Individual Quick Freeze Asparagus

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Individual Quick FreezeAsparagus
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The Ontario Asparagus Growers Marketing Board

• The Farm Products Marketing Act
• Processing Regulations
• 98 producers

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Industry Overview1987 1990s

• Free Trade
• Processing Price 89.54 cents/lb
• Six Processors in Ontario
• 50 Asparagus Processed
• Fresh Market Competitive

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Industry Overview Today

• Processing Price 67 cents/lb US
• One Processor Bonduell
• 0 of Asparagus Processed
• Fresh Market COP Struggle

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The Import Invasion

• Imports 12 Months
• Competitive Advantage Threatened
• Buy Local Banner Raised

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Differentiated Product via Branded Ontario
Asparagus
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Courtship of Processors

• June 2007 Farm Fresh Pilot
• May June 2008 - ¼ Million Lbs. exported to
  Michigan to Farm Fresh

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American Processors Dilemma

• 2008 Wal-Mart sales slumped
• 2009 Wal-Mart considering imports
• 2009 Processor bankrupt
• 2009 Ontario Asparagus Export Nil
• US Processing price drops 3 cents/lb
• Time to focus on Ontario, Canada

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Why IQF Asparagus?

• Traditional Processing Industry Unstable
• Fresh Market Surplus
• Buy Local Opportunity

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Lobby, Lobby, Lobby

• 2009 The Ontario Fruit and Vegetable Growers
  Association
• Innovation and Commercialization
• The Agricultural Adaptation Council Funding and
  Partnerships
• Erie Innovation and Commercialization

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The OAGMBs Plan

• Funding
• Farm Innovation Program
• Pilot of 5000lbs IQF Asparagus
• Naturally Norfolk Processor
• 100 Mile Market Marketing
• Partnership Focus Food Service

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The Royal Winter Fair Roll Out
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A Pilot is A Pilot

• Naturally Norfolk Inexperienced
• 100 Mile Market Financial Restraints
• Asparagus Specs?
• Pilot Salvaged
• Try Again

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Year Three 2010The Stars are Aligning

• OAGMBs Funding FIP residual
• AAC - Food Safety and Traceability Education
  Program (FSTE)
• Naturally Norfolk funded Rural Economic
  Development (RED)
• 100 Mile Market - Ontario Market Investment Fund
  (OMIF)

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The Sky is Falling

• Naturally Norfolk Fails to Launch
• 100 Mile Market Partnerships Stall
• Ontario Asparagus No Processor
• The Smuckers Inquiry

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Canadian IQF Asparagus Wanted

• Smuckers
• Sample Dilemma
• Source the Experts
• Find the Processor
• Accomplish the Impossible
• Face the Disappointment .

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Stick to The Plan

• IQF Asparagus - The Goal
• Reality Asparagus - An Issue
• Processor Negotiations
• Opportunity 2011 Harvest.

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Additional Innovative Projects

• Dehydration
• Breeding Program - Nutraceuticals
• Research partnerships with the Michigan Asparagus
  Growers.

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Microwaveable Asparagus
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Grilling Asparagus
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Concept to Commercialization?

• We Are Not Finished Yet
• Consumer Demand -The Next Level
• Processor Initiative
• Realistic Funding
• Innovation and Commercialization

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International Competition Researched

• October 2009 Peru Mission

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Canadian Embassy

• Rodrigo Santillan, AAFC, Market and Trades
  Officer
• Brenda Lammens, Chair, OAGMB
• Denton Hoffman, Exec. Dir. OAGMB

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Proagro International Exporter

• Only pack and market their own asparagus
• Export to the Netherlands, Japan, Spain

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Packaging and Sizing for the Customer

• Asparagus packaging is consumer driven

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Camposol new plantations

• 8 million - irrigation
• High elevation looking over the fields of
  asparagus

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Lessons Learned

• Peru is very well positioned
• Food Safety and Traceability Global
  Certifications.
• 1990 9000 Hectares
• 2008 27,000 Hectares
• Cost of Production Increasing

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Next Steps

• Built on buy local e.g. IQF Asparagus
• Develop Traceability
• Drive out inefficiencies
• Promotion, Education and Develop Consumer Loyalty
• Be Different

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The Long and Winding Road

• Commercialization is not easy
• Stay Focused
• The Plan
• Be a Good Student

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Thank you

• Farm Credit Canada
• The Ontario Asparagus Growers Marketing Board
• Panel Members
• Audience

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