Why export your food or beverage products from Ontario

Why do food companies choose to export from Ontario? There are many reasons, including:

Increase Sales and Profits

• Expanding into international markets gives your company a chance to increase sales and profits through new contacts.

• Despite the added costs of exporting, you can save costs by producing on a scale that makes better use of resources (economies of scale), leading to higher profit margins.

Gain Global Market Share

• Companies can reduce dependence on existing domestic markets by expanding internationally.  Exporting also helps small companies grow and become more competitive in all their markets.

Stabilize Market Fluctuations

• By expanding into foreign markets, companies are no longer held captive to economic changes, consumer demands, and seasonal fluctuations within the domestic economy.

Sell Excess Production Capacity

• By exporting, production capacity and length of production may increase, thereby decreasing average per unit costs and increasing economies of scale.

Enhance Competitiveness

• Trading in the global marketplace increases your exposure to international best practice, ideas and alternative ways of doing business – improving your chances of competing at home and overseas

The Ontario Advantage:

• A highly favourable business environment.  You can take advantage of streamlined regulations and soon, the lowest statutory tax rate in the G7.
• A top-ranked business infrastructure. Ontario offers direct connections to North American and world markets.
• A highly efficient transportation network. This includes 15 road, rail and marine border crossings with the U.S., plus 5 international airports and a network of regional airports. Many are only a 2-3 hour flight from major U.S. centres.
• A highly skilled workforce. Our turnover rates in manufacturing were almost half that of the U.S.

Quick facts

• Total Ontario agri-food exports for 2010 totalled almost $9.5 billion. That is up 6 per cent from 2009.
• In 2010, Ontario’s value-added consumer-oriented products accounted for more than 70 per cent of total Ontario agri-food exports.
• In 2010, more than 75 per cent of Ontario agri-food exports – a total of $7.2 billion – were made to the United States.  Other top export markets include: Asia (including Japan), Mexico and the European Community.

Ontario: investing in your success

Through Ontario Food Exports (OFEX), the Ontario government helps food and beverage companies identify and maximize their export opportunities. OFEX:

• supports your business every step of the way – from the initial market assessment stage to full export capability
• help qualified, interested buyers access suppliers
• is the gateway to a whole range of export-related services. These include: consulting, education, market research and buyer introductions.

Our clients say the contacts they make at OFEX events help them increase their export sales. For instance, our Street Smart buyer introductions generate millions in exports each year.

Learn more now about OFEX services.