dollars & sense: digging into local food opportunities (part 1)

Funder collaboration for sustainable food systems

• Increase market access for farmers & fishers

• Build and improve supply chains

• Protect prime farmland and help new producers

• Raise public awareness about sustainably producedfood

• Influence public policy

Objectives:

• Better understand economic and environmental impacts of regional foodsystems

• Assess impact of increased regional foodproduction on larger food system

Research Team:

• Dr. Atif Kubursi (Econometrics Research, McMaster University)

• Dr. Harry Cummings (University of Guelph)

• Dr. Rod MacRae (York University)

• Dr. Pavlos Kanaroglou (Econometrics Research, MacMaster University)

Revision:

• Dr. John Groenewegen (JRG Consulting)

…the potential for local food systems to build healthyeconomies, protect the environment and strengthensocial fabrics is far from being fulfilled.

The report makes the case for investing in the development of regional food systems and providingthe supportive regulatory environment, infrastructure, and distribution networks required for these systems to flourish.

Report Research & Scenarios

Atif Kurbursi

Econometrics Research

McMaster University

FOOD SYSTEM MAKES AN IMPORTANT CONTRIBUTION TO ONTARIO’S ECONOMY

• Spending by farmers on resources and spending by these resource suppliers through the multiplier effect result in $29.3 billion in economic activity across the province.

• This gross value of farm production creates 214,000full-time-equivalent (FTE) jobs in Ontario.

• It sustains provincial value added or gross domestic product (GDP) of $15.1 billion.

• All levels of government benefit from this economic activity, which creates $4.4 billion in tax revenues.

Ontario Gross Domestic Product for the Agri-Food Sector

Other Manufacturing Industries Related to Agriculture

Overview of the Ontario Agri-Food Sector, 2012

Food and Fibre Sector Indicators

FOOD SYSTEM HAS ENVIRONMENTAL IMPACTS I

• The production of food, from crop and animal agriculture, through food processing and manufacturing, has an impact on the environment.

• To gauge this, the study applied a series of indicators tied to the economic impact of farming and food manufacturing, including the multiplier effect.

• The indicators are: water demand/balances, air emissions/pollutants, energy demands, greenhouse gases (GHG), solid waste, contaminants, and green GDP.

FOOD SYSTEM HAS ENVIRONMENTAL IMPACTS II

• As part of the environmental analysis, the study specifically focused on traffic pollutant emissions to estimate the environmental impact from transporting agricultural products — and how changes in the food system might affect this.

• The movement of cereals — mainly fromSouthwestern Ontario — accounts for more than 80% of the transportation-related emissions due to agriculture.

REPLACING FOOD IMPORTS

SHIFTING TO AN OPTIMAL FOOD DIET

TRANSITIONING TO ORGANIC PRODUCTION

TRADE IN AGRICULTURAL AND FOOD PRODUCTS

• Ontario has a large food production base. However, after considering exports (e.g., live animals, soybeans, greenhouse tomatoes) and imports (e.g., meat products, tropical fruits) to satisfy the food needs of Ontarians, the value of imports exceeds exports by a wide margin.

• In 2012, imports (at $19.8 billion) were almost twice as large as exports (at $10.8 billion), leaving a trade deficit of $9 billion.

AGRICULTURAL OPPORTUNITIES IN ONTARIO I

• Over 50% of the $20 billion in imported food products can be produced in Ontario.

• In tomatoes, Southern Ontario’s surplus is due primarily to the greenhouse vegetable industry in Essex County.

• Overall, Southern Ontario is self-sufficient in carrots.

• Southern Ontario runs a large deficit in potatoes, with 412,000 tonnes —more than half of consumption —coming from out-of-province suppliers

AGRICULTURAL OPPORTUNITIES IN ONTARIO II

• Southern Ontario has deficits in beef, lamb and chicken, and surpluses in pork, turkey and eggs.

• Southern Ontario produces enough grain and oilseed crops for human consumption requirements.