A tale of two systems:A tale of two systems:the corporate and creativethe corporate and creativefood sectors in Greater Torontofood sectors in Greater Toronto

Betsy Donald & Alison Blay-PalmerBetsy Donald & Alison Blay-Palmer

Department of GeographyDepartment of Geography

OutlineOutline

Theoretical FrameworkTheoretical Framework Research QuestionsResearch Questions The Toronto Food EconomyThe Toronto Food Economy Result HighlightsResult Highlights ImplicationsImplications

Theoretical FrameworkTheoretical Framework

Innovation is an uneven process within….Innovation is an uneven process within….

FirmsFirms Disruptive Innovation (Christensen)

IndustriesIndustries Difference in innovation trajectories (Grabher,

Glasmier)

Across SpaceAcross Space Territorial assets in institutions, social norms,

knowledge flows (Cooke and Wolfe, Gertler and Wolfe)

Research QuestionsResearch Questions

Are particular groups of firms relatively Are particular groups of firms relatively more (or less innovative) than others?more (or less innovative) than others?

What makes these firms innovative?What makes these firms innovative?

What are the implications for policy?What are the implications for policy?

The Toronto Food EconomyThe Toronto Food Economy

A significant driver in the regionA significant driver in the region second largest food cluster in North America second largest manufacturing industry in region,

generating $25 billion directly employs 250,000

Provides sustainable economic development Provides sustainable economic development opportunities for the regionopportunities for the region high and low entry barriers rural and urban opportunities economic, social, environmental and health benefits

Research HighlightsResearch HighlightsDeveloped own database of food and Developed own database of food and

beverage companies in Toronto regionbeverage companies in Toronto region Canada 411, Scott’s Industrial Index, Statistics

Canada, MEDT, OMAF, City of Toronto 1400 companies; phone interviews

Conducted 63 interviews Conducted 63 interviews 53 in-depth - questionnaires 10 in-depth - unstructured Producers, distributors, processors, retailers,

restauranteurs, chefs, food media, educational institutions, NGOs, all levels of government

Toured plants, attended trade showsToured plants, attended trade shows

GTA Food ProcessorsGTA Food Processors

Annual Gross Sales (est. 1850-2004)Annual Gross Sales (est. 1850-2004)

($ millions -Present Value)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1850-99 1900-44 1945-64 1965-75 1976-88 1989-94 1995-2004Y e a r F i r m E s t a b l i s h e d

P e

r c

e n

t a

g e

o f

F i

r m

s

less than $1 $1-5 $5-10 $10-25 $25-50 $50-75 $75-100 $100+

A Tale of Three TomatoesA Tale of Three Tomatoes

What we haveWhat we have

Food from the earthFood from the earth quality, trust, traceability, ‘terroir’

Food from home and fusion landsFood from home and fusion lands ethnic diversity, fusion creativity

Food for thoughtFood for thought urban as site of visionary politics; an ideas cluster

Food from the earthFood from the earth

“Wild food, local food, seasonal food – this is the mantra of the chefs, producers and foodies who are establishing a distinctive Canadian cuisine. It’s not about fancy towering presentation and expensive ingredients….

It’s about finding Canadian ingredients and letting them shine” (Hluchy, 2003)

The Toronto area has the soil qualityThe Toronto area has the soil quality

HALTON REGION

LAKEONTARIO

Source: GTA Agriculture Economic Impact Study Walton & Hunter Planning Assoc., 1999. CANSIS - Agriculture & Agri-Food Canada http://geogratis.cgdi.gc.ca ESRI - Digital Chart of the World (DCW) - 1993. http://www.gisdatadepot.com GeoAccess, Division of Geomatics Canada, 1989-1992. http://www-nais.ccrs.nrcan.gc.ca

Prepared By: Walton & Hunter Planning Associates December, 2000 (#59001)

- Agricultural -Soil Classification

Class 1

Class 2

Class 3

Class 4

Class 5

Class 6

Class 7

Organic

No Classification

HaltonRegional BoundariesHalton Municipal Boundaries

Rivers

Lake

CANADA LAND INVENTORY (CLI)

MAP 6HALTON AGRICULTURE STUDY

AGRICULTURAL SOIL CLASSIFICATIONFOR HALTON REGION

N

EW

S

5000 0 5000 10000 Meters

Food from home and fusion landsFood from home and fusion lands“No other city in the world caters to ethnic diversity like Toronto. You can find almost every religion, language and food….

Because the population is so varied, there is a high demand for exotic foods. Our company has demand of the ethnic market and makes everything from ackees to bitter lemon to producing twenty different kind of beans” (Goudas, 2004)

Food for thoughtFood for thought

“Eating is a distinctly political act….Our choices about food are not just about pleasure and our own health, but are choices about agriculture and a set of social and political values.” (Waters, 2004)

“Most of the real innovation is happening in urban areas.... Toronto is a hotbed of thinking, I feed off [the] ideas cluster....The people and the problems of the food system [are] acutely obvious in a big city.” (Urban Policy Advisor, 2003)

Main ChallengesMain Challenges

1.1. Lack of institutional infrastructureLack of institutional infrastructure

2. Poor government recognition2. Poor government recognition

3. Forecasted labour shortage3. Forecasted labour shortage

4. Growing concentration of food retailing-4. Growing concentration of food retailing-distribution-based chainsdistribution-based chains

Policy RecommendationsPolicy Recommendations

Acknowledge value of sectorAcknowledge value of sector Raise awareness Support multi-cultural diversity Explore areas of positive synergies

ImplicationsImplications

ImplicationsImplications

Develop infrastructureDevelop infrastructure Adopt a National Food Policy Adopt more transparent labeling Engage in public procurement Develop distribution channels Reexamine health policy

Support new technology adoptionSupport new technology adoption Advanced processing equipment Product identity preservation