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T.O. and the OFT

This city and market make an unbeatable team
TO and the OFT

As Ontario consumers are looking for quick ways to prepare healthy meals, fresh-cut items also continues to grow in popularity. “At Pride Pak Canada all the rage right now is our extensive collection of salads and vegetable mixes that appeal to a wide range of consumers with diverse tastes,” points out Chapman. “We cater to the quick on-the-go shopper and to the at-home gourmet chef with our trendy soup mixes, cut and cleaned rappini, diced vegetables as recipe starters, Asian coleslaw, and fajita mixes.”

Chapman says the company has also seen higher demand for ready-to-eat single serve-fruits. “Consumers want healthier choices, and we foresee a growing trend towards snack options for both adults and children that are portion-controlled servings of a wide variety of fresh-cut fruits.”

CHANGING OF THE GUARD

Ian MacKenzie Retires
With the Ontario Produce Marketing Association since 1994, we asked MacKenzie to talk about his 20-year career: My experience in the produce industry has been very rewarding because of the people I’ve met and the friends I’ve made. There is always something new you can learn in this industry—whether it be new technology being used to grow, store, and market produce or the innovative ways fruits and vegetables are merchandised at retail. It has also been very fulfilling.

I like to think I’m a problem solver, and it’s always very satisfying when you’re able to sort through a problem and come up with a successful ending. Sometimes you have to be satisfied with a compromising solution, but as long as you come up with something to ‘put the issue to bed,’ you can move on.

Although I definitely have no regrets, there were some disappointments during my career: such as not being able to help conclude work started by the Fresh Produce Alliance in the areas of Canada/U.S. grade standardization, collection of more accurate market information for the Canadian industry, and the establishment of PACA-like trust provisions here in Canada.

If you had to choose three words to describe your career, what would they be? Cooperate, collaborate, and care—in other words, “cooperate” as much as you possibly can with your colleagues and members and urge cooperation up and down the supply chain to ensure the viability of all involved. “Collaborate” rather than duplicate: I’m a big proponent of collaboration; the industry is just too big to go it alone. You need partners. And “care” about the decisions you make and those you can influence so the industry can continue to thrive and sustain itself.

The Ontario Produce HUB
In the center of Toronto, the Ontario Food Terminal (OFT) moves more than a million tons of produce and horticultural products each and every year. Nearly half of the fruits and vegetables sold at the OFT are Ontario-grown—the rest is grown in other provinces or imported from the United States, Mexico, and other countries.

A long-standing supporter of locally grown produce, the OFT houses both wholesalers and local farmers. The Terminal also happens to be the only wholesale fresh produce market in Canada and offers countless advantages to its wholesalers. “The OFT is unique in that it is strictly wholesale, and buyers must register to gain entry,” says Bruce Nicholas, general manager, secretary, and treasurer of the OFT. “Because we’re in the heart of the city, we can serve most of Ontario with produce going as far as Newfoundland from this market.”

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Toronto (known simply as “T.O.” to locals) remains a critical cornerstone of Canada’s fresh produce industry. The fourth largest city in North America with 2.8 million residents, Toronto is both the business and financial capital of Ontario, which is already recognized as a North American agricultural powerhouse.

Ontario’s growing population is one of the driving forces behind the province’s ever-expanding agriculture industry. In 2015, Toronto’s metro population skyrocketed to more than 6 million according to Statistics Canada. The primary reason for this unprecedented growth was a surge in immigrants from countries around the world.

Feeding a Diverse Population
The province’s fruit and vegetable growers, importers, and wholesalers continually serve up an evolving assortment of fruits and vegetables—from conventional products like corn, apples, grapes, peas, and tomatoes to exotic fruits such as mangos, figs, and rambutan, as well as a growing list of specialty ethnic vegetables including Chinese cabbage, callaloo, yard-long beans, Indian eggplant, and Chinese hot peppers.

Julian Sarraino, vice president of marketing and sales with Fresh Taste Produce Ltd. Canada, an importer and distributor at the Ontario Food Terminal, confirms an increase in tropical fruit imports in Ontario.

On the vegetable side, Sam Thakker, sales manager with Los Angeles-based Daaks International, Inc., says okra is exploding in popularity throughout Eastern Canada. “Toronto has a growing immigrant population, so we’re seeing a huge demand for ethnic produce in the area. Many of these immigrants are bringing their grandparents with them, and they still want their native cuisine,” he explains.

To boost produce sales and meet the demands of Ontario’s growing ethnic population, Thakker says superstores and discounters need to widen their horizons and offer okra and other ethnic produce staples. “Consumers from the Caribbean to the Middle East, China, Japan, India, and Thailand—everybody eats okra.”

Ontario’s expanding immigrant population prompted a Vineland Research and University of Guelph study in 2014. The project involves ‘world crop’ trials (formerly called ethno-cultural vegetables) including okra, sweet potatoes, and Asian Long and Indian round eggplant.

“Our goal is to come up with a product that new Canadians will look at in the store and say, ‘Yes, that looks like something we were consuming back home,’ and buy it,” explained Dr. Michael Brownbridge, research director for Vineland Research. Brownbridge said they are very excited to see what will happen with the trial crops.

Organics & Locally Grown
In addition to an increase in ethnic fruits and vegetables, the Ontario produce industry has also seen an uptick in organics. “Organic sales continue to increase,” confirms Ian MacKenzie, outgoing president of the Ontario Produce Marketing Association (his replacement, Virginia Zimm, takes over in January). However, he points out that it’s hard to tell whether the trend is due to an increase in consumer interest for organic produce or steadily decreasing prices. “Supplies of organics have increased to the point that prices are coming down to be more in line with conventionally grown produce,” he explains.

ONTARIO FOOD TERMINAL MARKET STATS

Address: 
165 The Queensway
Toronto, Ontario M8Y 1H8
Phone: 416-259-5479
Email: info@oftb.com

Established: 1954

Hours:
Monday – Saturday: 4 am to 2 pm
Sunday: 6 am to 11 am
Deliveries accepted 24/7

Size:
40 acres (1.74 million square feet)

Cold Storage Space:
100,000 square feet of commercial cold storage

Number of Tenants:
21 warehouse tenants, 40 office tenants and
350 farmers’ market tenants

Wholesale Buyers:
More than 5,000 registered wholesale buyers

Farmers’ Market:
8 acres and 550 stalls
Open Saturdays, May through October

Parking:
4 acres with space for 575 cars

 “Forward-thinking retailers have a big interest in organics,” asserts Robert Chapman, vice president of sales and marketing with Pride Pak Canada Ltd. in Mississauga, Ontario. “The organic section in most supermarkets is increasing in size year over year.”

Consumer demand for locally grown produce has also skyrocketed in Ontario. “There is no stopping the interest in locally grown produce,” MacKenzie says. “Consumers prefer to buy local when they can, at reasonable prices, because they feel more comfortable knowing the produce came from the local growing area.”

As Ontario consumers are looking for quick ways to prepare healthy meals, fresh-cut items also continues to grow in popularity. “At Pride Pak Canada all the rage right now is our extensive collection of salads and vegetable mixes that appeal to a wide range of consumers with diverse tastes,” points out Chapman. “We cater to the quick on-the-go shopper and to the at-home gourmet chef with our trendy soup mixes, cut and cleaned rappini, diced vegetables as recipe starters, Asian coleslaw, and fajita mixes.”

Chapman says the company has also seen higher demand for ready-to-eat single serve-fruits. “Consumers want healthier choices, and we foresee a growing trend towards snack options for both adults and children that are portion-controlled servings of a wide variety of fresh-cut fruits.”

CHANGING OF THE GUARD

Ian MacKenzie Retires
With the Ontario Produce Marketing Association since 1994, we asked MacKenzie to talk about his 20-year career: My experience in the produce industry has been very rewarding because of the people I’ve met and the friends I’ve made. There is always something new you can learn in this industry—whether it be new technology being used to grow, store, and market produce or the innovative ways fruits and vegetables are merchandised at retail. It has also been very fulfilling.

I like to think I’m a problem solver, and it’s always very satisfying when you’re able to sort through a problem and come up with a successful ending. Sometimes you have to be satisfied with a compromising solution, but as long as you come up with something to ‘put the issue to bed,’ you can move on.

Although I definitely have no regrets, there were some disappointments during my career: such as not being able to help conclude work started by the Fresh Produce Alliance in the areas of Canada/U.S. grade standardization, collection of more accurate market information for the Canadian industry, and the establishment of PACA-like trust provisions here in Canada.

If you had to choose three words to describe your career, what would they be? Cooperate, collaborate, and care—in other words, “cooperate” as much as you possibly can with your colleagues and members and urge cooperation up and down the supply chain to ensure the viability of all involved. “Collaborate” rather than duplicate: I’m a big proponent of collaboration; the industry is just too big to go it alone. You need partners. And “care” about the decisions you make and those you can influence so the industry can continue to thrive and sustain itself.

The Ontario Produce HUB
In the center of Toronto, the Ontario Food Terminal (OFT) moves more than a million tons of produce and horticultural products each and every year. Nearly half of the fruits and vegetables sold at the OFT are Ontario-grown—the rest is grown in other provinces or imported from the United States, Mexico, and other countries.

A long-standing supporter of locally grown produce, the OFT houses both wholesalers and local farmers. The Terminal also happens to be the only wholesale fresh produce market in Canada and offers countless advantages to its wholesalers. “The OFT is unique in that it is strictly wholesale, and buyers must register to gain entry,” says Bruce Nicholas, general manager, secretary, and treasurer of the OFT. “Because we’re in the heart of the city, we can serve most of Ontario with produce going as far as Newfoundland from this market.”

Another benefit is the ongoing improvements and expansion. Over the past year, the OFT has undergone some major renovations, including a $5 million project to enclose the terminal’s docks with sliding glass doors, cover the center buyers’ court area, build a walking bridge between the two main buildings, and install additional security cameras and a card-access system.

Challenges & Obstacles
Although the Ontario produce trade enjoys numerous advantages, the industry is certainly not immune to challenges. For example, MacKenzie says many produce professionals throughout the province are struggling to establish strong food safety programs or tweak their existing programs. “These programs are not cheap to establish or maintain,” he says. “But there isn’t one produce person who would say they’re not necessary to maintain a safe food supply and the excellent reputation fresh produce has in the minds of consumers.”

In addition to food safety challenges, the industry has also experienced a shortage in long distance drivers. “Many of our fleet carriers are having a difficult time finding qualified and capable personnel,” remarks Randy Steinberg, president of Torizon Logistics Inc., a Toronto-based truck broker.

“Finding bodies to fill positions is easy; it’s finding the right people with the right attitude and work ethic that can sometimes be challenging,” points out Joe Rubini, president of Woodbridge-based truck broker Rally Logistics Inc. “I am fortunate we’ve been able to align ourselves with some of the best in the industry.”

Rubini adds that trucking capacity is also an ongoing problem and will likely continue for at least another year. “The Canadian dollar has dropped significantly and has caused the cost of trucks and trailers to increase on this side of the border,” he says. “This hasn’t really helped any Canadian trucking companies acquire more trucks, resulting in a ‘tight’ trucking market during peak seasons when most volumes are already up to begin with.”

More stringent regulations are also posing a challenge. “New regulations are being implemented in various states, pertaining to equipment standards, emissions controls, and various other changes,” MacKenzie explains.

Onward and Upward
Despite the obstacles growers and sellers face on a daily, weekly, monthly, or annual basis, it is a cycle well worth repeating. “I believe the advantages of the Terminal for produce buyers will continue,” MacKenzie says. “Steady as she goes.”

Chapman also believes the OFT will continue to hold its own. “This is a progressive organization that can assimilate and react quickly to meet the changing needs of the consumer,” he comments.

“With the population growing each year and the diversity of the population, we have small retailers selling fresh fruits and vegetables from all over the world,” adds Nicholas. “So our future is bright.”

Image: ©iStock.com/chang/marekuliasz/jmbatt/Angela Archilla/badmanproduction.

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