Ethnocultural Vegetables in Canada Part I
The purpose of this document is to outline an opportunity for Canadian farmers to satisfy the unmet produce demand of ethnic Canadian consumers. Currently, growers’ costs are increasing while their returns are flat or decreasing. In order to remain profitable they must find new ways of diversification. An increasing volume of fruits and vegetables are being imported into Canada each year, corresponding with the rising ethnic population. Last year (2010), the dollar volume of these imports reached $800 million (Bilal, 2011). Some of the vegetables being imported can be grown in Ontario, which is where the opportunity lies. If Canadian…
Purpose The purpose of this document is to outline the opportunity for Canadian farmers to satisfy the current unmet produce demand of ethnic Canadian consumers. Currently, growers’ costs are increasing while their returns are flat or decreasing, In order to remain profitable they must find new ways of diversification. An increasing volume of fruits and vegetables are being imported into Canada each year, corresponding with the rising ethnic population. Last year (2010), the dollar volume of these imports reached $800 million (Bilal, 2011). Some of the vegetables being imported can be grown in Ontario, which is where the opportunity lies.…
Competitors Ontario offers the best suited climate for vegetable production within Canada (Agri-Food Canada, 2009). Therefore farmers who are producing for the GTA region have a significant advantage over that of other Canadian provinces. The grpah to the left shows the vegetable production in Canada broken down by the value each province produces. It can be seen then that Ontario’s only major competitor able to deliver fresh vegetables to the GTA region is Quebec. Currently Canada’s largest region for importing fruits and vegetables is form the United States. In 2008 it accounted for 1,402,000 tonnes of fresh produce and constituted…
The sales of vegetables within Canada remain relatively constant year round. As a commodity item they are demanded regardless of seasonality for people’s health and wellbeing. An issue that Canada has with the production of ethnocultural vegetables is the dependence on warm weather for growth. Growing seasons vary slightly among different products; however June until November is the best time for outdoor production (Foodland Ontario, 2010). This leads to an issue of year round supply which may be resolved by cold storage of vegetables in green houses. Greenhouses, however, increase the price of the good due to their costly capital…
Customer Demographics Chinese Canadian demographics are outlines in the charts below. Highlights are as follows (Ipsos Reid, 2007):
The ability to grow vegetables within Canada presents several advantages for both production quality as well as market opportunities. Farmers able to capitalize on this demographic shift will be tapping into a previously overlooked gap in the market. While these vegetables originate from Indian and China they are currently being grown in the Dominican Republic and imported to retail chains in North America (Smith, 2011). Outlined below are the benefits associated with growing local as well as the threats that farmers must overcome in order for successful implementation.
Canadian vegetable markets are dominated by established retail chains, which are able to leverage brand recognition as bargaining power. These companies, such as Loblaw Companies Limited, Metro and Safeway act as the largest means for barriers to entry within this category.
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