A Taste of Agribusiness

A Labour Market Profile of the Agribusiness and Food Processing Cluster in Hamilton

March 2013

A Taste of Agribusiness

AcknowledgementsWorkforce Planning Hamilton would like to recognize and thank those organizations and individuals that contributed their knowledge and experiences to the making of this report. Special thanks to the City of Hamilton, Economic Development Division for their support of this project. Over the past year, Workforce Planning Hamilton has connected with agribusiness and food processing companies in Hamilton for several projects, the information from which has enriched this report’s analysis and understanding of the unique challenges and opportunities in the cluster. Thank you to Maple Leaf Foods, Kraft, G.S. Dunn, Oakrun Farm Bakery, Springer’s Meats, Weil’s of Westdale, Weir’s Lane Lavender and Apiary, Joe Loewith and Sons, Dyment’s Farm Market & Bakery, La Primavera Farms, Robert Pasuta and Tourism Hamilton for connecting with Workforce Planning Hamilton. A further thank you to the companies who participated in an online survey released in fall 2012.

Project Lead: Judy Travis, Executive Director

Prepared by: Sarah Hosick, Projects and Data Analysis Coordinator

This Employment Ontario project is funded by the Government of Ontario.Ce projet Emploi Ontario est financé par le gouvernement de l’Ontario.

This document may be freely quoted and reproduced without obtaining the permission of Workforce Planning Hamilton provided that no changes whatsoever are made to the text and Workforce Planning Hamilton is acknowledged as author. The information presented in this report is current at the time of printing.

The views expressed in this report do not necessarily reflect those of the Government of Canada or the Government of Ontario.

1 | A Taste of Agribusiness

Table of Contents

A Taste of Agribusiness | 2

7 Hamilton Sector Snapshots: Agriculture Food Processing

6 Agribusiness is a Growing Business

5 Methodology

3 Executive Summary

4 Introduction

19 Conclusion

Executive Summary The agribusiness and food processing cluster is a major contributor to Hamilton’s total economy. It is estimated that there are approximately 9,415 workers and 581 businesses operating within the cluster in the Hamilton area. This growing industry is supported by an increasing population, necessary products, and an abundance of similar focused companies operating in close proximity. Having both a strong primary agricultural sector and a thriving secondary manufacturing industry has led to an interest from investors and job seekers looking to become involved in the industry.

The cluster is experiencing some unique workforce changes, both opportunities and challenges. On the more traditional agricultural side, an aging farmer population means young workers will need to be recruited to take over farming businesses. Workers who do not have the traditional agriculture background are being recruited, in addition to those with rural backgrounds, as farming techniques and processes are becoming more technologically advanced and efficient. Large-scale commercial farms are becoming more widespread, as the number of farms in Canada is decreasing, yet the average size of a farm is increasing. The Seasonal Agricultural Worker Program continues to supply Ontario with migrant workers to increase productivity and meet demand for labour-intensive foods.

The food processing side of the cluster has also been increasing their use of technology in processes, with many mechanical procedures becoming automated. Even with this change in technology, general labourers are still in demand by these companies; however, employers have indicated that it is critical for workers to have a good attitude and a willingness to learn and adapt to new procedures.

Key findings from the report include:

• The aging farmer population means younger workers will need to be recruited to take over operations as retirements begin

• In addition to those with a traditional agricultural background, an increase in farming technology has led to a demand for tech-savvy workers

• Food processing companies require employees of all skill levels, and from a variety of educational backgrounds

• In-house training is typically provided for employees, what is most important for job seekers is to have a good attitude, a willingness to learn and ability to adapt to changing business practices


IntroductionHamilton’s agricultural sector has grown to a $1.3 billion industry and provides great opportunity for Hamilton’s businesses and labour force. The City of Hamilton Economic Development Strategy identified agribusiness and food processing as a key cluster for business advancement. Workforce Planning Hamilton has prepared this labour market profile as a guide to the employment and business opportunities within the cluster, as well as an outlook on the future employment prosperity of the industry.

Approximately 65% of the City of Hamilton’s land base is rural, and the majority of the 227,000 acres that make up the agricultural land base qualify as prime agricultural lands1. Local production is benefiting from innovative practices and technologies that are leading to new products, processes and improvements. Hamilton has strong roots in greenhouse, poultry and egg production, mushroom, vegetable, as well as a growing secondary manufacturing reputation from food processing companies such as Canada Bread, Karma Candy, and Maple Leaf Foods setting up shop in Hamilton.

The City of Hamilton has conducted several studies on Hamilton’s agricultural and food processing industries. In 2003, the City released The City of Hamilton Agricultural Economic Impact and Development Study, providing insight into the industry from 1976-2001. In 2007, an agricultural action plan was developed to help sustain the agriculture sector within the city. The publication of Hamilton Agricultural Profile 2008 provided more recent data on the viability of the agricultural industry. Focusing specifically on the food and beverage processing sector, the City also released a profile in 2004 that identified business opportunities in Hamilton to assist with research and policy development.

This report by Workforce Planning Hamilton acts as a supplement to these profiles, providing as current information as possible for Hamilton’s workforce. The following pages provide a detailed description of the involved industries, number of establishments, labour force characteristics, occupational analysis and a narrative of the trends, opportunities and challenges of the cluster in Hamilton.

1 Agricultural and Food Processing is Hamilton’s Breadwinner, Neil Everson, City of Hamilton Economic Development, September 24, 2012


Methodology For the purpose of this report, the agribusiness and food processing cluster was defined according to the North American Industry Classification System (NAICS), which classifies business establishments based on their type of economic activity. The following NAICS codes were considered to be within the agribusiness and food processing cluster:

1. Agricultural Production:

111 Crop Production

112 Animal Production

113 Forestry and Logging

114 Fishing Hunting and Trapping

115 Support Activities for Agriculture and Forestry

2. Food and Beverage Manufacturing:

311 Food Manufacturing

312 Beverage and Tobacco Products Manufacturing

To document the status of the industry as it relates to the local Hamilton economy, data was collected from a number of sources. To identify the number of business establishments within the Hamilton census division, Canadian Business Patterns (CBP) data was used from June 2012. The data identifies the number of employers by detailed industry and for nine different employee size ranges, including indeterminate employers.

The number of people employed and the top occupations based on the National Occupational Classification (NOC) system are from the 2006 Statistics Canada Census. The NOC is a nationally accepted reference on occupations that groups over 30,000 job titles into 520 occupational groups, providing a standardized framework for organizing the workforce into a coherent system.

While the data provided by these sources identifies Hamilton’s position in the industry, it was also useful to collect local knowledge from employers and stakeholders in the field. For this report, Workforce Planning Hamilton engaged key informants across the cluster to discuss their economic and employment outlook, and provide insight into current needs and challenges.


Agribusiness is a Growing Business The food industry is a pillar of Canada’s diverse economy, contributing to the health and well-being of Canadians. Canadians represent about 0.5% of the global population, produce 1.5% of the food in the world, and consume 0.6% of the world food production2. This means that Canada produces almost three times more food than it consumes. The global population surpassed 7 billion people in 2012, and as this figure continues to increase, the interdependency of food, energy, water, land and natural resources becomes more evident.

A 2012 study by the Conference Board of Canada saw that the demand for agricultural products is ex-pected to remain robust in coming years. The positive outlook for demand is being driven by population growth, income growth, and the increased use of crops for biofuels3. An environment of strong demand and pricing is expected to produce ample opportunity for the nation’s agriculture industry to continue to thrive in coming years.

The success of agribusiness is apparent in Hamilton, and is mirrored in the strong agricultural and food processing reputations of surrounding communities. The Ontario Food Cluster recognizes 3,200 food and beverage companies with provincial agri-food manufacturing revenue at $39 billion4. Ontario has over 130,000 workers directly involved in the agri-food cluster, with a further 483,000 estimated individuals working in related sectors such as food services and retail/specialty stores.

In 2012, the Greater Toronto Area Agricultural Action Committee released the Golden Horseshoe Food and Farming Action Plan 2021. The Golden Horseshoe, which is comprised of the Regions of Durham, Halton, Niagara, Peel, York and Cites of Toronto and Hamilton, is one of the largest food and farming clusters in North America, and contains the majority of Ontario’s food processing operations, head offices of companies and Ontario’s food distribution centres5. The action plan is a collaborative effort of the cluster’s stakeholders to ensure the protection of agricultural land and promote the economic viability of the farming industry.

2 Food in Canada, Statistics Canada, 20123 The Sky’s the Limit, Conference Board of Canada, 20124 A compelling opportunity to the global agri-food sector, Ontario Food Cluster, 20135 Golden Horseshoe Food and Farming Action Plan 2021


“Ontario’s agri-food sector is the province’s number one employer”

Ontario Food Cluster

Hamilton Sector SnapshotsThere are two distinct categories within the cluster: the traditional agricultural industry that involves the food production process, and the manufacturing side of food processing. Together, they form a thriving cluster for economic development in Hamilton.

Combined, employment estimates for the cluster in the City of Hamilton totaled 9,415 workers in 2006, while Labour Force Survey (LFS) data indicates this number has grown in recent years.

The following section uses data from Statistics Canada to provide a snapshot of the labour market picture within each side of the cluster. What the data does not capture are recent advancements within the cluster – particularly recent investments into the food processing industry, such as the new Maple Leaf Foods plant, or the Canada Bread factory. The implications of recent ventures in the cluster on the demand for labour are discussed within each section.


Agribusiness:

Term used to encompass the various businesses involved in food production, including farms and seed supply, agrichemicals, farm machinery, wholesale and distribution, processing, marketing and retail sales.

Food Processing:

A division of the manufacturing sector, food and beverage processing includes those businesses involved with food and beverage processing, warehousing and distribution, retailing and food service.

Agriculture (NAICS 11) Approximately 65% of the lands within the City of Hamilton are rural, including croplands and pasturelands. Local agriculture includes more than just growing crops and raising livestock; it also includes value-added products such as poultry and eggs, mushrooms, nurseries and dairy farms.

Additional subsectors of agriculture include:

111 – Crop Production

112 – Animal Production

113 – Forestry and Logging

114 – Fishing, Hunting and Trapping

115 – Support Activities for Agriculture and Forestry

Employment The most recent employment statistics for the City of Hamilton’s agricultural sector are from the 2006 census. A total of 3,725 individuals worked in the sector, which accounted for 1.4% of the total labour force. Ninety-four per cent of these workers were involved in crop and animal production, with the remainder of the labour force working in forestry, fishing, hunting and trapping, and support activities for agriculture and forestry.

The economy and labour market have undergone major changes and developments since the 2006 census. The LFS provides more recent data estimates at the Census Metropolitan Area (CMA) level, which for Hamilton includes Burlington and Grimsby. Figure 1 shows that the broad agricultural sector was not immune to the economic downturn that affected the greater global economy, but employment has recovered in recent years.

Figure 1. Employment in the Agricultural Sector (NAICS 11) by Hamilton CMA, Annual Average, Labour Force Survey


BusinessesThe number of businesses in the agricultural sector has remained relatively constant over the past three years. Table 1 shows there were a total of 501 agricultural businesses in 2012, down only slightly from 2009. However, when only considering businesses that have employees, there was actually a 3% increase in the number of businesses.

Table 1. Number of Agricultural Businesses in Hamilton, Canadian Business Patterns, June 2012

2009 2012Total Number of Businesses 502 501Number of Owner-Operated Businesses 298 291

Total Number of Businesses with Employees 204 210

We can also look at the distribution of employers by three digit NAICS code in order to determine in what subsectors the majority of businesses operate. As shown in Table 2, 89% of businesses are in either crop or animal production.

Hamilton’s total business climate is dominated by small businesses, a fact reflected in the agricultural sector. Of businesses with employees, 86% have less than 20 workers at their establishment and there are only three companies with 100 or more employees. As is apparent in Table 2, forestry and logging (NAICS 113) and fishing, hunting and trapping (NAICS 114) play only a very small part in Hamilton’s agricultural industry.

Table 2. Number of Employers by Employee Size Range in Hamilton, Canadian Business Patterns, June 2012

NAICS Owner operated 1-4 5-9 10-19 20-49 50-99 100-

199200-499 500+ Total

111 - Crop Production 114 41 31 29 20 4 3 0 0 242

112 - Animal Production 150 41 8 6 0 0 0 0 0 205

113 - Forestry and Logging 5 1 3 0 0 0 0 0 0 9

114 - Fishing, Hunting and Trapping

0 0 0 0 2 0 0 0 0 2

115 - Support Activities for Agriculture and Forestry

22 13 8 0 0 0 0 0 0 43


Comparison of the Distribution of Agricultural Businesses

Table 3. Agricultural Employers as a Percentage of Total Employers, Hamilton and Selected Surrounding Communities, Canadian Business Patterns, June 2012

NAICS Hamilton Halton Niagara Brant Toronto Ontario

11- Agriculture, Forestry Fishing and Hunting 1.8% 1.0% 5.1% 7.0% 0.1% 4.0%

Agricultural industries make up 1.8% of all businesses in Hamilton, which is lower than the 4.0% average distribution across Ontario. Given that Hamilton has a diverse economy, it is not surprising that Hamilton businesses are less concentrated in agriculture than some of the more rural communities shown in Table 3.

Occupational AnalysisThe most comprehensive occupational data available is from the 2006 census. Table 4 shows the top 10 occupations in the sector by labour force. Given the strong business presence of animal and crop production farms in Hamilton, it is not surprising that the most common occupations are farmers and farm managers, followed by general farm workers. Together, the labour force in these two occupations makes up almost half of all occupations in the industry.

Table 4. Top 10 Occupations in the Agricultural Sector in Hamilton, 2006 Census

Occupational Title Total Labour Force in Industry

% of Industry Total

8251 Farmers and farm managers 995 26.7%8431 General farm workers 835 22.4%8432 Nursery and greenhouse workers 570 15.3%8611 Harvesting labourers 240 6.4%8254 Nursery and greenhouse operators and managers 135 3.6%6421 Retail salespersons and sales clerks 100 2.7%8253 Farm supervisors and specialized livestock workers 90 2.4%7411 Truck drivers 70 1.9%8616 Logging and forestry labourers 55 1.5%1411 General office clerks 40 1.1%

Ontario Job Futures, published by the Ministry of Training, Colleges and Universities and Service Canada provides information on current trends and future outlook for occupations common to Ontario. The publication lists farmers and farm managers as having average employment prospects in the province through to 2013. The long-term trend toward consolidation of farms and increasing productivity is expected to decrease the demand for the traditional farmer. The majority of job openings will occur from replacement needs as older workers retire.


Age of Employed WorkforceFigure 2 shows the age of the employed workforce in the top 10 agricultural occupations in Hamilton. Many of the traditional farming roles have an older than average workforce, indicating there will be a need to replace these workers as they choose to retire. Farmers, farm managers, farm supervisors and specialized livestock workers in particular have very little youth workers. The skewed age distribution presents the challenge of proper succession planning for farmers. Traditionally, farming was a job passed down over generations; however the high interest rates and low crop prices of the 1980s pushed many young people off family farms. Between 1991 and 2011, the province lost nearly 70% of its farmers under the age of 356. Most decline to take over the management of the family farm as their parents approach retirement, likely in part due to the fact that the majority of farms in Ontario gross a net income of less than $100,000 a year7. However, a demographic shift in the province’s agricultural industry has led to an increasing number of people raised in cities or suburbs leaving urban areas to work on farms8.

Figure 2. Age Distribution of Top Agricultural Occupations in Hamilton9, 2006 Census

6 Young, city-born women buck Ontario’s aging farmer trend, Laura Kane, Toronto Star, August 13, 20127 A Home-Grown Strategy for Ontario Agriculture, Wally Seccombe, Toronto Food Policy Council, September 20078 Young, city-born women buck Ontario’s aging farmer trend, Laura Kane, Toronto Star, August 13, 20129 Age distribution for 8616 logging and forestry labourers in Hamilton was unavailable


Seasonal Agricultural Worker Program and the Agricultural Stream of the Temporary Foreign Workers Program Temporary Foreign Workers (TFWs) enter Canada under the Temporary Foreign Worker’s Program, which is divided into high and low skilled categories. In the low skilled category there are three streams, two of which pertain to the agricultural sector:

• Agricultural Workers, who enter under the Seasonal Agricultural Worker Program (SAWP)

• Temporary Foreign Workers Program for Occupations Requiring Lower Levels of Formal Training

In January 2011, the federal government created an agricultural stream to streamline applications from the agricultural sector

Approximately 26,000 farm workers come to Canada every year, the majority of which come from Mexico and head to Ontario10. SAWP is a “Canadians first” program, meaning seasonal farm labour is hired from other countries only if agricultural organizations cannot find domestic workers to fill vacancies. Without seasonal agricultural workers to act as a supplement to local labour, many farmers in Ontario would not be able to grow as many labour-intensive crops; in fact, it is estimated that two jobs for Canadians are created in the agri-food industry for every seasonal agricultural worker employed through the program11.

For more information on these programs, visit Human Resources and Skills Development Canada’s website: www.hrsdc.gc.ca

TFW in HamiltonIn 2011, there were 2,222 temporary foreign workers in Hamilton, an increase from 1,410 in 200612. There is little information on how many of these workers are SAWP and how many are coming in under the Live-In Caregiver Program.

For a more in-depth review of temporary foreign workers in Canada, check out A Discussion Paper on Temporary Foreign Workers in Canada, available on Workforce Planning Hamilton’s website.

10 Canada’s migrant farm worker system - what works and what’s lacking, CBC, February 8, 201211 Seasonal Agricultural Worker Program at root of agri-food, Ken Forth, Farms Ontario, May 22, 201212 Citizenship and Immigration Canada, Preliminary tables – Permanent and temporary residents, 2011, Canada – Tem-porary foreign workers present on December 1st by province or territory and urban area, 2006-2011.


Agri-tourism in HamiltonDefined broadly, agri-tourism or agricultural tourism is “the act of visiting a working farm or any agricultural, horticultural or agribusiness operation for the purpose of enjoyment, education or personal involvement in the activities of the farm or operation”.13 A small subset of Hamilton farms is currently incorporating agritourism into their business plans. It is growing in popularity in Hamilton, evidenced through events such as farm crawls, pick-your-own fruit and vegetable farms, and the farm directory map available from Hamilton Eat Local. Farm owners that have successfully integrated agri-tourism into their operations report that the transition has enhanced their lifestyle, as well as their business14.

Farms that embrace agri-tourism have to shift a larger share of their focus to marketing, advertising, and public relations than they may previously have done. Similar to more traditional businesses, farms are increasing their internet presence, social media, and print advertising in the community. As the experience of visiting a farm becomes an important draw for potential customers, it follows that workers on these farms must have good customer service skills as they have increased interactions with visitors. Furthermore, agri-tourism farms are looking for employees who are knowledgeable about the farming process and are able to educate guests on how the food is grown and cultivated.

Challenges and Opportunities in Hamilton’s Agricultural IndustryFarming has evolved from old-fashioned methods of planting seeds and harvesting crops to high-tech and automated processes. With the development of more efficient machines, farmers can harvest more crops than ever before, without increasing their need for labour. For example, due to larger capacity machinery, farmers can harvest multiple rows at a time, hundreds of cows can be milked simultaneously, and thousands of chicken eggs can be collected. With continuous techno-logical advances, some of the most important employee traits include flexibility, adaptability and a strong work ethic. People no longer need to necessarily have a traditional agricultural background, farmers are looking for employees who have a drive to learn and adapt to changing processes, and for people who understand everything a rural lifestyle entails. Ontario Federation of Agriculture president Mark Wales has said the vacancy rate for skilled farm jobs in Canada is 10% or higher because people “don’t historically think of agriculture as a career opportunity. It’s seen as stoop labour or grunt labour.”

As the bulk of Ontario’s farmers begin to think of retirement, there seems to be a country-wide shortage of smart, young workers willing to take the reins. The 2011 Census of Agriculture found that the number of farms in Canada decreased by 10% since 2006; however, the average size of a farm increased by almost 7%. This shift to large-scale farming has been concerning to some industry stakeholders who worry about the impact on Canada’s rural economy and rural community infrastructure.

13 University of California Small Farm Center14 Developing an Agri-Tourism Operation in Ontario, D. Collins, Ontario Ministry of Agriculture and Food


Relatively new ventures in agri-tourism are events such as Farm

Crawl Hamilton, organized by Manorun Organic Farm, Weir’s Lane Lavender & Apiary, and

Jerry’s Berries. Participants can visit all three farms in one day to experience how a farm operates, attend live demonstrations and

special events.

There are seven farmers’ markets in the Hamilton area

through which consumers can buy products directly from

community farmers:

Ancaster Farmers’ Market

Binbrook Farmers’ Market

Downtown Farmers’ Market

Dundas Farmers’ Market

Locke Street Farmers’ Market

Mountain Farmers’ Market

Ottawa Street Farmers’ Market

Working conditions in this industry can be unfavourable, as during the busy season, many workers put in long hours in an outdoor environment. Public transportation is typically not available to many of Hamilton’s farms, which could present difficulty for workers to get to work. However, the amount of high-tech processes involved provide a business climate great for people who thrive on economic theory and business acumen, computerization, human resources, robotics, chemistry and plant science. Many local farms also hire seasonal employees, including students and older workers during the growing season (typically April or May to September or October). Many workers, especially on smaller farms, may need to be able to accomplish a variety of tasks, from being in the field, to informing visitors about the food process, to storefront duties.


Vacancy rate for skilled farm jobs in Canada is

10% or higher

Ontario Federation of Agriculture

Food Processing (NAICS 311 & 312)EmploymentFood and beverage processing is important to Hamilton manufacturing activity. With a labour force of 5,690 workers in 2006, it has the third largest labour force in the manufacturing industry after Primary Metal Manufacturing (NAICS 331) and Transportation Equipment Manufacturing (NAICS 336). While the overall manufacturing industry has been in decline over the past decade, advancements in food processing continue to make headlines in Hamilton. The Labour Force Survey only tracks employment trends at the two digit NAICS level in Hamilton, so while we do not have recent statistical estimates of employment levels, we can still obtain a sense of workforce trends through recent developments.

Companies such as Bunge, Mondelez Canada Inc (formerly Kraft Foods), Karma Candy, and Oak Run Farm Bakeries have prospered in the city and have attracted new investment and interest not only directly in food processing, but also in supporting industries, such as transportation and distribution. In 2011, Hamilton was selected by Maple Leaf Foods Inc. as the home for Canada Bread, the largest commercial bakery in the country, representing a $100 million investment and up to 300 full-time jobs and 30 seasonal hourly positions. Construction is underway for a 400,000 square foot Maple Leaf plant that will be the country’s largest hot dog and sliced meat facility. Set to open in 2014, Maple Leaf plans to hire 670 salaried and hourly staff at that time15.

BusinessesHamilton is home to some of the country’s largest food processing employers, but also has many small and medium sized enterprises (SMEs) in the cluster. Table 5 shows a comparison of the number of food and beverage processing businesses in Hamilton in 2009 and 2012. While slightly declining in the overall number, food and beverage manufacturing businesses account for over 4% of all manufacturing employers in Hamilton.

Table 5. Number of Food and Beverage Processing Companies in Hamilton, Canadian Business Patterns, June 2012

2009 2012Total Number of Businesses 94 80Number of Owner-Operated Businesses 26 18

Total Number of Businesses with Employees 68 62

Table 6 shows a breakdown of the employers by employee size ranges. While the majority of businesses are SMEs, there are quite a few large food manufacturing businesses operating in Hamilton. In fact, of the 269 companies across all industries that employ 100 or more workers in Hamilton, 4% are food manufacturers.

Table 6. Employers by Employee Size Ranges in Hamilton, Canadian Business Patterns June 2012

NAICS Owner operated 1-4 5-9 10-19 20-49 50-99 100-

199200-499 500+ Total

311 – Food Manufacturing 17 9 8 14 6 7 8 2 1 72

312 – Beverage Manufacturing 1 2 2 2 1 0 0 0 0 8

15 City of Hamilton, Economic Review 2011


Comparison of the Distribution of Agricultural Businesses

Table 7. Food and Beverage Processing Employers as a Percentage of Total Employers, Hamilton and Selected Surrounding Communities, Canadian Business Patterns, June 2012

NAICS Hamilton Halton Niagara Brant Toronto Ontario

311 & 312 – Food and Beverage Manufacturing 0.3% 0.2% 0.7% 0.3% 0.3% 0.3%

Hamilton has the same concentration of food processing companies as Ontario and several surrounding communities. However, it is important to note that this distribution does not take into account the size of the businesses, and of the Hamilton employers, many are some of the country’s largest food processing businesses.

Occupational AnalysisTable 8 shows the top 10 occupations in the industry by labour force, which account for 66% of all jobs in food and beverage processing. The top occupations tend to be labour-intensive and directly involved in the food manufacturing process, while other common occupations are in the distribution and transportation of food products. With the establishments of companies such as Canada Bread and Maple Leafs Food plants in Hamilton, it is likely the labour force count in this industry will increase.

Speaking with employers in this sector, many acknowledged the increased use of machinery and automated processes for their general labourers. As it is the most common occupation in the sector, those looking to enter this career may benefit from familiarity with these machines through college certification in robotics or automation certificates. However, employers indicated for many positions college degrees are not necessary, and the ability to learn through in-house training remains the most important employee quality.

Table 8. Top 10 Occupations in Food and Beverage Processing in Hamilton, 2006 Census

Occupational Title Total Labour Force in Industry

% of Industry Total

9617 Labourers in food, beverage and tobacco 1560 30.3%9462 Industrial butchers and meat cutters, poultry preparers and related workers 805 15.6%

9461 Process control and machine operators, food and beverage processing 640 12.4%

1471 Shippers and receivers 210 4.1%9213 Supervisors, food, beverage and tobacco 155 3.0%7311 Construction millwrights and industrial mechanics 140 2.7%7452 Material handlers 130 2.5%6252 Bakers 125 2.4%6411 Sales representatives, wholesale trade (non- technical) 125 2.4%6421 Retail salespersons and sales clerks 105 2.0%


Age of Employed Workforce Figure 3 shows the age distribution of the top 10 occupations in the sector. Not uncommon, most of the entry-level jobs such as retail salespersons and sales clerks have a higher percentage of young workers, while occupations requiring specialized experience such as construction millwrights and industrial mechanics have an older workforce distribution.

Figure 3. Age Distribution of Top 10 Food and Beverage Processing Occupations in Hamilton, 2006 Census


Challenges and Opportunities in HamiltonMuch of the success in diversifying Hamilton’s economy can be attributed to food processing. Since Maple Leaf Foods decided that Hamilton has “the right ingredients to the infrastructure, land and skilled resources, and the right economic vision to play a leading role in the future of Canada’s food industry”, many other food-related businesses have started to look at the city as a place to operate16. The new Maple Leaf Foods meat processing facility is expected to create 670 jobs, while Canada Bread has set up the country’s largest commercial bakery, employing 330 workers17. These and other major food production operations such as Oakrun Farm Bakery, G.S. Dunn, Mondelez Canada, and TMF Ltd., are changing the scope of Hamilton’s manufacturing industry. Both small and large businesses see benefits from cluster-ing, including: a local specialization in labour skills, higher density of supplier networks, and knowledge spillovers (knowledge that spills across firms working in the same industry in the same location)18.

Similar to the agricultural industry, food processing is also becoming more technologically advanced and increasing automated processes. While lower skilled general labourers are still crucial to the success of the industry, skill requirements are also evolving to include an increased need for employees to operate new machinery, and continuously adapt to changing workplace processes. Jobs which benefit from college training in machine operations and maintenance are more prominent with the increase of technology use, and the demand for skilled trade workers remains high.

16 Maple Leaf Foods putting its money where the dough is, Kevin Werner, Hamilton Community News, March 28, 201217 Ibid18 Study: Influence of urban clustering on the productivity of firms, 1989 to 1999, Statistics Canada, February 6, 2013


ConclusionThe success of Hamilton’s agribusiness and food processing sector relies on a collaborative effort between all stakeholders to ensure Hamilton remains the location of choice for both traditional agricultural busi-nesses and food processors. The province’s food processing industry continues to drive economic growth, create jobs and service locally grown and made in Ontario food. The future for this cluster seems bright in Hamilton and a few key considerations emerged while completing this study:

• The aging farmer population means younger workers will need to be recruited to take over operations as retirements begin

• In addition to those with a traditional agricultural background, an increase in farming technology has led to a demand for tech-savvy workers

• Food processing companies require employees of all skill levels, and from a variety of educational backgrounds

• In-house training is typically provided for employees, what is most important for job seekers is to have a good attitude, a willingness to learn and ability to adapt to changing business practices

Overall, the agribusiness and food processing cluster is a driver for employment in Hamilton, offering a variety of occupations and job opportunities. Given the increasing global population and the necessity for food, the cluster has been considered as “recession-proof” as they come. As Hamilton shifts away from its steel-town image, the agribusiness and food processing cluster continues to be integral to the success of the city’s economy.


BibliographyBurt, Michael, et. al, “The Sky’s the Limit: The Viability of Canada’s Food Economy,” The Conference Board of Canada, 2012.

Canadian Federation of Agriculture. “Census results underscore need for better ag[riculture] policy,” News Release 2007.

Citizenship and Immigration Canada, Preliminary tables. Retrieved February 22, 2013 from www.cic.gc.ca

City of Hamilton. “Economic Review 2011.”

Collins, D. “Developing an Agri-Tourism Operation in Ontario,” Ontario Ministry of Agriculture and Food, March 2010.

Everson, Neil. “Agricultural and Food Processing is Hamilton’s Breadwinner,” City of Hamilton Economic Development, September 24, 2012.

Forth, Ken. “Seasonal Agricultural Worker Program at root of agri-food,” Farms Ontario, May 22, 2012.

Greater Toronto Area Agriculture Action Committee. “Golden Horseshoe Food and Farming Action Plan 2021,” January 2012.

Kane, Laura. “Young, city-born women buck Ontario’s aging farmer trend,” Toronto Star, August 13, 2012.

Ontario Food Cluster, “A full serving of opportunity for the global agri-food sector,” Retrieved February 2013 from www.ontariofoodcluster.com

Seccombe, Wally. “A Home-Grown Strategy for Ontario Agriculture,” Toronto Food Policy Council, September 2007.

Stastna, Kazi. “Canada’s migrant farm worker system- what works and what’s lacking,” CBC, February 8, 2012.

Statistics Canada, “Food in Canada,” December 19, 2012.

Statistics Canada. “Study: Influence of urban clustering on the productivity of firms, 1989 to 1999,” February 6, 2013

University of California Small Farm Center. “Agritourism,” Retrieved February 27, 2013 from www.sfp.ucdavis.edu/agritourism

Van Brenk, Debora. “Farm workers go high tech,” The London Free Press, February 29, 2012.

Werner, Kevin. “Maple Leaf Foods putting its money where the dough is” Hamilton Community News, March 28, 2012.


Workforce Planning HamiltonBusiness, Labour & Community:

Planning for ProsperitySince 1997 Workforce Planning Hamilton has provided planning, partnerships and projects that highlight local labour market trends and support workforce development.

WPH is a member of Workforce Planning Ontario, a network of 25 labour market planning areas across Ontario.

Our evidence-based approach relies on key industry sector and demographic data combined with local intelligence from employers and other local partners to develop a strategic vision for Hamilton.

Log on to WPH’s website at www.workforceplanninghamilton.ca and you will:

Discover our community Projects and Partners that promote labour force development

Learn about local labour market trends, opportunities, and priorities in our Publications.

Connect to Links on training, employment, and labour market information.

117-77 James Street NorthHamilton, Ontario, L8R 2K3Telephone: 905- 521-5777

Fax: 905- 521-9309Email: [email protected]

Website: www.workforceplanninghamilton.ca

Workforce Planning Hamilton is funded by Employment Ontario

Date post:	21-Mar-2016
Category:	Documents
Upload:	cyndi-ingle
View:	216 times
Download:	1 times

A Taste of Agribusiness

Documents