Food Island Partnership Strategic Plan · 1.0 executive summary 04 2.0 background 06 3.0 global...

Food Is land PartnershipStrategic Plan

March 2015

1.0 EXECUTIVE SUMMARY 04

2.0 BACKGROUND 06

3.0 GLOBAL FOOD TRENDS AND THE IMPACT ON THE PEI FOOD INDUSTRY 08

4.0 ANALYSIS OF THE PEI FOOD INDUSTRY 11

5.0 PLAYING TO OUR STRENGTHS: THE CLUSTER MODEL 16

6.0 INTERNAL AND EXTERNAL CLUSTER STAKEHOLDERS 18

7.0 VISION, MISSION AND VALUES 18

8.0 THE STRATEGIC FRAMEWORK 19

9.0 GOALS AND OBJECTIVES 21

10.0 KEY BENCHMARKS AND EVALUATION 24

11.0 CONCLUSION 26

Ta b l e o f C o n t e n t s

[email protected]

Websitewww.foodislandpei.ca

5F o o d I s l a n d P a r t n e r s h i p S t r a t e g i c P l a n4 F o o d I s l a n d P a r t n e r s h i p S t r a t e g i c P l a n

Connections, partnerships, collaborations, and alliances will be the currency of economic growth in the food sec-tor on Prince Edward Island and it will need the cooper-ation of all private and public stakeholders.

The creation of an organization to push the food agen-da is essential to build these alliances. The Food Island Partnership will be such an enabler. The organization will work with primary industries, companies, agencies, in-dustry associations, institutions and governments to ad-vance ideas, set common goals, mobilize activities and fill gaps where necessary.

It will do this as only an organization from Prince Ed-ward Island can do it; by recognizing and building on its strengths: Prince Edward Island is small, but it has world-class infrastructure in food product development and research. It also has a brand and millions of past and future visitors are witness to its authenticity. That is value.

So what will this new organization do? The vision is to establish Prince Edward Island as an internationally recognized place of origin for premium food prod-ucts and a destination for culinary excellence. This will be achieved by:

1. Working on company and product development

2. Enabling applied research to support value chain integration

3. Leveraging and building the reputation of the Prince Edward Island food brand

How will success be measured? Success will be tied to the value of the food economy on Prince Edward Island: Employment and engagement in the sector, export sales of food products, economic impact of the sector and profitability and diversity of participating companies and individuals.

The Food Island Partnership will be evaluated by what catalytic role it played in achieving these benchmarks. Sometimes, momentum is created through small im-pulses.

Prince Edward Island is the Food Island of Canada. Food is part of its cultural fiber. Almost every family has its roots in the farming and fishing industries that have shaped the province and will keep shaping it in the future. Food products dominate the province’s exports, and employ a significant part of its workforce. Individual companies have become superstars in their field and certain sectors are dominant players in their markets: Prince Edward Is-land has a food brand that is recognized and respected. It is genuine in connecting product to place to people.

Yet there is work to do. Low productivity and falling em-ployment have been dominating the news coming from the primary sector until very recently. The food industry has been perceived as yesterday’s industry. A small do-mestic market, limited economies of scale, distance to important markets and a reliance on commodity markets have made the industry too many times a follower of the mainstream rather than a captain of its own destiny. Too often we see market demands that cannot be met with traditional products and products that have limited mar-kets.

However, there are changes afoot that offer up new op-portunities: Food is on the march again. Far from being an industry of the past, the food industry is being viewed as essential to support economic growth worldwide. Val-ue chains are in transition as new economies are emerg-ing. The emerging and increasingly demanding middle class in Asia will change the food industry fundamentally. This is leading to an increase in the value of food on all levels and with value comes investment opportunities.

Prince Edward Island is a food specialist in times when the food industry is changing. The question is not wheth-er Prince Edward Island will be affected by those chang-es, but how. The province has the opportunity to grow its wealth through food again, but this needs a change of thinking. Too often, Island stakeholders see each other as competitors rather than partners, but partnership is what is needed to rise to the challenge of global trade. What is needed is a model of “co-opetition” or compet-itive collaboration’ the most important ingredient of a successful industry cluster.

1 . 0 E X E C U T I V E S U M M A R Y

Economic impact and independence of the Food SectorWealth creation for companies and individuals

Diversification of products and companies

VisionTo establish Prince Edward Island as an internationally recognized place of origin for premium food products

and a destination for culinary excellence

Leveraging Brand

Conducting Applied

Research

Developing Products & Companies


2 . 0 B A C K G R O U N D

The November 12, 2013 Speech from the Throne “Charting the Course Ahead: Prince Edward Island at a Special Moment in Our History” recognized the PEI food industry’s value to the provincial economy and outlined a vital next step in its evolution: the creation of a new and comprehensive food innovation strategy to direct its future in PEI.

The Speech noted that “for the Island to fully realize its potential as a food producer,” it was necessary “to ex-plore ways to better mobilize our existing food-related assets towards developing new products.” Innovation, enterprise, applied research, and business development are essential to the process. The Island’s natural environ-ment is paramount, uniquely defining its food production and positioning its products.

Throughout its history, PEI has been recognized for its distinctive food and agricultural advantages. Celebrated as a “million acre farm” for its red fertile soil, temperate climate, clean water, and pristine environment, its gen-erations of farmers, fishers and food processors have secured a foundation in food production and manu-facturing that has fundamentally shaped the provincial economy. This activity has transformed the Island land-scape into a pastoral setting recognized by tourists all over the world. The novel Anne of Green Gables, set on an Island farm, has attracted millions of visitors to PEI, many because of the vision of rural harmony it inspires.

The Culinary Alliance board of directors included mem-bers from the four provincial departments and industry/food service representatives, including the PEI Associa-tion of Chefs and Cooks; the PEI Restaurant and Food Services Association; the Culinary Institute of Canada; Atlantic Beef Products Inc.; the Mussel Industry Council; and the PEI Potato Board. Working closely with the At-lantic Canada Opportunities Agency (ACOA), it pursued initiatives based on a mission to facilitate the develop-ment of innovative food industry partnerships, culinary experiences and promotional programs that serve as a channel for:

• Increased tourism visitation to Prince Edward Island

• Increased consumption of rural PEI food products on-Island, and

• Increased export sales of rural PEI food products

Examples of the range of initiatives supported by the Culinary Alliance include:

• Coordination of the PEI Flavours Culinary Trail and PEI Fall Flavours Festival

• “Food Country with Chef Michael Smith” webisodes

• Partner in innovative marketing initiatives such as PEI Burger Love and Pack your Appetite potato/tourism promotion

• Facilitated the development of the Certified Island beef brand in partnership with PEI Cattle Produc-ers, Atlantic Beef Products Ltd. and end market buyers.

• Strategic assistance to the PEI Fisher’s Brand initiative

• Led formation of strategic partnerships, including Zagat, Food Country videos with Chef Michael Smith, and Food Network Canada to position PEI as a culinary destination and increase aware-ness and consumption of PEI food products in the U.S. and across Canada.

In 2013, the food industry was the leading international exporter, with the food sector accounting for 53 percent of PEI’s international exports, compared to aerospace and bioscience at 14 and 4 percent respectively. Eleven percent of provincial GDP was generated by the food sector’s primary agriculture and processing compo-nents.1

That autumn, the Provincial government directed a work-ing group from the four departments of Innovation and Advanced Learning; Fisheries, Aquaculture, and Rural Development; Agriculture and Forestry; and Tourism and Culture to confer with Island food leaders to evaluate the merits of recognizing food innovation as a key econom-ic priority: “Our challenge is to design a food innovation strategy around clustering, as an organizing principle, and to promote the synergy and realignment of resourc-es that will lead to the development of new products.”2 Full government commitment supported this initiative: “Government will take a leadership role in the design and implementation of a new Food Innovation Strategy for the province. This will be achieved by working together with the federal government, the various institutes and organizations, and the Island food industry.”3

As consultations progressed, with input from private/public stakeholders, the imperative was clear – it was time to move beyond the sector’s commodity-specific silos. An integrated focus on food innovation was es-sential. Complexities of packaging, logistics, and market access could be better navigated with shared collective expertise. A cohesive approach would benefit govern-ment and industry as they defined programs and policies to drive innovation, export growth and profitability within the food sector.

The Prince Edward Island Culinary Alliance Inc. and Prince Edward Island AgriAlliance Inc. – both estab-lished in 2009 as part of a provincial government strat-egy to drive economic prosperity – were identified for their ability to work collaboratively with the food sector to advance food innovation, product development, applied research, and marketing.

In turn, the PEI AgriAlliance board of directors, repre-sented a cross-section of expertise and priorities of food producers and processors, and research, government and community leaders. The mandate of the organiza-tion was to act as a facilitator in coordinating targeted research coordination and market development efforts with various industry, research, government, and exter-nal partners to help advance the future viability of the sector.

Examples of the range of initiatives supported by the PEI AgriAlliance include:

• Management of $10 million in soybean and canola research projects through the Eastern Canada Oilseed Development Alliance

• Partnered in developing and securing funds for national Wireworm research efforts

• Coordinated market-development initiatives ranging from high-value PEI beef to new grains and oilseed export opportunities.

• Provided commercialization support to local agri-businesses related to product development and expansion.

• Supported the development of a Potato Board industry-led research plan and facilitated a polli-nation plan for blueberry and beekeeper sectors.

• Led cost-of-production study for grains and oilseeds and benchmarking of agriculture and agri-food sector profitability

The recent merger of the PEI Culinary Alliance and PEI AgriAlliance – recommended by the Province’s food in-novation working group – is a vital next step in building a food cluster model supporting PEI’s development as a premier food producer, processor, and culinary destina-tion. Known as the Food Island Partnership, it will sup-port the industry by helping increase collaboration and coordination; advance innovation and exports aimed at improving profitability; reduce duplication; promote inter-nal and external communication; facilitate project devel-opment and management; foster applied research; and leverage shared resources.

1 “40th Annual Statistical Review 2013” PEI Department of Finance, Energy & Municipal Affairs, June 2014, Pages 59 & 62 “Charting the Course Ahead” Speech from the Throne, Government of PEI, November 2013, Page 103 “Charting the Course Ahead” Speech from the Throne, Government of PEI, November 2013, Page 10


3 . 0 G L O B A L F O O D T R E N D S A N D T H E I M PA C T O N T H E P E I F O O D I N D U S T R Y

The world’s agriculture, aquaculture and food process-ing industries are undergoing a rapid transformation. Changing markets, technologies, climate, consumer demand, and competitive environments are redefining how food is grown, processed, marketed, delivered, and consumed.

“By 2050, demand for food will rise 70 percent 4 ”. Global efforts to feed the planet require international commit-ment and collaboration. Demand factors such as global population growth; the rise of Asian economies; increas-ing global wealth; and heightened protein demand inten-sify the urgency. Global constraints such as diminishing arable land; water scarcity; and sustainable production are reversing the trend of food pricing. After decades of decreasing food prices, PEI farmers are finally seeing a resurgence of commodity prices.

In Canada, additional factors are redefining consum-er food drivers. With an aging population more diverse through immigration, people are considering work, fami-ly, time commitments, and evolving personal preferences when making food choices. Many expect their choices will address health issues and contribute to overall well-ness, extending lifespan and quality of life. Consumers are better educated than ever before, understanding food labels and assessing their benefits. They drive healthier food options in the retail sector, demanding more nour-ishing convenience foods and restaurant menu choices. These trends reinforce continued expansion of specialty, higher-value market opportunities.

Consumers are searching for sustainable food produc-tion and voting with their food dollars to support green initiatives, with growing interest in food tourism; farmers markets; “buy local” campaigns; organics; and recy-cled packaging. These new trends create ever-increas-ing segmentation within the food processing industry, including health, nutrition, quality, and brand – as well as organic, local, sustainable, and fair trade. From the emergence of premium gourmet categories and prod-ucts with functional health claims, to more diverse global flavour profiles and varied convenience-size offerings, consumers expect innovation and increasing choice in once-static food categories.

Globalization is an asset and intricate factor. It creates vital opportunities to meet the evolving food demands of the world’s emerging economies and high-growth areas, including Asia, as incomes and protein consumption rise. Successful global supply chains are being forged with partners beyond national boundaries, enhancing value but also limiting options for smaller growers and food processors who fall outside the group. Enhanced competition for global markets is demanding that coun-tries intensify their export efforts while dealing with the

pressure of new low-cost imports entering their domes-tic markets. Recent bilateral trade deals with Europe and Korea illustrate that while opportunities are presenting themselves, increased competition will be a conse-quence. The winners in the global economy will be those who know how to identify their own competitive advan-tage and communicate it to the world.

Along with growing demand for commodities, another trend is evident: the Asian middle class is growing at an unprecedented rate: By 2020, the Chinese middle class (adjusted to purchasing power parity) is project-ed to outgrow its American counterpart. According to McKinsey, “As China’s new upper middle class swells to include more than half the country’s urban households by 2020—up from just 14 percent in 2012—it will strain many of today’s business models. Companies that have long catered to consumers trying to meet basic needs at affordable prices will face a shrinking market and risk losing millions of customers looking to trade up.” 5

This new middle class will exhibit values, aspirations and consumer needs already familiar to the West, involving quality, presentation, traceability, proof of origin, envi-ronmental regulations, harvesting practices, and animal husbandry. There is growing demand for new and more expensive products wrapped in aspirational brands, with spending on Western food and beverages preferred. These pressures from new Asian consumers are occur-ring at a time when discretional spending is declining in markets such as the United States.

The retail landscape for grocery channel trends has shifted dramatically since the 1980s with big-box stores such as Walmart and Costco more than doubling market share; the relevance of traditional grocery stores shrink-ing; and no-frills food stores on the rise6. Food service sales are expected to grow by an annual average of 3.9% over the next four years7, while specialty and eth-nic groceries are enjoying high growth rate at more than seven percent annually8.

With food being shipped thousands of miles, broken down, enriched and fortified, there is a counter demand for whole foods, available locally, delivered directly from the producer. Regional brand considerations are influ-encing consumers’ purchasing decisions, with a growing preference for traditional products closely linked to place of origin. Geographic regions are increasingly being identified with artisanal food products defined by local terroir. Parmigiano Reggiano, Tennessee Whiskey, Kobe Beef, and Irish Organic Salmon are just a few examples of traditional local products – certified by strict quality standards to protect authenticity and brand, and autho-rize distribution – that are adding value and responding to international demand.

As the nature of the food industry continues to evolve globally, opportunity is revealed to those companies nimble and innovative enough to seize a new direction.

4 “Growing a Better Future: Food Justice in a Resource Constrained World.” Oxfam International, May 31, 2011: 2-3.5 Max Magni and Felix Poh, “Winning the battle for China’s new middle class” McKinsey & Company, June 2013

6 Peter Champan, “Survive & Thrive in Grocery Retail” GPS Business Solutions, February 20137 “FoodService Facts 2014 – Market Review and Forecast” Restaurants Canada, 2014, page 118 “The State of the Specialty Food Industry 2014” Specialty Food Association

2009 2020 2030

1 US $4,377 21% China $4,468 13% India $12,777 23%

2 Japan $1,800 8% US $4,270 12% China $9,985 18%

3 Germany $1,219 6% India $3,733 11% US $3,969 7%

4 France $927 4% Japan $2,203 6% Indonesia $2,474 4%

5 UK $889 4% Germany $1,361 4% Japan $2,268 4%

6 Russia $870 4% Russia $1,189 3% Russia $1,448 3%

7 China $859 4% France $1,077 3% Germany $1,335 2%

8 Italy $740 3% Indonesia $1,020 3% Mexico $1,239 2%

9 Mexico $715 3% Mexico $992 3% Brazil $1,225 2%

10 Brazil $623 3% UK $976 3% France $1,119 2%

Total Middle Class Consumption: Top 10 Countries(2005 purchasing power parity $, billions and global share)

250.0

200.0

150.0

100.0

50.0

0.02003 2007 20112005 2009 20132004 2008 20122006 2010

Grains Vegetables Fruit Potatoes

Prices on PEIPrice Index: 1997 = 100%


Food companies able to bring new products quickly and profitably to market will benefit. There is significant threat to traditional suppliers slow to adapt to change and that underestimate emerging product niches. Prince Edward Island could benefit as never before, with some Island companies already leading the way:

• Island Abbey Foods Ltd. – creator of the Hon-eydrop®, the world’s first solid 100 percent pure honey – has become a Health Canada and FDA-licensed specialty food and natural/med-icated health product producer with an ambi-tious line of merchandise and partnerships with leading pharmaceutical companies internation-ally. It recently announced it was expanding into the vitamin, mineral and supplement category with the launch of the world’s first honey gummy vitamin supplements.

• PEI Mussel King, a leading processor of PEI mussels, launched an aggressive expansion plan. Investments resulted in new processing capabilities for frozen mussels diversifying the company’s range of value-added products and provided access to new and growing global markets.

• Expanded marketing activities for the mussel industry as a whole have resulted in 25% sales growth since 2008.

• Royal Star Food Ltd. recently invented Star of the Sea lobster concentrate, a unique value-added food flavour product from shellfish pieces previ-ously considered waste. Developed in collabora-tion with BioFoodTech and Global Food Technol-ogies, Inc., it is being commercially produced in Tignish, PEI, where the lobster is harvested.

• Technology Crops International is a premier supplier of organic, non-genetically modified, pressed plant oils used in functional food, phar-maceuticals, lubricants, plastics, cosmetics, and specialty chemicals. With a 25,000-square-foot oilseed processing plant, bio-refinery and analyti-cal lab in Kensington, PEI, TCI partners with local farmers to grow specialty crops that are refined, packaged and warehoused in PEI before global export.

• Cavendish Farms launched the Cavendish Culinary Creation Centre adjacent to Canada’s Smartest Kitchen at Holland College’s Culinary Institute of Canada. Featuring a state-of-the-art pilot line with scalable processing equipment, access to chef instructors with the most current culinary technologies, and the manufacturing capabilities of Cavendish Farms, the Cavendish Centre is a driving force in innovative product creation.

• Jasper Wyman and Son, Inc. is a leading mem-ber of the North American blueberry processing industry. The company’s recent expansion of processing capacity in PEI, with support from the provincial and federal governments, enables it to process every blueberry it purchases in Atlantic Canada and doubles its workforce.

• The PEI Brewing Company is a brewer and dis-tributor of all-natural craft beer, created at its new Charlottetown facility featuring the latest industry brewing technology. It has been recognized with prestigious gold and silver medals at the Canadi-an Brewery Awards since 2011.

4 . 0 A N A LY S I S O F T H E P E I F O O D I N D U S T R Y

Consultations with key industry stakeholders and a SWOT analysis conducted by the Food Island transition team examined the challenges and future potential of the food industry, reflecting on competitive advantage and the tools to be leveraged to retain and attract business.

4.1 Strategic Assets

The good news is that Prince Edward Island already enjoys significant infrastructure and resources that can be strategically aligned to support an ambitious, sustain-able, and market-driven food innovation strategy.

Although small in scale, PEI turns size to competitive ad-vantage by fostering innovative and nimble partnerships defined by a commitment to collaboration; a common strategic focus; access to decision makers and funders; shared resources; ability to adapt at an accelerated pace; and proximity to key academic institutions and R&D centres that are playing a critical role in helping to drive success.

As a result, PEI’s food industry has the capacity to re-spond quickly and collectively to the rapidly changing global food economy and its challenges and opportuni-ties. As a legislative unit with inherent resources, Prince Edward Island also affords the food industry timely ac-cess and the opportunity to engage easily with decision makers and funders.

The food industry’s Prince Edward Island brand is strong and distinctive within Canada and abroad. It is closely associated with iconic food products such as PEI mus-sels, oysters, lobster, and potatoes, and enjoys a pristine reputation. The close and successful alignment of PEI’s tourism and food sectors through the PEI Culinary Alli-ance has enhanced this brand, creating a consistent and marketable identity rarely found in other North American states or provinces. Strong Island pride and support for PEI food products promote local consumption and provide a base for early-stage commercialization and growth.

The presence of key R&D institutions in Charlottetown ensures access to top-tier resources and consultative partnerships invaluable to the sector. This enhances the food industry’s capacity to work collaboratively and achieve positive results:

• PEI BioFoodTech Centre supports the advance-ment of improved food products and processes with a range of services from food product and process development to pilot scale up and ac-cess to bio-processing technologies.

• The Culinary Institute of Canada, located at Holland College, provides culinary and hotel/restaurant management training, and is regarded by many as the premier culinary school in the country.

• Canada’s Smartest Kitchen (CSK), the R&D arm of Holland College’s Culinary Institute of Canada, offers a full suite of food product development services from concept creation to market entry. CSK chef instructors are at the forefront of the contemporary field of culinology – the merging of culinary knowledge and laboratory food science – as they develop marketable value-added food products.

• The National Research Council (NRC) facility in Charlottetown works with industry to focus on pre-clinical evaluation of terrestrial and marine bioactive compounds and their commercializa-tion.

• The Agriculture and Agri-Food Canada Crops and Livestock Research Centre is a source of knowledge and research assets related to sus-tainable crop production systems.

• The Atlantic Veterinary College promotes re-search in biomedical sciences, aquatic health sciences, pathology, microbiology, clinical stud-ies, animal welfare, and population health.

• The UPEI School of Engineering in Sustainable Design program and facility will graduate stu-dents ready to contribute to sustainable design in a range of industries including the food sector.


Collaboration and innovation are paramount to this success with strong support from provincial and feder-al business development programs. BioFoodTech has completed more than 1,000 innovation projects in the last 25 years. It was honoured with the 2012 Award for Outstanding Work in Food Innovation by the Canadian Institute of Food Science and Technology. Canada’s Smartest Kitchen was recently awarded a $1.75 million grant from the Natural Sciences and Engineering Re-search Council to address the research and innovation needs of small and medium-sized food companies and foster their productivity.

4.2 Areas of Concern

When it comes to assessing the current basis for future innovation in the PEI food industry, analysis yields some sobering observations.

Canada’s food processing competitiveness has stalled, and Canada is no longer regarded as a highly productive country among OECD countries. Labour productivity in Canada is low, with PEI ranking among the lowest of any Canadian province. Both the primary and the pro-cessing sectors are mature. Growth in these sectors has not caught up with the expansion of international mar-ket opportunities. Even though food processing is a key pillar of the PEI economy, attracting new companies to PEI has been a challenge. Food processing is shifting from resource sites to market locations, leaving PEI at a disadvantage as it continues to struggle with scale and environmental limitations. Energy costs have more than doubled since 1998, and transportation costs can create pricing pressures for PEI products competing against lo-cal suppliers in key markets such as Ontario. The reality of overall profitability is that PEI’s food sector consistent-ly underperforms in relation to the national average.

Human resources are also an issue, making it chal-lenging to recruit skilled labour to the food industry and to transition farm operations to the next generation. A telling result identified in a 2009 Statistics Canada sur-vey was that “25 percent of Canadian food processing firms claimed they were slow to innovate due to a lack of skilled labour.”9 While analysis is not available at a PEI level, it can be assumed that these factors, com-bined with competitive cost pressures, are impacting the growth of the province’s food processing sector.

Weakness in the overall culture of business development and innovation is prevalent, as some in the food industry struggle with basic business management skills. Tech-nology assessment capacity is sometimes inadequate, with personal relationships and informal word-of-mouth the guide to decision-making rather than informed advi-sory support. A culture of isolation, often a part of Island societies, is also a contributing factor. As a result, PEI fails to retain many of its brightest, most ambitious young Islanders and, with them, the opportunity to engage a new generation of leaders and entrepreneurs.

An aging primary sector is another reality. According to the 2011 Census of Agriculture, 47 percent of PEI farm-ers were 55 years and over.10 Another 46 percent were 35 to 54 years old. Only seven percent of PEI farm oper-ators were under 35 years old. This aging demographic is very similar in fisheries, with 3% of active fishers under the age of 34 and 40% of fishers aged 57 and higher 11. The aging demographics of our primary sectors impacts the sector’s future ability to play a significant role in the PEI economy, and, with the moderate profitability of many farms, is another factor in retaining younger peo-ple in the sector.

Environmental concerns related to the food industry also have an impact. Environmental regulations in a province with the highest population density in Canada adds to the cost of production. For small companies, compli-ance requires time and considerable resources.

The food industry is clearly undercapitalized. A 2011 study of competitiveness in the Canadian agri-food sec-tor indicated the Canadian food processing sector lags behind international competitors in terms of investments in research and improving productivity.12 Capital invest-ment in machinery and equipment in Canada is low and declining, with a 7.5 percent increase in PEI within the past seven years.

Even the Province’s lauded R&D facilities can have lim-ited impact. There are insufficient levels of industry-led research on the part of farmers, processors, agricultural organizations, and input suppliers. This is compounded by a lack of success in transferring research findings to implementation on the farm or the processing line, as well as limited access to and use of reliable market intel-ligence and market development expertise. Little com-petitive benchmarking with other agri-food leaders is being pursued to elevate standards.

4.3 Potential Threats

Commodities are volatile by nature and driven by com-plex factors. For example, although lobster landings in-creased by 3.9% in 2013, to reach a record 28.4 mil-lion pounds, the value of lobster landings decreased by 19.7% in 2013 to value $91.4 million.”13 Agri-food man-ufacturing has also experienced volatility in volume and contribution to GDP, due in part to plant closures such as the Natural Organic Food Group pork facility in PEI and declines in French fry processing.

The cost of transportation and energy, the value of the Canadian dollar and the food policies of existing and new customers are elements that are difficult to control. The cost of oil from year to year continues to be impos-sible to predict. New International trade agreements will increase competition for Island food producers in ways that are unprecedented.

PEI is a small place where single, large processing fa-cilities often dominate the marketing of an entire sector. Even if production of a given product is viable, the sud-den disappearance of one processing plant can be dire for an entire industry. The decline of the pork industry on PEI can be directly linked to the closure of the pork processing plant. The same would happen to the PEI Beef industry were Atlantic Beef Products to cease oper-ations. Once lost, it is hard to regenerate an entire value chain, even when prices improve dramatically.

As for any food producing region, there is always the danger of becoming a place of resource extraction rath-er than a place of food innovation. Recent success on the commodity side of agriculture and fisheries, driven by resource-demanding Asian markets, does not protect against a business model of dependence or complacen-cy about innovation.

9 “Survey of Innovation and Business Strategy,” Statistics Canada, 2009. 10 “2011 Census of Agriculture, Farm and Farm Operator Data,” catalogue no. 95-640-XWE, Statistics Canada, 2011. 11 PEI Fishermans Association12 “Competitiveness of the Canadian Agr-Food Sector,” Canadian Agri-Food Policy Institute, February 2011: 5. 13 “40th Annual Statistical Review 2013” PEI Department of Finance, Energy & Municipal Affairs, June 2014, Page 16.


4.4 Opportunities Moving Forward

Support for artisanal and locally created food products is strong in PEI with an increase in entrepreneurial small artisan and specialty food processors in the past five years. This aligns with burgeoning national/international interest in buying “small” and “local,” and suggests ad-ditional market opportunities for PEI food products. The specialty food sector is growing internationally by seven percent annually, with a 2013 valuation of $88.3 billion.14 Increasingly diverse immigration patterns are bringing newcomers from many countries and cultural traditions to PEI. Their presence can facilitate international market connections and broaden interest in a variety of food ex-periences. Access to China’s growing middle class and the historic Comprehensive Economic Trade Agreement (CETA) with the European Union, along with efforts to liberalize trade with other Canadian provinces, may sig-nificantly expand market opportunities and value chain options for a growing number of PEI food brands.

Major advances in food tourism, including the PEI Fall Flavours Festival, have done much to establish Prince Edward Island as a preferred destination. Successful hy-brid business models such as the PEI Preserve Compa-ny, Glasgow Glen Farms, Cows, and Medallion Smoked Salmon demonstrate the viability of a paradigm that re-lies on sales to the local market, demand generated by tourists seeking authentic product and mail order sales in the off season. Recognized by Zagat in 2012 as one of the world’s top “foodie getaways,”15 Prince Edward Island has enormous potential to become a premier destination brand, showcasing its innovative producers, processors, and products.

There is growing interest in cluster development by food producers and processors intent on attracting partners and creating activities that will accelerate change and economic growth. PEI’s embrace of an innovative food cluster model as a path to development can foster valu-able networking opportunities with other cluster organi-zations. Shared insights and experiences may allow the PEI food industry to fast track development, particularly in the areas of productivity and automation.

PEI’s enviable R&D food industry resources – BioFood Tech, The Culinary Institute of Canada, Canada’s Smart-est Kitchen, National Research Council, AAFC Crops & Livestock Research Centre and the Atlantic Veterinary College – have enormous potential for additional benefit if strategically managed and marketed. In the past three years alone, the number of PEI food industry members accessing Canada’s Smartest Kitchen services has dou-bled as people become aware of its range of services and expertise.

These opportunities moving forward require an intense commitment to a food industry-led strategy that is com-petitive; market driven; leverages current progress and strength; and is defined by innovation, collaboration, sustainability, and a keen pursuit of profitability. Steps taken now can lead to a more diverse, innovative, and profitable future if it is supported by long-term commit-ment, appropriate resources, collaboration, and a dedi-cated focus to succeed.

14 Specialty Food Association “The State of the Specialty Food Industry 2014” 15 Lauren Bloomberg, “8 Awesome Foodie Getaways Around the World,” Zagat.com, January 31, 2012.

“The reputation of Prince Edward Island as a producer of high quality lobster products has been vital in the emergence of our great brand.

It’s imperative to all Fishermen that we leverage that brand equity in all of our markets to help achieve premium prices for our amazing products.”

Craig Avery, President, PEI Fishermen’s Association


P E I ’ s F o o d I n n o v a t i o n E c o s y s t e m

Facilitated and catalyzed by the Food Island Partnership and with a clear strategy with desired outcomes, the PEI Food Cluster will benefit from a single-window approach to access expertise, services, and funding, with govern-ment and industry meeting frequently to maximize op-portunities for innovation, profitability and growth.

Navigating this food innovation strategy from paper to action will require strong leadership, long-term commit-ment, shared focus, and collaboration throughout the process. When successful, it will ensure that the unique food story that is defining the Island – and already excit-ing the interest of food enthusiasts alike – is delivered to the world at the speed of business.

“I love the story of the Island. You can’t find

a more pristine environment to grow a potato

or raise a steer. The Island is an isolated

wonder of nature.”

- Chef Mark McEwan, Head Judge “Top Chef Canada,” The Food Network, Toronto restaurateur and cookbook author.

“Prince Edward Island is a shellfish junkie’s

dream. Just imagine lobster caught a few

miles from your table, and PEI oysters

shucked within arm’s reach of their beds.”

- Lauren Bloomberg, Zagat blog writer, on PEI being named one of the top “foodie getaways” in the world.

Prince Edward Island has enjoyed widespread recog-nition for its unique scenic landscapes, pristine waters and clean environment, promoted through years of tour-ism marketing. Burgeoning awareness of its distinctive food culture now supports an emerging designation as a food destination and brand – firmly rooted in the quality of PEI’s primary products from land and sea. Food and tourism are vital, mutually reinforcing pillars.

The key question moving forward is what steps must be taken in the generation of a successful food innovation strategy that will align these existing resources, devel-op new products, increase exports, improve profitability, and ensure PEI fully realizes its potential as a food pro-ducer, processor and culinary destination.

The answer is clear.

Successful food regions know how to leverage the strengths of their economy and work together to build an integrated approach to food development. They un-derstand that proximity to competitors, suppliers and knowledge providers has a positive impact on innovation and competitiveness. Together, they establish a frame-work to attract and build relationships with researchers, businesses, government and funders; utilize financial resources; create knowledge transfer activities; provide marketing to recruit investment, talent, and new com-

panies; and promote an incubation process for emerg-ing companies and product development. As a result, they gain new market opportunities and increase profits for their entrepreneurs, stakeholders and companies as their region prospers.

In short, they start building a cluster.

Innovative clusters have much in common: deep spe-cialization, supported by public investments and aca-demia; dense networking amongst players, and even competitors; and global pipelines that attract new ideas, new investment and new players.

Successful clusters are industry led, but supported by public agencies with long-term outlook. They are built on innate foundations – industries that are natural to the region, rather than trendy for a time. They invariably demonstrate that companies located within a cluster are more competitive than those located without. And while brick-and-mortar industry parks, incubators, business consortiums, networks and industry associations are all uniquely important, it is their common purpose and im-plementation that constitutes a cluster.

A significant example is the PEI BioAlliance which, after 10 years, is firmly positioned as the enabling organiza-tion for PEI’s bioscience industry. Other cluster organi-zations may emerge around the PEI aerospace and IT sectors. The food cluster model, drawing on its many assets and long tradition of economic activity and val-ue to the Province, can flourish in PEI. Bringing together committed food producers and processors, entrepre-neurs, researchers, investors, and government partners, and collaborating with top-tier R&D centres and insti-tutions of higher education, it holds great promise for excellence, innovation and knowledge-based economic development in PEI.

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Important stakeholder relationships and a range of re-sources already exist to facilitate the PEI Food Cluster’s collective goals. They include primary producers; food processors and exporters; government representatives at all levels; industry associations; R&D service provid-ers; academic partners; and food tourism representa-tives.

Stakeholders will be engaged in two ways – through projects and through working groups in food tourism; food brand coordination; economic development; and product development.

The food cluster’s corporate communication outreach to stakeholders will focus on key areas:

• Collecting industry input [listening]: Once a year, the Food Island Partnership will gauge the state of the food industry through a baseline

questionnaire.

The PEI food innovation strategy requires important next steps to ensure a more diverse, innovative, and pros-perous future for the industry. Its success is contingent on industry-led commitment, the allocation of essential resources, and a competitive determination to succeed.

At the heart of the strategy are three key pillars – product/ company development; applied research; and brand – designed to champion private sector innovation, growth, and profitability. The creation of a distinctive provincial food brand and expanded product/company develop-ment will generate primary impact. Alignment and en-hancement of research assets will provide essential sup-port and attract new business to the province.

The broad-based collaboration, shared vision, entrepre-neurial leadership, and market focus of cluster stake-holders will guide the strategy toward successful imple-mentation. The Food Island Partnership will coordinate and monitor progress to help advance PEI food innova-tion, export growth, and profitability.

8.1 Product Development and Company Growth

The need for food industry product development is a core reason the Food Island Partnership exists. With BioFoodTech and Canada’s Smartest Kitchen, for exam-ple, PEI enjoys two world-class R&D institutions, yet the opportunity to make new product development a con-sistent part of doing business in PEI is still not fully real-ized. The food business can appear static, especially for companies who consider themselves in the producing, harvesting or processing business, but it is the business of delivering products to market that determines future success.

Prince Edward Island is a small place, far from import-ant consumer markets, and within a system driven by commodity economics that rewards low-cost produc-ers. Adding value to food products is essential to add-ing value in the eyes of consumers, and this demands innovation.

A new and comprehensive food innovation strategy for PEI will be defined by a vision ambitious in scope, yet attainable: to establish Prince Edward Island as an internationally recognized place of origin for pre-mium food products and a destination for culinary excellence.

Ensuring Prince Edward Island fully realizes its potential as a food producer, processor and food tourism desti-nation requires innovation, enterprise, applied research, business development and the synergistic realignment of resources. The mission is clear: to support new and existing sector stakeholders to produce premium food products, strive for culinary excellence, and generate wealth by providing applied research, product development, and marketing and branding services.

• Sharing the vision [sharing]: Periodically, the Food Island Partnership will organize summit events for Island companies to share industry trends and applied research, and to heighten the cluster visibility.

• Alignment of Supports (coordinating): The Food Island Partnership will work closely with relevant government agencies to encourage alignment of resources and supports to maximize economic impact for the province’s food cluster.

• Celebrating success [promoting]: The Food Island Partnership will become the lead agency promoting the food industry on PEI. Website, newsletters and social media will deliver an inte-grated corporate communication plan.

Shared leadership involving cluster members will in-crease stakeholder engagement and ownership of suc-cess. Regular internal conversations will be promoted with all constituents, particularly involving key provincial government departments and federal partners.

New products provide a window of opportunity. As long as the product development cycle is faster than that of bigger companies, small companies have an edge. Standardization has made products cheaper, but frag-mentation can add value once again. Gone are the days when consumers simply purchased a cup of coffee; they now choose from an infinite amount of different origins, harvesting methods and types of roast.

An enhanced strategic advancement of R&D relation-ships with Canada’s Smartest Kitchen, BioFoodTech, the National Research Council, and other research partners will be a critical factor for the food industry. Working to-gether, they can promote early-stage commercialization and growth – taking new ideas from concept through testing to the store shelf or the table-- and build a critical mass of innovative food producers and processors on the Island.

8.2 Applied Research

Innovation in the global food industry extends well be-yond traditional food products. From advancements in crop attributes and processing technologies, to func-tional food ingredients and bio-energy applications, col-laboration between research agencies and the PEI food sector is one of the key success factors for the PEI food industry.

A way to reverse PEI’s record of productivity underperfor-mance in the food industry and drive change is to adopt new technology at all levels of the value chain. From the development of new varieties or harvesting technolo-gies, to the mitigation of disease and predation, to the creation of new processing, packaging and traceability technology, applied research can be focused where new supply chain collaboration opportunities exist.

Knowledge is power, and a market intelligence network that sheds light on competitive strengths and weakness-es is crucial to any industry. The PEI food sector is dom-inated by small companies often lacking resources to gather industry intelligence. The Food Island Partnership will help fill that gap by providing access to market intelli-gence and industry analysis. It will also work with individ-ual companies and industry-level supply chains on new

As a facilitator for the food cluster, the Food Island Part-nership will work closely with industry, research and government partners to coordinate and monitor prog-ress and promote the success of the food innovation strategic plan. The Food Island Partnership’s mandate is defined by clear values.

• We act as a catalyst. Innovation is a process. We accelerate it. We partner to achieve it.

• We aim to impact through focused effort. Food Island Partnership will be selective in the projects it chooses and aims to do them well.

• We look for the long-term impact. This makes us an important planning partner.

• We serve the food industry of Prince Edward Island, but we don’t follow it.

• We do not always strive for harmony. Sometimes disruption is needed to effect positive change.

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concept assessments, technology assessments, feasi-bility and benchmarking studies related to competitors.

Prince Edward Island still suffers from a product/ market mismatch, with products that markets no longer want, and markets for products that do not exist. Processors can redress this dilemma through product development and product replacement, with applied research and new product development ensuring that supply can be provided in a profitable way and the value chain is aligned. The Food Island Partnership will help identify these opportunities and work with all levels to create profitable business models.

8.3 Brand

Regardless of goals, sector, product, or organization, food industry stakeholders understand the value that a strong PEI food brand brings to their bottom line. Grow-ing recognition of PEI’s emerging reputation as a food brand and destination – fostered by alignment of food and tourism interests – is reinforcing the valuable con-nection between product and place.

This inherent opportunity is positioning the PEI brand as the cornerstone of economic development for food. Key is a business relationship based on identity – an identity that is proprietary. Frequent food-related comments re-ceived from Island visitors are related to the value of the PEI brand, the story about identity, the authenticity of the message, and the quality of the human relationships.

A PEI food brand requires an integrated strategy to coalesce a Prince Edward Island food brand in partic-ular, and the brand of Prince Edward Island in general. It involves four distinctive levels of branding: the Can-ada brand; the PEI brand; food commodity brands (Malpeque, Island Blue, PEI potatoes); and corporate

brands. Guidelines can be developed for a PEI food brand, as well as certified proprietary food brands based on region of origin. They will delineate marketing, license producers and sellers, protect product standards, and increase value and supply. The Food Island Partnership will be the coordinating agent to connect their individual strategies and increase their collective impact.

Other provinces have “buy local” programs. While suc-cessful in provinces with a large consumer base, the impact in a province with an internal marketplace of 145,000 people will be limited. What will have enormous impact occurs when 145,000 Islanders decide to be-come ambassadors for PEI food products. In the age of social media and the importance of credibility in mar-keting, it is crucial that a population demonstrate pride in, and knowledge of, its own products, in order to suc-cessfully export them.

This credibility is even more importantly related to tour-ism. Availability of and access to local products is be-coming a pre-requisite for all tourists, not just the “food-ies” among them. PEI has made great strides in food tourism, but with its strong potential, there is so much more to be done. Linking experiences, festivals, product demonstrations, and the celebration of product, place and people into a branding strategy will be a key focus of the Food Island Partnership. The food cluster will pro-mote agreement on what brand “success” looks like and the initiatives needed to achieve it.

The cluster-based PEI food innovation strategy is driven by the three key pillars – product development/company growth; applied research; and brand. Each pillar, in turn, is directly supported by clearly established goals and objectives resulting in targeted actions and projects. Key metrics are in place to evaluate progress and ensure accountability during the imple-mentation of the strategy.

9.1 Impact through Product Development and Company Growth

Goal 1: To access new markets through value/supply chain integration.

This will be achieved by identifying non-branded opportunities for product and market development by working at all levels of the value/supply chain. Relationships with market buyers and assessments of emerging technolo-gies will be part of the process to identify new opportunities for potential gain within PEI food’s sector. A range of existing supply chains is outlined in the adjacent table. It highlights the significant impact that supply chains have in our province’s largest sector. Beyond the examples cited, its important to note that many other supply chains exist, from well established potato, mussel, oyster, lobster, and vegetable processing/packing operations and their respective networks of growers, to emerging supply chains in areas ranging from specialty crops, to grape/wine production, to cranberry value-added exports.

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Select Examples of Prince Edward Island Supply Chains

CAVENDISH FARMS Cavendish Farms employs roughly 600 employees and processes approximately 40,000 acres of potatoes in PEI from its network of approximately 90 farm businesses.

ADL ADL employs approximately 250 employees and is a producer owned co-op with approximately 97% of Island dairy producers supplying it an estimated 100 million litres of milk each year.

WYMAN’S Wyman’s recent expansion increases its processing capacity to 20 million pounds creating a larger local processing option for Island wild blueberry growers.

CERTIFIED ISLAND BEEF Certified Island Beef is a partnership between Cattleman Association, Atlantic Beef Products and Food Island Partnership with 62 beef producers approved to supply this premium brand.

PEI GRAIN ELEVATOR CORP. The PEI Grain Elevator is the largest grains and oilseeds exporter in the province, selling approximately 85,000 tonnes of grains and oilseeds per year on behalf of Island growers.

FISHERMAN’S BRAND The Fisherman’s Brand is an initiative of the Fisherman’s Association and its 1200 members to brand PEI lobster and secure a premium in the marketplace.

MONAGHAN FARMS This award-winning partnership has brokered premium, contracted production with eight & WEST ISLE ENTERPRISES growers and is one of the largest volume exporters of raw potatoes in the world with Frito Lay.

“The increasing interest in food tourism and high quality Prince Edward Island branded food products are the key foundations for the growth of my business.” Jeff McCourt, Glasgow Glen Farm


Goal 2: To increase the number of food companies on PEI.

Mentorship, expertise, entrepreneurship training, connections to funding, and related supports will be provided to new and early stage food companies. In conjunction, a new “Food Emergence” incubator program will be launched.

Food companies offering strategic benefit to the food sector and PEI will be recruited to establish PEI operations. A new food attraction working group will support this effort. An analysis of key strategic sectors, targeted com-panies in these sectors, and high priority trade shows and events will be conducted to generate new leads and networks. A partnership with Food Valley in the Netherlands will be established to facilitate incoming company attraction of European firms and technology to PEI.

Goal 3: To improve productivity for PEI companies.

Existing food processors will be engaged and provided with customized support services to grow or improve the competitiveness of their businesses. To do this, a food processing working group will be established. Initiatives with existing food processors in areas such as product development, packaging, company branding, technology assessment, market development, partnerships, and strategic business reviews will be initiated.

Goal 4: To increase the number of new products being developed and commercialized.

Food product development by new and existing food processors will be encouraged and supported. In con-junction, a “Food Product Development” competition to identify potential new products will be instituted, with support for the commercial launch of the winning entry. Work will be done with partners in the marketplace to identify product needs and gaps, and to identify and introduce potential Island partners. Gaps in current pilot plant assets will be examined and recommendations made for investment. The functioning of our two main food product development organizations will be aligned and the food incubation capacity on PEI grown.

9.2 Support through Applied Research

The goal is to ensure the availability of relevant applied research capacity to address technical challenges and provide unique technologies that assist supply chain partners in accessing new and existing markets.

Sound applied research is a key foundation for developing profitable industry level supply chains and company specific growth initiatives. The Food Island Partnership will work with industry partners to bring a market driven research focus to advance new opportunities and address industry challenges. Applied research activities will be conducted using the food cluster’s network of expertise and industry contacts to help PEI growers, harvesters, food processors, and other industry players align themselves to take advantage of emerging market opportunities and overcome selective obstacles that are negatively impacting the profitability of the sector.

The first applied research objective is to enhance the primary supply chain for cluster initiatives. This will include coordi-nating the Eastern Canada Oilseed Development Alliance project to help producers achieve increased profits from oilseed crops. Applied research will also be engaged to identify proprietary varieties and/or production methods that ensure PEI a distinct advantage in the marketplace.

Economic research will also help position initiatives to benefit the food industry. A transportation benchmarking study will be launched; it will ensure and coordinate cost-of-production studies for PEI food products and an industry productivity audit for the PEI food industry – especially for the processing community. Applied research will also support the coordination of a potential CFIA maritime union for product distribution. Economic research will measure and communicate the competi-tiveness of PEI food sectors.

9.3 Impact through Branding

Goal 1: To develop, coordinate and implement the provincial food brand.

A series of objectives will drive economic development by building brand awareness and promoting the associ-ation of PEI as a producer of high-quality foods. The PEI food brand will leverage tourism promotion and trade development to full advantage. The developed food brand, once established, will be licensed for use with its standards protected and maintained. PEI food-branded trailers on route to key markets in Philadelphia, Boston, and Toronto will be wrapped with brand-related material. A series of PEI branded events will promote PEI food brands. This will include the International Boston Seafood Show and a promotion for PEI branded seafood, tar-geting distribution, food service, and consumer audiences. A central component will be the development of PEI brand assets to be utilized in marketing and promotional activities.

A further objective is to create key proprietary PEI food brands in coordination with all stages of the value chain. Standards will be implemented to act as a quality guarantee and a competitive differentiator in the market. This will include the branding of a proprietary potato variety identified as “the PEI potato.” A certified, high-quality Is-land beef brand will be developed with partners along all aspects of the value chain, achieving higher standards and higher prices than commodity beef. A fisher’s brand will also be promoted, branding PEI lobster products with quality standards to achieve a premium paid to the PEI Fisherman’s Association. A working relationship will be forged with the Mussel Industry Council to promote the PEI Mussel brand. Work with stakeholders in the oyster and quahog sectors will define both a PEI oyster and a PEI quahog branding strategy.

Goal 2: To establish PEI as a place of origin for premium food products in North America.

Events: Visitations to the Island will be promoted through key food tourism events. The Island-wide Fall Flavours Festival, already successful, will grow to become a leading North American food festival celebrating PEI prod-ucts, producers, and chefs.

Media Partnerships: Media partnerships will be utilized to promote PEI as a food destination and a source of premium food products. Media campaigns with partners such as the Food Network, Zagat, or Trip Advisor pro-mote the PEI food brand and identity it as a food destination. Every effort will be made to connect PEI products to place and people.

Product Development: To maintain its hard-earned position as a food tourism destination, efforts will be made to expand the number and quality of food-related tourism experiences and culinary tourism products on PEI. This will involve further development of the PEI Flavours Culinary Trail and efforts to expand key products such as wineries and catch-and-release tuna fishing experiences.

Goal 3: To increase the consumption and pride of PEI food products on-Island.

Access to local food for Island consumers will be improved. Small-scale distribution networks will be supported to connect small buyers and suppliers to local purchasers – and potentially off-Island markets, as well. The de-velopment of the Fresh Products Directory continues to be a priority. Initiatives supporting distribution systems that make Island products accessible to consumers and suppliers, and local food market development will be pursued. Working with on-Island institutions, the PEI Food Cluster will help improve accessibility to local food. Local products and producers will be celebrated, encouraging local operators and producers to use PEI Flavours branding to create Islander pride in the PEI food brand. The popular Burger Love, Porktoberfest, and Love Our Lobster promotions will continue to drive awareness of PEI products.


Setting benchmarks and evaluation metrics are essential to assessing the ongoing progress of this comprehensive new strategy. Each action and project supporting an objective is subject to micro evaluation. Macro measurements are applied to gauge the success of broader goals.

10.1 Impact through Product Development and Company Growth

Goal 1: To access new markets through value/supply chain integration.

Goal 2: To increase the number of food companies on PEI.

Goal 3: To improve productivity for PEI companies.

Goal 4: To increase the number of new products being developed.

Five macro measurements will ascertain progress made in developing new, improved, and diversified food products, processes, and companies.

• Positive contribution to increase food exports and margins.

• Increase number of food companies and sales generated by PEI food processors.

• Increase profitability of PEI food processors.

• Increase level of food innovation and networking in PEI food sector.

• Increased diversification of products and companies.

10.2 Support through Applied Research

The goal is to ensure the availability of relevant applied research capacity to address technical challenges and provide unique technologies that assist supply chain partners in accessing new and existing markets.

Three macro measurements will gauge the important role applied research plays in supporting agency objec-tives. They will include enhancing the supply chain for cluster initiatives; identifying proprietary varieties and production methods; facilitating a transportation benchmarking study, food cost-of-production studies, and industry productivity audits; coordinating a CFIA maritime union for product distribution; and measuring the competitiveness of PEI food sectors.

• Results of applied research supporting industry supply chain and company specific projects.

• Number of industry research partners.

• Project implementation.

10.3 Impact through Branding

Goal 1: To develop, coordinate and implement the provincial food brand.

Five macro measurements will track the success of building the provincial food brand.

• Brand recognition.

• Awareness of PEI brand.

• Ambassador relationships.

• Export sales.

• Participating industry partners.

An additional five macro measurements will be applied to the successful development of certified proprietary food brands.

• Market awareness.

• Concurrent industry statistics versus years previous.

• Consumer feedback.

• Brand recognition/perception.

• Participating companies.

Goal 2: To establish PEI as a place of origin for premium food products in North America.

Five macro measurements will evaluate success in establishing Prince Edward Island as a place of origin for premium food products.

• Awareness of PEI food products in key markets.

• Awareness of PEI as a culinary destination.

• Food tourism as primary travel motivator.

• Perception of food tourism product.

• Growth of the artisanal sector.

Goal 3: To increase the consumption and pride of PEI food products on-Island.

Six macro measurements will determine progress in increasing on-Island consumption of PEI food products.

• Pride in product.

• Availability of PEI products on Island.

• Amount of PEI food consumed on Island.

• Reduce trade deficit in food.

• Growth of the small scale farming/seafood distribution sector.

• Growth of the artisanal sector.

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26 F o o d I s l a n d P a r t n e r s h i p S t r a t e g i c P l a n

1 1 . 0 C O N C L U S I O N

The November 2013 Speech from the Throne charac-terized Prince Edward Island as poised at a landmark moment in its history. Through enhanced vision, political leadership, and alignment of available resources, a new and comprehensive food innovation strategy could dra-matically boost the impact of food production and man-ufacturing as a seminal pillar of the provincial economy.

Vital steps in this new strategy have since been defined with a renewed emphasis on product development/company growth; applied research; and brand as key components. The goals are ambitious, establishing PEI as a premier North American food destination; increas-ing on-Island consumption of PEI food products; and developing, coordinating and implementing a provincial food brand. New markets will be accessed through val-ue chain integration; the quantity of PEI food products increased; and the productivity and number of PEI food companies enhanced, with the applied research needed to support these goals and objectives.

The already-existent PEI Food Cluster – supported by the newly formed Food Island Partnership – is assuming a principal role in ensuring food innovation strategy suc-cess. Bringing together food producers and processors, entrepreneurs, researchers, investors, and government partners, and working with notable R&D centres and in-stitutions of higher education, it engenders great prom-ise for excellence, innovation and knowledge-based economic development in PEI.

The time for concerted effort is now. As the nature of the food industry evolves globally and principles of the old economy are replaced by the new, a myriad of op-portunities are being presented to those nimble and in-novative enough to seize a new direction and develop its potential. Prince Edward Island, if willing to embrace and capitalize on its unique advantages, could benefit as never before.

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