Era ends with Niagara cannery's closing

On June 27, Cangro closes its doors on its St. David’s plant and everything changes.

What is likely a small decision on the part of the owners (investment companies Sun Capital Partners Inc., of Boca Rato, Florida and EG Capital Group LLC, of New York) has had a seismic effect on growers, consumers, the region and the economy.

Growers have responded quickly, in some cases pulling up old orchards and replanting them with fresh market peaches. But the future is murky, with worries over rising costs and the possibility of a flooded market in four years when those new trees start bearing fruit.

Much of the fate of the industry ultimately relies on consumers – will they support local produce? Will there be as much to buy?

What will happen to the economy?

What’s the role of government?

There’s no telling what will happen in the area once billed as the Garden of Canada.

Next week, the spec.com launches a special report with background and analysis of the situation in Niagara. If you have a contribution to make, please comment here on this post or email us at cannery@thespec.com

 

Comments

[Gregory D Hough]

Excellent comments but I'm afraid there is not enough interest in sheer survival at the momen.

We all know how things got this bad for homegrown folks. Victor Benoit sums it up nicely:

The consumer is the problem
http://thespec.com/article/396868

But we consumers shouldn't accept all the blame for our uncanny ignorance and flatulent induced lust for higher definition. If folks had been warned to stockpile canned goods last year, CanGro would be full blown and the AgroFresh revolutionists would've been shown the door.

Common sense dictates that a canning operation should be nearest the source of the produce. But now we will buy fruit cocktail in cans from God knows where, riddled with God knows what like so much pet food. It's downright scandalous!

We must all wage war with our wallets and wrest the assurance, we're working together in one of our world's safest havens:

Canadians well placed to survive global warming
http://thespec.com/News/Local/article/397890

We may think it's stormy now but we ain't seen no thing yet.

[Donald J. Lester]

Perhaps we will all should take this issue more serious,
but the facts are we only pay attention when the storm hits.

"Biofuel production boosts food prices by 75%, report suggests" (cbc.ca)

http://www.cbc.ca/consumer/story/2008/07/04/biofuel-food.html?ref=rss

[Dave]

Well the first step that our government could do is this.

Recognize the cost of doing things here at home from beginining to end in a product's cycle.

Then raise import costs of ANY offshore competition to match what it costs to do business here, thus allowing local producers to survive the offset in costs.

This ALONE would ensure a fair market for Canadians.

[dwayne green]

Let's import cheap labour rather than cheap products countries with cheap labour. When I seen them ripping out trees on the news I felt sick.At a time when the world has a shortage of food ? Do we need to give grants to change canning plants to flash freeze Plants.Are we better to import cheap labour rather than food from cheap labour regions in the world.Who do we talk to?

[Mary Louise]

Thanks Spec, for giving this story the importance it deserves.

I'm one of those consumers who will be canning her own peaches from here out. I have a share in an organic farm, and buy local whenever possible. (Buy pure apple juice only, apple juice from concentrate comes from China!) More and more consumers are making these types of choices.

Now if we could just get city council and their developer buddies to stop turning prime agricultural land into warehouses for plastic crap from China, we might actually have a chance at survival.

[Michelle Hruschka]

Economy of scale is much more relevant now than ever before, in which larger, more efficient corporations have the advantage

But why do they have the advantage? I think one has to look at international labour standards. Globalization, is a good theory on paper but the practicality of it that it does little to lift those in other countries out of poverty and is a direct cause for many here having to work for lower wages and thus the declining standard of living for many.

[Ron Scheffler]

"The world needs to close it's borders to foreign takeovers and let a country self sustain itself. If a company wishes to invest in canada then so be it, but keep the plants and the jobs here in canada with the product sold in canada for canadians. The rest of the world should be doing likewise.."

First of all, the world doesn't have borders. Countries have borders. And, it's the year 2008, not 1608. The world is a different place now than even only decades ago, with a much more integrated global economy. As much as some would like to hope otherwise, what happens on the other side of the world does affect us, whether it's oil, steel or peaches. Economy of scale is much more relevant now than ever before, in which larger, more efficient corporations have the advantage. The only way to grow beyond national boundaries is to grow globally. Of course this results in mergers and large multinationals and the closure of inefficient operations.

Do you realize the result of your proposal would be harmful to Canada's overall economy? According to the stats at the Industry Canada website, Canada is a net exporter. We exported $450 B (billion) last year and imported $406 B (of which the USA accounted for $220 B and China $38 B). There are a lot of industries in Canada that still rely on export, including for example, wineries in the Niagara region. Ontario's small but well regarded wine industry had exports of over $20 million last year.

If you look at the numbers for prepared peaches, Ontario accounted for exports of $547,000 and imports of $11.7 M (million) in 2007, with another $13 M imported by other provinces. Ontario trade in fresh peaches accounted for exports of $114,000 and imports of $51.3 M, with another $29.6 M imported by other provinces. According to the Ontario Tender Fruit Producers' website, processors (canneries) purchased $2.97 M worth of Ontario peaches in 2007 from 76 peach producers, while the fresh market crop was worth $17 M. The numbers seem to imply that most of the processed peaches remained in Canada, so clearly there is some market demand, but apparently it's not enough to sustain the CanGro plant. Based on information at another site, one of the unsuccessful bidders for the CanGro plant, Bill Duffin, a local pear grower, may still launch a fruit-processing operation.

It's interesting though... combine the Ontario peach production numbers with the national import numbers and the national fresh peach market is worth over $100 M. What is it that prevents local producers from funneling the $2.97 M that would have gone to processors to the fresh peach market instead?

In any case, I don't think it's all doom and gloom. The Len Troup interview implies that many growers have already made alternative plans. Like any business, things change and those successful enough to stay in business adapt to the changes.

[Bernie Bailey]

If you think any government is going to help the people this is how it realy happens Please google -I owned the last dairy wingham -to demonstrate the way our governement helps foreign multi nationals ( Beatrice- Parmalat- x brand) as compared to a locally owned company like SunRise Dairy Wingham- Lakeside Dairy Lemington- Hewitts Dairy Hagersvile. One hundred mile radius -ya right. I have always contested the treatment of SunRise Dairy, but the wall of corruption, racketeering and payola has proven to be a formidable foe. Now that my predictions are coming true -a few owners of the food production plants in the world--up,up,up goes the price to consumers and away,away goes the jobs. Well now it comes down to the farmers . Where will they send the raw products. All the evidence I can provide shows that governments of all stripes in Canada are only concerned about creating jobs in other counties and how great they will look in history books for doing this. Maybe someone should take a look in our own backyard. With the end of companies like SunRise, Campbell Soup and Cangro (Canadian processing plants) where will the farmers and employees work? Just a thought, but they could get a minimum wage job working for the multi nationals like Walmart as the Ontario government has continually boasted about these new jobs or go on social assistance as this is the path we are running down.

Thanks and good luck, Bernie

[Dave]

The problem with the world is the government's are allowing for corporations to buy out the companies that make a country strong and then remove them in the interest of getting richer, thus leaving a hole where the companies once were. Enough of the these global buyouts and removals lead to a country with nothing left.

The world needs to close it's borders to foreign takeovers and let a country self sustain itself. If a company wishes to invest in canada then so be it, but keep the plants and the jobs here in canada with the product sold in canada for canadians. The rest of the world should be doing likewise.

[Ann Lawton-Barry]

Because it doesn't look as though there will be any rescue for the local canning industry, maybe the art of home preserving will enjoy a return. I already do my own pickles, tomatoes, so I'll now include local fruit. Back to the days of my childhood when my mother put down vegetables and fruit - and boy, did they taste wonderful !

[Brad Mathews]

All due respect, I worked at Delmonte in St.Davids back in the 70's. I worked overnights cleaning and repairing equipment. That stuff was obsolete then. All we used were pears for the fruit cups. Everything else came in gallon cans. Plant was too small for the scale of operation needed today to make a profit. Yes it's sad but reality bites. Lets hope the local farmers can make a go of it selling to local markets. If not, I'm sure there's room for another winery.

[Mark]

So sorry to hear of yet another casualty in Canada's food and agriculture sector. However, life will go on in Canada as it always does. We as Canadians choose to ignore the fact we are loosing thousands of jobs with each passing day. First the manufacturing sector was dismantled "plant by plant" then the steel industry, the auto industry and its providers and now the growers. Canadians have just resolved with themselves that "it wont happen to me". By the time we do come to realize the impact, it is often too late. For example, there is no place in Canada to purchase a white product(fridge, stove, water heater etc.) Even if we wanted to be patriotic and buy canadian made we can't. We have screwed ourselves with free trade. All we have done is open our borders to countries with cheap labour and poor environmental laws. We have shot ourselves in the foot.

[Allan]

I find it really interesting that the Government keeps pushing this global warming and that it is the peoples fault. If this is true why are all our jobs going to china to be shipped here . If they are so concerned they would keep as much local as possible.I for one think that LIAR Mcguinty has made some sort of deal with china that benefits him and screws the local farmers

[Andrea]

We can't rely on the government to step in and look at sustainable food production and distribution. It has to start at the community level. We have to start understanding our connection to the food we eat and place long term sustainability above turning over a short term profit. Does the ubiquitous nature of globalization trump food security, social and environmental returns?

What about starting a community supported canning plant? I'm in.

[Doug Ballantyne]

Where is Dalton? He always talks about the people of Ontario, but only the people of Ontario working in the auto industry. Out of the Kraft plants taken over by Cangro are there any still open ? I don't think so. Ball packaging in Burlington which at one time was called Canadian Canners supplied those cannerys and it too has closed. More lost jobs. I hope someone from the Liberals shows up at St.Davids to offer support because there was no support at Ball. But wait, my mistake, we have nothing to do with the auto industry.

[Nick Phillips]

It is a shame to let CanGro disappear. We should have said it was a car manufacturing plant. The government would have shelled out the $5 million on the spot. Shame that the government sees no merit in helping our farmers to compete in the global market. Enough prime farming land has been lost in the Niagara Peninsula. Soon the farmer will be a memory. Shed a tear when you see the heaps of pulled out trees and empty orchards. Thank you Mr. McGuinty for showing faith in the farmers of Ontario. I guess cars are better and healthier than home grown, Canadian processed food. Breathe deep.

[Gregory D Hough]

We're freaking Doomed! At a critical time, when we should all be stocking our pantry's with canned goods, a key cannery closes.

But we deserve it don't we? Just like everything else, we'll suck it up and pay the FSC (Fuel SurCharge). Maybe we won't even notice everything is now being sold at half the size for twice the price. We're too timid, too weak and too stupid to care.

A land flowing with peaches and cream is vastly becoming the pits
Those who floated high on the froth are sadly devoid of their wits
But that is just fine
Let it rot on the vine
We're too afraid to put on our mitts
Face them
And spit

[Martha Christianson]

We need to shift our thinking. If we don't pay the price now, there will simply be no tomorrow. We need to grow locally. We need to package minimally. We need to buy it from our backyard. The planet will not sustain the abuse of the true cost of travel for our fruit or vegetables. There needs to be incentives for the purchasers of today to protect the children of today, or there will be no tomorrow for these children.

[Donald J. Lester]

June 22/2008
A key cannery operation in Niagara is closing this week. Would you pay more for locally grown produce to protect the region's fruit industry? Take the poll and click here to comment in Have Your Say
Yes (80.48 %)
No (19.31 %)

This pole seems to contradict the reality...After spending a couple of hours observing grocery shoppers, the facts would suggest the exact opposite of the pole...the ticker tape doesn't lie...the greater majority's purchases are based on price....one has to ponder the validity of this poll..?

[Janet Fraser]

The news of the closure of CanGro is devastating to the Niagara region. I heard Bill Duffin from Font Hill speak on CBC explaining his plan to purchase and operate CanGro. He needed $5 million in financial backing from the province. The Province of Ontario let him down. They let down the farmers of Niagara and the people of Ontario.Niagara has the best soil and climate in the world for growing fruit. I grew up in Niagara region and all my childhood memories include orchards in blossom and trees laden with fruit in late summer. My grandmothers, Hungarian immigrants, both worked in the 'canning factory', happy for a job!My grandparents canned locally grown fruit at the end of the season, so we grew up eating local food!
Things changed over the years...food came from elsewhere..cheaper labour, meant cheaper food inspite of travelling thousands of Km to get to our table. This is so wrong.
Today I make a point of using my "Buy Local" map put out by Environment Hamilton and I will definitely pay more to buy local. Perhaps I can just eat less, so I can afford the quality of Ontariongrown produce!

[Janet Fraser]

I grew up in the Niagara Region in St. Catharines, and my childhood memories include orchards with blossoms and fresh fruit. My grandparents were Hungarian immigrants and both my grandmothers worked in "the canning factory". I don't know exactly where they worked but they worked hard for low wages and were very happy with the work! On days off my grandparents would go pick fresh fruit and bring us baskets overflowing with delicious Niagara fruit.They canned the fruit,in fact they canned everything... and so I grew up eating local produce most of my life...until I grew up. Suddenly everything we are eating seemed to be coming from elsewhere. All those miles on the road, all those fossil fuels burned,so I can have food produced cheaper , by cheap labour? I have returned to buying local food...I am making a point of seeking out local sources, farmer's markets, using the 'Buy Local Map' which has been created by Environment Hamilton.
I am devastated that the last canning factory in Eastern Canada is closing it's doors...there was a solution. I heard Bill Duffin of Fonthill on CBC expaining his plan to purchase and operate CanGro..but he required backing of $5 million from the provincial government. The provincial government has let us down...the farmers, the consumers. The best soil in the world with the best climate for growing fruit is in Niagara...what will become of the farming industry?
I will gladly pay more to buy local...and those who say they cannot afford it, might want to think about buying quality food, but eating less.

[Gregory D Hough]

I'm still trying to understand why a basket of cherries from California is cheaper than a basket of cherries from Ontario. If I go and pick a peck myself, like I usually do in a couple of weeks, the price is about the same when it should be much less.

I suspect that consumers (commoners) will purchase more local produce when it becomes more competitively priced. E.B. Smith makes some really good top shelf jam, but at a cost most can't reasonably reach for. Farmers had best reunite and continue to pool their resources if they wish for us to help them maintain their tractors. There are two farmer's markets within walking distance of my home near Ottawa Street North. They are both doing remarkably well I'm delighted to say.

The questions: "Much of the fate of the industry ultimately relies on consumers – will they support local produce? Will there be as much to buy?

The answers: Yes, because local consumers will eventually have no choice but to buy local. And yes, there will be plenty to buy, although we'll probably have a lot less to spend. Perhaps theSpec's special report, "A Twig's Tale" will shed some light on Niagara's plight and how it might affect the Hamilton area vine dressers right, by those fearless farmers who fist their forks and food fight.

Let's not fret Sun's Chaps or the Big Apple's flight
They's just plain chicken and pale white with fright
This is the billed Garden of a Canadian's birthright
In Ontario fields are knights filled with God's might
That needs not esquire our keen ombudsman's oversight

[Donald J. Lester]

What is most telling on this issue is that the public has little interest. This fact is reflected in all political arenas. Though many have jumped on the band wagon and rallied their horses about the protection of farm land but have truly failed to protect agriculture. With urban infer-structure collapsing the present methodology is arrest all and any rural growth and squeeze such growth into urban areas on the pretense of saving green space; adding a twist of political manipulation of "saving agriculture" such gibberish is so far from the truth.

Perhaps for most the fog will only lift when they wake up and find not only has the price of food doubled or tripled but that the farmer's field sit barren for lack of fuel and coin to buy seeds. In a Country where production of food abounds yet it is the most dominated and controlled and intruded upon industry by governments and the least supported with the exception of lip service. Remember waking up to $1.30 a liter for fuel? But when you awake to $5.00 for a loaf of bread $10. for four liters of milk or $3.00 for a fresh fruit don't be surprised! or got to your favorite grocery store to discover mother Hubbard's is displaying empty cupboards...

Perhaps a little exaggerated but a picture that needs to be painted...

[Michelle Hruschka]

It seems to me the the common people need to start talking. Does it make sense to import food because the labour is cheaper in light of rising energy costs? Does it make sense for local farmers to be struggling barely making liveable wage and having to compete with the multinational companies that exploit workers? Does it make sense to have those corporate interests which want do away with the farmland, in the name of progress?

[Donald J. Lester]

Perhaps the days of canning have switched to fresh frozen. Though the reality of growing for food is being replaced with producing food for fuel bi-product.