Agri Innovation by Carl Fletcher, OMAFRA

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Agricultural Innovation

Carl FletcherOMAFRA Business Management Unit

Jan. 19, 2011

“Innovation….”

- is developing a new product, service or process of doing something

-“Is creativity with a job to do” John Emmerling-“Is the intersection between imagination and reality” Ron Johnson

-“Distinguishes between a leader and follower” - Steve Jobs

-“Comes from the producer not from the customer” - W. Edwards Johnson

Production Systems Innovations

Leamington Area Drip Irrigation

Avon Swine Inc Waterloo

Kejay Investments Inc. (Kevin and Jason Stallaert Farms)

Nature’s Perfection Shiitake Mushrooms

Riverbend Farm Inc.

6093400 Canada Ltd. Norfolk Apiaries

www.carletongrowers.com

www.langfarms.com

www.hillsidegardens.ca

www.brennbfarms.comwww.brennbfarms.com

Distribution/ Logistics/Processing

Innovation

Rainy River District Regional Abattoir Inc.

Ewe Dell Family Farms (*website coming soon)

www.freemanfarms.ca

Marketing Innovation•Product (Development)•Promotion (Advertising)• Place (Distribution channels)•Price

www.southbrook.com

www.viniferaforlife.com

www.cedarviewfarms.org

Yellowlees Family Farm (Karen & Dennis Yellowlees)

Cream Hill Whole Grains Ltd. & Doug Hill Farms Ltd.

www.countycider.com

Diniz Farming Ltd.

www.meekersmagicmix.com

www.nurturalhorse.com

Gilbrea Farm & AgriServics

Naturpack Ltd.

Sandy and Kathy Smith

www.farmgatemarket.com

Weninger Farms Ltd.

www.clovermead.com

www.soybutter.com

www.rushcreekwines.com

www.strom.ca

Berryhill Farm

www.indianrivercattlecompany.com

Algoma Farm Fresh

www.kawarthaecologicalgrowers.com

Financial Management

www.monfortedairy.com

Human Resources

5 Farms in Alberta together hired a person

to be an on farm financial manager –one day per week per farm

Bioeconomy

The Biobased economy- Terminology

Renewable Bio Feedstocks- Plants• crops• trees• algae- Animals- Organic-residues•agricultural• forestry• municipal

BioprocessTechnologyBiocatalysis (Enzymes)

Fermentation (Microbes)

Physical- ChemicalProcess Technology

Extraction Pyrolysis Gasification

Industrial Bioproducts- Bioenergy and Biofuels• Liquid- Ethanol, biodiesel• Solid-pellets• Gas- biogas, syngas- Biomaterials• Biofibres• Bioplastics• Biocomposites- Biochemicals• Industrial- solvents, paints, resins, lubricants• Biopharmaceuticals• Biocosmetics

Bioproducts are those products made with some component of biological or renewable based materials. The “bio” in bioproducts relates to biomass inputs.

http://www.ic.gc.ca/eic/site/lsg-pdsv.nsf/eng/h_hn00205.html

Dedicated Biomass Crops: C4 perennial grasses

•Switchgrass (Panicum virgatum)•Big bluestem (Andropogon gerardii)•Little bluestem (Schizachyrium scoparium)•Indian grass (Sorghastrum nutans)•Prairie cordgrass (Spartina pectinata) •Miscanthus (Miscanthus spp.)

Harvest Techniques, Fall 2009, 2nd Yr Miscanthus

www.newenergyfarms.com

Example: Agricultural Roofs• Dairy Barn 100 ft x 200 ft gives about 10,000 ft2+ of solar

area– Approximately 125 kWp per year

• Make sure ability to connect to grid is available– Invest approximately $625,000 to $1,000,000 to cover

roof– Yield of 125,000 to 150,000 kWh per year

Klaesi Brothers Biogas Generator

2005 • One energy-based digester in

Ontario, running on manure• No funding• No knowledge on blending off

farm source material• No clear legal pathway to

accept off farm material• Only net metering option – 50

kW max (increased to 500 kW)

Where are we now?2010• Good knowledge on utilizing off farm materials• Ability to Ontario Biogas Systems Financial

Assistance Program (OBSFAP– $11+ million funding– Nearly complete– 28 Systems (8 operating, remainder under

construction)– 46 FIT applications

• Industry is developing• Legal clarity to accept certain off farm materials• sell power on grid at 14.7 to 19.5 ¢/kWh • Clarity on ability to connect to electrical grid

www.energrow.ca

Burt Farm

http://www.omafra.gov.on.ca/english/index.html

Business Information Bundle

BEYOND PRODUCTION AGRICULTURE

www.omafra.gov.on.ca/english/busdev/valueadd-bib/index.htm

Start Manage and Grow a Business: Food Processing

• www.omafra.gov.on.ca/english/food/industry/newbusiness.htm

Special thanks to:

Bioenterprise CorporationBioenterprise Corporation

• Business Accelerator focused on Agri-techBusiness Accelerator focused on Agri-tech• Not-for-profit funded by OMAFRA, AAFC, MRI.Not-for-profit funded by OMAFRA, AAFC, MRI.• Housed in the Agri-Technology Housed in the Agri-Technology

Commercialization Centre……..OAFT, Soy Commercialization Centre……..OAFT, Soy 2020, AMI2020, AMI

• We assist start-up and early stage companies We assist start-up and early stage companies get over business hurdles….speed them to get over business hurdles….speed them to market.market.

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Bioenterprise ServicesBioenterprise Services

Growing Forward Business Development Initiative

Business Development for Farm Businesses

Self-Assessment & Action Plan Development

Reviewed&

Signed OffCost-Share

Funding

Growing Your Farm Profits Workshops

• Farm Financial Assessment – up to 5 days services by a Farm Business Advisor

• Agriculture Skills Development – provides opportunity to develop skills and learning

• Advanced Business Planning – opportunity to develop advanced plans such as Business

Plan, Succession Plan, Feasibility Plan

• Business Plan Implementation Program – one-time soft costs identified in an approved

advanced plan

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Business Development for Farm Businesses

Cost-Shared funding:– Farm Financial Assessment – up to 5 days services by a

Farm Business Advisor– Agriculture Skills Development – provides opportunity to

develop skills and learning relevant to the agri-food industry in Ontario

– Advanced Business Planning – funding assistance in the development of advanced plans such as Business Plan, Succession Plan, Feasibility Plan

– Business Plan Implementation Program – allows for the funding assistance for one-time soft costs identified in an approved advanced plan

Wishing you a safe,prosperous and innovative 2011.

Carl Fletcher

Strategic Business Planning Program LeadBusiness Management Unit, Agriculture Development Branch

Ontario Ministry of Agriculture, Food and Rural Affairs1 Stone Road West, 3rd Floor SW

Guelph, Ontario N1G 4Y2519-826-3235 email: carl.fletcher@ontario.ca