada.
market-information-by-region/asia/trade-data-and-analysis/china/?id=1410072148234
47. Consumer Profile – China. (2014). Agriculture and Agri-Food Canada. Government of Canada.
market-information-by-region/asia/market-intelligence/consumer-profile-china/?id=1415982366546
41.2015 Canadian Venture Capital Market Overview. Canadian Venture Capital & Private Equity Association
https://www.cvca.ca/wp-content/uploads/2016/04/Venture-Capital-2015-Report_REV-Apr-2016.pdf
56. Export Agriculture and Food Products from Alberta. Alberta Ministry of Agriculture and Forestry.
http://www1.agric.gov.ab.ca/$Department/deptdocs.nsf/all/trade14247
57. Foodservice Profile – Indonesia. July 2016. Agriculture and Agri-Food Canada. http://www.agr.gc.ca/eng/industry-
markets-and-trade/statistics-and-market-information/agriculture-and-food-market-information-by-
region/asia/market-intelligence/foodservice-profile-indonesia/?id=1468950411582
58. Beef industry celebrates ‘symbolic’ re-opening of Mexican market. CBC News.
http://www.cbc.ca/news/politics/beef-canada-mexico-reopen-1.3656466
59. Consumer Trends- Pet Food in Brazil. Agriculture and Agri-Food Canada. http://www.agr.gc.ca/eng/industry-
markets-and-trade/statistics-and-market-information/agriculture-and-food-market-information-by-region/latin-
america-and-the-caribbean/market-intelligence/consumer-trends-pet-food-in-brazil/?id=1410083148782
60. Doing Business in Europe. Agriculture and Agri-Food Canada. http://www.agr.gc.ca/eng/industry-markets-and-

trade/statistics-and-market-information/agriculture-and-food-market-information-by-
region/europe/?id=1410083148560
61. Alberta business profile – Netherlands. Government of Alberta.

http://www.albertacanada.com/business/export/netherlands.aspx

Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting,
and financial advisory services. Deloitte LLP, an Ontario limited liability partnership, is the
Canadian member firm of Deloitte Touche Tohmatsu Limited.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited
by guarantee, and its network of member firms, each of which is a legally separate and independent
entity. Please see www.deloitte.com/about for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms.
The information contained herein is not intended to substitute for competent professional advice.

Agribusiness Value Chain Study

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Agribusiness Value Chain Study

Transféré par

Droits d'auteur :

Formats disponibles

Agribusiness Value Chain Study

Calgary Economic Development

3 Background and methodology

76 Appendix C: Selected Research and Educational Assets

87 Appendix D: Supplementary Employment Data

© Deloitte LLP and affiliated entities.

© Deloitte LLP and affiliated entities. CED Phase 1 Report 3

The key phases of this project include:

© Deloitte LLP and affiliated entities. CED Phase 1 Report 4

Key research sources reviewed in this stage included:

• Government of Alberta (Alberta Agriculture and Forestry)

Priority Subsector Scoring Framework

© Deloitte LLP and affiliated entities. CED Phase 1 Report 6

Value-added food Beverage manufacturing Crop sciences and

© Deloitte LLP and affiliated entities. CED Phase 1 Report 7

Export success Food and beverage manufacturers are seeking to

© Deloitte LLP and affiliated entities. CED Phase 1 Report 9

Diversified strength Export success National leader in livestock

© Deloitte LLP and affiliated entities. CED Phase 1 Report 10

Specialized skills and training

Crop Southern Alberta Production % of Province Alberta Production

© Deloitte LLP and affiliated entities. CED Phase 1 Report 12

© Deloitte LLP and affiliated entities. CED Phase 1 Report 13

© Deloitte LLP and affiliated entities. CED Phase 1 Report 14

© Deloitte LLP and affiliated entities. CED Phase 1 Report 15

Selecting priority verticals Identifying examples of success

© Deloitte LLP and affiliated entities. CED Phase 1 Report 16

Key stats Key products and services

© Deloitte LLP and affiliated entities. CED Phase 1 Report 18

© Deloitte LLP and affiliated entities. CED Phase 1 Report 19

Niche meat processing companies Established anchor companies

© Deloitte LLP and affiliated entities. CED Phase 1 Report 20

© Deloitte LLP and affiliated entities. CED Phase 1 Report 21

Pulse crop activity in and around Calgary

© Deloitte LLP and affiliated entities. CED Phase 1 Report 22

Key insights from stakeholders

Examples of key training / educational assets

Brew Master and Brewery Operations Management

Food and Beverage Leadership Certificate of Achievement

© Deloitte LLP and affiliated entities. CED Phase 1 Report 23

© Deloitte LLP and affiliated entities. CED Phase 1 Report 24

Baby Gourmet is a Calgary based baby Foothill Creamery produces dairy

Elite International Foods is the western InovoBiologic Inc. provides solutions, as

© Deloitte LLP and affiliated entities. CED Phase 1 Report 25

Food safety requirements Packaging and labeling

Provincial license / inspection CFIA Organic products regulations

Canada’s Livestock Transportation

Examples of key training / educational assets

© Deloitte LLP and affiliated entities. CED Phase 1 Report 28

© Deloitte LLP and affiliated entities.

Key stats Key products and services

© Deloitte LLP and affiliated entities. CED Phase 1 Report 30

• Rapid growth in niche beer:

• Distribution and feedstock advantages: beverage processing:

© Deloitte LLP and affiliated entities. CED Phase 1 Report 31

Established micro-brewery in Calgary since 1996

Calgary-based microbrewery set to launch in

© Deloitte LLP and affiliated entities. CED Phase 1 Report 32

© Deloitte LLP and affiliated entities. CED Phase 1 Report 33

Innovative activities in Calgary

Flora Beverage Company Ltd. (Calgary, AB)

Lassonde Western Canada

Food safety requirements Alberta gaming and liquor commission

Fire and building codes ‘Soda Tax’