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Spanning the East

Major metro areas, diverse demand, and turning challenges into opportunities
MS_Spanning the East

If food is a universal language, few countries are more diverse than Canada, leveraging a wealth of fresh flavors and cuisines for discerning residents and even those beyond its borders.

Of particular note is Ontario, near the middle of this vast nation, with its flourishing food industry—from the hustle and bustle of the Ontario Food Terminal and its distributors to a vibrant restaurant scene and keenly competitive retail environment.

Heading farther east is Quebec, another land of complements and contrasts, alongside the rest of Eastern Canada. This article will focus on Ontario, Quebec, Newfoundland and Labrador, New Brunswick, Nova Scotia, and Prince Edward Island—and their contributions to the True North’s booming fresh food industry.

Ontario
Thanks to its relatively mild climate, plentiful water, and fertile farmland, Ontario is indeed a land of plenty. It is also home to Toronto, a jewel for all things produce, and the perfect destination for the province’s homegrown bounty.

As Canada’s top fruit and vegetable producer (though British Columbia ranks higher in fruit alone), crops from A to Z flood the province’s wholesale and retail establishments. Tied into supply and demand is the region’s diversity, with growers and wholesalers providing more than 125 different crops that make their way to schools, hotels, restaurants, and grocery stores.

Contributing to the area’s character is culinary magic, fusing old and new to create twists on traditional favorites and popular ethnic dishes. As a form of cultural understanding, Toronto’s food scene embraces it all and merchants at the Ontario Food Terminal help fulfill demand.

Old and new
“Ontario is very popular for root vegetables like carrots, onions, and beets, but there are farmers doing a great job on many other commodities like broccoli, sweet corn, peppers, tomatoes, hard squash, stone fruit, and apples,” comments Dan Carnevale, vice president of operations for Veg-Pak Produce Ltd. in Toronto. “Recently, we’ve been seeing farmers try new things, especially in the Asian vegetable category.”

This is not surprising considering the province’s surging population, with Toronto’s metro area climbing to nearly 6 million alone, much of it from Asian immigrants settling in the city.

Carnevale applauds the region’s worldly appeal: “Being in Toronto has its particular advantages due to the diverse ethnicities here,” he notes. “It allows us to explore specialty items from across the world that will appeal to specific ethnicities and at the same time allow people to try new things in their cuisine.”

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If food is a universal language, few countries are more diverse than Canada, leveraging a wealth of fresh flavors and cuisines for discerning residents and even those beyond its borders.

Of particular note is Ontario, near the middle of this vast nation, with its flourishing food industry—from the hustle and bustle of the Ontario Food Terminal and its distributors to a vibrant restaurant scene and keenly competitive retail environment.

Heading farther east is Quebec, another land of complements and contrasts, alongside the rest of Eastern Canada. This article will focus on Ontario, Quebec, Newfoundland and Labrador, New Brunswick, Nova Scotia, and Prince Edward Island—and their contributions to the True North’s booming fresh food industry.

Ontario
Thanks to its relatively mild climate, plentiful water, and fertile farmland, Ontario is indeed a land of plenty. It is also home to Toronto, a jewel for all things produce, and the perfect destination for the province’s homegrown bounty.

As Canada’s top fruit and vegetable producer (though British Columbia ranks higher in fruit alone), crops from A to Z flood the province’s wholesale and retail establishments. Tied into supply and demand is the region’s diversity, with growers and wholesalers providing more than 125 different crops that make their way to schools, hotels, restaurants, and grocery stores.

Contributing to the area’s character is culinary magic, fusing old and new to create twists on traditional favorites and popular ethnic dishes. As a form of cultural understanding, Toronto’s food scene embraces it all and merchants at the Ontario Food Terminal help fulfill demand.

Old and new
“Ontario is very popular for root vegetables like carrots, onions, and beets, but there are farmers doing a great job on many other commodities like broccoli, sweet corn, peppers, tomatoes, hard squash, stone fruit, and apples,” comments Dan Carnevale, vice president of operations for Veg-Pak Produce Ltd. in Toronto. “Recently, we’ve been seeing farmers try new things, especially in the Asian vegetable category.”

This is not surprising considering the province’s surging population, with Toronto’s metro area climbing to nearly 6 million alone, much of it from Asian immigrants settling in the city.

Carnevale applauds the region’s worldly appeal: “Being in Toronto has its particular advantages due to the diverse ethnicities here,” he notes. “It allows us to explore specialty items from across the world that will appeal to specific ethnicities and at the same time allow people to try new things in their cuisine.”

To meet the ongoing demand for multicultural cuisine, the province’s farmers and researchers have joined forces to explore which types of ethnic varieties can be successfully grown and marketed in Ontario. This includes everything from round eggplant, tomatillos, bottle gourds, and daikon radishes to red carrots, maca root, okra, Asian eggplant, and yard long beans.

Protected growing
The other side to Ontario’s production revolves around Leamington’s greenhouses, responsible for two-thirds of Canada’s vegetable output.

“The greenhouse sector in Ontario has historically been a major player in the production of cucumbers and tomatoes,” confirms John Russell, president of J.E. Russell Produce Limited in Toronto. “In recent years, we’ve seen the introduction of several new commodities including various lettuce greens, microgreens, and strawberries.”

Another item grown in a protected environment is mushrooms. It may surprise some to know Ontario is a major producer, responsible for more than half of Canada’s total output. It’s good news indeed for wholesalers, retailers, and restaurants as the fungal treat continues to gain popularity, as both an add-in to numerous dishes, an entrée, or meat substitute.

“Our mushroom-growing industry in Ontario is world class,” enthuses Russell.

Terminal velocity
At the heart of the province’s produce trade is the popular Ontario Food Terminal (OFT), moving more than 1 million tons of produce and horticultural products each year

Over the last several years, the OFT has undergone major renovation and expansion projects as merchants go about their business. The end result, of course, is good for buyers and sellers alike—such as enclosing loading docks to protect against the weather and enhance worker safety.

“The long awaited structural enhancements to the OFT are nearing completion,” confirms Julian Sarraino, vice president of marketing and sales for Fresh Taste Produce Ltd. at the whole-sale market. “The early phases have already created an environment where people can accomplish their daily tasks more efficiently.”

Quebec
Although it’s known as “La Belle Province” (the Beautiful Province), Quebec is more than just a pretty place. The largest province in Canada, it lays claim to one of the most profitable produce sectors in Canada—bringing in more $3 billion in overall crop receipts for 2016 according to Agriculture and Agri-Food Canada.

Short season; no problem
While it’s true Canada’s eastern provinces have a relatively brief growing season compared to other regions for fruit and field-grown vegetables, produce purveyors have no problem sourcing product or filling the gaps when needed.

George Pitsikoulis, president of Canadawide Fruit Wholesalers Inc. is happily ensconced at the Place des Producteurs marketplace in Montreal.

Retail Scene
Eastern Canada’s supermarket scene is highly competitive as national chains, independents, and big box stores duke it out for market share. A handful of retail giants, however, continue to reign supreme.

“Prince Edward Island is pretty well [dominated by] Sobeys and Atlantic Superstore,” says Fulton Hamill, president of Fulton Hamill, Ltd. of Prince Edward Island. Owned by parent organization Loblaw Companies, Atlantic Superstore has 54 stores across Nova Scotia, New Brunswick, and Prince Edward Island.

“In our particular area, there are a few smaller grocery stores,” Hamill adds. “But the big chains bought up all the wholesalers,” he says, eliminating the competition.

In addition to Sobeys and Atlantic Superstore, other major Eastern Canada players include Walmart and Costco. Sobeys is still struggling, since its Safeway acquisition in 2013, and has been slashing hundreds of corporate jobs as part of an “ongoing restructuring effort.”

In the meantime, Walmart Canada, which operates 410 stores across the country, is still on the upswing and opened the new Montérégie Supercentre in Longueuil late last year. It is the retailer’s first prototype store in Quebec and fifth in Canada, offering grocery pickup service as well as scan-and-go mobile technology—the first of its kind in Quebec.

Walmart offers Scan & Go in more than 20 Canadian stores to save time at checkout with portable scanners that tally the bill and finalize the total. Customers then bag their groceries and pay at a self-checkout kiosk.

Although major chains continue to control much of eastern Canada, independents are thriving in some cities. “In the Greater Toronto area, our most unique advantage is the density of independent retailers,” observes John Russell, president of J.E. Russell Produce Limited in Toronto. “They’re the lifeline of our industry. Fresh produce supplied by a very competitive wholesale market offers the best opportunities to compete with and outperform the retail giants.”

Julian Sarraino, vice president of marketing and sales for Fresh Taste Produce Ltd. in Toronto, wholeheartedly agrees. “We have a tremendous amount of diversity in Ontario,” he points out. “Consequently, every retailer has a unique strategy on how they approach this market.”

“I think Ontario has some of the best retailers in the country,” adds Dan Carnevale, vice president of operations for Toronto-based Veg-Pak Produce Ltd. “They’re doing an amazing job to maintain top quality produce while promoting new and innovative items all the time.”

He has no reason to lament the shortness of the region’s growing season. “There’s limited local production due to the weather and climate,” he acknowledges, but this opens the door to brisk cross-border trade, which “creates opportunities for importers and wholesalers such as ourselves.”

Businesses in the area enjoy close proximity to the U.S. East Coast and its major metropolitan areas and easy access to U.S. trade routes. Better yet are two other perks unique to Canada: first, being part of the Trans-Pacific Partner-ship, eschewed by the United States, which promises access to produce to and from the Asia-Pacific region.

Loving fruits and vegetables
Second is consistently high per capita consumption of fruits and vegetables. According to Statistics Canada, 30 percent of Canadians aged 12 and older (roughly 8.6 million people) consumed five or more servings of fruits and vegetables per day in 2016.

Quebec boasts even higher consumption rates—with 39 percent of residents eating five or more servings a day—providing proof the Quebec Produce Marketing Association’s longtime slogan promoting “I love 5 to 10 servings a day” continues to resonate with the province’s consumers.

Quebec, along with Ontario and British Columbia, account for more than 90 percent of Canada’s cultivated vegetable crop acreage, and 65 percent of cultivated fruit. For its part, Quebec’s top commodities include apples, cranberries, blueberries, carrots, radishes, beets, leeks, and green onions.

Related to its cranberry production, Atoka Cranberries Inc. in Manseau, about 125 miles northeast of Montreal, was recently acquired by American powerhouse Ocean Spray Cranberries, Inc. The move will extend the reach of Quebec-grown cranberries and help increase efficiency and yields through capital investments.

Trending, Trending
In total, Quebec is home to nearly 1,500 fruit growers—more than any other Canadian province, representing almost a quarter of the country’s fruit production value. Like Ontario, Quebec is becoming a leader in greenhouse production as well, with nearly 250 structures to date and accounting for nearly a quarter of the province’s overall vegetable production.

This is backed up by Pitsikoulis, who says over the last year demand has climbed for a few Quebec-grown items. “There’s been a lot of growth with hothouse tomatoes and strawberries—not only field-grown strawberries, but also hothouse-grown strawberries,” he explains. “We’re distributors of these products, and that’s where I’ve seen the greatest growth.”

Each year, the majority of Quebec-grown fruits and vegetables move through Montreal’s la Place des Producteurs. The year-round, long-standing market supplies distributors, retailers, and restaurants throughout the region.

“A couple of years ago, Montreal was voted the top restaurant city in North America,” enthuses Pitsikoulis. “We have a very vibrant restaurant scene, not too many chain restaurants, mostly chef-owner operated restaurants. Because of our diverse ethnic makeup, you’ll find everything: Syrian, Vietnamese, Cambodian, Sene-galese, Haitian. Every ethnic minority is represented in the restaurant scene, as well as all the new trends including local, or-ganic, and fair trade.”

Newfoundland & Labrador
Canada’s most easterly province is formed by the island of Newfoundland and the larger mainland area of Lab-rador. Sandwiched between Quebec and the North Atlantic Ocean, the province’s harsh climate and unfavorable soil are not conducive to growing an abundance of crops.

Consequently, Newfoundland and Labrador are home to a relatively small produce industry that includes just over two dozen fruit farms, over 70 vegetable growers, and seven greenhouse facilities.

The province relies heavily on imports for fresh produce, which often drives up pricing at stores. Perhaps this is why Newfoundland and Labrador residents consume far less fruit than other provinces. According to Statistics Canada, less than 1 in 5 respondents reported consuming fruits and vegetables five or more times a day.

New Brunswick
Despite its cold and snowy winters, New Brunswick is a significant producer of apples, blueberries, cranberries, strawberries, and potatoes. These crops are primarily grown in the St. John River Valley.

The province includes 415 fruit farms, 92 field vegetable farms and 144 potato farms. Responsible for nearly 14 percent of Canada’s total production, New Brunswick’s potato receipts were valued at $153 million in 2016.

Wild blueberries are the fastest growing fruit crop in the province, accounting for 25 percent of Canada’s overall production. Although wild blueberry production increased by nearly 12 percent in 2016, oversupply in North American markets drove down the crop’s value by nearly 18 percent.

Prince Edward Island
In the Gulf of St. Lawrence, Prince Edward Island is Canada’s smallest pro-vince. Though it may be small in land mass, it is mighty, particularly in potato production. As Canada’s top potato producer, the province accounts for one- quarter of the country’s potatoes.

In addition to potatoes, Island farmers also grow grains and some vegetables, says Fulton Hamill, president of Fulton Hamill, Ltd., a potato grower and dealer on the island. Considered the province’s lifeblood, there are more than 200 potato growers on the island, mostly family farms that have been passed down for generations.

Islanders have been growing potatoes since the late 1700s, and the industry remains the primary driver of the economy, contributing more than $1 billion to the economy each year. In 2016, Prince Ed-ward Island growers planted more than 88,000 acres and produced nearly 1.2 million tonnes of potatoes, most for processing. Just over a quarter of production goes to the fresh market, and a good portion is exported—to the tune of more than $360 million.

Although the potato business is booming, Hamill says in-province transportation is a challenge for producers. “To be able to get your products delivered on time is a bigger problem all the time, and freight rates are not as competitive as they used to be,” he says. “Trucks are scarce and rates are going up.”

Nova Scotia
Home to hundreds of fruit growers, this maritime province cultivated more than 48,000 acres of fruit in 2016. Nova Scotia is best known for its blueberries, strawberries, and apples.

Fast Facts On Canada East:
• The total area (consisting of land and interior freshwater lakes, rivers, and reservoirs) of Canada’s eastern provinces (Ontario, Quebec, Newfoundland and Labrador, New Brunswick, Nova Scotia, and Prince Edward Island) is 3.16 million square kilometers or 1.22 million square miles

• The Eastern provinces are home to nearly 4,400 farms, with the majority (about 70 percent) growing vegetables

• More than half of these growers are located in Ontario or Quebec

• Ontario is home to most vegetable growers with over 1,700 farms

• There are 640 greenhouses in Eastern Canada; most are clustered in or around Leamington, Ontario

• Eastern Canada’s fruit is valued at over $600 million annually; vegetables at about $950 million each year.

With more than 1,000 wild blue-berry producers across the province, Nova Scotia produces over 40 million pounds of the blue-purple fruit each year. The province annually exports $70 million in wild blueberries to countries across the globe.

Like New Brunswick, Nova Scotia growers had to deal with too many wild blueberries on the market last year, which drove prices down to just 20 cents a pound—a drastic drop from 65 cents in 2014. Industry experts fear a continued downturn could force many Nova Scotia producers out of business; most are looking to a market correction in 2018.

Nova Scotia is also a major apple producer. French settlers first started growing apples in the Annapolis Valley in 1633. Apple exports have been climbing recently, and one particular variety, Honeycrisp, is skyrocketing

in popularity across Nova Scotia orchards. Nearly two-thirds of commercial growers in the province now grow the variety, according to the province’s Department of Agriculture, and bring in premium prices—$700 to $800 dollars per bin—five times as much as some traditional varieties, such as MacIntosh.

On the Horizon
Home to a prolific fresh produce industry—spanning six provinces in varying measure—Canada East is a force to be reckoned with in fruit and vegetable production. From Quebec’s succulent fruit to Ontario’s state-of-the-art greenhouse operations, there’s plenty for wholesalers to divvy up and send around the country and export to the United States and beyond.

As long as growers, receivers, and retailers continue to adapt and innovate, they will overcome the requisite challenges and prosper. Change is everywhere and constant.

“The future of our produce industry will be one of change,” Russell confirms. “The wholesale and retail produce sector will continue to interact amongst all sources of supply to meet the increasing demand for fresh and safe fruits and vegetables.”

Part of change is recruiting and maintaining the next generation. “I’m glad to see new blood in the business, it’s healthy for the industry,” says Hamill, whose son recently joined his business. “This younger generation is quite adaptable; they have new and different ideas, and it will help to develop business in different ways.”

When asked about the future of eastern Canada’s produce industry, Pitsikoulis puts it simply: “Onward and upward.”

Images: gvictoria, Kzenon/Shutterstock.com

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