Earlier this year the Frontenac Community Futures Development Corporation in partnership with the Ontario Ministry of Agriculture and Food, and the Ministry of Rural Affairs, The Kingston Immigration partnership and the other local organizations, began a pilot project to determine the market demand for ethno-cultural food and emerging food. Learn more about the consumer and business survey results as well a the strategy to transfer this demand side data to local producers and processors to create new market opportunities.

1. Kingston Frontenac Ethno-cultural Food Project
Presentation to
Eastern Ontario Local Food Conference
December 3, 2013
WCM Consulting
Eastern Ontario Local Food Conference
December 3 2013
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2. Presentation contents
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Background
Project introduction and purpose
Objectives
Partners
Some consumer perspectives on “local”
Some commercial food buyer perspectives on “local”
What is a “brand”
“Local is a brand”
Other implications for producers
Project methodology
What we wanted to know
Survey outcomes
Next steps
Questions
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3. Trivia…or is it?
• In the 1930s
–The main meal required 2.5 hours
of preparation
• (usually by Mom!)
• In 2008
–The main meal required
8 MINUTES of preparation
(often by microwave)
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4. Background
• Changing ethno-cultural trends in Ontario imply demand
for food products that are familiar to these ethnic groups
• Demographic trends and their market potential have been
studied in the Greater Toronto Area
• Similar shifts are occurring in other areas of the province
as well, potentially resulting in significant ethno-cultural
markets
• 2011 census data indicates that the ethnic population in
Kingston is growing
• Studies have not yet explored this phenomenon in Eastern
Ontario
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5. Objectives
• Focus on ethno-cultural food specific to
identified Newcomer groups
• Work with the agriculture, agri-food and
culinary sectors in the area
• Develop market channels for products than
can be produced and/or processed locally
• Can food be part of a retention strategy for
Newcomers in the area?
• This a pilot project and, after “lessons
learned”, the methods may be applied in other
areas of Ontario
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6. Partners
• Frontenac Community Futures Development
Corporation
• Kingston Immigration Partnership
• Kingston Downtown Kingston Business
Improvement Area
• Ontario Ministry of Agriculture and
Food/Ministry of Rural Affairs
• National Farmer’s Union
• Frontenac Federation of Agriculture
• Kingston Economic Development Corporation
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7. Some consumer perspectives on “local”
• When asked, most consumers will identify various characteristics
of food that cause them to buy
• Quality
– More subjective elements, such as taste, smell, texture (or “mouth—
feel”)
– Clear tangibles, such as appearance and packaging
– Less obvious tangibles, such as food safety and source traceability
• Availability
– When I want it, it must be available
• Price – how much I have to pay for what I want
• These define “value”, or “what I get for what I pay”
– Each element of value is often subjective and very personal
– When combined into an overall assessment of value then this is even
more subjective
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8. Some consumer perspectives on “local”
• “Local” often carries with it realities and perceptions:
– Better quality
– Fresher
– Safer
– Traceable to origin
– Supportive of local farmer livelihoods
– Supports the local economy
– Encourage retention of farm land
– Contributes to food sovereignty
– Supports local eco-systems if farmed in a sustainable manner
• Many of these perceptions are fully evident, or can be, while
others may be more difficult to demonstrate
– No matter, as long as the perception of value, overall, is well justified
in the minds of the consumer.
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9. Some consumer perspectives on “local”
• Reports on trends in local food have consumers showing a
preference for local food
– But the questions used do not always provide a full picture
• “All else being equal” might apply to a portion of the respondents
– Others may be prepared to pay more for local food
• Some think that it should cost less, due to lower transportation
costs
– But they do not consider the usually smaller-scale of the producer in
a local operation
– This often results in lower efficiencies (higher unit costs)
• Shopping on a weekend at the local Farmers’ Market does not
necessarily indicate a strong preference for local food
– The experience is more than simply the purchasing of food
• The big unknown is whether the general consumer is willing to
pay more for “local” and under what circumstances.
– This is likely to vary greatly depending upon demographics, ethnocultural background, affluence, attitudes and so on
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10. Some commercial food buyers perspectives on “local”
• Buyers of food recognise the demand for “local”
• Buyers of “local” food may place the
requirements in the following order of priority
– Quality, well above all
– Local
– Consistent and convenient supply
– Price
• With the exception of “local”, this would apply to
most buying habits, regardless of the product,
food or otherwise
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December 3 2013
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11. What is a “brand”
• A brand is not a label
– A label can be created overnight
– A brand will take years to develop
• A brand is “reputation”
– Earned, over time, through superior performance in ways
deemed valuable by the customer
– Demonstrates high value
• Superior “What you get for what you pay”
• A brand can be destroyed in one day
– A noticeable failure to perform according to expectations
– Potentially wide-spread effect
• Companies guard brands ferociously
– This may be a problem for smaller local producers
– Companies may prefer known, larger suppliers, with safeguards
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12. “Local is a brand”
• “Local” is brand that evokes impressions and
expectations in the mind of a consumer
– Whatever the product
– No matter where it is
• “Local” carries with it assumptions of the
buyer/consumer regarding their own definition
of “value”
– Meeting those impressions, expectations and value is
crucial
– A significant failure to meet them can be “fatal”
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13. Other implications for local producers
• Food safety is becoming a larger concern
• “Local” is the simplest means by which to enforce the
standards The characteristics of local are key, not the
name itself.
• “Local” is a flexible definition, more so with market
radius than with producer radius
• Producers must meet rigorous standards which are
enforced
• Achieving and maintaining the standard of local
product
• Traceability of the end product
• Convincing chains (large and small) that local is viable
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14. Half Way !
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15. Project methodology
• Consumer surveys of local food demand
in Kingston-Frontenac area
– Random general population
– Persons self-identified from four different
ethno-cultural backgrounds
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East Asian
South Asian
Middle Eastern
Latin American
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16. What we wanted to know (sample)
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Desire to purchase ethno-cultural food that is produced, processed and
sold locally
Dollars spent on ethno-cultural food that is produced inside and outside
of the area
Ethno-cultural product demand based on market knowledge and
consumer trends
Demand for specific products based on customer requests/ethnicity
What opportunities, if any, exist to make locally produced ethno-cultural
food available in-store
Changing/increasing demand for emerging and ethno-cultural produce,
trees, herbs etc.
Identify opportunities for ethno-cultural food based on their
understanding of customer demands
Challenges encountered in accessing ethno-cultural markets and how
they are addressed
Opportunities for growth in ethno-cultural food markets
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17. Outcome highlights
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18. Consumer survey respondents
Ethnocultural group
members
27%
General
population
73%
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19. Respondent ethno-cultural origins
South Asian
3%
Middle
Eastern
38%
Latin
American
3%
East Asian
56%
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20. General information
Ethno-cultural
groups
General
Population
2.6
2.7
Amount spent on food-groceries in a
week
Percentage spent on ethno-cultural
food
$132
$134
22%
15%
Would prefer to buy locally
47%
58%
Would prefer if produced locally
32%
38%
Number of people in household
(range
0%-85%)
Percentage respondents purchasing
50% (almost
ethno-cultural food outside local area? all in Toronto)
Eastern Ontario Local Food Conference
31%
(various
places)
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21. Price premium potential for locally available product
Ethno-cultural Groups
General Population
Percentage of respondents buying ethnocultural foods
80%
70%
Overall 10-25% appears to be the
potential premium on price for
locally grown ethno-cultural foods.
60%
50%
This is more focused in the ethnocultural respondent groups
40%
30%
20%
10%
0%
0-10%
10-25%
25-50%
50-75%
75-100%
Percentage premium potential over regular prices
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22. Importance of purchasing characteristics
Ethno-cultural Groups
General Population
Freshness
Ethno-cultural
groups hold
freshness,
price, and
authenticity as
important
aspects.
Price
Characteristic
Authenticity of product or production
Availability by location
Labelling information
Availability by season
The general
population
counts many
characteristics
as equally
important.
Grown regionally or locally
Preservation or processing method
Labelling language
Grown in Ontario
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Score out of 5
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December 3 2013
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23. Importance of purchasing characteristics
Ethno-cultural Groups
General Population
Purchase from local ethnic grocery store
Easy to cook
Characteristic
Able to purchase from local farmers' market
Ethno-cultural
groups and the
general
population
prefer to buy
ethno-cultural
food in from
different types
of outlet
Purchase directly from a local farm
Method of production
Medicinal qualities
Grown in country of ethno-cultural origin
How to cook, suggestions for use
Able to purchase from local supermarket
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Score out of 5
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24. Some products identified
Chinese buns
Canned foods
Chinese chive
Chinese specialty products
Hot pepper paste
Konnyaku (yam starch)
Plantains
Rice
Spices
Vegetable
Fresh fish
Meat
Pickles
Sauces
Shiitake
Vegetables
Winter melon
BBQ duck
Chinese dates
Gobo
Burdock roots
Oils
Yellow croaker (fish)
Chinese bread
Chinese chestnut
Sembei (rice crackers)
Yams
Natto (fermented soybeans)
Silkie (chicken breed)
Gyoza (dumpling) skins
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25. Some comments noted
• It would be great to buy locally; would save trips to Toronto
• There is a lack of real ethnic food outlets in our local area
• Would like to see more products originating in various
African cultures
• Would like more Jewish and Middle Eastern foods
available locally
• I buy more for our festival meals
• Local food is good for the local economy
• Local supermarkets have a good selection of ethnocultural foods
• Would buy more if product if produced in country of origin
• I like to help local farmers
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26. Some comments noted
• There is a demand for ethno-cultural foods
• Many stores have product from my country of origin but not
as fresh as local
• Ontario food safety regulations means that local food will
be safe
• “Less travelled food” is a good thing
• The food will be fresh
• I would pay more for local food
• Support the local economy, fresher, less pollution
• Save the time and money travelling to the larger cities
• Fresher and cheaper (hopefully)
• Willing to pay more for better quality food
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27. Next steps
• Determine what opportunities exist as a
result of the data analysis
• Determine if added knowledge/skills are
required locally to develop these
opportunities
– Programs/funds may be able to assist here
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28. …and thank you for your time
When completed, the formal report will be available on the
Frontenac Community Futures Development Corporation
web-site: www.frontenaccfdc.com/
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29. Eastern Ontario Local Food Conference
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