Food Processing

The food processing industry is a strong part of Saskatoon's economy, which is home to many food processors large and small. All contribute to Saskatoon's strong sense of community. The value-added food industry finds its roots in agriculture. It is supported by proximity to raw materials, transportation efficiencies, abundant labour supply and strong industry and institutional support. The food processing industry has had the opportunity to make many advances during the last decade, largely due to the research in the food sciences at the renowned University of Saskatchewan College of Agriculture and Saskatoon's own Food Centre. Saskatoon's approximately 70 local and international food processing companies find that their products are in demand, and therefore many have cultivated export relationships with other regions, provinces and countries.

Industry Successes

• The food, crop and beverage processing industry produces over one-fifth of Saskatchewan’s total manufacturing and processing output.
• The food processing industry symbolizes the success Saskatchewan has enjoyed in diversifying its economy and developing value-added products.
• Saskatchewan is the North American centre of excellence for certified organic food, beverage and feed products under common private labels.

IDP Survey Results

The food processing industry, which includes food and value-added agricultural processing companies, is the third largest sector in the Saskatoon region (71 companies in total). Food processing is the set of methods and techniques used to transform raw ingredients into food for human and animal consumption.

Each year, SREDA conducts an industry development program survey. The purpose of this survey is to maintain product information on industrial companies operating within the Saskatoon region and assess specific industry sectors’ prospects for growth and labour market needs.

Fifty-six percent of food processing companies in the Saskatoon region responded to the industry survey.

Labour

Labour supply has been relatively stable for the food processing industry. Since 2004, however, there has been a marked decline in labour availability.

Thirty-six percent of industrial managers indicated they were having difficulty filling certain positions. These include:

• Bakers
• Electricians
• Trades People
• Truck Drivers (1A)
• Unskilled Labour
• Welders

As with every other sector in the Saskatoon region, employees in the food processing industry were ranked as high quality.

Fig. 2.21 Quality of Labour – Food Processing
  

Sales and Growth

With a rich agricultural base from which to work, the food processing industry is a complementary sector for the Saskatoon region. A close proximity to raw materials reduces costs, improves margins and creates spin-offs for the local economy. Sales have been steady or rising for 86 per cent of respondents in this industry for the past five years, and superb prospects for growth (88 per cent indicated excellent or good) indicate future success for this sector of the economy.

With the stability of revenues in this sector, expansions are planned for 26 per cent of the respondent companies. These expansions will create an estimated three per cent growth in employment for the food processing industry.