COMMERCIAL
BLUEBERRY
PRODUCTION
THE NORTHEAST SUPERIOR FOREST
COMMUNITY CORPORATION
BUSINESS PLAN
2008
Prepared by:
Forest BioProducts Inc.
178 Drive-In Road, Unit 1
Sault Ste Marie, ON P6B 6A9
www.forestbioproducts.com
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THE NORTHEAST SUPERIOR FOREST COMMUNITY
BUSINESS PLAN & RECOMMENDATONS
COMMERCIAL BLUEBERRY PRODUCTION
2008
EXECUTIVE SUMMARY
Most of the communities in the region have been one-industry towns focused on forestry products –
wood, paper, and pulp. What we are now seeing is that communities can no longer survive with this
type of outlook. There is a tremendously complex economic shift at play. All six of our communities are
heavily working towards diversification strategies that make better usage of our forestry assets.
The Northeast Superior Forest Community will build sustainable forest communities by increasing
capacity for maximizing resource potential in order to ensure economic prosperity and stability based on
the sustainable use of the broad spectrum of forest values and resources. However, our point of
difference is to create a platform for the exchange of goods and services.
The lowbush blueberry is a deciduous perennial shrub native to eastern North America and grows in
well drained, acidic soils low in fertility. With areas rich in natural forest that give rise to perfect soil
conditions for blueberries, the Northeast Superior Forest Community Corporation plans to capitalize on
the growth in the blueberry farming industry by starting a blueberry farming business. The demand for
wild blueberries from Canada currently exceeds supply. According to results from the Fruit and
Vegetable Survey conducted in autumn 2007 1, the most valuable fruit crop was blueberries, worth an
estimated $189 million. Not only will our products appeal to health-conscious consumers, Northeastern
Ontario blueberries will work with the land in its natural state, appealing also to those who are
concerned about how we take care of the earth.
Where possible, cultivating land in forested areas covered by forest-management agreements will be
ideal, thereby creating and testing an innovative farming model not currently employed for wild
blueberries in Ontario. This is based on a Quebec agro-forestry model known as strip farming; however
the operation strategy proposed will be applicable on any feasible land considered for blueberry
cultivation whether Crown or privately owned. Harvesting will follow a phased approach as crops yield
sufficient levels of berries:
Phase 1: Harvest of wild berries from clearcuts, natural forest clearings and rights-of-ways.
Phase 2: Brokering of wild blueberries harvested for resale in Southern Ontario.
Phase 3: Blueberry farming and resale in established markets.
The corporation plans to employ an innovative business-ownership model – one that will act like a cooperative and ensure the longevity of the wild-blueberry venture. To finance the blueberry venture and
create initial employment of two full-time and two seasonal jobs, the corporation will apply for grants
and interest-free loans over five years, which will help the farm generate sales of over $700,000 by year
1
http://www.statcan.ca/english/freepub/22-003-XIE/22-003-XIE2007002.pdf
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THE NORTHEAST SUPERIOR FOREST COMMUNITY
BUSINESS PLAN & RECOMMENDATONS
COMMERCIAL BLUEBERRY PRODUCTION
2008
9, sales that will continue to grow and double as the fields become more mature. In addition to creating
direct employment, the venture will generate spin-off businesses in the value-added industry.
Accordingly, the loan will help support growth, as well as increase employment in the community.
The blueberry production industry is modest in size in Ontario, compared to Nova Scotia and Quebec,
for example. There is a large population base with a growing appetite for fresh, nutritious foods and
high quality specialty foods. There is also a significant food processing industry. Although competitors in
Eastern Canada are well positioned to supply this latter market today, overall, there appears to be room
in the market for an Ontario business, provided it can compete. There is potential to put Ontario on the
map (with Northeastern Ontario as the capital) in wild (lowbush) blueberry production if the industry is
developed successfully.
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THE NORTHEAST SUPERIOR FOREST COMMUNITY
BUSINESS PLAN & RECOMMENDATONS
COMMERCIAL BLUEBERRY PRODUCTION
2008
TABLE OF CONTENTS
1.0
INTRODUCTION ........................................................................................................................... 6
1.1
The Northeast Superior Forest Community Corporation ........................................................... 6
1.2
The Bioeconomy ...................................................................................................................... 6
1.3
The Opportunity....................................................................................................................... 8
2.0
INDUSTRY OVERVIEW .................................................................................................................. 9
2.1
Industry Characteristics .......................................................................................................... 10
2.2
3.0
Major Canadian Players.......................................................................................................... 11
2.2.1
SAGUENAY-LAC ST JEAN ................................................................................................. 11
2.2.2
NOVA SCOTIA ................................................................................................................. 12
BUSINESS STRUCTURE ............................................................................................................... 13
3.0.1
VISION/MISSION............................................................................................................. 13
3.0.2
3.1
Organization .......................................................................................................................... 14
3.1.1
3.2
SUCCESS FACTORS .......................................................................................................... 13
HUMAN RESOURCES....................................................................................................... 14
Implementation Plan.............................................................................................................. 17
4.0
OPERATING PLAN....................................................................................................................... 19
4.1
The Lowbush Blueberry .......................................................................................................... 19
4.2
Operations ............................................................................................................................. 20
4.2.2
LAND .............................................................................................................................. 21
4.2.3
STRIP FARMING ON CROWN LAND ................................................................................. 21
4.2.4
ACREAGE REQUIRED ....................................................................................................... 22
4.2.5
PREPARING THE LAND .................................................................................................... 23
4.2.6
MANAGING THE CROPS .................................................................................................. 25
4.2.7
CROP YIELDS ................................................................................................................... 33
4.2.8
HARVESTING .................................................................................................................. 33
4.2.8
TRANSPORTATION .......................................................................................................... 36
4.3
Limitations ............................................................................................................................. 37
4.3.1
SWOT ANALYSIS ............................................................................................................. 37
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THE NORTHEAST SUPERIOR FOREST COMMUNITY
BUSINESS PLAN & RECOMMENDATONS
4.3.2
4.4
COMMERCIAL BLUEBERRY PRODUCTION
2008
BARRIERS TO BUSINESS START-UP .................................................................................. 39
Business Development ........................................................................................................... 41
4.4.1
VALUE-ADDED BUSINESS OPPORTUNITIES ...................................................................... 42
4.4.2
ORGANIC ........................................................................................................................ 45
4.4. 3
SCALE ECONOMIES ......................................................................................................... 46
5.0
MARKETING PLAN ..................................................................................................................... 47
5.1
Overview ............................................................................................................................... 47
5.1.1
THE NORTHEAST SUPERIOR REGION ............................................................................... 47
5.1.2
THE MARKET FOR BLUEBERRIES ...................................................................................... 50
5.2
Competitive Analysis ............................................................................................................. 52
5.2.1
COMPETITIVE FORCES .................................................................................................... 52
5.2.3
COMPETITOR POSITIONING AND STRATEGIC GROUPS .................................................... 53
5.3
Marketing Strategy................................................................................................................. 54
5.3.1
POSITIONING AND TARGET MARKET ............................................................................... 55
6.0
FINANCIAL STRATEGY................................................................................................................. 58
6.1
Funding and Support Programs .............................................................................................. 58
6.1.1
BUSINESS RISK MANAGEMENT PROGRAMS .................................................................... 59
6.1.2
LOAN AND FINANCIAL ASSISTANCE PROGRAMS.............................................................. 59
6.1.3
TAX REDUCTION PROGRAMS ......................................................................................... 60
6.1.4
ADDITIONAL FUNDING ................................................................................................... 61
6.1.5
HUMAN RESOURCES, EMPLOYMENT AND EDUCATION PROGRAMS ............................... 63
6.2
Financial Statements .............................................................................................................. 66
6.2.1
ASSUMPTIONS – BROKERAGE ......................................................................................... 67
6.2.2 ASSUMPTIONS – CULTIVATION.............................................................................................. 73
6.2.3
ASSUMPTIONS – BROKERAGE AND CULTIVATION ........................................................... 81
6.2.3 ASSUMPTIONS – IRRIGATION ................................................................................................ 82
APPENDIX A: POTENTIAL RESOURCES .................................................................................................... 83
APPENDIX B: POTENTIAL LEGAL OBLIGATIONS ....................................................................................... 87
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THE NORTHEAST SUPERIOR FOREST COMMUNITY
BUSINESS PLAN & RECOMMENDATONS
COMMERCIAL BLUEBERRY PRODUCTION
2008
1.0 INTRODUCTION
1.1 The Northeast Superior Forest Community Corporation
The Northeast Superior Forest Community (NSFC) is a partnership of 6 communities which have come
together with common goals and objectives under the banner of the Forest Communities Program. This
group is driven at the political level through the Northeast Superior Mayors’ Group (NESMG) which has
been working as a collective over the past seven years. The goal of this organization was to spur a grass
roots approach to facing issues in partnership rather than as individual communities.
The communities stretch from Hornepayne in the north, through to Manitouwadge in the west
(including Chapleau, Wawa, Dubreuilville, and White River) and there are also 7 First Nations –
Michipicoten, Chapleau Cree, Chapleau Ojibway, Pic Mobert, Ojibway of the Pic River, Hornepayne and
Missanabie Cree. The region covers an area of approximately 6 million hectares, and provides a truly
dynamic Forest Community network, bringing to the table a significant amount of dedication and
resources in the area of building new economic wealth in the forestry sector due to innovative and
aggressive research strategies.
There has been considerable turmoil in the regional economy recently, with the closure of several pulp
and paper and lumber mills. These closures are being driven by factors largely outside of the influence of
Ontario, including the rising Canadian dollar, the declining US housing market, strong international
competition, increasing energy prices, environmental pressures and climate change.
The dependence of the Northern Ontario economy on the forestry sector and its unprecedented and
extended downturn has caused communities in the province to be negatively impacted by the transition
in the forest industry. While the traditional economy of Canada (and Northwestern Ontario) has been
dominated by the natural resources sector, public policy has signaled an interest to diversify and
promote value-added components to address both longer-term resource depletion and the changing
markets for Canada’s natural resource products (e.g. lumber and pulp and paper manufacturing).In
response, efforts are underway to restructure and refocus the products of some of the forestry
operations that have closed. If these efforts demonstrate viable business plans (over a reasonable time
frame), the resulting employment levels will be important as a bridge to the new economy.
1.2 The Bioeconomy
The bioeconomy is expected to replace the current information economy within the next twenty-five
years. It will be based on life sciences and will draw on biomass in novel ways by integrating processes
and knowledge derived from biotechnology and manufacturing. It will produce goods and services for
all sectors of the economy. The arrival of the bioeconomy should pave the way to an unprecedented
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THE NORTHEAST SUPERIOR FOREST COMMUNITY
BUSINESS PLAN & RECOMMENDATONS
COMMERCIAL BLUEBERRY PRODUCTION
2008
expansion of the forestry sector by opening new markets and offering new perspectives on the way
forest resources will be managed. In short, we can expect forest resources to become in higher
demand, as they become favoured feedstocks for energy, plastics, manufacturing products,
pharmaceuticals, nutraceuticals, foods and consumer products.
In some ways the bioproducts industry is as old as humankind. Throughout history, humanity has
depended on plants and animals for food, shelter, medicines, tools and clothing. However, the
bioproducts industry is now made possible by new knowledge and processes in the fields of chemistry,
wood processing, pharmacology and biotechnology. As well, market globalization and the need to
gradually phase-out the use of fossil fuels create economic incentives that are favourable to the
bioproducts industry in such varied fields of application as medical sciences, energy, housing,
transportation, food sciences, cosmetics, manufacturing processes and many others.
The bioeconomy represents the latest of the economic cycles that have marked humankind. Through
the Paleolithic era hunting-and-gathering economies ruled for hundreds of thousands of years before
they were replaced by agrarian economies, which dominated for 10,000 years. Next the industrial
economies took over across the western world and displayed several cycles of their own. The first
industrial economy began in Britain in the 1760s. In the United States, the industrial economy started to
unwind in the 1950s and is being replaced by the information economy. But information technology is
expected to last for roughly 75 years, ending in the late 2020s. Then the bioeconomy will dominate for
an undetermined period of time and is expected to have profound effects on society and culture.
As advisors to the Northeast Superior Region, it is our duty to emphasize where economic potential lies
within the bioeconomy. At this point in time, there is limited enterprises capitalizing on the bioeconomy
in the region and, given that this is a growth sector, we see the bioeconomy as an opportunity to create
new opportunities without competing with current activities. We also recognize the necessity to create
meaningful employment that is empowering and stimulate community growth. Hence we acknowledge
the need to create employment and opportunities that:
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Create positive cash flow to communities as project promoters
Create meaningful and well remunerated employment to workers
Are consistent with traditional and spiritual value of First Nations people
Enable each community in the region to healthfully sustain itself
Help to achieve economic stability through a coordinated and integrated effort by all communities
Strengthen, enhance and diversify our economic base.
Create a region in social, environmental and economic balance
Foster a culture of innovation and create a knowledge-based economy
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THE NORTHEAST SUPERIOR FOREST COMMUNITY
BUSINESS PLAN & RECOMMENDATONS
COMMERCIAL BLUEBERRY PRODUCTION
2008
1.3 The Opportunity
Wild blueberries (lowbush) are a commodity worth roughly $200 M per year in Canada. They can be
harvested wild or from managed blueberry farms. The demand for wild blueberries from Canada
exceeds supply. The wild-blueberry association for Canada’s biggest producing province of wild
blueberries, Nova Scotia, reports that overseas demand is so high that it cannot adequately meet
demand here in Canada. Wild blueberries are becoming even more popular with media coverage of
their health benefits; yet despite the ideal conditions prevalent in the forest areas surrounding the
Northeast Superior Region, commercial production of the berry has yet to take off.
There are three opportunities present with regard to blueberries:
1) Harvest of wild berries from clearcuts, natural forest clearings and rights-of-ways. Potentially
this can lead to 10-50 seasonal jobs to people who would be paid meaningful wages. This is a
cost-like undertaking. Based on our experience pickers can make $3000-$10000 per year based
on blueberry abundance and productivity. The most critical step for blueberry harvesting is to
find a broker willing to pay cash for berries;
2) Brokering of wild blueberries harvested for resale in Southern Ontario. This could be achieved by
setting up a blueberry buying station and securing purchase contracts in southern Ontario from
wholesale buyers either for fresh market or the flash frozen markets;
3) Blueberry farming is used extensively in Quebec and the Maritimes, however not in Ontario.
Farming takes place both on private and public lands. Blueberry farming could be viable on
lands in the Northeast Superior region because of the abundance of jack pine ecosystems which
already support blueberry growth. The most critical issue will be potential conflicts with the
forest industry as forest companies/governments are reluctant to give up productive lands. The
best way to proceed for a community based project would be to use blueberry strip systems in
intensively managed forests that were demonstrated in Quebec. This could be couched as an
R&D project as there has been no demonstration of strip farming in Ontario. In production a
farm generates $1000/ha/year in revenues on average. In comparison Jack pine fiber production
is roughly $200/ha/year. The best way to proceed for a private entity would be to follow suite
with the above model or to identify and purchase private land for traditional blueberry
cultivation based on Eastern Canada operations.
The wild-blueberry economy in the Northeast Superior area is ad hoc at best with individuals picking
berries from public lands and selling them fresh in nearby communities and farther south. The Northeast
Superior Forest Community Corporation plans to grow and bring the economy of wild blueberries above
ground by employing innovative models that will work harmoniously with local industry and create
healthy and sustainable income with the investment of years of crop development.
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THE NORTHEAST SUPERIOR FOREST COMMUNITY
BUSINESS PLAN & RECOMMENDATONS
COMMERCIAL BLUEBERRY PRODUCTION
2008
2.0 INDUSTRY OVERVIEW
The global wild blueberry industry is confined to northeastern North America, where the plant is part of
the native vegetation. Approximately half of the production occurs in Canada (in the Atlantic Provinces,
as well as the Lac St. Jean region of Québec). Blueberry farming presents a variety of opportunities that
include the following types of sales as indicated in Table 1 below:
Table 1: Types of Wild Blueberry Sales
Amount of Processing
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Fresh
Frozen
Concentrate
Puree
Dried
Sugar infused
Powder
Value-added Products
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Nutraceuticals
Beer, liquor, wine, juice
Baked goods
Syrups
Jams, jellies
Ice creams
Yogurts
Health and beauty products
According to results from the Fruit and Vegetable Survey conducted in autumn 2007 2, the most valuable
fruit crop was blueberries, worth an estimated $189 million. Farmers had an estimated 105,634 hectares
in fruit in 2007, with blueberries accounting for half this area. The growth in blueberries may be due
partly to an increased demand for this antioxidant-rich fruit by a health-conscious public. In Ontario,
farmers harvested 45 acres of lowbush blueberries, for a farm value of $230,000.00 (see Table 2);
however these statistics may not reflect the full value of the lowbush blueberry industry or the value of
the non-commercial wild blueberry harvest sold in the informal market.
Table 2: Area, Production and Farm Value of Lowbush Blueberry Crop in Ontario3
Year
Area Harvested
(acres)
2005
2006
2007
40
40
45
Marketed
Production (000
lbs)
70
40
90
Average Price
(cents/pound
fresh)
228.6
262.5
255.6
Farm Value
($000s)
160
105
230
Northern Ontario farm income is however below the average. Northern Ontario farmers have fewer
financial resources than do farmers in the province as a whole. This affects their ability to invest in the
2
3
http://www.statcan.ca/english/freepub/22-003-XIE/22-003-XIE2007002.pdf
http :/ / w ww .o ma fra .g o v.o n.c a / eng lish/ sta ts/ hort/ ind ex.html
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THE NORTHEAST SUPERIOR FOREST COMMUNITY
BUSINESS PLAN & RECOMMENDATONS
COMMERCIAL BLUEBERRY PRODUCTION
2008
development of new crops and practices that offer only a long-term payback, such as blueberries. Wild
blueberry production can be well suited to northern farming, and far more suited than other types of
agriculture. Farming in the North is challenging given the topographic, climatic, soil and general
economic situations, but the lowbush blueberry is a native plant and thus suited to local conditions. It
flourishes in soils that are unsuitable for other agricultural purposes and can be managed in Northern
Ontario as it is in Eastern Canada, where the industry is thriving. Once an operation is well established, it
has a long life-span, and there is no need for replanting.
2.1 Industry Characteristics
The lowbush blueberry is a deciduous perennial shrub native
to eastern North America and grows in well drained, acidic
soils low in fertility. In some areas such as Nova Scotia,
agricultural management techniques are being used to
dramatically increase yields from native crops; but the term
‘cultivated’ still does not apply to this type of operation within
this industry. The low bush crop whether managed or
unmanaged is marketed as a wild blueberry crop.
Agricultural management can dramatically increase production: Agricultural practices including pruning,
fertilizing, eliminating competing vegetation, and controlling pests and diseases. Pruning is
accomplished by mowing and burning the fields in the spring or fall every second year. Herbicides and
pesticides are commonly used to suppress vegetation and weeds and control pests and diseases.
Industry leaders focus on lands where the native plant is present: The lowbush blueberry is propagated
by means of underground rhizomes. It is therefore important to develop the crop where the native plant
is already present. The most favourable sites are lands that formerly supported stands of jack pine. The
land is usually relatively flat and rock free, permitting the use of machinery in the fields.
Mechanical harvesting dominates in lowbush blueberry industry: Almost two thirds of the Nova Scotia
crop is mechanically harvested with over 300 mechanical harvesters in use. In a productive field, a
mechanical harvester can pick up to 6 tons of berries per day. Mechanical harvesting costs 60% of the
cost of a hand raking crew. Blueberry hand rakes are commonly used for hand harvesting. Pickers using
rakes harvest from 500 to 1000 pounds a day and are paid from 10 to 12 cents a pound. The average
cost of production and harvesting using burning and hand harvesting is estimated at 35 to 40 cents a
pound. However costs per pound vary considerably with crop yield from a low of 30 to a high of almost
70 cents per pound.
Economies of scale are significant in lowbush blueberry processing: Most of Canada’s crop produced is
frozen and only about 2% sold in the fresh market. This is contrary however to the current Ontario
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THE NORTHEAST SUPERIOR FOREST COMMUNITY
BUSINESS PLAN & RECOMMENDATONS
COMMERCIAL BLUEBERRY PRODUCTION
2008
market where 100% of the berries sold in 2007 were fresh sales 4. Processors incur processing and
marketing costs of about 45 cents per pound.
Yields may be as high as 10000 pounds per acre in a good year: According to the Nova Scotia
Department of Agriculture and Marketing, an established wild lowbush bb field can consistently yield
3000 pounds per acre using modern agricultural management practices. That can climb to 8000 pounds
per acre in a good year. Industry sources peg annual yields at 5 to 6 thou pounds per acre and as high as
10000 in a good year.5
Industry associations helping open up new export markets: Two associations support the objectives of
the industry – the Wild Blueberry Producers Association of Nova Scotia, and the Wild Blueberry
Association of North America (WBANA), which represents growers in Maine and Eastern Canada. The
associations promote wild blueberries in key markets and have successfully established important
export markets overseas.
Federal and Provincial governments provide important technical support: Through the joint research
initiatives of Agriculture and Agri-Food Canada and the Nova Scotia Department of Agriculture and
Marketing, Nova Scotia has amassed a wealth of knowledge in lowbush blueberry production, and
detailed technical resources are now widely accessible to growers on the internet. Similar initiatives are
underway in the Lac St Jean region of Quebec, and in Ontario, organizations such as OMAFRA provide
access to technical assistance for a blueberry production operations in the region.
Base of privately owned land a key success factor for the industry: Ownership of the land is an important
factor because it takes from two to ten years to develop fields for wild blueberry production. During this
period the grower realizes little in the way of income. Thus it is unlikely that any individual or group
would manage a blueberry stand using these methods without assured land tenure extending far into
the future.
2.2 Major Canadian Players
2.2.1
SAGUENAY-LAC ST JEAN
Between 60 and 65 million pounds of Quebec blueberries were harvested in 2006. Of these, over 90%
were from Saguenay-Lac St Jean (SLSJ). As Quebec's leading blueberry producer, SLSJ accounts for 4% of
the province's agricultural revenues and 3.6% of jobs in the agrifood sector 6. According to industry
estimates, this was the best crop in history, surpassing the 2001 crop, which yielded 55 million pounds.
4
http :/ / w ww .o ma fra .g o v.o n.c a / eng lish/ sta ts/ hort/ ind ex.htm l
Tom Kirchofer, “Blueberry growers increase overseas sales efforts,” Marketing News, Chicago, September 14,
1998.
5
6
http://www.dec-ced.gc.ca/Complements/Publications/PublicationAgence-EN/SRI_SLSJ_en.htm
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THE NORTHEAST SUPERIOR FOREST COMMUNITY
BUSINESS PLAN & RECOMMENDATONS
COMMERCIAL BLUEBERRY PRODUCTION
2008
Nearly 25% of the crop was harvested in forests. The Saguenay-Lac St Jean blueberry industry includes
over 3,000 pickers and freezing and processing plants that employ over 300 workers. Over 90% of the
blueberries processed and frozen in the region are exported to some twenty countries in Europe, Asia
and the Americas. Only 2% of the total harvest is sold as fresh fruit7.
2.2.2
NOVA SCOTIA
The Nova Scotia lowbush blueberry industry has experienced rapid growth and a marked improvement
in yields, enabling the lowbush blueberry to become the most important fruit crop in the province. In
fact, Nova Scotia is the leader in Canadian production, making up 30.5% of the country’s total blueberry
area8. It is also the second largest producer of lowbush blueberries in the world. Today, lowbush
blueberries, growing on land unsuitable for most other types of agricultural production, have become
the number one fruit crop in the province in terms of total acreage and export sales. In 2003, production
of wild blueberries was 26 million kilograms, with a farm value of $29 million and a value added
contribution to the provincial economy of over $70 million9.
In Nova Scotia, lowbush blueberries are almost entirely grown on land owned by producers and/or
processors. Most of the area of blueberry land has been developed from abandoned or run-out farm
land in Nova Scotia. Producer size of operation varies from as low as one acre to over 1000 acres.
Blueberries continue to be an important crop in Nova Scotia, with the province’s farms reporting 38,634
acres in 2006, up 3.0% from 200110.
The development of the lowbush blueberry industry is a dramatic achievement of extension and
research blueberry specialists working in co-operation with blueberry growers and their organization.
The overall steady increase in production over the past forty years has been due to a strong production
base of privately-owned land; continuous research and promotion of improved cultural practices by
governments; aggressive and innovative industry entrepreneurs; ample modern processing facilities; a
strong
and
active
producers'
association
and
steadily
expanding
markets.
7
http://www150.hrdc-drhc.gc.ca/imt/nouvelles_eclair-news_flash/english/archives/sept27_2.html
http://www.statcan.ca/english/agcensus2006/media_release/ns.htm
9
http://www.gov.ns.ca/agri/agaware/teacher/21_blueb.pdf
10
http://www.statcan.ca/english/agcensus2006/media_release/ns.htm
8
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BUSINESS PLAN & RECOMMENDATONS
COMMERCIAL BLUEBERRY PRODUCTION
2008
3.0 BUSINESS STRUCTURE
3.0.1
VISION/MISSION
The Northeast Superior Forest Community Corporation plans to cultivate land in the Northeast Superior
region to grow and bring the economy of wild blueberries above ground with a farming enterprise that
acts supportively with neighbouring communities and local industries. Its vision is to:

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Establish a business with long-term marketing applications for the region;
Operate businesses in an approach that will complement local industry;
Create employment through economic diversification; and,
Provide high-quality products that are sensitive to both First Nations’ concerns and the
environment.
We will create a business that is supportive of the objectives of local entrepreneurs, especially people or
companies that own land and have the financial resources to invest in a long-term project with low or
no payback for several years. A strong base of privately held land and strong community and
government support are key success factors in this industry. Realizing this vision requires the
participation and support of:




People or businesses willing and able to invest in growing operations on privately held land;
Those who can efficiently provide access to marketing channels for fresh produce through their
business operations;
The imagination and ability of entrepreneurs, who can develop viable value-added businesses,
and;
The advice and assistance of government and industry experts.
The industry analysis shows that in many other parts of North America and for many agricultural
products, including the blueberry, grand visions can be realized through focused, strategic and
incremental actions over time. In many instances, the time involved is substantial – decades, not years.
But when improvements are realized in an industry in the region, year-to-year over time, the results can
be astonishing. The value of the vision is that it attracts the kind of support needed to nurture the
industry. It also motivates people to buy-in throughout the region, helping produce the critical mass
necessary to create economies of scale.
3.0.2
SUCCESS FACTORS
The corporation understands the factors that will contribute to its business success:

Selecting acreage with sufficient existing blueberry strands;
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COMMERCIAL BLUEBERRY PRODUCTION
2008
Starting with a sufficiently large land area;
Knowledge and use of appropriate agricultural methods (access to technical assistance);
Managing the land (e.g. pruning and weeding);
Continuous research and promotion of improved industry practices;
Bringing in bees to pollinate;
Focused, incremental efforts overtime – long term strategy;
Exercising patience while the blueberry fields mature over the first number of years;
Marketing excellence;
Product quality;
Economies of scale when competing of price (e.g. frozen blueberries);
Successful differentiation strategy when competing on product quality dimensions (e.g. specialty
foods, superior fresh berries, organic etc.);
Creating supplemental income from the industry through value-added products.
3.1 Organization
3.1.1
HUMAN RESOURCES
The Northeast Superior Forest Community Corporation is confident it can assemble the necessary
complement of staff and professional expertise to implement their vision for a blueberry farming
enterprise (see Appendix A: Potential Resources). Management and professional expertise will play a
material role in the success of the company. For a privately owned enterprise, often the duties of upper
level management positions and the BOD will be undertaken by the business owner(s). In the long term
as the business expands, it would be a natural transition to hire qualified management personnel to
assist in meeting the full range of business objectives.
The following are proposed profiles of key members of the operational staff and advisory team. These
descriptions will be applicable as to the responsibilities that may need to be carried out regardless of
ownership.
Board of Directors
The BOD will be made up of community leaders, industry professionals, entrepreneurs and other local
expertise, and may be shareholders of the business. The Board of Directors is responsible for setting the
strategic direction of the company and for overseeing and monitoring its businesses and affairs.
Directors are accountable to the shareholders for the company’s performance. The Board reviews and
approves the company's strategic and business plans and guiding policies. Day to day management of
the Company's affairs and implementation of its strategy and policy initiatives are delegated to the
Business Development Officer and Operations Manager.
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COMMERCIAL BLUEBERRY PRODUCTION
2008
The functions of the Board include:
• oversight of the Company including its conduct and accountability systems.
• reviewing and approving overall financial goals for the company.
• approving strategies and plans to achieve these goals.
• approving financial plans and annual budgets.
• monitoring implementation of strategy, business performance and results and ensuring
appropriate resources are available.
• approving key management recommendations (such as major capital expenditure, acquisitions,
divestments, restructuring and funding).
• appointing, rewarding and determining the duration of the appointment of the business
development officer and ratifying the appointments of other senior staff as they become
necessary including a chief financial officer and the company secretary.
• reviewing the performance of the business development officer and other senior management.
• reviewing and verifying systems of risk management and internal compliance and control, codes
of conduct and legal compliance.
• reviewing sustainability performance and overseeing occupational health and safety and
environmental management and performance.
• approving and monitoring financial reporting and reporting to shareholders on the company’s
direction and performance.
• meeting legal requirements and ensuring that the Company acts responsibly and ethically and
prudently manages business risks and Boral’s assets.
In fulfilling these functions, Directors seek to enhance shareholder value.
Business Development Officer
The Business Development Officer under the guidance of the BOD should ensure that the corporation is
in compliance with all legal requirements, such as those pertaining to its incorporation under Ontario
legislation. The Business Development Officer will have the responsibility for the administrative work of
the corporation, including the maintenance of financial and other records, whether performing this
work directly or assigning it. All significant business and investment decisions will be fully informed by
research and analysis. A business case justification will be required for major activities and investments.
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COMMERCIAL BLUEBERRY PRODUCTION
2008
Operations Manager
The Manager will manage all aspects of the operation from leasing equipment and labour, renting hives
and installing electric fences to arranging for buyers and transport. This will be a full-time position year
round. The only months that the Manager cannot spend in the field are typically October through
March, when owners and operators spend the time attending industry seminars, learning new
techniques, and managing the administrative aspects of their operations.
A Business within the Business
Employees must find their work fulfilling, feel respected and participate in decision making. To meet
these objectives, the executive team must devote time to informing, consulting and meeting the
personnel. Each employee is a pillar of the business. Employee loyalty needs to be sought after, and
their critical spirit and participation in the business need to be developed.
Labourers
The corporation plans to hire a combination of seasonal labourers and field workers to assist with a
variety of farming duties, such as operating the mechanical harvester to move boxes and remove twigs
and debris, for transporting blueberries from the harvester to the truck, as well as hand harvesting of
the outer perimeter of the field. Where a system of blueberry brokerage is adopted, pickers will be hired
and paid per pound of harvest. It is estimated that at least 20 pickers will be hired.
Finances
Using the data prepared by the Business Development Officer, the business will engage a local
accountant who specializes in corporate accounting to create the corporation’s annual financial
statements according to GAAP in order to guarantee transparency and accountability with the
community, credit institutions, funding agencies and shareholders.
Professional Affiliations
Forest Bioproducts Inc. (FBi) assisted the Northeast Superior Community Corporation with business-plan
preparation. FBi is a business-management consulting firm specializing in new business development,
project management, start-ups, marketing, financial management, investor and lender negotiations,
management-support services, and research and development. Services from FBi may be required for
research, business support and strategic advice to the corporation for business development and future
endeavors.
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COMMERCIAL BLUEBERRY PRODUCTION
2008
3.2 Implementation Plan
Recommendation
Recruit board members from
business community
Develop decision making, conflict
resolution and communication
policies and a code of ethics
Prepare applications for funding to
facilitate implementation of plan
On securing required funding, hire a
Business Development Officer and
Operations Manager
Set up a modest office at a low cost
Foster blueberry production by
developing a knowledge base within
the community using government
and academia and promoting the
business
Develop/implement a strategy for
securing private sector partners
Prepare and cultivate land
Recruit Potential pickers and
labourers
Foster the development of
equipment and service pools in
partnership with the private sector,
covering all phases of blueberry
production
Increase geographical scope of
operation
Develop marketing resources
Seek contracts with smaller scale
value-added operations
Foster the development of
relationships among existing
specialty food manufacturers
Seek contracts with Ontario food
processing and food products
industries
Negotiate marketable pricing with
Prime Responsibility
Northeast Superior Forest
Community/ Board of Directors
Board of Directors
Suggested Timeframe
Immediate
Board of Directors, Professional
Affiliations
Board of Directors
One to three months
Board and Business Development
Officer
Business Development Officer
Within six months and upon
securing required funds
Ongoing. Primary focus once fresh
market system functioning well.
Business Development Officer
Six to eight months
Operations Manager
Operations Manager
Six to eight months
Ongoing
Operations Manager
Ongoing as industry needs
identified
Business Development Officer with
recommendation from BOD,
Operations Manager
Business Development Officer, with
marketing/professional advisors
Business Development Officer
Within years 4 to 6 and ongoing
Business Development Manager
Ongoing
Business Development Manager
Ongoing
Business Development Manager, in
Annually
One to three months
Within four to six months
Within years one to two
Ongoing
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COMMERCIAL BLUEBERRY PRODUCTION
2008
(future) private sector partners and
industries
Expand staff to assist the Business
Development Officer in meeting full
range of objectives
Develop a significant value-added
enterprise in the North
consultation with Board
Communicate and celebrate
achievements
Board of Directors, Business
Development Officer
Board of Directors
As required in the future and only
on a sustainable basis.
Board of Directors, Business
Development Officer, other
members/employees
Within five to seven years and
when feasibility is proven, equity
secured and all required resources
in place
Ongoing, to foster commitment and
attract participation and
investment
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COMMERCIAL BLUEBERRY PRODUCTION
2008
4.0 OPERATING PLAN
4.1 The Lowbush Blueberry
Wild blueberry plants are erect, low-bush shrubs that grow two inches to
two feet tall. Unlike most other crops that are planted, low-bush
blueberries are developed from existing strands. A wild blueberry plant
typically forms dense, extensive colonies. Roots are shallow and fibrous
but may possess a taproot that can extend three-feet deep. Wood
rhizomes average 0.18 inch in diameter and 2.4 inches deep. The berries
average 0.12 to 0.4 of an inch in diameter and are very sweet. Wild bees
generally pollinate flowers11.
Wild blueberries grow in a wide variety of habitats, in mixed conifer and
hardwood forests, headlands, high moors, upland bogs, peaty barrens, along sandy riverbanks, and on
exposed rocky outcrops of the Canadian Shield. They are a prominent component of jack pine barrens,
maple groves, oak savannas, and poplar regeneration forests and are common in abandoned pastures,
clear-cuts, and along roadsides. They thrive in light, well-drained acidic soils with PH from 4.2 to 5.2.
Plants generally grow better on relatively undisturbed rather than tilted soil12. Plants are dormant in fall
and winter and start growing usually in early May after temperatures exceed 10 degrees Celsius for
three to four consecutive days. Vegetable shoots grow until midsummer. Plants generally flower in May
to June of their second year. Fruit generally ripens from midsummer to late summer13.
With areas rich in natural forest that give rise to perfect soil conditions for blueberries, the Northeast
Superior Forest Community Corporation plans to capitalize on the growth in the blueberry farming
industry by starting a blueberry farming business. Not only will the products appeal to health-conscious
consumers, Northeastern Ontario blueberries will work with the land in its natural state, appealing also
to those who are concerned about how we take care of the earth.
Currently, people travel from as far away as Sault Ste Marie to pick blueberries in the area and sell them
as fresh products. Wild blueberries grow naturally in the area on uncultivated land. In the majority of
cases, no taxes are paid on these sales, so governments do not reap any economic benefit. Crops can be
increased ten-fold if the land is cultivated. Burning or pruning wild blueberry plants produces young
11
“Species: Vaccinium angustifolium | Low Sweet Blueberry,” on-line available at
http://reference.allrefer.com/wildlife-plants-animals/lants/shrub/vacang/all.html and Nova Scotia Agriculture.
“Agricultural Products,” on-line available at http://www.gcrda.ns.ca/Nat_Res/aggie.htm
12
Ibid.
13
Ibid.
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COMMERCIAL BLUEBERRY PRODUCTION
2008
shoots that yield more fruit. For example, compared to the production of 200 pounds of blueberries on
an acre of uncultivated land, a cultivated acre can produce about 2,000 pounds. 14
4.2 Operations
4.2.1
FIELD DEVELOPMENT
Phase 1: Harvest of wild berries from clearcuts, natural forest clearings and rights-of-ways (optional)
Introducing the operation to the market by acting as a buyer of locally harvested wild blueberries will
help to provide revenue to the business as commercial crops are established. Blueberries will be brought
to a drop-off station where they will be weighed and checked for quality. This will create employment
opportunities in the area while helping the business become more familiar with the fresh, frozen and
processed blueberry markets. During this phase, the infrastructure needed to sustain large volumes of
blueberries will begin to develop.
Phase 2: Brokering of wild blueberries harvested for resale in Southern Ontario (optional)
Phase 2 will operate concurrently with Phase 1 in an effort to establish a customer base for our product.
The corporation will focus on developing a coordinated marketing system for fresh blueberries in
partnership with the private sector as an immediate to mid-term priority. This focus on the fresh market
is necessary because of the premium pricing of blueberries required as a result of low yields and the
labour-intensive hand-harvesting method used in the area. The frozen blueberry market in Canada does
not support a premium pricing strategy. The promotion of blueberry based product development within
area specialty food businesses and/or organic markets is recommended as a near term strategy,
followed by the promotion of commercial blueberry production in the long term when crop
management techniques are applied. Not only with this provide the business with an interim source of
revenue, it will also help to build relationships with buyers, processors and value-added producers.
Phase 3: Blueberry farming and resale in established markets
There are problems with the current strategy of pooling blueberries harvested on open access lands in
an effort to create bargaining power. The most significant threat is the lack of secure access to native
stands of wild blueberries. The recommended strategy, particularly that of fostering blueberry
production, will reduce this threat while helping build the economies of scale needed to grow this
industry. In the long term, provided that growing operations are established, ensuring the required
secure supply of blueberries and economies of scale, the corporation will develop a significant value
added enterprise based on the blueberry using this business model to attract investment.
14
Dr. Luc Duchesne. Interview May. 2008.
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4.2.2
COMMERCIAL BLUEBERRY PRODUCTION
2008
LAND
The ideal land for cultivation will be land not currently in use by anyone for blueberry picking and land
that does not have any mining, staking, snowmobile, or ATV activity. Carefully selecting the potential
site for a blueberry plantation is one of the most important decisions when establishing a crop. If
possible, locations with a slight slope to facilitate both air and water drainage will be selected. Sloping
ground will ensure adequate air movement around the plants all year long.
At the base of the slope, thick brush will be cleared or thin stands of trees will be allowed in order for
cold air to drain away. During the spring bloom period of late March through April, air movement is
crucial to reducing the chances of spring frost injury. Lower elevation areas in the field are often the first
to show blossom damage.
Good air circulation will also play a key role in disease control during the bloom-through-harvest period.
Without good air movement, incidence of fruit rot and frost injury may increase. Because of the cooler
climate, and in incidences of higher elevations, topographic orientation will be considered. Southern
exposures can be 5 to 8 degrees Fahrenheit warmer during the spring and fall, thus encouraging earlier
bud development (and potential for spring frost injury) and earlier berry ripening15.
Slope should also be considered for mechanical harvesting. The newest over-the-row harvesters can
travel across steep side slopes because they have automatic leveling. However, excessive slope will
interfere with the operation of the catcher plates on the picking unit, resulting in fruit loss. In addition if
the rows are orientated up and down the slope, slopes of greater than 10 percent (1 foot rise for every
10 feet) will be avoided as berries will tend to roll to the back end of the picking unit and will not be
collected properly.
4.2.3
STRIP FARMING ON CROWN LAND
Where possible, cultivating land in forested areas covered by forest-management agreements will be
ideal, thereby creating and testing an innovative farming model not currently employed for wild
blueberries in Ontario. This is based on a Quebec agro-forestry model known as strip farming; however
the operation strategy proposed will be applicable on any feasible land considered for blueberry
cultivation.
Strip Farming Operation in Normandin, Quebec
15
http://berrygrape.oregonstate.edu/blueberry-site-selection/
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COMMERCIAL BLUEBERRY PRODUCTION
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Strip farming consists of alternating 60 metre wide rows of wild blueberry fields with 42 metre wide
strips of intensively managed forest. The wooded strips act as wind breaks to prevent wind erosion of
soil and promote snow accumulation that protects wild blueberry plants from severe winter weather.
The wooded strips further protect flowers and blueberries against late and early frosts by equalizing
ground temperature (radiant effect). In addition, the strips improve the scenic quality of agro-forestry
landscapes, with trees that are left to grow and be enjoyed. Leaving strips of trees untouched would
normally incur losses for the forestry industry; however, intense forest management maintains timber
production, and therefore offsets potential losses. Managing the strips in three 14-metre sections
ensures a forest cover at all times. Each of these sections is maintained at different age classes, so
harvesting is cycled at different times for each strip. Strip length is not an issue, but strip width
maintained as described is vital.
Arial view of strip farming plantation in Quebec
4.2.4
ACREAGE REQUIRED
The business will seek economies of scale with 250 hectares (618 acres) – 125 hectares in each of Years
1 and 2. When an agricultural process is ready to be initiated, a list of suitable properties to be acquired
incrementally over a period of years, whether from the Crown, the private sector or individuals will be
prepared ahead of time. According to Craig Montgomery of the Ministry of Natural Resources, a phased
land procurement approach will reduce initial land use permit costs, but preferred acreage can be
outlined in the project description (i.e. as mentioned above, total hectares described for project is 250 –
submit land tenure for 125 hectares).
Crown Land Rental
Under the authority of the Public Lands Act, MNR is responsible for the management of Ontario’s public
lands which includes the disposition of rights to use and occupy public lands. Public lands sought by
blueberry growers will be subject to initial and yearly fees. Fees and rents are generally based on fair
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COMMERCIAL BLUEBERRY PRODUCTION
2008
market value. Where fair market value cannot be determined, at a minimum the cost of providing
authorization will be recovered.
Environmental Assessment
Because blueberry cultivation may involve the dispersal of Crown land (either by sale or lease), the
project may be subject to an environmental assessment. The Environmental Assessment Act (EA Act)
promotes good environmental planning by assessing the potential effects of infrastructure projects
before the first shovel goes into the ground. The act applies to most public and some private projects.
The EA process serves several important purposes by:





Allowing projects to receive input from a wide variety of sources, including the federal,
provincial and municipal levels of government, stakeholders and the public.
Identifying potential problems prior to construction
Promoting good environmental planning practices
Improving community acceptance
Better protecting the environment.
An environmental assessment serves multiple purposes and will help carry the project through taking
care to avoid unnecessary and costly roadblocks. For this the corporation will prepare a site specific
project plan which will be sent to a number of authorities, including the Ministry of Natural Resources
and the Ministry of the Environment, for feedback. This project plan will also serve to initiate the public
consultation process which might identify possible conflicts with locals and/or First Nations. There are
also other Governing bodies which regulate farm businesses. A list of Governing bodies and associated
regulations with possible applications, are attached as Appendix B.
4.2.5
PREPARING THE LAND
In Northern Ontario, woodlands on which wild
blueberry plants are growing show the most
potential and may be cleared of trees and brush
and then managed to increase the blueberry stand.
After the community has identified forest with
suitable undergrowth of wild blueberry strands and
made arrangements to start farming, using the
Quebec approach (where applicable), trees will be
harvested in 60 metre strips, leaving 42 metres of
forest between the strips. Large stumps and rocks
will be removed to allow for mechanization (i.e., the use of tractors with boom sprayers, flail mowers
and mechanical harvesters). Smaller stumps will be treated to prevent re-growth. Brush will be cut close
to ground level with mechanical cutters, piled and burned.
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COMMERCIAL BLUEBERRY PRODUCTION
2008
After the land has been cleared, lowbush blueberry plants shoot up from rhizomes that were previously
shaded out by the trees. Very few fields cleared from woods are completely covered with blueberries,
and any great increase in stand results not from the growth of new seedlings but from the initiation of
stems from rhizomes present in the field before clearing 16. The length of time required to obtain a solid
stand depends on the condition of the soil, the number of plants present, and the degree of competition
from weeds. Repeated pruning appears to encourage the growth and spread of lowbush blueberries and
to retard weed development. If pruning or weed control is stopped, the area grows up to brush and
woodland again.
Blueberries present in the field before clearing (left) help to establish crop after clearing (right)
Where required, land will also be leveled with the long-term view of increased profitability through
mechanization. It is field conditions (such as the presence of stumps, stones, hummocks and knolls)
which have limited the ability to mechanize. It is these factors that land levelling seeks to address.
Levelling consists of removing objects whose location and size interfere with operations including the
removal of stumps rocks, stones and flattening knolls and filling in the ruts and hollows. Levelling in wild
blueberry fields refers to improving sites in order to:







Facilitate work with machinery and to minimize mechanical breakdowns.
Ensure a more uniform spread of pesticides and fertilizer.
Improve the working speed of agricultural operations.
Prepare the ground for the mechanization of pruning and harvest.
Diminish production costs.
Improve profitability of the farm business.
Consolidate fields.
It is important to keep in mind that proper land levelling should make mechanization possible, while
causing minimal damage to the wild blueberry plants. Any significant reduction in natural plant density
may take several cycles to recover and the crop may be severely compromised. The field does not need
to look like a table top following levelling, as machinery adjusts very well to moderate undulations in the
terrain.
16
I. V. Hall. Floristic changes following the cutting and burning of woodlot for blueberry production. Can. J. Agr.
Soc., 35:143-152, 1955.
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








4.2.6
COMMERCIAL BLUEBERRY PRODUCTION
2008
Levelling of wild blueberry fields should always be done when the plants are approaching
dormancy, that is, around the first autumn frosts or before regrowth in the spring. This will of
course depend on the degree of levelling which needs to be done.
Land levelling should be limited to relatively moist field conditions, since drought periods will
cause the damaged or disturbed rhizomes to dry out.
Land levelling should be avoided under wet conditions, since this will lead to soil compaction. In
addition, the passage of heavy machinery could result in significant damage to the field.
Land levelling should be done in such a fashion as to minimize the impact on the density of
plants and the percentage of field cover.
It is best to wait a few years after clearing operations before levelling land. If not, the removal of
fresh stumps will cause damage to too large an area around the stumps. Two crop cycles would
be a suitable amount of time, and this would also give enough time to control the hardwood
regrowth, which would make the stumps easier to pull.
In order to avoid soil erosion, steep slopes should not be left bare by land levelling.
Once levelling work has begun in a field, it is very important to complete the work in the same
year. Spreading the work over a too long period will stress the plants and diminish their
performance.
When using bulldozers & excavators, it is important to avoid sharp turns, in order to avoid
breaking the soil surface unnecessarily. Sharp turns should be limited to roads and fire-breaks.
Levelling can sometimes leave rhizomes exposed. It is therefore advisable to prune (by mowing
or burning) prior to land levelling. Mowing the field prior to levelling will also help to reveal the
stumps, and irregularities and contours in the terrain.
MANAGING THE CROPS
Pollination
In order to produce blueberries, the flowers need to be pollinated by
insects, of which bumblebees, solitary bees, and introduced honeybees are
the usual ones. Bumblebees and solitary bees work in colder weather than
honeybees. In places where wild bees are scarce, the introduction of
colonies of honeybees usually ensures a higher fruit set17.
Combining fruit production with apiculture is practiced on a large scale in
Quebec. Placing beehives in blueberry fields in the Saguenay-Lac-Saint-Jean
region is undoubtedly the most striking example. Pollination of 90% of the
blueberry fields in this region is stimulated by placing hives in the blueberry
fields through agreements between beekeepers and blueberry producers18.
17
18
http://nsac.ca/wildblue/hist/kinsman5090/chap7.htm
http://www4.agr.gc.ca/resources/prod/doc/terr/pdf/agroforest_qc_final_e.pdf
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COMMERCIAL BLUEBERRY PRODUCTION
2008
Colonies of bees will be rented for the fields during blooming (late May to June) at the rate of 1.5 hives
per hectare. The hives will be distributed evenly throughout the field to maximize the probability of
flower visitations. Bees fly further along rows than across them. Hives will be placed in a wind-sheltered,
sunny location with their entrances facing east. The bees will become active sooner if facing the morning
sun. The beehives will be removed once the bloom ends with the end product of berries produced in
summer and turn blue in early August.
We will emphasize the importance of bees in blueberry culture and make every effort to protect
honeybees and native bee populations. As such, insecticides will not be used during bloom. In addition,
a pesticide-free source of water will be placed near the hives. Arrangements will be made with the
beekeeper in advance to remove the hives before insecticide spraying resumes.
Pruning Every Other Year
Pruning of lowbush blueberry plants is necessary to encourage new upright shoot growth from the
underground stems (rhizomes). Methods of pruning which have been tried include burning, mowing,
chemical sprays and electricity. Pruning by burning does the most thorough job with no injury to the
plants and eliminates most of the stubs and other growth which interfere with raking the berries. Close
mowing with flail mowers has also proven effective and is less costly than burning. Pruning with
chemicals or electricity has not proven effective or practical to date.
Blueberries will be pruned by flail mowing (given the
lower cost) on-half of the blueberry crops yearly in
either the fall or early spring every second year.
Pruning rejuvenates blueberry stands by eliminating
old growth and creating an outgrowth of new shoots
from the rhizomes. The rhizome is the equivalent of
an underground stem that forms a dense network in
the soil. Vigorous new shoots produce vegetative
shoots the first season after pruning. The next year,
they produce blossoms and fruit with a much higher
yield that the old shoots would have. A very small
percentage of farmers harvest the fields in the third year, but production drops significantly for a second
consecutive harvest. Even for fields where the net yield could be the same for a three-year compared to
a two-year harvest cycle, farmers opt for the more steady year-to-year income by choosing to prune
every second year. We will follow suit for the same reasons.
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COMMERCIAL BLUEBERRY PRODUCTION
2008
Insect and Disease Control
The blueberry, like most other crop plants, is subject to a variety of insect pests. Fortunately, most of
these can be controlled by the proper application of insecticides. The amount of chemicals used does
not cause problems with residues on the fruit, and the cost is not prohibitive.
Insects may cause economical losses in blueberry production but they have not caused major losses in
recent years. There is a wide range of pesticides available and, if properly used, will give growers
protection against major pests affecting the lowbush blueberry crop. Burning, for pruning blueberries, is
considered to be an effective control method for many pests and probably is the reason why insect
problems are not extensive. Burning the fields after harvesting apparently destroys most of the
wintering-over insects. If insects and disease become a problem, the corporation will consider switching
to burning instead of flail mowing when pruning the crops.
At certain times during the sprout (first) and crop (second) year based on monitoring, the corporation
will apply sprays with a boom sprayer to control insects and disease. Note that compared to pesticide
use in the world’s other large-scale commercial fruit species; pesticide use in wild blueberry production
is very low.
Two sources of information that will be used to reference insect and disease identification, pesticide
application and disease control are found online at
http://www.omafra.gov.on.ca/english/crops/pub360/8blucal.htm#blucal and also at
http://www.nsac.ns.ca/lib/apascc/acfc/wildblue99.html.
Weed Control
Weeds represent one of the major limiting factors in commercial production of lowbush blueberries,
especially for young plants. They are strong competitors for the resources necessary for adequate plant
growth, harbour diseases and insects, interfere with the proper application of fertilizers, and make
harvesting more difficult. Crop quality and value may also be reduced if weeds and their fruit are
harvested with, and contaminate the blueberry pack. As blueberries begin to establish themselves,
weeds appear and compete with the blueberry for space, light, moisture and soil nutrients.
Because wild blueberry fields are semi-cultivated, weeds compete with the berries in the growing
environment. Weeds will be controlled with granular herbicides applied with a spreader at the rate of
approximately 19 kilograms per hectare in the spring of the sprout year. Spot treating of weeds may also
be done following harvest. Bush-type weeds will be cut with a mechanical weeder. In August, when
weed heads start to bloom, a sponge bar machine will be used to drop liquid herbicide onto spots where
it is needed rather than the whole field, thus adhering to the best management practices described later
in this section.
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Crop Protection from Animals and Birds
Wildlife damage management has become more of a problem as large areas are planted to single crops,
such as blueberries, and use restrictions for repellents and toxins have increased. While it is seldom
possible to prevent total damage, much can be done to reduce impact on wildlife within legal and
economic constraints.
As growers began using honey bee hives in lowbush blueberry fields for pollination purposes, wild bears
became a nuisance and will attack hives in attempts to acquire honey. Once bears discover this food
source, they return on a regular basis, especially at night. Protection put in place after the first damage
has occurred is rarely effective. This is why growers must introduce protective measures before the
hives are brought in to the field, so as to discourage the first attack from occurring. As such, the
corporation will purchase and install electric fences around the hives to ward off predators.
However, of all the wildlife that blueberry growers have to contend with, birds rank as one of the most
important. Although many species of birds will feed on blueberries, the principal species that cause
losses are starlings, robins, and finches. Birds are difficult to manage because they are the most mobile
of all wildlife. They move quickly from one area to the next. They have also learned to take advantage of
new crops that replace natural food sources within their range. These crops become important
supplements to their native food and, like blueberries because of their high protein and sugar content,
often are preferred over their normal diets.
Birds feed on different food patches throughout the year. They move from one to another, sometimes
feeding on two or more patches as they ripen. They also explore potential food sources by periodically
testing the crop. As it matures, the birds begin feeding, often before the fruit is fully ripe. Once birds
begin feeding on, or become habituated to, a crop they are very difficult to manage. Control strategies
must be started before the fruit begins to ripen and must continue through harvest. The following are
possible mitigation strategies that will help to reduce the number of birds that congregate in the area:




Removing nesting, perching, and roosting sites around the perimeter of the field
Removal of alternative food sources, such as sunflowers and grains, from nearby fields
Trapping can be used to remove some birds, but cannot be used for protected species
Various hazing or herding techniques or scare devices can be used to move birds:
o Stationary objects, such as flashing pie tins and ribbons
o Owl and hawk silhouettes and rubber snakes
o Scare-eye balloons
o Noisemakers, such as firecrackers, exploding shells, gas-fired cannons, and distress calls
o Battery operated radios tuned to music programs.
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COMMERCIAL BLUEBERRY PRODUCTION
2008
When the techniques are combined and moved within the plantation to different locations on a regular
basis, they can reduce the number of birds feeding on the crop.
Fertilization
Blueberry roots do not have root hairs. They have a small surface area for nutrient absorption, and are
relatively inefficient. However, blueberry roots are associated with naturally occurring, very specialized
fungi, called mycorhizae, which improve nutrient uptake19. Blueberries are picky eaters. Roots are
sensitive to nitrate fertilizers and chlorides. Ammonium sources of N, such as ammonium sulphate or
urea are preferred over nitrate forms. We will avoid using muriate of potash (KCl) on blueberries and
instead will choose sul-po-mag or potassium sulphate instead. Fertilizers have been applied as nitrogen,
phosphorus, potassium, boron, magnesium and lime, singly and in various combinations. Evidence from
experiments suggests that the blueberry plant responds to fertilizer applications with increased
vegetative growth20 and greater yield potentials21.
Blueberries do not take up nitrogen until leaf tissue is present. Early spring applications of nitrogen are
not used by the plant. Nitrogen applications will be split 3 ways, coinciding with bud break, bloom and
early July. Very little nitrogen is required in the early years of the planting. On the basis of a study of the
suggested optimal ranges for major nutrients in the blueberry leaf at the time of flower, the following
concentrations are recommended22:
Table 4: Optimal Range for Major Nutrients in the Blueberry Leaf
Nutrient
N
P
K
Ca
Mg
Range of Concentration (%)
1.5-2.0
0.08-0.12
0.40-0.55
0.40-0.65
0.15-0.20
Growers in Eastern Canada collect leaf and soil samples for analysis by a professional to identify nutrient
deficiencies and recommend an appropriate fertilizer regime. Based on the analysis we receive, we will
apply an appropriate chemical fertilizer on the crops before growth in the spring, around May.
Blueberries also respond to organic matter and mulch. These improve soil structure and buffer against
drought stress. Research by Dale and Ricketson (Figure 2) confirms this in Ontario. Mulching the soil
surface of a new planting is also advisable to ensure that young root systems do not dry out. A 2 inch
19
http://www.omafra.gov.on.ca/english/crops/hort/news/allontario/ao0403a3.htm
Dominion Blueberry Sub-Station. Progress Report. Tower Hill, N.B, 1949-1953.
21
L. J. Eaton. Nitrogen Cycling in Lowbush Blueberry Stands. PhD thesis, Dalhousie University, 1988. 170 pp.
22
L. R. Townsend and I. V. Hall. Trends in nutrient levels of lowbush blueberry leaves during four consecutive years
of sampling. Can. Naturalist, 97:461-466, 1970.
20
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layer of sawdust, 36 inches wide, centered over the row, will inhibit the germination of annual weed
seeds but not seeds of deeply rooted perennials.
Figure 2: Blueberry yield (6 year total) increased when peat was incorporated at planting and when the
planting was mulched with sawdust23
Irrigation
Because blueberries are shallow-rooted, they are subject to drought injury and adequate supply of
moisture is essential for optimum growth. If sufficient water is not supplied by natural soil water or
rainfall, irrigation is necessary. According to OMAFRA, a drip system is commonly used for blueberry
plants.
Drip Irrigation System Layout and its parts
23
http://www.omafra.gov.on.ca/english/crops/hort/news/allontario/ao0403a3.htm
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COMMERCIAL BLUEBERRY PRODUCTION
2008
Components (listed in order from water source):

Pump or pressurized water source

Water Filter(s) - Filtration Systems: Sand Separator, Cyclone, Screen Filter, Media Filters

Fertigation Systems (Venturi injector) and Chemigation Equipment (optional)

Backwash Controller

Main Line (larger diameter Pipe and Pipe Fittings)

Hand-operated, electronic, or hydraulic Control Valves and Safety Valves

Smaller diameter polytube (often referred to as "laterals")

Poly fittings and Accessories (to make connections)

Emitting Devices at plants (ex. Emitter or Drippers, micro spray heads, inline drippers, trickle
rings)
Note that in Drip irrigation systems Pump and valves may be manually or automatically operated by a
controller.
The advantages of drip irrigation are:












Minimized fertilizer/nutrient loss due to localized application and reduced leaching.
High water distribution efficiency.
Leveling of the field not necessary.
Allows safe use of recycled water.
Moisture within the root zone can be maintained at field capacity.
Soil type plays less important role in frequency of irrigation.
Minimized soil erosion.
Highly uniform distribution of water i.e., controlled by output of each nozzle.
Lower labour cost.
Variation in supply can be regulated by regulating the valves and drippers.
Fertigation can easily be included with minimal waste of fertilizers.
Early maturity and a bountiful harvest (season after season, year after year)
The disadvantages of drip irrigation are:
 Expense. Initial cost can be more than overhead systems.
 Waste. The sun can affect the tubes used for drip irrigation, shortening their usable life.
Longevity is variable.
 Clogging. If the water is not properly filtered and the equipment not properly maintained, it can
result in clogging.
 Drip irrigation might be unsatisfactory if herbicides or top dressed fertilizers need sprinkler
irrigation for activation.
 Drip tape causes extra cleanup costs after harvest. You'll need to plan for drip tape winding,
disposal, recycling or reuse.
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2008

Waste of water, time & harvest, if not installed properly. These systems require careful study of
all the relevant factors like land topography, soil, water, crop and agro-climatic conditions, and
suitability of drip irrigation system and its components.
After establishment of the crop, we will investigate the application of an irrigation system. For maximum
efficiency of the system, we will seek professional advice on water sources and purification, equipment
selection, and system layout to ensure uniform water distribution and water conservancy.
Best Management Practices
One way blueberry growers can respond to environmental pressures in a proactive manner is to adopt
Best Management Practices. Best Management Practices are recommendations and guidelines to help
growers make sound environmental decisions in farming operations. They are a combination of
management, cultural, and structural practices that are considered to be effective and economical in
controlling problems without disturbing the quality of the environment. They provide opportunities for
growers to evaluate their own operation and choose the best management practices that are most
appropriate for their own situation. The Northeast Superior Forest Community is fully aware that many
of the production and management activities that blueberry growers practice influence not just the
business owners but our neighbours and community. Anything that can be achieved to prevent
environmental pressures will make our operation and the blueberry industry in Ontario more
sustainable.
We will identify problem areas within the operation and select and implement the appropriate changes.
Examples of Best Management Practices that will be considered where appropriate include:









scout fields and spray only when and where necessary
match appropriate herbicide rates with soil type
do not apply herbicides within 50 m of water
do not mix or load near water, bring the water to the sprayer
do not apply herbicides to rock formations and exposed ledges as they may provide a direct
channel to groundwater
avoid spraying if heavy rainfall or high winds are forecast
use a anti-backflow device when filling sprayers from a water source to prevent contamination
from backflow
make sure your sprayer or spreader is calibrated properly and accurately leave an untreated
vegetation strip near any water sources to act as a filter
read and follow all instructions as stated on the labels
Researching Factors Affecting Production
To build on the research being done in the Lac St. Jean region, we will install thermometers in the fields
and maintain temperature logs to identify and monitor hot and cold spots and determine various factors
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COMMERCIAL BLUEBERRY PRODUCTION
2008
that affect production, such as freeze dates and times. In addition huge technological advances (e.g.,
pollination, fertilizations, irrigation, windbreaks, and native bee-habitat management) have doubled
wild-blueberry production in the past decade. Future technological advances may have a similar impact
by dramatically increasing average yields over the next five to 10 years 24.
4.2.7
CROP YIELDS
Huge technological advances have doubled wild blueberry production in the past decade. Further
technological advances may have a similar impact in the next ten years. The challenge for Northern
Ontario growers will be substantial, since initial productivity per unit area in the region will be less than
half of the industry average. In some instances, low yields can be attributed to the opening of fields from
forests, which then take many cycles to reach full production. The current trend towards land levelling in
order to facilitate the use of mechanical harvesters and flail mowers also contributes to the lowering of
average yields. This is due to the fact that the crop cover is temporarily disturbed in order to flatten the
fields. Recovery from these activities, as well as the adoption of new technology (pollination,
fertilization, irrigation, windbreaks, native bee habitat management) may dramatically increase average
yields over the next 5 to 10 years. This growth will need to be matched by activities aimed at minimizing
costs through mechanization and/or input rationalization.
Typical yield projections are 800 kilograms per hectare in the first rotation, 1,000 kilograms in the
second rotation, 2,023 kilograms in the third rotation and 3,000 kilograms in the fourth rotation. Some
mature fields may yield 4,000 to 5,000 kilograms per hectare, but 3,000 is considered average. In some
areas with a low density of wild blueberry plants, it may take a couple years for the plants to start
yielding fruit. The yield will increase after each harvest cycle. One-half of the land will be harvested in
any given year while the other half is pruned.
4.2.8
HARVESTING
Harvesting blueberries does not take place until approximately 90 per cent of the berries are blue. The
lowbush blueberry has the characteristic of remaining on the plant fully ripe until the greener berries
reach maturity. Harvesting on crop fields begins in mid August and usually lasts for about three to four
weeks. Berries must be harvested before frost occurs. Thus the crop will be harvested during the last
three weeks of August and early September. Length of harvest will be determined by weather conditions
and acreage to be harvested.
Hand Raking
24
Blueberries:Industry Overview, New Brunswick Department of Department, Fisheries, and
Aquaculture available on-line at http://www.gnb.ca/0171/10/0171100002-e.asp.
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COMMERCIAL BLUEBERRY PRODUCTION
2008
Until sufficient crop production is achieved, hand raking of wild blueberry plants and established crops
will be used extensively during Phases 1 and 2 of harvesting. As a general rule, a minimum of 10 acres of
producing blueberries is required to justify the expense of purchasing a self-propelled machine25.
The raker usually works from either a standing or kneeling position while
raking. However, more berries can be raked in the standing position.
Alternating positions occasionally will help reduce fatigue. The raker should
begin either in the lower left or right-hand corner of the lane where
possible. They should have their back to the sun as it is easier to see the
berries and should rake across the lane, always moving straight ahead. The
rake should overlap its former position about one-half inch each time to
collect any missed berries. Stringing lines to section the field is helpful to
increase efficiency and reduce overlap of harvesters.
To maneuver the blueberry rake, the following procedure is followed: the rake is placed flat on the
ground and then it is moved slowly into the shoots straight ahead to the base of the teeth, tilting the tip
of the rake up a little. The rake is then rolled upward and backwards, pulling it through the blueberry
shoots. This allows the berries to catch in the teeth, detach, and roll back to the heel of the rake. Three
or four scoops are made into the shoots, always straight ahead, then the berries are emptied into the
pail.
Rakers will be encouraged to rake carefully and slowly. Slower and more careful raking will generally
result in higher berry quality and a cleaner raking job. Rakes that are over-filled crush and mash the
blueberries. The rake should be emptied often and it shouldn't be held too high over the pail when the
raker empties it. After the rake has been emptied twice, the flat of the hand is used to remove the grass
and weeds underneath the rake. This procedure is important to reduce berry damage. If weeds are
exceptionally thick, the raker usually cleans his rake every time he empties the berries into the pail.
Daily production per raker will vary considerably depending
on the worker's ambition and ability, the condition of the
field and the yield of the crop being harvested. Most crews
will average about 200 pounds per raker per day. However,
hard-working and experienced rakers, under favorable
conditions, may harvest 800 to 1,000 pounds per day26.
Mechanical Harvesting
Once viable, the corporation will opt for mechanical picking that costs approximately 60 percent of the
cost of a raking crew. A mechanical harvester can pick up to six tons of berries per day in high-yielding
25
http://berrygrape.oregonstate.edu/mechanical-harvesting-of-blueberry/
26
http://nsac.ca/wildblue/hist/kinsman5090/chap14.htm
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COMMERCIAL BLUEBERRY PRODUCTION
2008
fields. Although this method will yield berries of lesser quality than hand picking, it will be appropriate
for processing and value-added products such as juices, wines beers, and syrups.
The perimeter of the fields will be picked by hand rakes using
the method described above. This will ensure that mechanical
harvesters will not crush berries on the perimeter as they
start to harvest. The remainder of the field will be
mechanically picked with tractor-mounted harvesters.27
The corporation will contract the harvesting work out to
individuals familiar with the use of farming equipment.
Harvesters cost around $35,000. One person will drive the
tractor while another will ride on back and change the boxes as they become full. Buyers or processors
will supply the boxes. The corporation will also engage a couple of field hands to operate a truck and to
haul berries from the harvester to the truck. The truck will then transport the berries to buyers’
receiving stations for weighing, cleaning, and shipping to processing plants.
Market Channels
Market channels involve growers, buyers, processors and manufacturers. A well defined marketing
system has evolved for getting the crop from the field to the end user. To help in describing this system,
there are several terms which should be defined:
A grower is a person who grows and harvests blueberries. A grower may or may not be a buyer or
processor.
A buyer is a person who buys blueberries from the grower and sells to the processor. The buyer is
usually, but not necessarily, a grower himself.
A processor is a person who buys blueberries from the buyer or directly from the grower. The processor
(freezes) these berries at this plant. They are then either resold immediately or stored and held for
future sales. Some processors are also large growers.
A manufacturer is a person who buys blueberries (mostly frozen but sometimes fresh) for use in the
manufacturing of blueberry pies, tarts, muffins, etc., or other manufactured products.
After harvest, a small percentage of berries (<2%) will be sold locally as fresh, and/or processed into
other products (i.e. baked goods) by locals. The remainder of the berries will be trucked to freezing
27
New Brunswick Department of Fisheries and Aquaculture. “Blueberries: Industry Overview,” available on-line at
http://www.gnb.ca/0171/10/0171100002-e.asp. and Government of Canada.
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COMMERCIAL BLUEBERRY PRODUCTION
2008
plants where they are washed, graded and frozen. The corporation will obtain plastic tubs from the
buyer prior to harvest. The harvested crop will be placed into the tubs and transported to receiving
stations. The receiving station will then transport the fruit to a processing plant where it will be frozen
for resale in world-wide markets. We will attempt to establish buying power for the region, as many
buyers are also large growers.
Selling large quantities of berries on the fresh market requires more labour due to the handpicking and
special packaging equipment required for high quality, properly graded and packaged fruit. Most of
these sales are made to retail-store chains and fruit stands. In the Northeast Superior region, the
individuals who come to the area to pick the blueberries sell them fresh. Rather than going to the
expense of selling fresh and competing for this small market (only five percent of Canadian blueberries
are sold fresh), the corporation will concentrate on developing a brokerage strategy in the interim, and
as crops develop, switch focus to the frozen and processing market. We will use the blueberries as a
source of supply for value-added products made directly in the area. Ideally, a freezing and processing
plant will be developed in the region.
Equipment
The corporation will purchase (new and used) and or rent the equipment in Table 5. This equipment
coincides with the long term operation goals of Phase 3.
Table 5: Equipment
Equipment
Computer, fax, printer, scanner
Pick-up truck
Flail mower
Tractor harvester
Walk-in cooler
Land Levelling equipment
Harvester
Spreader
Chipper/brusher
Tractor mounted sponge machine
4.2.8
Purpose
Office management duties
To haul berries to receiving station
Pruning blueberries
Harvests blueberries
Cools berries
To level land after clearing
Harvests weeds
Spreads granular fertilizer and herbicides
Cuts and chips brush
Application of insecticides and herbicides
TRANSPORTATION
Most fresh blueberries that are shipped throughout Canada are sent via over-the-road, refrigerated
truck trailers. A diesel motor powers a refrigeration unit that sends cold air from the front of the trailer
to the rear through a canvas air delivery chute. When the cold air hits the rear doors of the trailer, it is
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COMMERCIAL BLUEBERRY PRODUCTION
2008
deflected down and back toward the front of the trailer through and under the flats of berries. Flats
should be loaded on wooden pallets to ensure good return flow28.
In addition, a centerline loading pattern, as opposed to sidewall loading (flats stacked up against trailer
sides), should be used with bracing materials, and plastic stretched over the flats to keep the load from
touching the sidewall of the trailer. The trailer used to transport the berries must be cool (below 35 F)
prior to loading, as the refrigeration system will not be able to keep up with rise in temperature from
natural fruit respiration29.
After harvest, the portion of wild blueberries not used for local products will be trucked to freezing
plants where they will be washed, graded, and frozen. Transportation costs will be borne by the buyers
when the yield is over 2,000 pounds. If it is under that quantity, the farm will pay for transportation at
the rate of approximately $0.05 per pound.
4.3 Limitations
4.3.1
SWOT ANALYSIS
Strengths



The presence of the native lowbush blueberry in the region is a major strength. It provides an
annual harvest now and may indicate that the area is suitable for a more intensive, managed
lowbush blueberry growing operation.
Community interest in economic development and diversification and new business
opportunities is strong.
The corporation has access to technical and advisory support from government as well as a
strong private community that supports economic development activities.
Weaknesses


28
29
The area harvest is modest in size, affording few economies of scale for such activities as
harvesting, marketing, processing and adding value. Natural stands of blueberries offer low
yields in comparison to stands managed by growers. The practice of hand harvesting natural
stands of blueberries is very labour-intensive, requiring high pricing in comparison to other
competitors.
The handling and marketing of fresh produce requires both skills and access to equipment. As a
single-product and seasonal organization, the corporation is in a less favourable position
http://berrygrape.oregonstate.edu/post-harvest-handling-of-blueberries
Ibid.
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COMMERCIAL BLUEBERRY PRODUCTION
2008
economically to provide what is required than are other competitors who deal in several kinds
of produce and other products on an annual basis.
The corporation currently lacks the financial resources needed to promote the development of a
blueberry production industry in the region.
Some area blueberry pickers may strongly prefer selling in the underground economy to avoid
taxations and, in the case of social assistance recipients, income-reporting requirements, and as
such may be reluctant to sell to a broker.
Opportunities








The blueberry production industry is modest in size in Ontario, compared to Nova Scotia and
Quebec, for example. There is a large population base with a growing appetite for fresh,
nutritious foods and high quality specialty foods. There is also a significant food processing
industry. Although competitors in Eastern Canada are well positioned to supply this latter
market today, overall, there appears to be room in the market for an Ontario business, provided
it can compete.
There may be a sufficient base of lands, including abandoned farmlands and lands previously
used by the resource sector that could be developed for blueberry production.
Northern Ontario communities are participating jointly in a number of activities to promote
regional economic development and there is the potential to involve a number of communities
in a co-operative development of a blueberry production industry. This will help build critical
mass.
Ontario businesses are active in the specialty food industry and may be interested in product
development based on the blueberry crop.
It may be possible to use the internet as a market development tool.
There is potential to encourage area landowners to invest in the development of their own
blueberry production operations.
There is potential to join forces with an industry organization when engaged in commercial
production; this would provide aces to information, markets and marketing resources.
There is potential to put Ontario on the map (with Northeastern Ontario as the capital) in wild
(lowbush) blueberry production if the industry is developed successfully. Ontario is not a major
player today.
Threats


Northern farm income is below the provincial average, potentially limiting the ability in this
sector to invest in developing commercial blueberry producing operations.
Fresh blueberry crops are susceptible to contamination by pathogens (bacteria, parasites and
viruses) that commonly occur in animal or human excrement and can be spread in water, soil or
by improper handling and storage.
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
4.3.2
COMMERCIAL BLUEBERRY PRODUCTION
2008
According to OMAFRA, a one-hour delay in cooling “very highly perishable” crops during hot
weather reduces a product’s shelf-life by one day. Fresh blueberries are classified as “highly
perishable”.
Berry production fluctuates with local weather conditions and is characterized as high risk in
light of the potential for weather extremes, such as dry weather, frost, etc.
Blueberry plants are susceptible to diseases and pests such as the blueberry maggot.
Infestations would increase production costs, affect export markets and open the domestic
market to additional imports.
Both blueberry production and blueberry prices exhibit considerable variability.
Incompatible lands uses, such as new home construction, may reduce the size of the local
blueberry harvest by encroaching on prime picking areas.
BARRIERS TO BUSINESS START-UP
Open Access Goods: free riders and aggressive use
Blueberries growing in the wild are ‘open-access goods’. Anyone can benefit from this resource. These
kinds of goods are prone to the free rider problem. Harris et al point out that the problems associated
with open-access goods create significant barriers to coordinating the economic decisions of industry
participants30. These barriers can prevent industries from achieving coordination even when there is
potential to make the entire industry better off. However, both government intervention and
privatization have been advanced as solutions to this problem.
First Nations Concerns
Blueberries are a traditional food source for First Nations people. As a result any project that would
restrict Aboriginal peoples’ access to blueberries on Crown land could be opposed by First Nations
communities. As such, the corporation will engage First Nations directly affected by a blueberry
production operation to seek feedback and identify issues (if any) and propose possible mitigation
strategies. This will be achieved through direct contact as well as through community consultations and
meetings.
One of the reasons that Canadian businesses are able to achieve business success in countries around
the world is that they have learned to take the time to understand what is important to other cultures,
and to respect any differences while building business relationships. Especially in the Northern Ontario,
companies that want to do business should consider following this philosophy of mutual respect. The
time taken to develop an understanding of Aboriginal culture and First Nations perspectives regarding
30
Harris, A. et al, Working Together: The Role of External Agents in the Development of Agriculture-based
Industries, University of Saskatchewan, Centre for the Study of Co-operatives.
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development on the land is an important first step to building potential business relationships in the
region.
Forest Tenure Reform
A common issue in Northern Ontario that is prompting forest tenure reform, relates to the current SFL
system, which is historically-based and does not seem to be particularly responsive to new users. This
was last changed significantly in a reposition of some of the responsibilities to the industry with passing
of the provincial Crown Forest Sustainability Act in 1994. Since that time, there has been considerable
shifting of the players in the system as well as a desire by several new value-added participants for wood
and land allocations. Both municipalities and First Nation communities believe they could play a larger
role with respect to forest tenure. In order to maintain a competitive forest industry in the North, the
province must review the forest tenure system with a goal of strengthening Ontario's competitive
position for value-added production that works cooperatively with the forestry sector. A successful
example of this is the support from Tembec in the form of an in-kind donation and land allocation
towards developing Chapleau’s blueberry industry. This is an important step towards setting precedent
in this emerging industry.
Petitioning Government to Follow Quebec Model
Modeling its efforts after the agro-forestry industry in Quebec, the corporation will lobby and petition
the Ontario Ministry of Natural Resources to modify forest-rights and make land with cutting rights
available for its new blueberry fields. It will do so in concert with forestry operations that currently have
forest rights in the region. In a project description, the corporation will detail the land required and
request the same support the Quebec government is giving its blueberry farmers and forest companies
who wish to harmonize timber and blueberry production on shared land. Under the Quebec model, the
forestry company is responsible for the intense forest management and earns a corresponding
reduction of its royalties owed. In essence, the government bears the cost of the forest management.
The farm does not pay royalties.31
Further Government Support Needed
Assistance is needed to help build capacity for a new economy in Northern Ontario in light of the
downturn of the forest industry. Apart from climatic and physiographic constraints, our biggest limiting
factor is that development of a provincial blueberry industry will not take place until: there is a will on
the part of governments to highlight the industry as a priority area for development and to back up this
commitment with developmental resources and expertise, and government, farmers/potential farmers
and other parties associated with the blueberry industry co-ordinate their efforts through collective
action, partnerships and cooperation.
31
Quebec Government. 2003 World Forestry Congress: “The Forest and its Many Resources”, on-line avail able at
http://www.forestrycongress.gouv.qc.ca/resources/use.jsp.
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COMMERCIAL BLUEBERRY PRODUCTION
2008
The reorganization of the blueberry industry with emphasis on active marketing programs and blueberry
production as a farming operation will considerably enhance the value of agriculture in the Northern
Ontario economy. This reorganization cannot be achieved without the support of Government Programs
and initiatives. Suggested strategic actions include: identify suitable agricultural production areas for
future industry development, and assist with the establishment of key industry facilities for the
development of new opportunities, such as plant propagation for the commercialization of selected new
crops, cooperative storage, processing, and/or marketing facilities by various agricultural commodities.
Governments and industry need to work cooperatively to explore the full range of opportunities for
acquiring secure marketing arrangements for Northern Ontario blueberries, and the full potential for
creating a viable blueberry industry should be examined in a comprehensive manner. Developing the
blueberry industry should be a shared initiative between farmers and government; however it is up to
the government to play its part.
4.4 Business Development
We have a vision to create a successful and thriving blueberry production industry in the Northeast
Superior region. The vision includes the marketing of fresh berries and the sale of berries to processors
and other value-added industries, as well as the eventual establishment of a value-added operation. The
industry analysis demonstrates that to be competitive in markets other than the fresh market, blueberry
production on a commercial scale is required. The current situation of hand harvesting, results in low
yields and high costs of labour, which rules out a sustainable and significant entry into the processing
and other value-added markets, which will be long-term business development goals. Thus it is
imperative that commercial blueberry production is established. The vision will be to support the
establishment of a central processing facility in Northeastern Ontario where each community can ship
their products. Ideally, processed products will be shipped back to champion communities who choose
to expand their operations to include value-added blueberry manufacturing.
In the short term, the business development strategy will focus on fresh wild blueberries to support a
premium pricing strategy; distribution through selected high quality produce retail outlets and direct-toconsumer venues, such as farmer’s markets and promotion stressing the high quality dimensions of the
truly wild Northern Ontario blueberry. In the future as blueberry volume increases through growing
activity in the region, we will assess the viability of entering in the frozen blueberry market, to serve
customers in the food processing/products industries. In the shorter term, freezing some product may
facilitate the development of smaller scale value-added activities, at the cottage industry level, and
marketing to smaller manufacturing operations (wineries, etc.).
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COMMERCIAL BLUEBERRY PRODUCTION
2008
Figure 3: Long-Term Business Development Strategy
Operation B
Operation A
VA
LU
EA
DD
LU
VA
ED
ED
DD
EA
Operation C
CENTRAL PROCESSING FACILITY
Operation F
E
LU
VA
D
AD
ED
Operation D
Operation E
4.4.1
VALUE-ADDED BUSINESS OPPORTUNITIES
Blueberries are used in some unusual products. In Sweden, instant blueberry soup can be found on
grocery shelves. In China, consumers can find blueberry gummy candies, and chewing gum. In Germany,
companies manufacture blueberry-filled chocolate bars. And in Newfoundland and Labrador and Nova
Scotia, enterprising businesses are using blueberries to make wine. The Japanese appear to have some
of the more unusual products, such as, frozen blueberry pizza and blueberry pasta. Japan also promotes
this “superfood” for its health benefits. “Blueberry computer pills,” “Eye Candy,” and “Berrybright”
blueberry pills are some of the products marketed to office workers to promote healthy eyesight, thanks
to the high level of antioxidants in blueberries32.
This section provides an overview of potential
opportunities for value-added business based upon the
Northeast Superior region blueberry crop. The range of
possibilities is quite broad, and a detailed feasibility
study for each would be needed. However the
information will assist in the evaluation of the relative
merits of future value-added production in comparison
32
http://www.statcan.ca/english/freepub/21-004-XIE/21-004-XIE2006001.pdf
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COMMERCIAL BLUEBERRY PRODUCTION
2008
to the marketing of fresh or frozen berries, especially in light of the local situation while providing a
starting point for future research.
Under this approach, if deemed viable, a portion of the local harvest could be used in the manufacture
of a value-added product, such as an entry in the specialty food market. Since blueberries are
perishable, a value-added operation could be either seasonal or year-round using frozen berries. In both
cases there would be inventory costs that could be compared as part of a feasibility study.
A variety of approaches could be used to develop this alternative:



Encourage new blueberry-based product development among existing regional businesses;
Complete a feasibility study for a value-added operation and raise the investment needed to
launch a new enterprise;
Promote the development of a new business by another investor/entrepreneur to create a new
market for local blueberries – or a joint venture with all the risks and rewards that it entails.
NEXT STEP
Seek the services of an industry expert to prepare an opportunity analysis of value-added
blueberry products and manufacturing opportunities. Please refer to section 6.1.4 for the
Planning and Assessment for Value-added Enterprises Funding.
Nutraceutical Applications
Recent and widely reported research has found the blueberry to be a food with very significant health
promotion/disease prevention properties. These findings are driving blueberry sales in certain markets
and as a result, value-added products designed for the health-conscious consumer bear consideration.
In addition, this provides an opportunity to work with like-minded organizations in identifying
opportunities in value-added products. One example is Algoma University College’s Research Chair for
Bioprospecting and the Northern Ontario Medical School whose plans to develop a compendium of
forest plants and their composites for bio-medical and nutraceutical applications could launch our
communities into new fields of economic development. It will help to point the way in plants exhibiting
higher health benefits and allow communities to participate in the research, knowledge dissemination
and benefits of possible groundbreaking discoveries. Outcomes include:



Reputation as a source of expertise in blueberry research
Generation of new economic opportunities
Clear results for turning opportunity into reality
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
COMMERCIAL BLUEBERRY PRODUCTION
2008
New jobs and expertise created throughout the region
Specialty Gourmet Foods
Many of the value-added blueberry products available on the market today appear to meet the criteria
of specialty gourmet foods. For example, one Michigan company markets blueberry-lime preserves and
blueberry butter, alongside its gourmet vinaigrettes, salsas, jellies, condiments and sauces. Accordingly
the specialty food industry is an area with some potential.
Processing to Extend Production Season
Many growers either directly process their blueberry crop for sale, or sell to processors, particularly in
the lowbush blueberry industry in Eastern Canada and Maine. Typically production tends to occur in
plants situated in small and medium-sized population centres located close to agricultural production.
Companies must finance their inventory throughout the year, following the harvesting season. Products
with different harvest periods and value-added production help extend the production season. For
example, canned and preserved fruits are somewhat easier to transport than frozen products.
Blueberry Juice
Although the price for blueberry juice is typically high, there could be a market for the product among
upscale, health conscious consumers. Certainly the health literature supports the marketing of blueberry
products on these grounds, over and above any other fruit. The North American Blueberry Council
website’s new products page features a beverage called “Visionade”, made from cranberries and
blueberries. It is supposed to benefit the eyes. Hashimoto 100% blueberry juice, produced in the U.S.A
for Japan was launched in June 1999. The label promotes the product’s health benefits. Sunkist has
introduced a clear beverage, blueberry water, in Japan. It also contains blueberry juice.
Alcoholic Beverages
Blueberries are used in the manufacture of wine and even
beer. A search of the Ontario winery websites identified five
that produce blueberry wine, however there are most likely
others.
 Meadow Lane Winery in Elgin County specializes in
fruit wines, including a blueberry at $10.95 for 750 ml
and a wild blueberry at $10.95 for a 375 ml bottle.
 Rush Creek Wines Ltd., also in Elgin County, sells an
award winning blueberry wine at $10.95 for 750 ml.
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


COMMERCIAL BLUEBERRY PRODUCTION
2008
This producer focuses on products based on its farm fruit crops.
Southbrook Farms, located on Major Mackenzie Drive in Maple, produces a blueberry wine at
$14.95 per 375 ml. This farm also grows the fruits for many of the products on its wine list.
Stoney Ridge Cellars, located in Vineland, produces a wild blueberry wine selling at $16.95 for
375 ml.
Sunnybrook Farm Estate Winery, located in the Niagara area, specializes in wines made from
Niagara tree fruit and berries. Its award winning wild blueberry wine sells for $14.95 for 750 ml.
This presents an opportunity to develop a winery or blueberry brand beer – distinctive products with an
appropriately developed marketing scheme that emphasizes the quality and uniqueness of Northern
Ontario blueberries.
4.4.2
ORGANIC
Organic certification of a portion of the corporation’s blueberries may be a good fit for future harvests.
It stands to reason that the sale of organic blueberries at a premium price through, for example, natural
health food stores and farmers’ markets would dovetail neatly with the local situation (low yield, handharvested, native blueberries growing in the natural environment), at least in the short term.
Some effort has been made in this research to assess the current market potential of fresh, organic
blueberries in Ontario. It is proving difficult to get a clear picture of the current situation and further
investigation is needed. Even as efforts continue to assess this market and obtain certification, it is
possible to convey the natural qualities of this harvest through product branding. Simply communicating
that the berries are harvested from nature and free of pesticides will likely achieve the desired
positioning. On the question of price premiums, OMAFRA notes that organic produce premiums can
range from 10 to 30% at the farm gate, depending on the crop, and higher than that in retail stores.
However, organic blueberry farming lacks processing and marketing infrastructure. In processing,
organic standards dictate conventional processors dedicate organic processing lines or shutdown and
stringently clean a conventional line before processing organic blueberries. Organic production also
means less immediate and direct control of weeds, insects and diseases, resulting in much lower yields
than conventional production. Also, most organic blueberry harvesting is done by hand, so it can be
extremely difficult to find and hire sufficient labour at harvest time. This means organic blueberry
farming is considerably more expensive and labour intensive than conventional farming.
In the interim this might be an option as commercial production becomes established, and in fact
growers may determine that organic practices are a better fit. That is, if the region cannot hope to
achieve the blueberry production volumes of Nova Scotia or Quebec, then differentiation (going organic)
could be a good strategy, supporting the higher pricing that comes with lower yields and fewer
economies of scale. According to Denise Bolduc, a member of the Board of Directors for Forbes Wild
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COMMERCIAL BLUEBERRY PRODUCTION
2008
Foods of Toronto, Forbes is always looking for harvesters of natural, organic blueberries33. This presents
a further value-added opportunity for the corporation to explore.
4.4. 3 SCALE ECONOMIES
Scale economies are very important in Canada’s leading blueberry production area, Nova Scotia, where
there are 1,000 growers (with over 33,000 acres in production and an average yield of some 5,000
pounds per acre) fuelling a small number of major processing operations. Economies of scale permit
Nova Scotia growers to sell blueberries at a competitive price. They also facilitate the development of
entire systems supplying the food processing industry in Canada and U.S. and diverse markets overseas.
We will work to achieve similar economies of scale in Ontario as a long-term goal for business
development.
33
Denise Bolduc. Phone Interview. April 30th, 2008.
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5.0 MARKETING PLAN
5.1 Overview
5.1.1
THE NORTHEAST SUPERIOR REGION
The Northeast Superior Region is situated on the boundary of the Eastern Great Lakes-St Lawrence
Forest and the primarily boreal forests to the north where they meet on the northeastern shore of Lake
Superior. Most of the region is in the Great Lakes drainage basin, although the northern section and the
Township of Hornepayne lie in the drainage basin of Hudson’s Bay (see Figure 3 below).
The region is approximately 230 km from east to west and slightly less from north to south. The area of
the region is approximately 4,149,653 hectares. Due to its size, the region is largely unorganized
territory lying in three provincial districts and dependent on nine provincial forest management units,
boundaries and area are not well defined.
Figure 3: The Northeast Superior Region
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2008
Population
The Northeast Superior Region encompasses communities in the remotest parts of three provincial
administrative districts. Chapleau is at the far west of the Sudbury District, Manitouwadge is at the
extreme east of the District of Thunder Bay, and the remaining communities are at the northern limits of
Algoma District.
Municipal governments are the principle political entities and represent a population of 10,681.
Between 1996 and 2001, the Northeast Superior Communities lost an average of 7% of their population,
and between 2001 and 2006, the loss was more than doubled to an average of 16.35%. During this
latest time period, Manitouwadge saw the greatest impact with a loss of over 22% of their population.
These numbers will increase as a result of recent mill closures.
Dubreuilville
Chapleau
White River
Manitouwadge
Wawa
Hornepayne
TOTAL
773
2,354
841
2,300
3,204
1,209
10,681
The resident population of First Nations in the region is officially 966, with a total band population of
2,895. The First Nations are the Michipicoten, Chapleau Ojibway, Chapleau Cree, Brunswick House, the
Missasinabie Cree, Pic Mobert and the Ojibway of the Pic River. They participate in the 1850 treaty
Council and the Mushkegowuk Tribal Council.
Michipicoten
Chapleau Cree
Chapleau Ojibway
Pic Mobert
Ojibway of the Pic River
Missinaibe Cree
Brunswick House
TOTALS
Residents
60
83
30
314
479
N/A
N/A
966
Total
membership
741
370
39
790
955
350
N/A
2895
Transportation
The transportation system for the region is well developed and provides relatively easy access to, for
example, US markets via Sault Ste. Marie and to international markets via the Great Lakes Seaway.
Wawa and White River are on the Trans-Canada Highway (Hwy. 17). The other four townships are
connected to the Hwy. 17 corridor by secondary highways. Highway 101 links Chapleau to 17 at Wawa
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COMMERCIAL BLUEBERRY PRODUCTION
2008
and highway 129 to 17 at Thessalon, 519 Dubreuilville to 17, 631 to Hornepayne to 17, and 614 to
Manitouwadge to 17 at White River.
Logging roads provide access to the Chapleau Crown Game Preserve and Missinabie Provincial Park
along with the rest of the preserve. The roads are maintained by the MNR and forestry companies. The
Canadian Pacific Railway (CPR) runs from Sudbury, into Chapleau, through Missinabie, ending in White
River. Via Rail runs a passenger car on this route daily, known as the Budd Car. The Canadian National
Railway (CNR) line from Toronto runs along the northern border of the Chapleau Crown Game Preserve
to Hornepayne and continues west into Manitoba. The Algoma Central Railway runs north from Sault
Ste. Marie, through Dubreuilville to Hearst. Tracks have been removed on the spur to the deepwater
port on Michipicoten Bay. Wawa, Chapleau, Hornepayne and Manitouwadge have municipal airports.
Regular flights are generally not available but the airports provide full services to charters and water
bombers.
Although the region will always be challenged by vast distances and low population density, it does
present opportunities for economic diversification and a gradual change to the new economy.
Northwestern Ontario represents both a physical and strategic link between western and eastern
Canada.
Employment & Economy
The economy of the Northeast Superior region is predominately based on forestry. The majority of
trees harvested are either jack pine or black spruce. However, species such as white pine, red pine,
poplar, and birch are still harvested in lesser amounts. A weak lumber market has seen the closure of
saw mills in each of the communities. Over the past five years more than one thousand mill positions
have been lost (some temporarily), throughout the region. Standard economic multipliers of 2.5 would
lead this to be an impact of an extra 2,500 people in forestry related jobs that have been impacted. In
total, over 25% of the regional population has felt the impact of the forestry downturn.
Most of the communities in the region have been one-industry towns focused on forestry products –
wood, paper, and pulp. What we are now seeing is that communities can no longer survive with this
type of outlook. There is a tremendously complex economic shift at play. All six of the communities are
heavily working towards diversification strategies that make better usage of their forestry assets.
Diversifying the Economy through Blueberry Cultivation
The regional communities are faced with making a transition to new, “value-added” products. The
transition calls for cultural changes and political changes as well as technological innovation and
economic transformation. The strategy involves careful steps to develop a population capable of adding
value to the forest resources both before and after harvest, such as blueberries. Canada has a long
history of cultivating blueberries. For centuries, blueberries were an important source of food and
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medicine for Aboriginal people, who would sun-dry the blueberries and grind them into a powder as
way of preserving them. The sun-dried berries could then be mixed with corn and honey to make a kind
of pudding, for example. Blueberry roots could be brewed to make a tea used to relax pregnant
women34. Today, with new methods of preserving and processing blueberries, and their recent elevation
to superfood status, the world’s appetite for blueberries is growing and Northern Ontario has an
opportunity to play a major role in this growing industry.
5.1.2
THE MARKET FOR BLUEBERRIES
According to results from the Fruit and Vegetable Survey conducted in autumn 2007, Canada’s fruit and
vegetable farmers sold almost $1.4 billion worth of produce in 2007. The most valuable fruit crop was
blueberries, worth an estimated $189 million. Blueberries are now the number one fruit crop in Canada
in terms of crop area - the apple is no longer in the top spot. Since the late eighties the amount of land
planted to apples has been declining while the number of acres of blueberries has been steadily
increasing. The balance tipped in 1996 when the blueberry officially became the number one fruit
crop35.
Blueberries have become such a popular crop, with their reputation as a healthy food choice, that they
have been a driving factor for the fruit sector, accounting for 46.6% of the total acreage in 2006 (Figure
4). Quebec’s 24.5% increase in blueberry area, to 41,757 acres in 2006, displaced Nova Scotia from first
place. Blueberry area in Nova Scotia had only increased 3.0%. New Brunswick was third with 22,107
acres, followed by British Columbia, where blueberry area grew 61.5%36. Ontario on the other-hand is
still significantly underdeveloped in this industry.
Figure 4: Major fruit area and percentage change since 2001, Canada 2006 37
34
http://www.statcan.ca/english/freepub/21-004-XIE/21-004-XIE2006001.pdf
Ibid.
36
http://www.statcan.ca/english/agcensus2006/articles/snapshot.htm
37
Statistics Canada, Census of Agriculture 2001 and 2006
35
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Emphasis on exports
Canada is the world’s number one blueberry exporter in dollar value terms. According to the United
Nation’s Food and Agriculture Organization Canadian blueberry exports represent 37% of world
blueberry exports38. The United States, Chile, Ukraine, Netherlands and Romania are the other exporters
of note. Despite an abundant supply of blueberries from increased domestic production along with
some imports from the United States, Canadian consumption has not changed significantly over the past
10 years.
Canadian imports of blueberries have ranged between 22,000 to 27,000 tonnes per year over the past
few years or the equivalent of about 30% of total Canadian yearly production. Consumption has
remained steady at an average of 800 grams per person per year of fresh blueberries or fresh
equivalent39.
Unlike many other fruits, where the trend is toward increased imports, a substantial proportion of
Canadian production is exported. According to Statistics Canada, the main export market for Canadian
blueberries is the United States, but some make their way as far as Japan. Since 2000, exports have
represented from between 84% to 100% of Canadian production. In 2004, exports of blueberries, fresh,
frozen and canned totalled 80,000 tonnes, virtually all Canadian production plus the re-export of some
of the blueberries that Canada imports. Over 75% of all Canadian blueberry exports are in the form of
frozen berries and in 2004 that amounted to 60,500 tonnes of frozen blueberries. Canada processed
some 63,400 tonnes of blueberries by freezing, canning or dehydration. In 2004 almost all the processed
blueberries were exported along with about 20,000 tonnes that were fresh and unprocessed.
The United States is the world’s leading blueberry importer, followed by Germany. Canada is the third
largest importer but unlike the other two, most of the blueberries imported by Canada are for
processing and re-export and not domestic consumption.
Consumer trend towards healthy eating
People today are much more health conscious than they were in the past taking a more active interest
in their food and diet, with more people checking labels and trying to eat more fruit and vegetables .
Table 6: Nutrients in 1 cup of blueberries40
Calories: 81
Magnesium 7.25 mg
Manganese 0.4 mg
Fat 0 g
Phosphorus 14.5 mg
Selenium 0.87 mcg
Pantothenic acid 0.13
mg
Vitamin B-6 0.05 mg
38
http://www.statcan.ca/english/freepub/21-004-XIE/21-004-XIE2006001.pdf
Ibid.
40
Blueberry Nutrients. Real Age, on-line available at http://www.realage.com/racafe/foodeval.aspx
39
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Carbohydrates 20 g
Potassium 129.05 mg
Vitamin C 18.85 mg
Folate 9.28 mcg
Protein 1 g
Sodium 8.7 mg
Thiamin 0.06 mg
Vitamin B-12 0 mcg
Calcium 8.7 mg
Zinc 0.15 mg
Riboflavin 0.07 mg
Vitamin A 145 IU
Iron 0.24 mg
Copper 0.08 mg
Niacin 0.52 mg
Vitamin E 1.45 mg
According to Health Canada, one cup of blueberries contains 86 calories, and these aren’t “empty”
calories. In fact, one cup of blueberries contains only traces of fat and 10 milligrams of sodium. But they
have no cholesterol, and they will supply 20 mg of vitamin C or about 23% of our daily requirements,
four grams of dietary fibre or about 14% of our daily requirements, and 10 mg of calcium.
Blueberries also contain various antioxidants. Blueberries actually have one of the highest
concentrations of antioxidants of all fruits and vegetables. A study done on humans suggested that
blueberry consumption can elevate blood level antioxidants. This would be due to the high level of
“anthocyanins”, the anti-oxidant present in blueberries. Pound per pound, wild blueberries pack the
biggest punch. The anti-oxidants are found mostly found in the berry’s skin. The smaller berries offer
more skin surface than their larger cousins when compared by weight. It might take two or three wild
blueberries to equal the weight of one cultivated blueberry41.
5.2 Competitive Analysis
5.2.1
COMPETITIVE FORCES
Threat of new competitors
The harvesting of wild blueberries is contingent on the presence and prevalence of the plant in a given
market area. Efforts to plant and cultivate the crop on lands where the native plant is not present are
problematic, indicating a low threat of new competition from regions where the native plant is not
present.
However, the introduction of agricultural management in areas where the native plant is present could
dramatically increase yields in those areas, seriously changing the market dynamics in Ontario, for
example, by increasing supply and perhaps lowering price. In contrast to this, not having a formal tenure
over the crop in the area creates considerable vulnerability to new entrants in the local blueberry
harvest from within and outside of the area.
Industry competitive rivalry
Blueberries are not among the fruits controlled by Ontario’s regulated marketing system under the Farm
Products Marketing Act. Marketing Boards tend to balance the power between many small individual
41
http://www.statcan.ca/english/freepub/21-004-XIE/21-004-XIE2006001.pdf
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sellers and larger buyers. Thus the blueberry market is less coordinated than that of other regulated
commodities and lacks an overall marketing plan to help negotiate or set prices, terms or conditions of
sale.
Individual growers across North America work co-operatively through various grower associations to
develop and grow the market for blueberries. The major associations include the Wild Blueberry
Association of North America (Eastern Canada and Maine) and the North American Blueberry Council
(cultivated highbush blueberries – Michigan, New Jersey, and BC). These associations do however tend
to serve different markets. For example the emphasis among WBANA growers is on frozen blueberries,
while the NABC brings more blueberries to market as fresh. There are also grower associations in
Ontario, although the importance of the industry here is much more modest and focused on pick-yourown operations.
Locally, there may be private sector buyers attempting to market local blueberries. As well, there is
direct competition from many individual pickers in the area.
Threat of substitutes
Any buyer of blueberries for processing and other value-added activities can be expected to
continuously strive to reduce costs in attempting to increase profits. A lower per-pound price charged by
alternate suppliers will result in switching, at no cost to the buyer. Growers in Eastern Canada offer bb
for processing at very competitive prices. Small-scale Ontario based operations producing products such
as blueberry wine either grow their own crops or purchase from locally based suppliers at fairly
competitive rates. Overall the threat of substitutes in processing and other value-added activities is
quite high. If consumers continue to regard blueberries as a commodity and do not differentiate
between alternative sources, then the threat of substitutes will remain high.
Supplier power
The region has only one primary input, the native blueberry growing wild on crown and privately held
lands. The source of supply is by no means secure, since area blueberry pickers have no enforceable
right to the crop or tenure over the land at this time (in the case of Crown property). The available
supply could be affected by increased picking from competing individuals or businesses. It will also vary
according to growing conditions for a given year. In addition, development may encroach on prime
blueberry picking areas.
5.2.3
COMPETITOR POSITIONING AND STRATEGIC GROUPS
In terms of blue berry farming competition, there are no large Northern Ontario operations.
Furthermore, wild blueberry farms cannot be viewed in traditional competitive terms since the market
for blueberries is far from being tapped. The Executive Director, Dave Sangster, of the Wild Blueberry
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Producers of Nova Scotia (902) 662-3306 said that the demand is so high in foreign markets for wild
blueberries that they cannot even produce enough berries for Canadian demand. Table 7 provides a
sampling of wild blueberries farmers in Canada. Most blueberry farms do not have web sites since
buyers and producers are the ones in the value chain that engage in and pay for marketing.
Table 7: Local and North American Strategic Groups and Positioning
Strategic Group
Wild Blueberry Association of
North America
Primary Product
Frozen lowbush blueberries
marketed as wild but under
intensive agricultural management
North American Blueberry
Council
Fresh and Frozen highbush
(cultivated) blueberries
Buyers
Purchase and resale of fresh
blueberries
Individual pickers
Picking and selling of fresh
blueberries
Blueberry products such as jams,
pies, preserves, nutraceuticals etc.
Specialty Food Manufacturers,
Retailers
Current Positioning
Low cost, high volume production
of managed wild blueberry stands
serving processors and consumer
markets. Using ‘wild’ as a
differentiation strategy.
Competitively priced frozen product
for processing industry, premium
priced product for fresh industry,
emphasis on new product
development.
Suppliers of fresh blueberries in
wholesale and retail markets.
Competitive pricing based on what
market will bear and/or premium
pricing.
Accessible, available local suppliers
serving consumer directly.
High quality products at moderately
high to premium prices sold in a
variety of channels, including own
premises. Also moderately priced
products stressing homemade
qualities in venues such as farmers
markets.
5.3 Marketing Strategy
Based on an analysis of how the North American market leaders in blueberry production achieved
growth and development, we will focus our business on market and industry development as the
primary focus. Under this system the ability to form and maintain good working relationships with
private sector partners based on open communication and mutual trust will be a key success factor. A
direct market business requires time to develop. Blueberries lend themselves nicely to market
development because they require a number of years to reach maximum yields. Careful attention to a
business image, including the logo, quality of fruit, and how fields are maintained, is essential.
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Driving forces in the industry include:
 An aging population that is health conscious and willing to pay for desirable product quality
dimensions. High quality fresh fruits and vegetables that offer health benefits will likely find a
ready market.
 Economies of scale will continue to determine who can participate in the large-scale, valueadded market and to some degree in smaller, value-added markets as well. Blueberry suppliers
to industry must offer an assured supply of quality product at a competitive cost.
 Creative product differentiation strategies and effective marketing programs will continue to be
important for manufacturers and retailers of specialty food items.
 Contrary to expectations, consumers will continue to satisfy their appetite for sweet, high-fat
foods, despite increased awareness of the relationship between blueberries and good nutrition
and health.
 Ongoing research and development as well as innovation will continue to provide growers with
competitive advantages by improving yields and agricultural practices.
There are also other areas in northern Ontario where the wild blueberry is present. Given that bigger is
better in the blueberry production industry, we will seek to attract participation for blueberry
harvesters, (future) producers and private sector partners from across Northern Ontario. We will adopt
a strategy that accommodates participation from these other areas as this could be in the long-run best
interests of all who pick and market wild blueberries in the North, helping to achieve the economies of
scale that are necessary to grow the industry.
The corporation will also seek funding in order to develop the following marketing resources: a brand
name/product identity; point of purchase promotional materials; product literature; partner
information kits; a public relations/communications plan and build a better web site. The corporation
will establish web pages, commencing Month 6 of Year 1. The site will focus on developing relationships
with wholesale customers to complement one-on-one marketing efforts and will eventually incorporate
any value-added products and all blueberry festival activities.
5.3.1
POSITIONING AND TARGET MARKET
Customers of the blueberry production industry include processors, value-added industries, food
wholesalers and retailers, and consumers. Processors and value-added industries need a secure and
steady supply of quality blueberries at a competitive cost in quantities that satisfy the scale of their
business operations. Food wholesalers and retailers and consumers purchasing fresh blueberries need a
fresh, clean, quality product that is free of debris and contamination, conveniently available and
accessible.
Product differentiation
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COMMERCIAL BLUEBERRY PRODUCTION
2008
Currently wild lowbush blueberries harvested in the area are a native, natural resource grown without
any intervention or management. They are usually handpicked, sometimes hand-raked and generally
sold as fresh. Quality may vary week to week, year to year, patch to patch and picker to picker.
Consumers use blueberries from the area for a variety of purposes, including as a fresh fruit, for baking
or making jams, jellies and preserves. Locally many consumers purchase blueberries in quantity, freezing
them for use throughout the winter season. The native blueberry plant is somewhat affected by local
industry, although the berries are believed to be both safe and nutritious.
Wild blueberries from the region brought to market as ‘wild, northern products’ have quality
characteristics that may permit the implementation of a product differentiation strategy. Since they
grow naturally in the area, there may be an opportunity to market them as a particularly wholesome
alternative in a way that appeals to health-conscious consumers. This product is sold at a premium price
in comparison to blueberries produced in other areas. According to Jonathan Forbes of Forbes Wild
Foods the market is shifting towards Ontario grown, wild, indigenous products. It is no longer his
marketing efforts driving sales but rather the demand for these products now exceeds the supply 42.
Consumers currently purchasing blueberries in other markets may not be aware of the quality
dimensions of this product. They may simply purchase blueberries as a commodity, making no
difference between alternate suppliers. These wild, unmanaged blueberries may have superior
nutritional qualities and lower susceptibility to disease than blueberries that are managed and
cultivated. When sufficient blueberry yields are achieved and economies of scale are realized, we will
refocus our marketing efforts more towards processors, food wholesalers and larger markets.
Blueberry Festival
Simplistically, tourism in Northern Ontario can be identified as either “destination tourism” (including
drive-in or fly-in, which is dominated by traditional hunting and angling activities), or as “flow-through
tourism” associated with driving through Northern Ontario. Recently however the tourism sector has
been negatively impacted by the high Canadian dollar, the perception of increased security at the
Canada-US border crossings (translating into a loss of American visitors to the region, particularly those
from the northern states), the changing demographic profile of tourists, and the reality that this sector
has not fully reinvested in modernizing its facilities and products.
Most tourism marketing in Canada is driven by what is called “cascade marketing” (national-provincialregional sub- regional marketing). More aggressive regional advocacy is needed to get more visibility in
the Canada/Ontario marketing programs.
To build on the area’s newly developing blueberry industry, the corporation will create an annual
blueberry festival modeled after towns such as Sioux Lookout that have week-long festivities. The
42
Phone interview: Jonathan Forbes, June 24, 2008.
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corporation will put their creative heads together in developing new and exciting activities such as
blueberry wrestling. A thriving tourism sector is achieved by ensuring visitors feel welcome, with good
customer service, an aesthetically pleasing environment and attractive, accessible facilities throughout
their visit. Well-planned, professionally developed signage that welcomes tourists, providing sound
information and direction, will be a key aspect of this aspect of the marketing strategy.
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2008
6.0 FINANCIAL STRATEGY
Production costs vary considerably from grower to grower, depending on the condition of the fields, the
location and the management program. The harvesting and handling cost per pound for hand raking
varies with labor availability, yield per acre and field conditions. Mechanical harvesting costs will also
vary depending on yield and field conditions. Growers with low yielding or poorly managed fields must
pay higher harvesting costs than those with weed free, high yielding fields. Because of the great
variations between growers' costs, it is difficult to determine meaningful average production and
harvesting costs for growing lowbush blueberries. Each operation must be assessed on the basis of its
production, location, yield, management plan and the variable cost factors.
To finance operations and create initial employment of two full-time jobs and up to three seasonal jobs,
the business requires a combination of grants and interest-free loans with the possibility of private
investment. These funds will pay for all start-up costs, including the preparation of land and the
purchase of equipment. In addition to creating direct employment, the venture will generate spin-off
businesses in the value-added industry. Accordingly, these funds will help support growth, as well as
increase employment in the region.
6.1 Funding and Support Programs
Because of the innovative model that the corporation proposes and the inherent research focus, idealfunding sources include the following:




Ministry of Agriculture and Food funds rural research in agriculture and resource management
http://gov.on.va/OMAFRA/english/relign/aicc.htm 1-877-424-1300.
Industrial Research Assistance Program under the National Research Council Canada http://irappari.nrc-cnrc.gc.ca/english/aboutirap_e.html that provides assistance, advice, and funding for
high-risk, high-return research and development at early stages to help firms grow.
The Northern Ontario Heritage Fund under the Ministry of Northern Development and Mines
http://mndm.gov.on.va/nohfc/Default_e.asp has returned to its original mandate of fostering
private sector job creation.
FedNor,
under
Industry
Canada,
http://strategis.ic.gc.ca/epic/internet/infednorfednor.nsf/en/h_fn01464e.html supports a wide range of innovation-related activities and is
committed to increasing the North’s competitive position. Through promotion of partnerships
and exchanges between industrial development and scientific research, FedNor helps northern
companies bring new products to market as quickly as possible. FedNor provides additional
support for early-stage research and development.
In addition, there are a number of other funding and support programs in place to assist business
owners and farmers grow their operations:
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6.1.1
COMMERCIAL BLUEBERRY PRODUCTION
2008
BUSINESS RISK MANAGEMENT PROGRAMS
Canadian Agricultural Income Stabilization (CAIS)
The Canadian Agricultural Income Stabilization (CAIS) program is part of the Business Risk Management
pillar of the Agricultural Policy Framework. The CAIS program combines stabilization assistance (formerly
NISA) and disaster assistance (formerly the Ontario Farm Income Disaster Program) into one program,
and allows Ontario farmers to protect their operations from large and small income declines.
Agricorp
1 Stone Rd. W., 4th floor
Guelph, ON N1G 4Y2
Phone: 1-877-838-5144
Fax: 519-826-4334
E-mail: [email protected]
Web: www.agricorp.com
Production Insurance
Production insurance provides production risk protection to producers by minimizing the economic
effects of crop losses caused by natural hazards. This cost-shared program stabilizes a farmer’s income
by minimizing the economic effects of crop losses caused by natural hazards such as drought, flood, hail,
frost, excessive moisture and insects. Growers pay 40% of the total premium cost. The federal and
provincial governments each pay 30% of the premiums and share the administration costs 50/50. Claim
payments occur 4-6 weeks after harvest.
Agricorp Call Centre
P.O. Box 3660
Station Central
Guelph, ON N1H 8M4
Phone: 1-888-247-4999
Fax: 519-826-4118
E-mail: [email protected]
Web: www.agricorp.com
6.1.2
LOAN AND FINANCIAL ASSISTANCE PROGRAMS
Commodity Loan Program
Provides operating funds for crop inputs up to $750,000. The interest rate is prime minus 0.25%. The
loan is available at different times throughout the year, depending on the crops included in the loan. It is
repaid through crop sales or through post-dated cheques when crops are designated for feeding on the
farm.
ACC Farmers Financial
100 Stone Rd. W., Ste 101
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Guelph, ON N1G 5L3
Phone: 1-888-278-8807 or 519-766-0397
Fax: 519-766-9775
E-mail: [email protected]
Web: www.accfarmersfinancial.ca
6.1.3
TAX REDUCTION PROGRAMS
Retail Sales Tax Exemption
The Retail Sales Tax exemption applies to items purchased by farmers and those in the business of
farming. This includes building materials purchased to build or modernize a structure used exclusively
for farm purposes. Farmers purchasing items that are not used exclusively in agriculture may be
required by suppliers to fill out a Retail Sales Tax Purchase Exemption Certificate. Vendors can also
accept general farm organization membership cards that have farm business registration numbers on
them. Alternatively, farmers can apply directly to the Ministry of Finance for a refund. More details
about the exemption can be found in the Retail Sales Tax Guide 807 available from the Ministry of
Finance.
Contact your local Retail Sales Tax Office of the Ontario Ministry of Finance listed in the blue pages of
your phone book.
Phone:
(English) 1-800-263-7965
(French) 1-800-668-5821
Web: www.ontario.ca/mof
Farm Property Class Tax Rate Program
Farm properties satisfying the eligibility requirements will be taxed at the Farm Property Class tax rate of
25% of the municipal residential tax rate. The farm residence, and 1 acre of land surrounding it, will
continue to be taxed as part of the Residential Class. To be eligible for the Farm Property Class tax rate,
the following criteria must be satisfied:




Property must be assessed as farmland through the Property Assessment Division of the
Municipal Property Assessment Corporation.
Property must be part of a farming business with gross farm income of $7,000 or more.
Farm business operating on the property must have a valid Farm Business Registration number.
A Canadian citizen or permanent resident of Canada must own the property. For partnerships or
corporations, Canadian citizens or permanent residents of Canada must control more than 50%.
Ontario Ministry of Agriculture, Food and Rural Affairs
1 Stone Rd. W., 2nd floor
Guelph, ON N1G 4Y2
Phone: 519-826-3446
(English) 1-800-469-2285
(French) 1-800-333-9723
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Fax: 519-826-3170
E-mail: [email protected]
Web: www.ontario.ca/omafra
Ontario Gasoline Tax Refund Program
Gasoline tax must be paid at the time of purchase. A refund of the tax paid may be claimed when the
gasoline is used in Ontario by any farmer in unlicensed equipment operated for a farming purpose.
Gasoline used in licensed vehicles does not qualify for a tax refund.
The Application for Refund of Gasoline Tax-GT257 form must be used to apply for a refund claim and
must be filed within 4 years of the date the tax was paid. Any portion of a claim filed after this time
period will be disallowed. Receipted invoices for the purchase must be submitted in support of the
refund application. Invoices will not be returned unless requested by the applicant at the time of filing.
Ontario Ministry of Finance
Motor Fuels and Tobacco Tax Branch
Refund Section
33 King St. W.
Oshawa, Ontario L1H 8H9
Phone: 905-433-6432
Fax: 905-436-4511
Web: www.ontario.ca/mof
6.1.4
ADDITIONAL FUNDING
Can Advance
The Advancing Canadian Agriculture and Agri-Food (ACAAF) program is a national 5-year, $255-million
program aimed at positioning Canada’s agriculture and agri-food sector at the leading edge to seize new
opportunities. ACAAF was launched in April 2004 as a successor to the Canadian Adaptation and Rural
Development (CARD) Fund, and will continue CARD’s innovative and cooperative approach to funding
projects at the national, multi-regional and regional level. In Ontario, the Agricultural Adaptation Council
delivers the program under the name Can Advance. The ACAAF program will focus on three pillars:
Pillar 1 Industry-Led Solutions to Emerging Issues will support projects that test or pilot approaches and
solutions that can serve as an incubator for initiatives holding future promise.
Pillar 2 Capturing Marketing Opportunities by Advancing Research Results will support projects that
transfer research results into market opportunities.
Pillar 3 Sharing Information to Advance the Sector will support projects aimed at gathering, analyzing
and sharing information to contribute to future agriculture and agri-food policy directions.
Agricultural Adaptation Council
100 Stone Rd. W., Ste 103
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Guelph, ON N1G 5L3
Phone: 519-822-7554
Fax: 519-822-6248
E-mail: [email protected]
Web: www.adaptcouncil.org
Ontario Stewardship Program
This program seeks to link landowners with funding, information and expertise to ensure that good
management practices flourish on private land. Forty Stewardship Councils volunteer groups of
representative landowners and land interest groups determine the environmental priorities for a given
area (usually a county). A stewardship co-ordinator from the Ministry of Natural Resources acts as the
executive director and facilitator to the Council.
Web: www.ontariostewardship.org
The Rural Economic Development Program
The Rural Economic Development (RED) Program is a community development initiative that helps rural
communities remove barriers to community development and economic growth and develop the tools
and flexibility they need to become strong rural communities. Through the program, rural residents,
business people and municipal leaders can co-ordinate their activities, resources and expertise to work
towards common community development goals. The coordinated actions undertaken as a result help
to build revitalized rural communities that work better for the people who live in them.
The objectives of the RED Program are to create diversified business climates in rural Ontario; the
creation and retention of long-term jobs; a strategic and coordinated local and regional approach for
economic development, the creation of alliances and partnerships; and the development of information,
tools and resources to enhance rural economic development.
Rural Economic Development (RED) Program
Ontario Ministry of Agriculture, Food and Rural Affairs
1 Stone Road West, 4 NW
Guelph, Ontario N1G 4Y2
Tel: 1-888-588-4111
Fax: 519-826-4336
Email: [email protected]
Website: www.ontario.ca/rural
Fore more information visit: http://www.omafra.gov.on.ca/english/rural/red/
Planning and Assessment for Value-Added Enterprises
Agriculture and Agri-Food Canada recognizes the important role planning plays in improving your
chances for a successful launch or expansion of a value-added enterprise. Planning and Assessment for
Value-Added Enterprises allows you to assess the opportunities and risks involved in your specific
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2008
activity before investing significant funds. This program helps you cover the cost of hiring a business
planning professional who will help you develop a feasibility assessment and/or business plan related to
your value-added business opportunity.
An eligible value-added project under Planning and Assessment for Value-Added Enterprises is one that
can clearly demonstrate it adds value to a primary agriculture product produced in Canada. This includes
agricultural product manufacturing, food processing activities, and non-food-processing activities.
Activities related to an agricultural value-added enterprise can take place on or off the farm.
If you are eligible for funding, you may receive up to 50 per cent of the consultant's eligible costs for
preparing the feasibility assessment and/or business plan. You may be eligible for the following over the
life of the program:
 up to $10,000 for an individual applicant;
 up to $20,000 for two participants;
 and up to $25,000 for three or more participants.
For more information visit: http://www4.agr.gc.ca/AAFC-AAC/displayafficher.do?id=1175792076275&lang=e
Conservation Authority Funding Programs
Many, but not all, Conservation Authorities offer funding to farmers for adoption of best management
practices related to water quality, nutrient management, and fish and wildlife habitat. Each program
differs. Check with your local conservation authority about eligibility and what is funded. This funding
can sometimes be added to the federal EFP funding.
Conservation Ontario
Box 11, 120 Bayview Parkway
Newmarket, ON L3Y 4W3
Phone:
905-895-0716
Fax: 905-895-0751
E-mail: [email protected]
Web: conservation-ontario.on.ca
6.1.5
HUMAN RESOURCES, EMPLOYMENT AND EDUCATION PROGRAMS
Canadian Agricultural Skills Service (CASS)
The Canadian Agricultural Skills Service (CASS) program provides farmers and their spouses with
opportunities to access skills assessment and training with the goal of improving their farm profitability
and net family income. Learning Plans can be directed towards individual goals such as:



improving farm production and management practices
building new agricultural enterprises
creating new business ventures
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
COMMERCIAL BLUEBERRY PRODUCTION
2008
obtaining employment income
Delivered in Ontario by
CONNECT CASS Centre
180 Dundas St. W., Ste 504
Toronto, ON M5G 1Z8
Phone: 1-877-830-0200
Local: 416-340-0200
Fax: 416-340-0300
E-mail: [email protected]
Web: www.ontario.ca/cass
Ontario Pesticide Education Program (OPEP)
This program is aimed at improving care and handling of pesticides used in agricultural production. It is
designed to give a general overview of safe pesticide use and handling, incorporating all commodity
areas. The program involves three courses: the Pesticide Vendor Certification Course (PVCC), the Grower
Pesticide Safety Course (GPSC) and the Trained Assistant Instructor Course.
Ontario Pesticide Education Program (OPEP)
University of Guelph
Ridgetown Campus
Ridgetown, ON N0P 2C0
Farmers and vendors call: 1-800-652-8573
Custom Applicators or Exterminators, call: 1-888-620-9999
Fax: 519-674-1589
Web: www.ontariopesticide.com
Rural Summer Jobs Service - Employers
The program provides $2/hr wage subsidies for rural and agri-food businesses who employ students,
ages 15-24, for the summer. The applications are available as soon as the program is announced, usually
in mid- to late April.
Ontario Ministry of Agriculture, Food and Rural Affairs
Phone: 1-888-588-4111
Web: www.ontario.ca/omafra
Apprenticeship Program
Apprenticeship is a hands-on training program for people who want to work in a skilled trade and who
enjoy learning by doing. Employers provide about 90% of apprenticeship training in the workplace, and
the remainder involves classroom instruction.
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Ontario Ministry of Training, Colleges and Universities
Program Coordinator:
Carol Olinski
Phone: 519-571-6009, ext. 314
Web: www.ontario.ca/edu
Canada-Ontario Farm Plan
The following are opportunities for Farmers Available through the Canada-Ontario Farm Plan 2008:
http://www.ofa.on.ca/whatwedo/projects/Canada-Ontario%20Environmental%20Farm%20Plan.pdf
The maximum contribution per legal farm entity for Canada-Ontario Farm Stewardship Program (COFSP)
and Greencover Canada (GC) combined is $50,000. The maximum contribution for the Canada-Ontario
Water Supply Expansion Program (COWSEP) is an additional $15,000.
Beneficial Management
Practice Category
Product & Waste
Management
Water Well Management
Riparian Area (forest strip)
Management
Improved Pest
Management
Irrigation Management
Shelterbelt Establishment
Type of Practice
Cost Share
Improved on-farm storage and handling of
agricultural products (e.g. fertilizer, petroleum
products, and pesticides
Improved on-farm storage, handling, and disposal of
agricultural waste (e.g wood waste)
Composting of agricultural waste (e.g. fruit, wood,
straw residue)
Sealing and capping old water wells
Protecting existing water wells from surface
contamination
Buffer establishments: forages, shrubs, trees;
includes planting and weed control;
Native rangeland restoration or establishment in
riparian areas. Planting native species of forages,
shrubs, and trees
Equipment modification for improved application
Information collection and monitoring
Water tanks for sprayer filling
Irrigation equipment modification/improvement to
increase water efficiency or nutrient use efficiency
Equipment to prevent backflow of altered irrigation
water into water sources
Improved infiltration galleries and irrigation intake
systems
Establishment of shelterbelts/windbreaks
Tree materials required for shelterbelt/windbreak
establishment
Program
30%
Funding
Cap
$15,000
50%
$6,000
COFSP
50%
$20,000
GC
30%
$5,000
COFSP
30%
$15,000
COFSP
50%
$10,000
GC
COFSP
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Preventing Wildlife
Damage
Integrated Pest
Management Planning
Irrigation Management
Planning
New Water Wells for
Agricultural Purposes
Water Supply Expansion
Planning
COMMERCIAL BLUEBERRY PRODUCTION
2008
Fencing or netting to protect crops, drip irrigation
systems and other agricultural activities
Scaring and repellent systems and devices
Consultative services to develop nutrient
management plans; planning and decision support
Consultative services for planning improved water
use efficiency and reduced environmental risk of
existing irrigation systems; planning and decision
support tools
Professional services and materials associated with
the development of a new water well
Dip tubes inserted below the well cap to allow easier
monitoring of water levels
Deepening an existing well to obtain a more secure
water supply
Consultative services to prepare hydro
geological/hydrological survey, reports or conduct
investigations
30%
$10,000
COFSP
50%
$2,000
COFSP
50%
$2,000
COFSP
33%
$5,000
COWSEP
33%
$5,000
COWSEP
For more information contact:
Ontario Soil and Crop
Improvement Association
1 Stone Road West,
Guelph, Ontario
N1G 4Y2
1-800-265-9751
www.ontariosoilcrop.org
6.2 Financial Statements
Conservative assumptions were used for all projected revenues and expenses. For example
transportation costs were included for yields less than 500 000 even though many buyers pay for that
expense. Also, the cost of rock removal was included for all land despite the chance that some of the
land may be relatively rock free. Cash flows and income statements were created for two scenarios: 1)
Blueberry Brokerage; and 2) Blueberry Cultivation. Income statements were included to show the
increases in revenue from combining brokerage with cultivation as well as the added yields subsequent
revenues from investing in an irrigation system.
Note that an inflationary rate of 2% has been applied to a number of expenses. Given the current market
conditions (i.e. raising energy and fuel prices), it is uncertain what the actual rate of inflation will be each
year. In fact this number could fluctuate dramatically. The projection of 2% is for demonstration
purposes to highlight the fact that these prices will increase over the lifetime of the business and is used
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to reflect a portion (if not all) of the fluctuation in price over each year. This number does not imply an
assumption of the actual inflation rate.
6.2.1
ASSUMPTIONS – BROKERAGE
One opportunity that exists for blueberry businesses is to coordinate pickers in the area and broker wild
harvested blueberries to buyers in other regions. Brokerage of blueberries has a number of advantages.
It requires a minimal initial investment and has the potential to create one full time, two part time and
up to 20 or more season picking jobs. In addition, for businesses looking to or currently in the process of
developing blueberry fields, brokering is an excellent way to be introduced to the fresh blueberry
market, and will open up doors and connections to processing and value-added buyers. Cash flows and
income statements are provided for the first three years of operation. Note that a privately owned
company may or may not choose to hire an operations manager and/or business development manager
as these are duties that may be covered internally.
1. Starting cash is zero.
2. It is estimated that there are 200 acres of land in the area abundant in wild blueberries. Typically
one acre of uncultivated land will yield 200 lbs of berries. Fresh, wild blueberries are projected to
sell at $2.60/lb. This price is projected to increase at the inflationary rate of two percent in each
successive year.
3. A combination of private investment, loans and/or grants will be sought for project start-up.
4. Harvesting costs include the cost of labour for blueberry pickers. Pickers will be paid $0.80 per
pound harvested. This price is projected to increase at the inflationary rate of two percent in each
year. Typically a harvester can harvest at minimum 200lbs/day of blueberries.
5. Transportation will be $0.05 for every pound of blueberries. This expense is projected to increase
at the inflationary rate of two percent in each of the following years.
6. Salaries expense encompasses the Business Development Officer’s pay at a rate of $20 an hour for
35 hours weekly. This expense is projected to increase at the inflationary rate of two percent in
each of the following years.
7. Benefits paid will be nine percent of wages for this position.
8. Seasonal labour will be paid to a Harvest Manager for 35 hours a week at $20.00 per hour for eight
weeks and one student position during the harvesting season for 35 hours/week for five weeks at
$8.90/week. This expense is projected to increase at the inflationary rate of two percent in each of
the following years.
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9. Telephone and Internet charges will include long-distance calls and high-speed access. This expense
is projected to increase at the inflationary rate of two percent in each of the following years.
10. Facilities and utilities will include rental of a small space for employees. This expense is projected to
increase at the inflationary rate of two percent in each of the following years.
11. Membership will cover an affiliate fee of $25 to the Wild Blueberry Producers of Nova Scotia. This
expense is projected to increase at the inflationary rate of two percent in each of the following
years.
12. Office supplies are projected at $50 monthly. This expense is projected to increase at the
inflationary rate of two percent in each of the following years.
13. Equipment includes $5,000 for office equipment such as computer, printer, and scanner and
$5,000 for office furniture. Equipment will be depreciation on a declining basis at the rate of 10% in
the first year; deducting 20% off the remaining balance each subsequent year.
14. The cost of a walk-in cooler to store the berries before they are sold is estimated at $10,000. It will
be purchased in Month 7 of year 1. The cooler will be depreciated on a declining basis at the rate of
15% in the first year; deducting 30% of the remaining balance each subsequent year.
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Brokerage: Projected Cash Flows Year 1
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Brokerage: Projected Cash Flows Year 2
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Brokerage: Projected Cash Flows Year 3
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Brokerage: Projected Income Statements Years 1 to 3
Notes
REVENUE
Sale of wild harvest
EXPENSES
Harvesting
Transportation
Salaries
Benefits
Seasonal labour
Telephone & Internet
Facility & utilities
Memberships
Office supplies
Depreciation Cooler
Depreciation
Equipment
Year 1
Year 2
Year 3
2
104000
106080
108202
4
5
6
7
8
9
10
11
12
13
32000.00
2000.00
36396.00
3276.00
7158.00
1800.00
12000.00
25.00
600.00
1500.00
32640.00
2040.00
37123.92
3341.52
7301.16
1836.00
12240.00
25.50
612.00
2550.00
33293.00
2080.00
37866.40
3408.35
7447.18
1872.72
12484.80
26.01
624.24
1785.00
14
1000.00
1800.00
1440.00
TOTAL EXPENSES
$
97,755.00
$
101,510.10
$
102,327.70
PROFIT(LOSS)
$
6,245.00
$
4,569.90
$
5,874.30
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2008
6.2.2 ASSUMPTIONS – CULTIVATION
The following assumptions are based on the development of a blueberry field for cultivation. While the
business will take a number of years to become self-sufficient, once developed, its income will continue
to grow and then become steady and relatively predictable, ensuring that the business is successful in its
efforts to diversify its economy from one dependent on forestry.
1. Starting cash is zero.
2. Yield per acre for first harvests is projected at 700lbs/acre. Second harvests are expected to be
900lbs. Third harvests are expected to be 1800 lbs. Fourth harvests are expected to be 2600lbs.
Fifth and subsequent harvests are expected to be 3000lbs/acre. Because the land will be acquired
in two equal lots over two years, the first harvest for the first half will be in Year 3, and the first
harvest for the second half will be in Year 4. Blueberries are projected to sell at $0.75/lb. This is
projected to increase at the inflationary rate of two percent in each successive year.
3. A combination of private investment, grants and loans will be used for financing.
4. Initial land preparation is calculated at $850/acre and will be paid in Month 1 of each of Years 1 and
2. This expense includes the cost of stump removal, rock removal, land leveling and chipping.
5. Additional brushing and chipping will be done on half the land each of Years 1 and 2 at a cost of
$60/acre.
6. Beginning in Year 1 weed control will be performed on half the land at $80/acre. Beginning in Year
2, insect control at $25/acre; disease control at $45/acre on half of the land. Beginning in Year 3,
fertilizer will be applied to half the land at $40/acre. Application of the above chemicals on the
remaining acreage will commence the following year, and on all the land in successive years. These
expenses are projected to increase at the inflationary rate of two percent in each of the following
years.
7. Animal control which includes bird bombs and flash tape will be applied to half the land in Year 3 at
$50/acre. This will be applied to the entire crop the following year. This expense is projected to
increase at the inflationary rate of two percent in each of the following years.
8. Pollination includes the rental of hives at 2/acre for a total cost of $140/acre. This expense is
projected to increase at the inflationary rate of two percent in each of the following years.
9. Pruning by flail mowing will take place on half the land beginning in Year 2, the remaining field in
Year 3 and the whole field two years from the second pruning. Pruning includes the cost of labour
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2008
and fuel and is projected at $40/acre. This expense is projected to increase at the inflationary rate
of two percent in each of the following years.
10. Harvesting by mechanical harvester will take place on half the land beginning in Year 3, and the
entire field in Year 4. Harvesting costs includes the cost of labour and fuel and is calculated at $0.12
per pound of blueberries. This expense is projected to increase at the inflationary rate of two
percent in each of the following years.
11. Buckets will be purchased for the first half of the land in Year 3 and the second half in Year 4 at
$25/acre. This expense is projected to increase at the inflationary rate of two percent in each of the
following years. Buckets are estimated to have a life of 5 years and therefore will be replaced in
Year 9.
12. Transportation will be $0.05 for every pound of blueberries for yields less than 500,000 lbs. It is
assumed that the buyer will pay for shipping costs over this quantity (however this cost may be
borne by the buyer from the first harvest; it is nonetheless included).
13. Salaries expense encompasses the Business Development Officer and Operations Manager’s pay
calculated at $20/hour for 35 hour weeks. This expense is projected to increase at the inflationary
rate of two percent in each of the following years.
14. Benefits paid will be nine percent of wages for all positions. This expense is projected to increase at
the inflationary rate of two percent in each of the following years.
15. Telephone and Internet charges will include long-distance calls and high-speed access. This expense
is projected to increase at the inflationary rate of two percent in each of the following years.
16. Facilities and utilities will include rental of a small space for employees. This expense is projected to
increase at the inflationary rate of two percent in each of the following years.
17. Membership will cover an affiliate fee of $25 to the Wild Blueberry Producers of Nova Scotia. This
expense is projected to increase at the inflationary rate of two percent in each of the following
years.
18. Office supplies are projected at $100 monthly. This expense is projected to increase at the
inflationary rate of two percent in each of the following years.
19. A used pick-up truck used for hauling the berries from the field to the cooler is estimated at
$10,000. It will be purchased in Year 2. Depreciation will be on a declining basis at the rate of 15%
in the first year; deducting 30% of the remaining balance each subsequent year.
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20. A used tractor will be purchased in Year 2 for $10,000. Depreciation will be on a declining basis at
the rate of 15% in the first year; deducting 30% of the remaining balance each subsequent year.
21. A flail mower attachment will be purchased in Year 2 for $5,000. Depreciation will be on a declining
basis at the rate of 15% in the first year; deducting 30% of the remaining balance each subsequent
year.
22. A harvesting attachment will be purchased in Year 3 for $8,000. Depreciation will be on a declining
basis at the rate of 15% in the first year; deducting 30% of the remaining balance each subsequent
year.
23. The cost of a walk-in cooler to store the berries before they are sold is estimated at $10,000. It will
be purchased in Month 7 of year 1. The cooler will be depreciated on a declining basis at the rate of
15% in the first year; deducting 30% of the remaining balance each subsequent year.
24. Equipment includes $5,000 for office equipment such as computer, printer, and scanner and
$5,000 for office furniture. Equipment will be depreciation on a declining basis at the rate of 10% in
the first year; deducting 20% off the remaining balance each subsequent year.
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Cultivation: Projected Cash Flows Year 1
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Cultivation: Projected Cash Flow Year 2
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Cultivation: Projected Cash Flows Year 3
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Cultivation: Projected Cash Flows Year 4
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Cultivation: Projected Income Statements Years 1 to 10
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6.2.3
COMMERCIAL BLUEBERRY PRODUCTION
2008
ASSUMPTIONS – BROKERAGE AND CULTIVATION
The following is the projected income statements of an operation that chose to broker wild blueberries harvested by pickers in the area while
developing acreage for cultivation. The operating costs of brokerage are embedded within the expenses of cultivation, however a cooler will be
purchased in Year 1 in this case rather than Year 3. The significance is in the added revenues beginning in Year 1.
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6.2.3 ASSUMPTIONS – IRRIGATION
An irrigation system is a large capital cost. However in order to develop the economies of scale necessary to supply a processing facility and/or
value added manufacturing, irrigation will help to increase yeilds significantly. The following is a projected income statement for the cultivation
example using irrigation. Irrigation will be introduced early in the spring in Year 3 at an estimated cost of $1200 per acre for a total cost of
$741,600. The irrigation equipment will be depreciated on a declining basis at 15% in Year 3, and 30% on the remaining balance each
subsequent year. For this projection, it is estimated that crop yields will double as a result of irrigation. Harvesting costs will increase as well, but
tranportation costs will not apply and revenues will increase.
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APPENDIX A: POTENTIAL RESOURCES
STRIP FARMING
Victor Boulianne manages the strip-farming operation in Lac St. Jean for Corporation d’amenagement de
la Foret Normandin and is available to discuss operations at (418) 274-4372 and [email protected] He
also welcomes a site visit with one day’s notice.
Christian Belanger of the Quebec Ministry of Natural Resources in the Lac St. Jean region is available to
discuss wild-blueberry and forestry synergies at (418) 679-8671 extension 302 and
[email protected]. Christian helped to spearhead the Quebec strip-farming initiative.
Luc Berard, Quebec Ministry of Natural Resources in Quebec, Quebec (418) 627-8650 extension 4378
and [email protected] has also proven to be a valuable repository of information on the
subject of strip-farming research and development.
INDUSTRY EXPERTS
Dale McIsacc, P. Ag. Is a horticulturist with AgraPoint in Nova Scotia. Dale has detailed information on
wild-blueberry farming and is available for consultation at (902) 896-0277, (902) 890-8405 (cell) and at
[email protected] With a Bachelor of Science Degree in Agriculture and a Diploma in Agriculture,
he has spent many years working with farmers and industry.
Dr. Luc Duchesne, (705) 253-0339 and [email protected], is a research scientist on non-timber forest
products in Sault Ste. Marie, Ontario who has consulted with the Northeast Superior Forest Community
Corporation on the suitability of blueberry farming in the area.
Dave Sagster, Executive Director, Wild Blueberry Producers of Nova Scotia (902) 662-3306 has a wealth
of information on wild-blueberries and will provide industry information through membership at the
association.
GOVERNMENT AND ACADEMIA
Blueberry Citation Database
Michigan State University Extension
www.msue.msu.edu/msue/imp/modbb/masterbb.html
Cool Climate Oenology & Viticulture Institute
Brock University
500 Glendridge Avenue, St. Catharines, ON L2S 3A1
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www.brocku.ca/ecovi
Contact: Dr. Andy Reynolds, Research Chair of Viticulture
[email protected]
New Liskeard Agricultrual Research Station Horticultural Unit
Email: [email protected]
http://uoguelph.ca/research/stations/liskeard.html
Guelph Food Technology Centre
88 McGilvray Street
Guelph, ON
N1G 2W1
Phone: (519) 821-1246
Fax: (519) 836-1281
Email: [email protected]
Website: www.gftc.ca
Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA)
David Trivers
Agricultural Representative
Ontario Ministry of Agriculture, Food and Rural Affairs
1 Collver Road, R.R. # 1
Thessalon, Ontario
P0R 1L0
Toll Free: 1-800-461-6132
Phone: (705) 842-1582 Fax: (705) 842-1583
email: [email protected]
web: www.omafra.gov.on.ca
Helga McDonald, Client Account Officer, Food Industry Division (value-added processing)
Phone: (519) 826-3711 Fax: (519) 826-4333
Email: [email protected]
Ontario Ministry of Natural Resources (OMNR)
Craig Montgomery
Senior Lands Technician, Chapleau District
190 Cherry St.
Chapleau, ON P0M 1K0
Phone 705 864 3172
Fax 705 864 0681
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Email: [email protected]
Tim Mutter
District Planner, Chapleau District
190 Cherry St.
Chapleau, ON P0M 1K0
Phone: 705-864-3139
Fax: 705-864-0681
Email: [email protected]
John Negusanti ,MscBio,BscFor
Regional Pesticides Specialist
Technical Support Section, Northern Region
199 Larch St Suite 1201
Sudbury, Ontario P3E 5P9
Phone : 705-564-3249 , cell 705-562-1602
Fax : 705-564-4180
e-mail : [email protected]
FOOD ASSOCIATIONS
Canadian Food Inspection Agency
Chloé Frere, Junior Program Officer
159 Cleopatra Dr. Ottawa, ON
Phone: (613) 221-7102
Email: [email protected]
Canadian Health Food Association
www.chfa.ca
Canadian Health Food Trade Show
Canadian Health Food Association
205-550 Alden Road
Markham, ON L3R 6A8
Phone: (905) 479-6939
MARKETS
Farmer’s Markets Ontario
Bob Chorney, Executive Director
75 Bayshore Road, RR#4, Presqu’ile Point
Brighton, ON K0K 1H0
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Phone: (613) 475-GROW Fax: (613) 475-2913
Toll free: 1-800-387-FARM
www.fmo.reach.net
Canadian Fine Food Show – Canadian Association of Specialty Foods
21 Belvia Road
Etobicoke, ON
Phone: (416) 255-7071
www.cfta.ca
Wine Council of Ontario
110 Hannover Drive, Suite B205
St. Catharines, ON L2W 1A4
Phone: (905) 684-8070
Fax: (905) 684-2993
Email: [email protected]
Website: www.wineroute.com
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APPENDIX B: POTENTIAL LEGAL OBLIGATIONS
The purpose of this appendix is to outline some of the legal obligations associated with farm practices.
Any farm practice involving the management of water or nutrients, land use, construction, or other
environmentally related activity involves legal obligations.
Environmental Protection Act, 1990
Purpose: To provide for protection and conservation of the natural environment. The
environment is defined as air, land, water or any combination thereof in the province of Ontario.
The act prohibits the discharge of contaminants that are likely to harm the natural environment.
Applicability to Agriculture:
1. Spills are defined as a discharge into the natural environment from or out of a structure,
vehicle or other container, that is abnormal in quantity or quality in light of all the circumstances
of the discharge. MOE must be notified immediately at
1-800-268-6060
following an
occurrence. The owner and person in charge of the material at the time are required to contain,
cleanup and dispose of the material in a timely manner to the satisfaction of the MOE. All
farming operations with Nutrient Management Strategies and Plans are required to have a
contingency plan in place for handling spills related to manure or other prescribed materials.
Note that a discharge is not considered to be a spill if it is the result of a "normal farm practice".
2. Waste disposal/recycling: spreading of non-agricultural waste materials (e.g. biosolids) on
agricultural land is regulated by the Environmental Protection Act, and requires a Certificate of
Approval (See Guidelines for Utilization of Biosolids and Other Wastes on Agricultural Land, in
the following section). If applied to agricultural land as a nutrient to improve the growing of
agricultural crops, they are non-agricultural source materials and are regulated by the Nutrient
Management Act. Manure spreading does not require a Certificate of Approval, but the act
does set out provisions for prosecution of instances of pollution (i.e. as a result of a spill).
3. Septic systems: approval of small (e.g. household) septic systems (up to 10,000 litres capacity
serving one lot) has been delegated to the municipalities; MOE is responsible for the approval of
large septic systems.
Administering Agency: Ministry of the Environment (MOE); municipalities, boards of health or
conservation authorities for septic systems; this act is co-administered with the Nutrient
Management Act and the Pesticides Act (below).
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Permits Required: Certificates of Approval are required for spreading non-agricultural waste
materials on agricultural land. Building permits are required for the installation of septic tank
systems.
Nutrient Management Act, 2002
Purpose: To assist farmers in properly managing on-farm nutrients, minimize environmental
risks from agricultural operations, and safeguard public health.
Applicability to Agriculture: Based on the amount of nutrients (manure or other prescribed
material) generated by an operation, farmers are required to submit nutrient management
strategies or plans (NMS/P) which describe the quantity, storage and application of the
nutrients, standards for land application, outdoor confinement areas, and siting and
construction described. This act also applies to the management of materials that are not
generated by a farm operation, and are applied to land as a nutrient. Note that farmers who
have a NMS/P may still be subject to the requirements of the Environmental Protection Act and
the Ontario Water Resources Act.
Administering Agency: OMAFRA and Ministry of the Environment.
Permits Required: NMS/P required to be submitted to OMAFRA for new, expanding, or existing
farms based on nutrient units produced; certificates or licences are required for nutrient
management strategy/plan preparation, brokers, application businesses and technicians.
Lakes and Rivers Improvement Act, 1990
Purpose: To ensure flow and water level characteristics of lakes and rivers are not altered to the
point of placing other water users at a disadvantage.
Applicability to Agriculture: Any work forwarding, holding back or diverting water must receive
prior approval.
Administering Agency: Ministry of Natural Resources.
Permits Required: approvals required for any construction, alteration or deposition in a lake,
river or shoreline.
Ontario Water Resources Act, 1990
Purpose: To protect the supply and purity of Ontario’s surface and ground waters.
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Applicability to Agriculture: 1. Prohibits discharge or deposit of any material into any water
body or watercourse that may impair water quality. 2. Prohibits removal of more than 50,000
litres of water per day from wells or a surface water source without a permit. 3. Permits are not
required for water taking for domestic, livestock, or fire fighting purposes. 4. If water leakage or
flow from any well, diversion or excavation interferes with public or private interests, MOE may
require the person responsible to stop or mitigate the problem.
Administering Agency: Ministry of the Environment.
Permits Required: Certificates of approval required for discharge of a material to land or surface
water; permits required for water takings of more than 50,000 litres per day (approximately
acre irrigated with 1 in. of water); permits required for well construction; licences required for
well contractors and technicians.
Migratory Birds Convention Act, 1994 (Federal)
Purpose: To protect migratory birds and nests.
Applicability to Agriculture: Protects migratory birds and nests, but makes provision for their
removal where it is deemed necessary to do so to avoid injury to agricultural interests.
Administering Agency: Environment Canada.
Permits Required: Permits are required to remove or eliminate migratory birds or nests.
Related Legislation: Convention of International Trade in Endangered Species of Wild Fauna and
Flora, Wild Animal and Plant Protection and Regulation of International and Interprovincial
Trade Act, 1992 (Environment Canada).
Farming and Food Production Protection Act, 1998
Purpose: To protect farmers from nuisance complaints about odour, noise, dust, flies, light,
smoke and vibration, which result from normal farm practices; also to protect farmers against
restrictive municipal by-laws that constrain normal farm practices.
Applicability to Agriculture: Complainant can ask Normal Farm Practices Protection Board to
rule on a complaint. Note that a practice, which is not consistent with standards established in
the Nutrient Management Regulation, is not deemed a normal farm practice.
Administering Agency: OMAFRA.
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Planning Act, 1990
Purpose: To provide a legislative framework for land use planning; establish Provincial Policy
Statements setting provincial policy for the planning of natural resources and growth
management; authorize municipalities to establish Official Plans, zoning by-laws, site plan
control, interim control by-laws; temporary use by-laws, subdivision control.
Applicability to Agriculture: Farm buildings must meet local municipal setback distances and
bylaws, protection of wetland areas.
Administering Agency: Ministry of Municipal Affairs and Housing, municipalities.
Permits Required: Requirements must be met for the issuing of a local building permit.
Livestock, Poultry and Honey Bee Protection Act, 1990
Purpose: To compensate producers for damage to honey bee colonies or hive equipment
caused by bears.
Applicability to Agriculture: Provides compensation to livestock producers for losses of
honeybee colonies.
Administering Agency: Local Municipalities and OMAFRA.
Plant Diseases Act, 1990
Purpose: to ensure control of, or eradicate, specific regulated pests listed in the act that exist in
Ontario, and could not be eradicated under a federal program (below).
Applicability to Agriculture: To prevent the spread of plant diseases caused by an insect, virus,
fungus, bacterium or other organism. The act requires the treatment or destruction of infected
plants, disinfection of contaminated containers, buildings, and vehicles, and the possible
prohibition of growing certain plants for a period of time in contaminated soils.
Administering Agency: OMAFRA.
Plant Protection Act, 1990 (Federal)
Purpose: To protect plant life and the agricultural sector by preventing the importation,
exportation and spread of pests.
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Applicability to Agriculture: Outlines appropriate pest control or eradication practices to
prevent the spread, import or export of plant pests. This includes the duty to notify OMAFRA if a
new pest (plant, insect, fungus or other) is present in a crop; a prohibition of the intentional
movement, possession or improper disposal of a pest into, or out of Canada; and the inspection
practices that may be used to detect a suspected pest. An area or substance suspected of an
infestation can be put into quarantine, or seized under this act.
Administering Agency: Canadian Food Inspection Agency (CFIA).
Permits Required: Certification of CFIA inspectors.
Pesticides Act, 1990
Purpose: To ensure safe use, management and storage of pesticides.
Applicability to Agriculture: Prohibits use of pesticides in such a manner as to cause, or likely
cause, damage to the quality of the environment, greater than that which would necessarily
result from the proper use of the pesticide; requires safe and proper pesticide storage facilities.
Administering Agency: Ministry of the Environment, Ridgetown College administers courses;
this act is co-administered with the Nutrient Management Act and the Environmental Protection
Act.
Permits Required: Certification through Grower Pesticide Safety Course; re-certification every 5
years
Related Legislation: Pest Control Products Act, 1985 (Federal).
Building Code Act, S.O. 1992, as amended 1997, 1999, 2000, 2002
Purpose: Ensures the protection of humans from hazards associated with buildings and
structures, and establishes associated services.
Applicability to Agriculture: Applies to the construction or alteration of all farm structures
including manure storage and transfer facilities.
Administering Agency: Ministry of Municipal Affairs and Housing, municipalities.
Employers and Employees Act, 1990
Purpose: To address the recovery of unpaid wages.
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Applicability to Agriculture: Wage payment for on-farm labourers.
Administering Agency: Ministry of Labour.
Employment Standards Act, 2000
Purpose: To establish minimum standards for employment.
Applicability to Agriculture: Some exceptions apply to farm labourers due to the nature and
perishability of farm products and their susceptibility to weather.
Administering Agency: Ministry of Labour.
Farm Implements Act, 1990
Purpose: To regulate the sale of farm machinery and to promote farm machinery safety.
Applicability to Agriculture: Establishes machinery safety standards and requirements and
minimum warranties; provides for the return of defective machinery and the supply of repair
parts; process for the resolution of disputes.
Administering Agency: OMAFRA.
Permits Required: dealers and distributors are required to be registered.
Food Safety and Quality Act, 2001
Purpose: Provides for the quality and safety of food, agricultural or aquatic commodities or
agricultural inputs, the management of food risks, and the control and regulation of related
activities.
Applicability to Agriculture: The act applies to all aspects of the preparation of food, growing
and harvesting of crops, raising, slaughtering and other preparation of animals for meat, and the
handling and use of agricultural inputs.
Administering Agency: OMAFRA.
Highway Traffic Act, 1990
Purpose: To ensure safe movement of vehicles on roadways.
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Applicability to Agriculture: Slow moving vehicle signs must be attached to the rear of a slow
moving vehicle or a trailer or other device being towed by that vehicle. The act also prescribes
conditions for the movement of over-sized farm vehicles.
Administering Agency: Ontario Ministry of Transportation.
Permits Required: Permits are not required for farm implements in transit between farms or
fields, or for maintenance or repair purposes.
Technical Standards and Safety Act, 2000
Purpose: To enhance public safety in Ontario through efficient administration of technical
standards. Replaces seven acts including: Boilers and Pressure Vessels Act, Elevating Devices Act,
Energy Act, Gasoline Handling Act, and the Operating Engineers Act.
Applicability to Agriculture: Ensures that: heating (steam, hot water) and refrigeration systems
are approved for use in Ontario and only appropriately licensed/trained people install and
maintain them; elevators and similar devices are approved, functional and safe; handling,
transmission, and storage of hydrocarbon fuels primarily used for heat generation (propane,
natural gas, fuel oil) is safe; contractors, equipment, storages, transporters, transmission lines,
etc. for hydrocarbon fuels (gasoline, diesel, used oil etc.) are licensed and that those who
operate and work on these types of facilities are qualified. (See also the Canadian Standards
Association (CSA).)
Administering Agency: Technical Standards and Safety Authority (TSSA) as contracted by MCCR.
Permits Required: Certificates, licences or registration required for contractors, transporters.
Wages Act, 1990
Purpose: To establish priority for recovery of wages owed to employees from bankrupt
employers.
Applicability to Agriculture: In the event of farm bankruptcy, the farm labourers have priority
for their wages over ordinary or general creditors. Labourers may qualify for no more than three
months wages.
Administering Agency: Ministry of Labour.
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THE NORTHEAST SUPERIOR FOREST COMMUNITY
BUSINESS PLAN & RECOMMENDATONS
COMMERCIAL BLUEBERRY PRODUCTION
2008
Workplace Safety and Insurance Act, 1990
Purpose: To provide workplace injury insurance for workers and employers. Also, to promote
health and safety in workplaces and to prevent or reduce the occurrence of workplace injuries
and occupational diseases.
Applicability to Agriculture: Injured workers receive compensation for lost work time due to
injury. Employers receive liability coverage. Provides for inspections by the Board.
Administering Agency: Workplace Safety & insurance Board (WSIB), Farm Safety Assoc. (FSA),
Ministry of Labour
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