1. Innovation in Local Food Processing: how are we doing? Betsy Donald, Queens University Eastern Ontario Local Food Conference: innovation driving local food, December 2&3, 2013 Kingston, Ontario

2. Innovation in Local Food Processing Why Kraft to Craft? an update What are the trends in local food processing? How can we do better? 3. Revisiting Kraft to Craft Ten years ago, creative craft food described elements of a newer food system Creative craft food included specialty, local, organic, ethnic, and fair-trade foods that had supply networks distinct from mainstream ones Creative craft food offered innovative solutions to ecological, social and health concerns Today we know much more about the complexities of creative food chains Donald (2009) From Kraft to Craft: innovation and creativity in Ontarios Food Economy 4. Old Industrial Food Economy Typical CompanySource of economic powerNew Creative Food EconomyKraft cheese productsCraft/artisanal cheeseEconomic power is centralizedEconomic power is diffused and decentralized to individual, highly creative workers, firms and extrafirm institutionsQuality is a measure of taste,Source of quality Quality is a measure of added value terroir, and talent of and innovation in highly-processed environmentsentrepreneursEnterprise attitude towards placeLittle relationship between place and product making.Place becomes central to quality food making, marketing and consuming 5. Old Industrial Food Economy Typical CompanySource of economic powerNew Creative Food EconomyKraft cheese productsCraft/artisanal cheeseEconomic power is centralizedEconomic power is diffused and decentralized to individual, highly creative workers, firms and extrafirm institutionsQuality is a measure of taste,Source of quality Quality is a measure of added value terroir, and talent of and innovation in highly-processed environmentsentrepreneursEnterprise attitude towards placeLittle relationship between place and product making.Place becomes central to quality food making, marketing and consuming 6. Old Industrial Food Economy Typical CompanySource of economic powerNew Creative Food EconomyKraft cheese productsCraft/artisanal cheeseEconomic power is centralizedEconomic power is diffused and decentralized to individual, highly creative workers, firms and extrafirm institutionsQuality is a measure of taste,Source of quality Quality is a measure of added value terroir, and talent of and innovation in highly-processed environmentsentrepreneursEnterprise attitude towards placeLittle relationship between place and product making.Place becomes central to quality food making, marketing and consuming 7. A Tale of Three TomatoesBlay-Palmer and Donald (2006) A Tale of Three Tomatoes, Economic Geography, 82(4), 383-399 8. Heinz just one in a wave of recent plant closings Heinz to close plant in Leamington 740 jobs lost Smuckers closed its Bicks Pickles plant 150 jobs lost Lance Canadas LTD. Bakery will close 130 jobs lost Canada Bread Co., Ltd. and Kraft soon to close plants 9. The slow economic recovery is affecting all aspects of food 10. Nevertheless Creative Craft Food is holding its own This segment of the food industry is resilient Some levelling off of organic and some high-end specialty segments immediately after the recession and continuing. There is sustained interest in local and whole food and its role in health and community well-being This interest has spawned policy innovation in local food systems Those regions with an ethos and history of sustainable food are fairing better than those without 11. Number of Selected Specialty Product Introductions 20012009 12001000Beverages 800 Bakery Confectionary600Sauces and Seasonings 400Snacks Spreads2000 2001200220032004200520062007200820092010 12. Total U.S. Organic Food Sales 20002009 (Millions $) 300002500020000150001000050000 2000200120022003Source: Organic Trade Association200420052006200720082009 13. Percentage (%) Change in Total U.S. Organic Food Sales 2000-2009 2520151050 2000200120022003Source: Organic Trade Association200420052006200720082009 14. Local and place-based is the new organic The Whole Foods movement is the Age of the Unthinkable for processed foods Food Navigator, April 5, 2011 Places that have successful food producers and manufactures are those that already have an ethos of incorporating sustainable and fairness elements into products and processes 15. All natural/local are leading 16. All natural/local are leading 17. All natural/local are leading 18. All natural/local are leading 19. All natural/local are leading 20. Changing face of the food entrepreneur New food entrepreneurs differ from back- to-the-landers of the 1960s The new entrepreneurs are often well educated children of baby boomers who add business acumen to the idealism of an older generation New food entrepreneurs are engaged in solving pressing societal problems like energy use, food safety, hunger, community developmentBack40 veg, PEC 21. How are we doing in Eastern Ontario? Eastern Ontario has seen an explosion of interest in local food and there is evidence of successful small-scale local food producers and processors Government programs and policies are helping to revive the local food industry (e.g., investments in micro-dairies, food hubs, incubators etc.) But more can be done 22. How can we do better? Embrace new opportunities (e.g., local, healthy snacking, waste reduction) Facilitate entrepreneurship Continue to develop infrastructure for local food products Develop better collaboration with all actors in the food chain for a place-based food vision must think regionally Conduct a foodie IQ test for Eastern Ontario benchmark against other regions Engage better marketing services for local producers of high quality food and drink again a regional plan 23. Thank you! Thanks to the hosts and especially to Judy Coward, OMAF and all staff and entrepreneurs who make local food happen Betsy Donald, Queens University, Geography Department Betsy.donald@queensu.ca New research - Donald, B. 2013. Food retail and access after the crash: rethinking the food desert problem. Journal of Economic Geography, 13(2), 231-237. Donald, B. 2013.The Rise and Fall of the American Industrial Foodscape , July 24, Summer Scholar Series, British Library, London, UK.