Regional Local Food

Business Retention + Expansion

Results and Recommendations Northumberland County 2011-2012

Respondents perceived the

following factors as barriers to

expansion of existing businesses or

development of new businesses in

the community:

approval processes (38%)

business taxes (38%)

availability of skilled and

unskilled labour (both 32%)

and,

availability of financing and

information technology

capacity (both 30%).

Participants were asked to rate

their level of satisfaction with the

services provided by a number of

provincial, federal and business

organizations. Satisfaction levels

with the Business Self-

Help/Enterprise Centre/COBSC

were as follows:

satisfied (14%)

dissatisfied (7%) and,

no contact (79%).

Most businesses (90%) responding

to the survey indicated that

Northumberland County was

either an “Excellent” or a “Good”

place in which to do business.

Asked if their opinion on business

climate had changed in the last

three years, 31% of responding

businesses said it had, and of

those, 55% indicated their attitude

is now more positive. Many

businesses noted that there is a

good support network in the area,

and some indicated local food

programs have led to the

expansion of their business. Some

commented on challenges

connected to a limited local labour

pool, gas prices and the slow

economy.

Satisfaction levels with the

Community Futures Development

Corporation (CFDC) were noted as

follows:

satisfied (33%)

dissatisfied (4%) and,

no contact (63%).

. . .

. . .

Satisfaction levels with services

were as follows:

38% of businesses were

satisfied with business or

economic development

corporations while 54% had

no contact

52% of businesses were

satisfied with planning,

engineering, zoning and

building permits, and

61% were satisfied with street

repairs.

The “Future Plans” section survey

responses suggest the local food

sector is a growth industry. When

asked what businesses plan to

undertake on their business site

within the next three years, 32

businesses responded, some

selecting more than one option,

including:

expand (51%)

remain the same (44%)

relocate (7%)

downsize (5%), and

close (3%).

It is important to note that the

relocating companies indicated

that they plan to stay in the

county.

Planned business expansions are

expected to lead to an increase in

work force, and additional product

lines and process improvements.

Expanding businesses (41%) are

experiencing difficulties with

expansion plans, including:

financing (71%)

developing a business plan

(36%)

water Infrastructure (36%)

local by-laws (36%), and

trucking & distribution,

electrical supply and highway

and roadside signs (29%).

Of the expanding businesses, 90%

are planning to invest in new

equipment and 76% said their

expansion plan is based on

innovation.

The structure of businesses

surveyed in Northumberland

County is varied as noted here:

sole proprietorship (41%)

partnership (27%)

corporation (27%), and

a combination of committees

and non-profit corporations

(5%).

Responses suggest the local food

sector in Northumberland County

is growing. Of the 75 businesses

that answered the question about

years of operation, responses were

as follows:

over 25 years (41%)

1-4 years (9%), and

4 – 25 years (49%).

It is worth noting that while 91%

of the businesses are family

owned, most do not have:

succession plans (65%)

a business plan (47%), and

a marketing plan (41%).

Employment levels are as follows:

1-4 people (29%)

5-9 people (20%), and

10 - 19 people (11%).

. . .

Survey results suggest there is a

keen interest in solar and some

interest in biomass/wood for

energy. When asked why they are

not using the type of energy they

prefer, barriers identified cost of

installation, not available at my

site, price and not available in my

community.

Businesses (65%) have concerns

with respect to energy supply,

management or efficiency and,

50% of responding businesses

suggested that they would benefit

from engineering or technical

support with respect to energy

conservation and efficiency.

Respondents were asked to

provide insight into the use and

importance of IT in their business.

Respondents (68) said they access

the Internet as follows:

dial-up (16%)

high speed DSL (25%)

high speed wireless (52%),

and,

internet ready device such as a

Blackberry (24%).

Local food business respondents

(97%) indicated they were

“Satisfied” (completely or

somewhat) with their current

business site within the

community.

Of those businesses “Unsatisfied”

with their site, the challenges they

identified included:

location is inconvenient for

customers (52%), and

no opportunity for expansion

(36%).

When asked about the use of other

IT technologies in their business,

71 companies responded as

follows:

96% use email

78% are on others’ websites,

66% use IT for marketing.

. . .

Just more than half (55%) use IT

for their own website, finance and

accounting (58%) and for

customer service (56%). As well,

39% of businesses participate in e-

commerce (online business/

marketing) and 49% for

government reporting/payments.

Businesses identified the following

factors as fundamental for ensuring

their business remains competitive

over the next three years:

market development, locally

(95%)

energy costs (95%)

product research and

development (89%),

workforce health and safety

(83%)

strategic marketing (81%), and

improved customer service

(79%).

When asked if they participated in

a product and/or service buyer-

supplier network, a majority of the

respondents (67%) said no,

however when asked if one would

be of benefit to their business,

63% said yes. Responding

businesses (37%) said that there

was a concentration of firms in the

area that could provide

complementary products or

services.

These responses suggest there is an

opportunity for further research

and development by

Northumberland County

stakeholders.

Businesses (42%) indicated that

the competition in their market

was increasing and 55% said their

market share was also increasing.

Interest in working or collaborating

with others is high amongst

respondents:

69% of businesses expressed

an interest in pursuing

collaborations, networking, or

information sharing

64% of businesses indicated an

interest in joint marketing

initiatives, and

45% indicated an interest in

joint product purchasing.

Local food businesses most

commonly identify their customer’s

needs through informal customer

contact (92%) and complaints

(70%). Across the region, these two

methods were selected most often;

however in Northumberland, 60%

of businesses use electronic

communication (web pages).

The most widespread way

Northumberland’s Local Food

companies market their products or

services within Ontario are with

business cards, the internet,

flyers/brochures and , sponsorship

of events. Some businesses also

market through general

publications, trade show

attendance, and word of mouth.

Within the past three years, Banks

were the most frequent lending

source investigated; secured;

currently used for operations; and

or used for expansion by

respondents. The following

represents the number of

respondents who looked into

various funding sources over the

last three years:

banks (55)

private funds (20)

Community Futures

Development Corporation (15)

Credit Union (8)

Business Development Bank of

Canada (6), and

Trust Companies (6).

When asked how far in advance

businesses plan in their financial

performance, respondents said:

yearly (39%)

monthly (14%), and

not at all (9%).

Respondents said they review their

financial plan against their

business performance as follows:

monthly (32%)

yearly (24%)

weekly (17%), and

not at all (7%).

In terms of providing employment

in Northumberland County over

the last three years,

24% of the respondents

increased the number of

people they employed,

65% held steady and,

11% decreased staff numbers.

In a question about workforce

availability, 50% of businesses

said it was “Excellent or Good.”

In the comments from this section

of the survey, many respondents

spoke negatively of the workforce,

observing low interest in sector

employment, poor work ethics, the

need for skilled/unskilled labour

and a lack of traditional farm

knowledge.

Businesses were also asked to

share any workforce skills they

believe need improvement.

Responding businesses identified:

(see “workforce skills in need of

improvement” )

Factors identified as contributing to

employment changes included:

increase or decrease in sales

(57%)

renovation or expansion (32%)

new products or services

introduced (25%)

management effectiveness (21%)

corporate decision or policies

(21%), and

new market entry (18%).

Training in most Northumberland

Local Food businesses is

completed as follows:

in-house (90%), and,

using customized training

33%), and,

using training from the local

community college (28%).

Barriers preventing most

employers from offering employee

training include:

cost (40%)

availability of training locally

(38%)

loss of productivity during

training period (31%), and

awareness of existing training

programs (31%).

(reference: Future jobs connected to

Northumberland Local Food) Reasons

cited for planned changes in the

three years ahead include:

increase or decrease in sales

(61%), and

introduction of new products

or services (42%).

Survey results rating the workforce

in Northumberland County are

mixed with responding businesses

indicating that the workforce is

“Fair” or “Poor” when it comes to

quality (50%), and stability (48%).

Other challenges included:

distance to training facility,

relevant training is not offered a

community college, awareness of

training support programs and

unable to release employees.

Results suggest there may be an

opportunity to use mentoring to

support local workforce

development:

53% of respondents identified

mentoring as a way of meeting

and working with other

businesses to learn new skills

50 companies indicated areas

where they could benefit from

a mentoring program, and

35 companies indicated areas

they could provide mentorship.

These responses suggest there is

room for improvement.

A number of respondents are

willing to participate in business

and economic development

initiatives, as follows:

50% of business respondents in

Northumberland were

interested in participating in a

Business Ambassador program,

and

73% were aware of the

economic development plan

for the community.

When asked to share their view of

the Municipality’s role in area

business and economic

development, several responses

included comments about positive

efforts by County Economic

Development, Chamber of

Commerce initiatives, good

communication, however there

were also comments about the

overall need for outreach to small

businesses county-wide.

In Northumberland County,

businesses list the advantages of

doing business in the County as

proximity to urban centres/

logistics/ 401 access, scenery/

tourists, and a generally affable

community.

Access to markets/ customers/

clients was found to be excellent

or good by 68% of businesses.

Local food companies identified

the following disadvantages:

perception of high taxes/fees

over regulated

small labour & customer pools,

and

parking challenges.

When rating the services of the

area, responses included:

Municipal taxes: “Fair or Poor”

(72%)

transportation costs: “Fair or

Poor” (73%)

land costs: “Fair or Poor”

(59%)

access to suppliers: “Good or

Excellent” (69%)

availability of appropriately

zoned land: “Good or

Excellent” (58%), and

access to training facilities:

“Excellent or Good” (41%).

Popular suggestions for ways

business associations and

economic development offices

could assist the local food sector

included:

joint advertising and marketing

(72%),

trade shows (69%)

marketing seminars (66%),

business networking sessions

(63%), and

attraction of related supply and

service businesses, and website

development (both 58%).

Businesses surveyed are located as

follows:

countryside (67%)

downtown (16%)

village or hamlet (12%), and

highway or commercial area

(5%).

Almost all survey participants

(99%) indicated that the quality of

life in Northumberland County is

“Excellent” or “Good.” Responses

suggest businesses feel they have

positive support from a variety of

sources, including:

local residents (71%)

other local business (69%), and

the Municipality (52%).

Results suggest there may be an

opportunity to increase sales to

tourists from outside the county.

Respondents (72%) indicated that

less than one quarter of their sales

are to tourists, and 14% of

respondents indicated that more

than half of their sales are to

tourists.

The time of year Local Food

businesses are open is varied:

Summer (96%)

Autumn (95%)

Spring (91%), and

Winter (80%).

Respondents identified “ local

food” as coming from the

following areas:

“My Region” (27%)

“My County” (25%)

Ontario (23%)

“My Municipality/Township”

(22%), and

“Canada (3%).

Responses suggest that Local Food

is most frequently sourced from

“My town/village/hamlet” (68%):

respondents (81%) agree the

community has easy access to

local food, and

most agree that Seasonal

Availability is the biggest

barrier for local food

businesses (82%).

Additional barriers include: (see

Barrier)

When participants were asked to

identify three things they believed

would help the local food sector in

the area grow, the most popular

answers included:

Increasing Consumer

Education/Awareness

Marketing and Events

Distribution Systems

Working together

Farmers’ Markets

The grassroots nature of this

project has ensured opportunities

for stakeholder input throughout

the process, including:

A Local Steering Team

comprised of stakeholders

A survey process

encouraging participants to

share both information and

opinions

An opportunity for feedback

from the Steering Team to

validate or dispute the data

and findings

A facilitated session for the

Steering Team to develop

their own recommendations

A facilitated brainstorming

session to encourage

actionable ideas from

stakeholders.

The results presented in this

report reflect the candid

responses provided by local food

business owners combined with

the valuable input from

stakeholders throughout the

project. All recommendations

were developed by the local

Steering Team, reflecting their

dedication, leadership and vision

for local food in the community.

Results also suggest businesses are

using the web as a business

support tool, possibly to reach a

broader, tourism-based market.

37% use social media

including Facebook, E-

newsletters, LinkedIn, and

blogs, and

only 18% sell their product on-

line.

Barriers to the expansion of local

food businesses most frequently

identified by respondents include:

seasonality

access to financing

legislation

taxation

regulations

trained staff, and

land zoning/taxation.

To be more competitive,

businesses expressed interest in the

following skills workshops: (see

Workshop)

Facilitate opportunities to increase online presence of local

food in Northumberland. Examples may include: facilitating

training opportunities for social media and online marketing,

promoting the use of QR codes in marketing, facilitating

workshops for website development and online sales.

Facilitate a multi-media marketing campaign to increase

awareness of opportunities to enjoy local food. Examples may

include: developing hockey cards’ for producers, encouraging

local food resellers to utilize QR codes to promote partnerships

with producers, increasing Proudly Northumberland brand

awareness and initiatives, facilitating online access to market

research.

Work with stakeholders to address the needs expressed through

the Local Food BR+E to support local food businesses.

Examples may include: creating an inventory of funding

available to local food businesses, exploring micro-financing

availability and opportunities, developing a business case to

assist local food businesses with “value-added” processing,

developing a agri-food incubator, facilitating grant-writing

seminars for local food businesses.

Explore opportunities for policy reform. Examples may include:

compiling policy issues presented in the Local Food BR+E and

advocating for reform or revision on behalf of the sector,

working with stakeholders and local policy makers to eliminate

or diminish barriers for local food businesses wherever

possible.

Work with stakeholders to communicate “good news stories”

about local food and agriculture in Northumberland. Examples

may include: working with Chambers Northumberland to

create a local food award, facilitating networking sessions for

local food businesses.

Facilitate outreach opportunities for local support agencies to

connect with local food sector businesses. Examples may

include: encouraging local food businesses to join their local

chamber of commerce, exploring cross-membership

opportunities, encouraging strategic partnerships, exploring

opportunities for Proudly Northumberland signage, facilitating

succession planning programming.

Facilitate workshops to address the skills and training gaps

identified by local food sector businesses. Examples may

include: delivering succession planning programs, facilitating

local workshops/training/certification programs.

Work with local food stakeholders to facilitate industry “best

practices” to help ensure a sustainable local food value chain.

Examples may include: facilitating skills and

product inventories to address market needs, facilitating

networking and information sharing opportunities to support

the value chain

Facilitate and promote local food education initiatives.

Examples may include: using social media to promote local

food use, facilitating farm tours and taste education, promoting

local food education projects, encouraging consumers to

experience local food.