The Food Processing HR Council wished to express sincere appreciation to the firms and individuals who contributed directly or indirectly to this publication and in particular to the members of the Advisory Committee who were instrumental in the planning, development and validation of the final document. They are:
| Kelly Bruce | Canada Bread Company Limited (NS) |
| Sherri Deveau | Ganong Bros., Limited (NB) |
| Dave Gilbert | Weston Bakeries Limited and Ready Bake Foods Inc. (AB) |
| Paula Kieley | Ocean Choice International (NL) |
| Dave Lippert | DARE Foods Limited (ON) |
| Eman Rafaeh | Nestlé Waters Canada (ON |
| Chris Schwartz | Grand River Foods (ON) |
| Debbie South-Mitchell | Vanderpol Food Group of Companies (BC) |
| Jerry Peltier | Congress of Aboriginal Peoples (ON) |
| Lise Perron | Comité sectorial de main d’oeuvre en transformation alimentaire (QC) |
| Warren Gould | Agriculture and Agri-Food Canada (ON) |
| Shelley Binch | Human Resources and Skills Development Canada (QC) |
Special acknowledgment is extended to the personnel of Zins Beauchene and Associates who undertook the research component of the project and to the personnel of the George Morris Centre who was commissioned to write the final report and review the original source material to refine and recommend next steps in the human resource forecast planning for the sector
The Food Processing HR Council (FPHRC) undertook a Labour Market Information Research Project of the Canadian Food and Beverage processing sector in order to assist firms forecast and plan for their business and HR needs. This report highlights the latest industry trends, detailed supply and demand analysis of workers, demographics, wage rates, age breakdown, recruiting practices, impact of newcomers to Canada, college/university enrolments and more. In addition to the main report, FPHRC extrapolated sub-sector specific statistics for the following commodity groups; Animal Food , Grain and Oilseed Milling, Sugar and Confectionary Product Manufacturing, Fruit and Vegetable Preserving and Specialty Food Manufacturing, Dairy Product Manufacturing, Meat Product Manufacturing, Seafood Product Preparation and Packaging, Bakeries and Tortilla Manufacturing and Beverage Manufacturing.
The food and beverage processing industry is the largest manufacturing sector in Canada. Approximately 6,500 establishments in this sector employ approximately 250,000 workers. Food processing in Canada is concentrated in Ontario, Quebec and British Columbia due to the population and location of large urban centers in these provinces. Annual exports of food and beverage products were over $20 billion in 2010.
The uncertain global economy and the high Canadian dollar, as well as increased input prices have put pressure on the food processing industry, resulting in declining performance and productivity. These factors have led to changes in business planning, forcing greater emphasis on marketing, branding and communications to help Canadian firms maintain and improve market share. Consumer preferences are also having a large impact on processing and the products that food and beverage manufactures are using. Improved technology is helping firms increase productivity and meet the needs of consumers, which is leading to a trend of fewer employees and fewer establishments within the industry.
Concentration in both the retail and food distribution sectors are having an impact on industry profitability, as small firms are finding it more difficult to place their products on grocery store shelves and distributors are able to charge more for their services. Legislation regarding environment, food safety and labelling pose additional challenges for the food and beverage processing industry and have a significant impact on human resource management in the sector. Globalization of the industry leaves domestic processors competing for market share with imported products which have lower production costs due to less regulatory control and lower wages in other countries.
Overall there has been a decline in the number of employees in the food and beverage processing sector; however, it is declining at a slower rate than in all manufacturing sectors. Unionization rates in food and beverage manufacturing are slightly higher than in the general population and are particularly high in the meat processing and beverage manufacturing industries.
Hourly wages for workers in the food and beverage manufacturing sector are significantly lower than in other manufacturing industries as well as the industrial aggregate. Hourly wages for Ontario and Alberta are the highest, given the competition that exists for workers in these provinces while Saskatchewan currently has the lowest wage for hourly workers. Compensation for salaried workers is more comparable to the manufacturing and industrial averages.
Health & Safety have numerous impacts on staffing, making it a primary consideration in HR planning.
Employers in the food and beverage manufacturing industry face many of the same barriers to recruitment as those in other manufacturing industries. Most firms rely on traditional recruitment methods such as referrals to fill vacancies, although some organizations are broadening the scope of their recruitment strategies. Barriers to recruitment such as competition from other manufacturing sectors and other industries, as well as the perception of the industry by the public, are significant and must be overcome in order for organizations to fulfill staffing needs and remain productive. Retention is also a significant problem in the industry. Barriers to retention focus on the fact that many current employees tend to see employment in the industry as a short-term job, rather than a long-term career. Additionally immigration laws require that temporary foreign workers return to their home countries at the end of their work term. Employers are using many of the available HR tools, as well as a variety of incentives to plan labour force needs and attract and retain employees in the industry.
FPHRC conducted an industry survey with over 400 respondents, and the respondents noted that their expectation is to increase or keep the current hiring levels for all categories. The estimated number of new hires over the next 3 years is 21,437.
As new employees enter the industry, skills development, knowledge transfer and professional development will become central to all human resource activities. Training should be focused on areas such as language training for immigrants and temporary foreign workers, food safety training and training for the use of new technology
There are a number of post-secondary training programs available in agri-food processing across the country. Additionally, food technology centres often offer courses or assist in the creation of customized training programs in food processing. As new delivery methods become available, the accessibility to training from these types of locations will increase. Most companies also offer a number of professional development opportunities to their employees. The most important training topics identified for the future were food safety, quality control and machinery operation & maintenance.
Barriers to training include employee motivation and the cost to train employees who only intend to be with the organization short term. Other barriers include the availability of programs, either due to transportation costs, lack of instructors, lack of programs available in the area or lack of programs available for specific skills that were required.
In the councils short two year lifespan, 34% of survey respondents were aware of the FPHRC; therefore, the council has to continue marketing itself and the value it provides to the industry, including the development and use of national occupational standards and national certification and accreditation systems.
As economic conditions remain uncertain, but are likely to improve, the food and beverage manufacturing industry will continue to see competition for employees and will have to adopt new strategies for recruitment and retention. They will also need to focus on training efforts to ensure that the workforce has the necessary skills to stay competitive.
No doubt, food is delicious… but, where does it come from?
Often, when we think of food, we usually envision its place of origin; for example: milk, cheese and beef come from cattle. Rarely do we think of all the processes that our food undergoes between the place of origin (the farm) and the final destination (our household).
In fact, pretty much all food and drink that we consume on a daily basis involves some type of processing before it reaches us! Yes, even organic foods are processed in some fashion. Processing occurs with numerous products, including: fresh produce, dairy products, meats, seafood, breads, pastas, beverages, and simple ingredients such as flour and sugar.
The reality is that the majority of products sold in a grocery store today have been through some type of “food processing phase” before it appears on the store shelf, freezer or refrigerator!
Who is Processing Your Food? is designed to trigger curiosity and to shed light on the processing phases of our food, and the people who help transform the raw materials into a consumable product!
Learn more about a generally overlooked industry and WHO is required to make these processes safe and successful!
The Food Processing HR Council (FPHRC) undertook a Labour Market Information Research Project of the Canadian food and Beverage processing sector in order to assist firms forecast and plan for their business and HR needs. This report highlights the latest industry trends, detailed supply and demand analysis of workers, demographics, wage rates, age breakdown, recruiting practices, impact of newcomers to Canada, college/university enrolments and more
In order to analyze the food processing industry labour market, the FPHRC commissioned consultants to:
A final report was submitted to the Food Processing HR Council. The George Morris Centre used this report as well as additional information to provide further analysis and recommendations based on their experience and knowledge of management, productivity and public policy in the agri-food sector.
Food processing establishments are concentrated in Ontario, Quebec and British Columbia. Processors established in these provinces have access to a large potential labour pool, as well as proximity to consumers of final products – both domestic and in the US.
| Food Processing Subsectors |
|---|
| • Animal Food Manufacturing |
| • Grain and Oilseed Milling |
| • Sugar and Confectionary Product Manufacturing |
| • Fruit and Vegetable Preserving and Specialty Food Manufacturing |
| • Dairy Product Manufacturing |
| • Meat Product Manufacturing |
| • Seafood Product Preparation and Packaging |
| • Bakeries and Tortilla Manufacturing |
| • Other Food Manufacturing |
| • Beverage Manufacturing |
Source: Industry Canada, from Statistics Canada, Canadian Business Patterns Database, December 2009
While demand for processed food is growing in Canada, the US and traditional European markets, there is much greater potential for growth in other less-developed countries as a result of increasing populations and increased per capita incomes.
Net trade in Canada’s processed food and beverage industry has declined substantially over the last decade. Canadian imports have increased much faster than exports and as a result, net trade has declined from a balance of about $5 billion to approximately negative $1 billion.
The United States remains Canada’s top export market representing 66% of total export sales in 2010, followed by China and Japan. The total value of exports to the US has remained relatively stable over the course of the last decade. It is sales into other markets such as China, South Korea and Russia that account for the growth in Canadian food and beverage exports.
Major competitors for domestic markets in the industry include imports from the United States, Italy, France, China and Brazil.
While NAFTA allows for tariff-free trade between Canada and the United States, industry sources suggest that borders remain ‘thick’ with non-tariff barriers.
Source: Industry Canada, Trade Data Online.
Growth in the Canadian food and beverage processing industry is dependent on the industry’s competitiveness relative to both other sectors in the economy and to the food processing industries in other countries, since the industry must compete with these others industries for capital and labour.
The productivity gap in Canada has been well documented as a competitive challenge to the economy in many industries, and food processing is no exception (Hodgson and Triplett, 2007; Conference Board of Canada, 2010). The figure below shows that since the early 1990s capacity utilization in the United States has grown significantly to reach over 100% in the last few years, whereas Canada’s capacity utilization has remained flat and has not improved much beyond 80%. The inability to utilize productive assets to their full potential is surely a drain on food processing productivity in Canada.
Factors impacting competitiveness and productivity include rising input costs, the strengthening Canadian dollar, low levels of R&D and investment and lack of access to capital.
Consumers are becoming more health, environment and safety conscious and purchasing decisions are reflecting this increased awareness and interest. Consumers are demanding more information on the products they consume, particularly in food and beverage products, and processors are required to adjust their processes, input and marketing to reflect these demands. Some specific attributes considered are:
Other demographic shifts such as the increasing ethnic population in Canada and expanding consumer demand for specialty foods are also changing the food and beverage processing industry. Growth in this area is expected as new companies will enter this market or existing companies will shift or expand operations to take advantage of this opportunity. Retailers are already offering more variety of products such as Kosher or Halal foods as well as increased specialty food offerings to meet the needs of their customers
With a growing proportion of two-income families in Canada, there is increasing demand for convenience foods and quick, ready-to-cook meals. Additionally, smaller families and individuals are looking for smaller portions and package sizes.
Increased competition for both domestic and foreign markets is resulting in declining margins for many processors. In order to maintain or increase market share and remain competitive in the industry, processors are finding it necessary to adopt new marketing methods, adopt new business practices and undertake more in-depth strategic planning. Advertising, branding and communications are becoming more critical to success in the industry. Private brands within the industry are growing, although strong national or international brands still dominate.
Technology and innovation have proven to improve productivity and aid companies in maintaining a competitive edge in the marketplace. As global competition intensifies, investment in new technologies and innovations will become more crucial to improve productivity, add value and reduce costs.
New technology and innovations include:
Most new technologies in food processing are developed outside of Canada but adopted by Canadian processors.
Flexible manufacturing: Compared to large-scale, one-line US plants, Canadian plants for the most part are smaller and typically produce a number of product lines.
With the underlying trend of differentiation in food products, flexible manufacturing allows plants to produce a number of niche products, servicing consumer demand more effectively. This could be part of Canada’s competitive advantage
The food retail environment in Canada is highly concentrated. In 2010, Canada’s top four national grocers (Loblaw, Sobeys, Metro and Safeway) accounted for 88% of market share. With this concentration, the major food buyers have market power and any change in demand by one or two of the major customers could cause a significant shift in processor’s demand.
At the same time, non-traditional food distributors such as Wal-Mart, Zellers, Costco, pharmacies, dollar stores, specialty distributors and alternative outlets such as public markets are increasing their share of the market, providing new markets and opportunities for food and beverage manufacturers.
In today’s global food market, the regulatory environment is becoming more complex and food processors need to be proficient in understanding regulatory requirements and how to navigate compliance.
There is a growing trend towards the creation of strong global brands. This is being accelerated by mergers and acquisitions of processing facilities by multinational companies. This, combined with a strong Canadian dollar and low cost of production in countries such as China, Brazil, Thailand and India, has created greater competition for the domestic market in Canada. The European Confederation of Food and Drink Industries (CIAA) has noted that emerging economies are seeing growth in value-added product industries, resulting in a decreased market share for European companies globally. Similar results can be expected in North America, as manufacturers continue to face more competition.
In sum, the trends show that Canadian food processors are engaged in a complex and competitive business environment. But with complexity comes opportunity. In order to take advantage of the opportunities, the food processing industry must employ a dedicated and skilled workforce.
The bottom line is that a more professional and well-trained workforce will be required to meet the demands of the future.
As the industry makes technological advances, more advanced skills are required. For example, it seems there will be a need for more skilled machine operators than line operators; engineers, food scientists and nutritionists, etc. will also be affected. Savvy marketers will be required to stay ahead of changing consumer demands, utilizing packaging and production processes to sell products.
Overall, these changes will have an impact on the current workforce and on the types of skills required – causing attraction, training and retention of appropriately skilled workers an increasingly crucial challenge.
Over the past decade, the number of employees in the food and beverage manufacturing industry has decreased by 4%, from 262,081 to 249,560. This decline in employment has occurred as sales have grown and has partially resulted from an investment in automation which has required fewer employees but likely more skilled employees as a result.
Food and beverage processing accounted for 17% of total manufacturing employment in 2010, compared to just over 13% in 2001.
Between 2001 and 2010, employment in total manufacturing in Canada declined by 26%.
In addition, employment numbers from Statistics Canada indicate that the number of Production employees has dropped while the number of Administrative employees has risen. Although the salary of production employees has steadily increased it has not increased as fast as the Administrative employees.
According to the 2009 Statistics Canada Labour Force Survey, 36% of workers employed in the industry were unionized. Unionization is particularly prevalent in the meat product manufacturing and beverage manufacturing subsectors with 56.5% and 42.3% unionization respectively. This compares to 33.7% of workers unionized in all industries in Canada (Human Resources and Skills Development Canada).
In 2008, average hourly wages in the food and beverage manufacturing sector were $18.14 per hour for employees who are paid by the hour. This has increased slightly from $17.44 in 2004. Hourly wages are significantly less than the average for all manufacturing sectors ($21.98) and the industrial aggregate ($20.16). Alberta and Ontario have the highest wages consistently, likely due to competition between employers for workers. In Ontario this is likely between food processors and other manufacturers such as the automobile industry, while Alberta’s oil industry is a draw for labour in that province. In 2008 Saskatchewan had the lowest wages at $15.96 per hour; however this is likely to change in the near future as the unemployment rate in Saskatchewan is currently the lowest in Canada, meaning food and beverage processors are going to have to pay more to attract workers.
For salaried workers in the industry, the average hourly wage was $30.27 per hour. Salaried employee wages are on par with other manufacturing sectors and slightly higher than all industrial employment. Ontario, Alberta and Quebec are the highest paying provinces for salaried employees, while the Atlantic provinces and British Columbia have the lowest salaried wages.
Currently, labourers make up over 40% of the total industry workforce (this includes food, beverage, tobacco and fish processing labourers), followed by process control and machine operators accounting for 28%. As the occupations get more skilled and specific, the proportion of employees falls.
A higher proportion of males are employed as supervisors (72%), process control and machine operators and industrial butchers (67% for NOC 9461) and meat cutters (71%). Females dominate the labourer positions (54%), positions such as machine operators in fish processing plants (63% for NOC 9463) and testers and graders (58%).
As technology improves and production practices become more automated, there will be a growing need for skilled, technologically proficient employees, while it is expected that the need for unskilled labour will decrease. Opportunities for those trained to operate new advanced technology will be available. Maintenance positions will also become critical, as equipment failures have major impacts on production lines and productivity.
In order to meet high food safety and quality standards, we can expect an increased demand in food science technicians, quality assurance technicians and HACCP and QMP specialists.
Employers surveyed (n=411) were asked to rate the importance of potential HR issues to their firm. Health and safety was identified as the most important issue by the highest number of respondents (51%). However labour costs were considered either very important or somewhat important by 77.6% of respondents.
Improving health and safety in the workplace is an important goal in the industry. Accidents and unsafe working conditions have a negative impact on other human resource issues in the industry, including: labour costs, absenteeism and sick leave, recruitment and retention, productivity and employee morale.
The food and beverage manufacturing industry faces many of the same constraints to retention and recruitment as other industries.
Employers surveyed suggested that the food and beverage manufacturing sector face the following difficulties in recruiting employees.
Despite these challenges, only 44% of firms surveyed indicated that they use incentive programs to attract and retain staff. Adoption and expansion of these programs will help firms to attract new employees to the industry and keep experienced staff.
Respondents were asked to indicate what tools they use to recruit new employees. Values indicate the percentage of survey respondents who indicated that these methods were currently used in their organization. Firms use a number of sources to find new employees.
Of the employers surveyed, 63% mentioned that hiring new employees is an HR challenge and 59% mentioned that there is a lack of candidates with the proper training, leading to difficulties in hiring for specific occupations.
Employers face the biggest challenge in finding appropriate candidates for the following occupations:
Processors expect these same occupations to continue to be difficult to fill over the next five years.
Temporary seasonal employees help organizations to maintain or increase production on a short term basis – especially in fruit and vegetable processing that has extreme peak production periods.
Food and beverage manufacturers employ a number of human resource tools in order to improve organizational efficiency. Values indicate the percentage of survey respondents who indicated that these methods were currently used in their organization.
When processors cannot source sufficient domestic labour, temporary foreign workers are an alternative source.
Benefits and incentives play an important role in attracting and retaining a productive workforce. While many firms use traditional incentives such as bonuses, sufficient salaries, overtime pay, etc., some firms are also turning to less traditional incentives such as profit sharing in the company, work sharing, telecommuting and awards.
As firms become more aware of the range of incentives offered by other companies, they will be able to incorporate these programs into their own organizations to improve recruitment and retention efforts. As pressure to remain profitable under unstable economic conditions increases, firms will be required to consider more of these options as alternatives to salary increases in order to maintain employee satisfaction.
Based on short-term hiring intentions, the industry has estimated it will hire 21,437 employees in the next three years3. These projected hires will account for both retirement replacement (assuming approximately the same numbers as the past three years of 10,000 retirees) and industry growth. This represents a hiring rate of 8.6% over the three years (4.6% of which is related to industry growth).
The following table shows the estimated hires by region. Relative to their food processing industries, Quebec and the Atlantic Provinces will be hiring in greater proportion, while Ontario and the west will be hiring less.
In the next three years, 40% of the projected hirings in the industry will be for general labourers, followed by skilled workers (13.2%) and professionals with post-secondary education (10.2%).
Labourers and skilled workers were identified as some of the most difficult occupations to hire in the food processing industry. Therefore, processors must start developing recruitment and retention plans in order to successfully obtain and retain these hires.
Overall, organizations have maintained or increased (85.4%) their training budgets for 2010 over 2009. This shows a commitment to encourage industry employee professional and skills development. Employers also indicated that they intend to increase or maintain the number of employees who are trained, as well as the number of training hours per employee over the next three years.
LANGUAGE TRAINING FOR NEW IMMIGRANTS AND TEMPORARY FOREIGN WORKERS: One of the issues identified by employers was the need for language training for workers whose first language is not French or English, particularly for workers with temporary work permits employed in seasonal positions. The concern is that language barriers may result in health and safety concerns for these employees.
Additionally, employers would also benefit from language training in the languages of their employees’ mother tongue.
FOOD SAFETY TRAINING: As consumer preferences and legal requirements shift toward greater food safety standards, it becomes increasingly evident that companies need employees who understand and adhere to these regulations. Establishments will need to adopt and expand on food safety plans and to communicate the goals and requirements of these plans to their staff. Most of these food safety training programs will need to be designed and implemented on-site to provide the best application of policies and procedures.
TRAINING FOR NEW TECHNOLOGY: For the introduction of new technology to increase productivity, it is imperative that employees be appropriately trained on the use of such technology. Additionally, low level training on troubleshooting and maintenance should be conducted so that small problems can be fixed with minimal disruption to the manufacturing process. As firms adopt more technology and processing lines become more automated, processors will need to hire or train employees with greater technological knowledge. Equipment manufacturers often do not provide adequate training for use, maintenance and repair of new machinery.
Several colleges and other post-secondary institutions offer educational programs in food processing. There were over 5,000 students enrolled in such programs in 2008, with 1,000 graduates. Some 2,000 of these students were enrolled in food processing apprenticeship programs in 2008. The number of enrolments in food and food processing-related programs continues to increase.
At the high school level, no programs specifically related to food processing are available, leaving a training gap which requires considerable on the job training. For a full list of Canadian educational institutions offering agri-food programs, see Appendix 1.
The Guelph Food Technology Centre offers training in a number of food safety, quality and technical areas. GFTC trains over 3,000 professionals annually. The Food Processing HR Council, the Saskatchewan Food Industry Development Centre Inc., the Canadian Institute of Fisheries Technology in Nova Scotia and the Canadian International Grains Institute offer assistance in building courses in food safety and quality assurance4, as well as workshops and online training.
Most stakeholders surveyed indicated that the current number of spaces in post-secondary programs available does not adequately meet the needs of the industry, particularly in the case of skilled workers (e.g. butchers, meat cutters, bakers, blenders). Additionally, as new technologies are introduced to the workplace, skills learned in these programs become quickly outdated. While training programs are growing, this growth is not meeting the industry demands.
Delivery methods for training programs are expected to change as new technologies such as Skype improve communication. For large multi-site firms, this will allow training of employees in several locations at the same time.
Employers have noted that many employees do not have adequate backgrounds to take full advantage of further training.
Food and beverage processors are using a variety of methods to provide training, skills development and professional development to their employees. Given the importance of health and safety in the workplace, it is not surprising that most workplaces undertake this activity as part of employee development.
The following potential barriers to training have been identified:
Dairy Products (NAICS 3115)
The dairy market in Canada is largely a mature market – consumption per capita is declining and more substitutes for dairy products are being developed.
Number of establishments: 454 in 2009, accounting for 7% of all food and beverage processing establishments
Employment: 22,200 employees
Big players in Canadian dairy processing
Recent investments in dairy processing in Canada
Grain and Oilseed Processing (NAICS 3112)
“Canada offers access to an abundant supply of different grain and oilseed commodities” (DFAIT, 2009), which has made grain and oilseed manufacturing one of the most significant food processing subsectors. Canada is a world leader in exporting grain and oilseed-based products. This category includes both milling (primary processed) and further processed such as breakfast cereals.
Number of establishments: 164 in 2009, accounting for 3% of all food and beverage processing establishments
Employment: 7,200 employees across Canada
Recent investments in grain and oilseed processing
Leading primary processing companies
Leading cereal manufacturers in Canada – the following four companies account for approximately 90% of cereal manufacturing in Canada:
Sugar and Confectionary Manufacturing (NAICS 3113)
Number of establishments: 260 in 2009, accounting for 4% of all food and beverage processing establishments
Employment = 9,200 employees across Canada
Sugar refining
Confectionery processors
Bakeries and Tortilla Manufacturing (NAICS 3118)
Number of establishments: 1,747; 27% of all food and beverage processors in Canada in 2009
Employment = 37,625 employees
Leading companies
Meat Manufacturing (NAICS 3116)
Number of establishments: 868 in 2009, accounting for 14% of all food and beverage processing establishments.
Employment = 68,000 employees
Poultry processing
Beef packing
Pork packing
Fruit and Vegetable Preserving and Specialty food Manufacturing (NAICS 3114)
Number of establishments: 371 (2009); 6% of all food and beverage processing establishments in Canada.
Employment = 19,900 employees across Canada
Frozen food manufacturing predominately takes place in Ontario and Quebec; however Prince Edward Island, New Brunswick, Alberta and Manitoba are very important due to frozen potato manufacturing in those provinces
Growth in the frozen food industry over the last 20 years has occurred as a result of the popularity of convenience-type foods and the development of innovative new food products.
Leading companies
New investment
Animal Food Manufacturing
Number of establishments: 474 (2009); 7% of all food and beverage processing establishments
Employment: 9,401 employees, approximately 2/3 of these are employed in Ontario and Quebec.
Leading companies
Purina Pet Care (owned by Nestlé Canada),
Shur-Gain and Landmark Feeds (Nutreco) approximately 900 employees in 11 mills in Ontario, Quebec, Atlantic Canada and New York
Unifeed (Viterra Inc.) – Mill Facilities in BC (1), AB (5), MB (2) Mars Canada Inc., Bolton, ON. Brands include: Pedigree, Royal Canin, Whiskas, Cesar, Natural Defense
Beverage Manufacturing
Number of establishments: 728 (2009); 11% of all food and beverage establishments in Canada
Employment: 28,535 employees
Leading companies
Molson Canada (Molson Coors Brewing Co.) 3,100 employees. Breweries in Granville Island, BC; Vancover, BC; Creemore, ON; Toronto, ON; Montreal, QC; Moncton, NB; St. Johns, NL. PepsiCo. Canada (PepsiCo Inc.) – approximately 5,000 employees in beverage processing in Canada.
Cott Corporation – 215 employees in Canada. Bottling in Scoudouc, NB; Point-Claire, Quebec; Mississauga, ON; Calgary, AB; Surrey, BC
Andrew Peller Limited – Wineries in Ontario, Nova Scotia and British Columbia. $263 million in sales in 2010
A.Lassonde Inc. – Based in Rougemont, QC. Plants in Quebec (1), Ontario (2), Nova Scotia (1), Alberta (1)
There has been significant growth in the winery industry in the past couple years, both in traditional grape and fruit wines. Additionally, a number of new craft breweries have entered the industry.
Seafood Packaging and Processing (NAICS 3117)
The Canadian seafood processing industry is a significant global player, with over 70% of total revenues being exported to over 80 countries worldwide, mainly to the United States, followed by China and Japan.
Number of establishments: 681 (2009), accounting for 11% of all food and beverage establishments in Canada.
Employment = 27,600 employees across Canada
Leading processors
The uncertain global economy and the high Canadian dollar, as well as increased input prices have put pressure on the food processing industry, resulting in declining performance and productivity. These factors have led to changes in business planning, forcing greater emphasis on marketing, branding and communications to help Canadian firms maintain and improve market share. Consumer preferences are also having a large impact on the processing and products that food and beverage manufactures are using. Improved technology is helping companies to increase productivity and meet the needs of consumers, which is leading to a trend of fewer employees and fewer establishments within the industry
Concentration in both the retail and food distribution sectors are having an impact on industry profitability, as small firms are finding it more difficult to place their products on grocery store shelves and distributors are able to charge more for their services. Legislation regarding environment, food safety and labelling pose additional challenges for the food and beverage processing industry and have a significant impact on human resource management in the sector. Globalization of the industry leaves domestic processors competing for market share with imported products which have lower production costs due to less regulatory control and lower wages in other countries.
Overall there has been a decline in the number of employees in the food and beverage processing sector; however, it is declining at a slower rate than in all manufacturing sectors. Unionization rates in food and beverage manufacturing are slightly higher than in the general population and are particularly high in the meat processing and beverage manufacturing industries.
Hourly wages for workers in the food and beverage manufacturing sector are significantly lower than other manufacturing industries as well as the industrial aggregate. Hourly wages for Ontario and Alberta are the highest, given the competition that exists for workers in these provinces, while Saskatchewan currently has the lowest wage for hourly workers. Compensation for salaried workers is more comparable to the manufacturing and industrial averages.
Health & safety, recruitment & retention and skills & knowledge transfer are the three key HR issues that the industry face.
Health & safety have numerous impacts on staffing making it a primary consideration in HR planning.
Employers in the food and beverage manufacturing industry face many of the same barriers to recruitment as those in other manufacturing industries. Most firms rely on traditional recruitment methods such as referrals to fill vacancies, although some organizations are broadening the scope of their recruitment strategies. Barriers to recruitment such as competition from other manufacturing sectors and other industries as well as the perception of the industry by the public are significant and must be overcome in order for organizations to fulfill staffing needs and remain productive. Retention is also a significant problem in the industry. Barriers to retention focus on the fact that many current employees tend to see employment in the industry as a short term job, rather than a long-term career. Additionally immigration laws require that temporary foreign workers return to their home countries at the end of their work term. Employers are using many HR tools available, as well as a variety of incentives to plan labour force needs and attract and retain employees in the industry.
Overall, survey respondents noted that their expectation is to increase or keep the current hiring levels for all categories. The estimated number of new hires over the next 3 years is 21,437.
As new employees enter the industry skills development, knowledge transfer and professional development will become central to all human resource activities. Training should be focused on areas such as language training for immigrants and temporary foreign workers, food safety training and training for the use of new technology
There are a number of post-secondary training programs available in agri-food processing across the country. Additionally food technology centres often offer courses or assist in the creation of customized training programs in food processing. As new delivery methods become available, the accessibility to training from these types of locations will increase. Most companies also offer a number of professional development opportunities to their employees. The most important training topics identified for the future were food safety, quality control and machinery operation & maintenance.
Barriers to training include motivation of employees and the cost to train employees who only intend to be with the organization short term. Other barriers include availability of programs, either due to transportation costs, lack of instructors, lack of programs available in the area or lack of programs for specific skills that were required.
In the councils short two year lifespan, 34% of survey respondents were aware of the FPHRC; therefore, the council has to continue marketing itself and the value it provides to the industry, including the development and use of national occupational standards and national certification and accreditation systems
As economic conditions remain uncertain, but are likely to improve, the food and beverage manufacturing industry will continue to see competition for employees and will have to adopt new strategies for recruitment and retention. They will also need to focus on training efforts to ensure that the workforce has the necessary skills to stay competitive.
For More Detailed Information
Please see the Reference Document that includes the complete set of data that was produced from the stakeholder surveys, interviews and secondary research.
Agriculture and Agri-Food Canada. Growing the Canadian Food Processing Sector, An Industry/ Government Action Plan. December 2010. Retrieved on August 11, 2011 from http://www.ats-sea.agr.gc.ca/rt-tr/5708-eng.htm.
Conference Board of Canada. Canada’s lagging Productivity: The Case of a Well-Educated Workforce Lacking the Much-Needed Physical Capital. 2010.
Hodgson, G. and J. Triplett. “One Issue, Two Voices: Canada–US Competitiveness: The Productivity Gap”. Woodrow Wilson International Center for Scholars: The Canada Institute. 2007
Human Resources and Skills Development Canada. Indicators of Well-being in Canada. Retrieved on August 11, 2011 from http://www4.hrsdc.gc.ca/.3ndic.1t.4r@-eng.jsp?iid=17
Statistics Canadaa, Canadian Business Patterns Database, December 2008
Statistics Canadab, CanSim table 301-0006.
Statistics Canadac, CanSim table 281-0024.
Agriculture and Agri-Food Canada (2009), “The Canadian Bottled Water Industry”, http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1171644581795&lang=eng.
Agriculture and Agri-Food Canada (2009), “The Canadian Bread and Bakery Industry”, http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1171653091262&lang=eng.
Agriculture and Agri-Food Canada (2009), “The Canadian Brewery Industry”, http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1171560813521&lang=eng.
Agriculture and Agri-Food Canada (2009), “The Canadian Fruit and Vegetable Canning, Pickling and Drying Industry”, http://www4.agr.gc.ca/AAFC-AAC/display-afficher. do?id=1172079698438&lang=eng.
Agriculture and Agri-Food Canada (2009), “The Canadian Soft Drink Industry”, http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1172167862291&lang=eng.
Agriculture and Agri-Food Canada (2009), “The Canadian Wine Industry”, http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1172244915663&lang=eng.
Agriculture and Agri-Food Canada (2009), “The Canadian Confectionary Industry”, http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1171977485451&lang=eng
Agriculture and Agri-Food Canada (2010), Report: “Growing the Canadian Food Processing Sector An Industry/Government Action Plan “, 22 p.
Agriculture and Agri-Food Canada (2006), Report: “The Next Generation of Agriculture and Agri-Food Policy – A Federal, Provincial and Territorial Initiative”, 7 p.
Albert, Janice and Food and Agriculture Organization of the United Nations (FAO) (2009), Innovations in food labelling. Rome: Woodhead Publishing Series in Food Science, Technology and Nutrition, (No.184), 184 p
Allard, Marie (2011), “Pour ne pas hausser les prix, on réduit les formats”, Cyberpresse (February 8th), http://www.cyberpresse.ca/actualites/quebec-canada/national/201102/07/01-4367900alimentation-pour-ne-pas-hausser-les-prix-on-reduit-les-formats.php.
Alliance of Ontario Food Processors (2010), Report: “A Strategy for Ontario’s Food and Beverage Processing Industry – Executive Summary”, 16 p.
Canadean (2009), Report: “Private Label Trends in the Global Soft Drinks Market”, 82 p
Comité sectoriel de main-d’oeuvre en transformation alimentaire (2010), “Diagnostic externeversion finale validée”, 68 p.
Food and Agriculture Organization of the United Nations (FAO) (2010), Report: “The State of World Fisheries and Aquaculture (2010) “, 197 p.
Food in Canada (2011), “Feds invest $1.6 million in national traceability program”, http://www.canadianmanufacturing.com/food/feds-invest-1-6-million-in-national-traceabilityprogram-2-26129.
Food in Canada (2009), Report: “2010 Canadian Food Industry Report – Executive summary”, 23 p.
Foodnavigator-USA (2011), “Agriculture secretary says organic can help ‘rebuild rural America’: OTA”, Foodnavigator-USA, (April 8), http://www.foodnavigator-usa.com/Financial-Industry/Agriculturesecretary-says-organic-can-help-rebuild-rural-America-OTA.
Foodnavigator-USA (2011), “Canadian agency to name food safety offenders”, Foodnavigator-USA, (March 21st), http://www.foodnavigator-usa.com/Legislation/Canadian-agency-to-name-food-safetyoffenders.
Foodnavigator-USA (2011), “Consumers plan cost-saving strategies to deal with higher prices”, Foodnavigator-USA, (April 4), http://www.foodnavigator-usa.com/Financial-Industry/Consumersplan-cost-saving-strategies-to-deal-with-higher-prices.
Foodnavigator-USA (2011), “Industry body stresses importance of import safety”, Foodnavigator-USA, (March 30), http://www.foodnavigator-usa.com/Legislation/Industry-body-stresses-importance-ofimport-safety.
Foodnavigator-USA (2011), “International food risk communication center formed”, FoodnavigatorUSA, (April 1st), http://www.foodnavigator-usa.com/Financial-Industry/International-food-riskcommunication-center-formed.
Global Industry Analysts (2008), Report: “Non-Alcoholic Beverages: A Global Industry Outlook”, 153 p.
Global Industry Analysts (2011), Report: “Fat Replacers: A US Market Report”, 264 p.
Halliday, Jess (2011), “Novel foods progress may mean removing clones”, Foodnavigator-USA, (April 4), http://www.foodnavigator-usa.com/Legislation/Novel-foods-progress-may-mean-removing-clones.
Halliday, Jess (2011), “Women. The most wasted resource in food production”, Foodnavigator-USA, (March 8), http://www.foodnavigator-usa.com/Financial-Industry/Women.-The-most-wasted-resourcein-food-production.
J. Temple, Norman (2011), “Population strategies to reduce sodium intake: The right way and the wrong way”, Nutrition, 27 (April 2011), p. 387.
Markets and Markets (2011), Report: “Global Organic Foods & Beverages Market Analysis by Products, Geography, Regulations, Pricing Trends, & Forecasts (2010 – 2015)”, 262 p.
Mellentin, Julian (2010), “10 Key Trends in Food, Nutrition & Health 2011”, New Nutrition Business, 1-60.
Ministère de l’Agriculture, des Pêcheries et de l’Alimentation du Québec (2009), “Étude de la dynamique et des tendances des marchés au sein du secteur agroalimentaire québécois”, BioClips+, 12 (2), 1-12.
Ministère de l’Agriculture, des Pêcheries et de l’Alimentation du Québec (2009), Report: “Étude de la dynamique et des tendances des marchés au sein du secteur agroalimentaire québécois”, 106 p.
Mintel International Group Ltd (2009), Report: “Market Re-forecasts: Drink – US – April 2009”, 118 p.
Mintel International Group Ltd (2011), Report: “The Private Label Food and Drink Consumer – US – December 2010”, 174 p.
Montague-Jones, Guy (2011), “Cheese industry pledges to do more on sodium reduction”, Foodnavigator-USA, (January 21st), http://www.foodnavigator-usa.com/Financial-Industry/Cheeseindustry-pledges-to-do-more-on-sodium-reduction.
Montague-Jones, Guy (2011), “Soft drink rivals send out commodity cost warnings”, FoodnavigatorUSA, (February 14), http://www.foodnavigator-usa.com/Financial-Industry/Soft-drink-rivals-send-outcommodity-cost-warnings.
Musiker, Melissa (2011), “2010 Dietary Guidelines: Opportunity for continued industry innovation”, Foodnavigator-USA, (February 4), http://www.foodnavigator-usa.com/Financial-Industry/2010-DietaryGuidelines-Opportunity-for-continued-industry-innovation.
National Seafood Sector Council (2005), Report: “Overview of the Food Processing Industry”, 104 p.
NPD Group (2011), “What’s Next on the Road to Recovery: Consumer Meal Strategies as the U.S. Emerges from the Recession”, http://www.npd.com/lps/PDF_SpecialReports/NPDs_What_Next_ Report_Description.pdf.
Packaged Facts (2011), Report: “Healthy 50+ Americans: Trends and Opportunities in the Emerging Wellness Market”, 174 p.
Packaged Facts (2011), Report: “The Future of Food Retailing in the U.S.”, 3rd Edition, 266 p.
Saskatchewan Agriculture (2008), “Audit Services for Agri-Food Industry – Final Report”, 126 p.
Scott-Thomas, Caroline (2010), “Satisfaction with food companies slips on quality and pricing concerns”, Foodnavigator-USA, (November 17), http://www.foodnavigator-usa.com/FinancialIndustry/Satisfaction-with-food-companies-slips-on-quality-and-pricing-concerns.
Scott-Thomas, Caroline (2010), “How the food industry should act on the 2010 Dietary Guidelines”, Foodnavigator-USA, (November 18), http://www.foodnavigator-usa.com/Financial-Industry/How-thefood-industry-should-act-on-the-2010-Dietary-Guidelines.
Scott-Thomas, Caroline (2010), “Local food doesn’t mean safe food”, Foodnavigator-USA, (November 18), http://www.foodnavigator-usa.com/Legislation/Local-food-doesn-t-mean-safe-food.
Scott-Thomas, Caroline (2010), “Senate votes to proceed with food safety bill”, Foodnavigator-USA, (November 18), http://www.foodnavigator-usa.com/Legislation/Senate-votes-to-proceed-with-foodsafety-bill.
Scott-Thomas, Caroline (2010), “‘Processed’ food doesn’t have to mean unhealthy food, says industry”, Foodnavigator-USA, (November 22), http://www.foodnavigator-usa.com/Financial-Industry/ Processed-food-doesn-t-have-to-mean-unhealthy-food-says-industry.
Scott-Thomas, Caroline (2010), “Multicultural America provides opportunities for targeted marketing”, Foodnavigator-USA, (November 23), http://www.foodnavigator-usa.com/FinancialIndustry/Multicultural-America-provides-opportunities-for-targeted-marketing.
Scott-Thomas, Caroline (2011), “USDA releases 2010 Dietary Guidelines for Americans”, Foodnavigator-USA, (January 1st), http://www.foodnavigator-usa.com/Science-Nutrition/USDAreleases-2010-Dietary-Guidelines-for-Americans.
Scott-Thomas, Caroline (2011), “FoodNavigator-USA predicts top five industry influences in 2011”, Foodnavigator-USA, (January 3), http://www.foodnavigator-usa.com/Financial-Industry/ FoodNavigator-USA-predicts-top-five-industry-influences-in-2011.
Scott-Thomas, Caroline (2011), “USDA to require Nutrition Facts on meat and poultry”, Foodnavigator-USA, (January 3), http://www.foodnavigator-usa.com/Legislation/USDA-to-requireNutrition-Facts-on-meat-and-poultry.
Scott-Thomas, Caroline (2011), “Food manufacturers back healthy school meals project”, Foodnavigator-USA, (January 21st), http://www.foodnavigator-usa.com/Financial-Industry/Foodmanufacturers-back-healthy-school-meals-project.
Scott-Thomas, Caroline (2011), “Walmart pledges to promote healthy foods”, Foodnavigator-USA, (January 21st), http://www.foodnavigator-usa.com/Financial-Industry/Walmart-pledges-to-promotehealthy-foods.
Scott-Thomas, Caroline (2011), “USDA predicts rising food prices in 2011”, Foodnavigator-USA, (January 27), http://www.foodnavigator-usa.com/Financial-Industry/USDA-predicts-rising-foodprices-in-2011.
Scott-Thomas, Caroline (2011), “Sustainable Foods Summit focuses on industry accountability”, Foodnavigator-USA, (February 1st), http://www.foodnavigator-usa.com/Financial-Industry/ Sustainable-Foods-Summit-focuses-on-industry-accountability.
Scott-Thomas, Caroline (2011), “‘Eat less’: A difficult message for industry”, Foodnavigator-USA, (February 8), http://www.foodnavigator-usa.com/Financial-Industry/Eat-less-A-difficult-messagefor-industry.
Scott-Thomas, Caroline (2011), “Concerted industry effort needed for sodium reduction”, Foodnavigator-USA, (February 17), http://www.foodnavigator-usa.com/Financial-Industry/Concertedindustry-effort-needed-for-sodium-reduction.
Scott-Thomas, Caroline (2011), “‘New era’ coming for functional foods, says market researcher”, Foodnavigator-USA, (February 23), http://www.foodnavigator-usa.com/Financial-Industry/New-eracoming-for-functional-foods-says-market-researcher.
Scott-Thomas, Caroline (2011), “US food prices could surpass 2008 levels, says USDA”, FoodnavigatorUSA, (March 1st), http://www.foodnavigator-usa.com/Financial-Industry/US-food-prices-couldsurpass-2008-levels-says-USDA.
Scott-Thomas, Caroline (2011), “Food safety fragmentation still a problem, says GAO”, FoodnavigatorUSA, (March 21st), http://www.foodnavigator-usa.com/Legislation/Food-safety-fragmentation-still-aproblem-says-GAO.
Scott-Thomas, Caroline (2011), “National Salt Reduction Initiative attracts more members”, Foodnavigator-USA, (March 21st), http://www.foodnavigator-usa.com/Financial-Industry/NationalSalt-Reduction-Initiative-attracts-more-members.
Scott-Thomas, Caroline (2011), “Getting creative with meat-free meals”, Foodnavigator-USA, (March 30), http://www.foodnavigator-usa.com/Financial-Industry/Getting-creative-with-meat-free-meals.
Scott-Thomas, Caroline (2011), “International food risk communication center seeks more international involvement”, Foodnavigator-USA, (April 4), http://www.foodnavigator-usa.com/ Financial-Industry/International-food-risk-communication-center-seeks-more-internationalinvolvement.
Scott-Thomas, Caroline (2011), “PepsiCo applies for mid-calorie soft drink trademarks”, Foodnavigator-USA, (April 5), http://www.foodnavigator-usa.com/Financial-Industry/PepsiCoapplies-for-mid-calorie-soft-drink-trademarks.
Scott-Thomas, Caroline (2011), “The whole foods movement: ‘Age of the unthinkable’ for processed foods?”, Foodnavigator-USA, (April 5), http://www.foodnavigator-usa.com/Financial-Industry/Thewhole-foods-movement-Age-of-the-unthinkable-for-processed-foods.
Scott-Thomas, Caroline (2011), “USDA proposes ‘test and hold’ procedure to boost meat safety”, Foodnavigator-USA, (April 6), http://www.foodnavigator-usa.com/Legislation/USDA-proposes-testand-hold-procedure-to-boost-meat-safety.
Scott-Thomas, Caroline (2011), “Developing the weight management market beyond dieting”, Foodnavigator-USA, (April 11), http://www.foodnavigator-usa.com/Financial-Industry/Developingthe-weight-management-market-beyond-dieting.
Starling, Shane (2011), “Industry welcomes USDA Dietary Guidelines supplements shift”, Foodnavigator-USA, (February 1st), http://www.foodnavigator-usa.com/Financial-Industry/Industrywelcomes-USDA-Dietary-Guidelines-supplements-shift.
Starling, Shane (2011), “Industry welcomes USDA Dietary Guidelines supplements shift”, Foodnavigator-USA, (February 1st), http://www.foodnavigator-usa.com/Financial-Industry/Industrywelcomes-USDA-Dietary-Guidelines-supplements-shift.
The Government Office for Science, London (2011), Report: “Foresight. The Future of Food and Farming (2011) “, 208 p.
Top 5 of Anything. The Top 5 Global Confectionary Companies. 2009. Retrieved on September 16, 2011 from: http://www.top5ofanything.com/index.php?h=efb06b00
Watson, Elaine (2011), “Class action lawsuits set to ‘explode’ in health claims arena””, FoodnavigatorUSA, (April 1st), http://www.foodnavigator-usa.com/Legislation/Class-action-lawsuits-set-to-explodein-health-claims-arena.
Worldwatch Institute (2011), Report: “State of the World 2011: Innovations that Nourish the Planet”, 147 p.
Zenith International (2009), Report: “Europe Flavoured & Functional Water Insights”, 75 p.