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Business risk management (BRM) continues to be the central objective of agricultural policy in many countries, including Canada and the US. The unprecedented volatility that has characterized the farming sector in recent years is only expected to rise. Thus, governments continue to implement comprehensive suites of BRM programs to assist farmers in coping with these gyrations. This paper aims to examine 1) the relationships between the main Canadian BRM programs (AgriInsurance, AgriStability, and AgriInvest), and 2) if and how those relationships differ across different farms. Understanding the interlinkages between government BRM programs is central for policy makers in order to achieve the desired objectives. The analysis uses data from the Ontario Farm Income Database (OFID), which is a longitudinal farm-level dataset compiled from Ontario farm tax-file records from 2003 to 2011. The dataset contains detailed financial, production and program payment (except for Production Insurance/AgriInsurance payments) data for all Ontario tax-filling farm operations. Additional operator-level Production Insurance/AgriInsurance payment data is linked to farm-level OFID records to complement the program payment data. The paper uses a two-stage approach to examine the relationships between AgriInsurance, AgriStability, and AgriInvest. First, a multinomial probit model is estimated in which the dependent variables are dummies for all eight possible combinations of participation in the three programs and the independent variables include program participation in previous year, operating profit margin, operating expense ratio, leverage, diversification index, size, and sector. In the second stage, the predicted probabilities of the eight participation states from the first stage multinomial function is used as regressors against percentage falls in gross margin (operating revenue minus operating expense), controlled for size and sector. We find that participation in the previous year has a strong and positive effect on participation in the current year, and the three programs are generally treated as compliments. We also find that in general, farms that participate in some combination programs have smaller drops in gross margin compared to those that participate in no programs. Despite this effect, operators continue to drop out of BRM programs.

Business risk management (BRM) continues to be the central objective of agricultural policy in many countries, including Canada and the US. The unprecedented volatility that has characterized the farming sector in recent years is only expected to rise. Thus, governments continue to implement comprehensive suites of BRM programs to assist farmers in coping with these gyrations. This paper aims to examine 1) the relationships between the main Canadian BRM programs (AgriInsurance, AgriStability, and AgriInvest), and 2) if and how those relationships differ across different farms. Understanding the interlinkages between government BRM programs is central for policy makers in order to achieve the desired objectives. The analysis uses data from the Ontario Farm Income Database (OFID), which is a longitudinal farm-level dataset compiled from Ontario farm tax-file records from 2003 to 2011. The dataset contains detailed financial, production and program payment (except for Production Insurance/AgriInsurance payments) data for all Ontario tax-filling farm operations. Additional operator-level Production Insurance/AgriInsurance payment data is linked to farm-level OFID records to complement the program payment data. The paper uses a two-stage approach to examine the relationships between AgriInsurance, AgriStability, and AgriInvest. First, a multinomial probit model is estimated in which the dependent variables are dummies for all eight possible combinations of participation in the three programs and the independent variables include program participation in previous year, operating profit margin, operating expense ratio, leverage, diversification index, size, and sector. In the second stage, the predicted probabilities of the eight participation states from the first stage multinomial function is used as regressors against percentage falls in gross margin (operating revenue minus operating expense), controlled for size and sector. We find that participation in the previous year has a strong and positive effect on participation in the current year, and the three programs are generally treated as compliments. We also find that in general, farms that participate in some combination programs have smaller drops in gross margin compared to those that participate in no programs. Despite this effect, operators continue to drop out of BRM programs.

The risk balancing literature suggests that business risk management (BRM) programs may, through risk balancing (offsetting adjustments between business risk and financial risk), lead farmers to take on more financial risk than they would take otherwise, which, in turn, increases the risk of equity loss. Business risk management continues to be the central objective of Canadian agricultural policy, and this was re-enforced with the recent introduction of the Growing Forward II policy framework. However, it is not known whether Canadian BRM programs designed to offset business risk lead to increased financial risk and possibly higher levels of overall risk for individual farm operations. This paper aims to empirically examine the impact of Canadian BRM programs on the financial riskiness of farms using a longitudinal farm data set from Ontario. Results show that: 1) the lag of payment of Canadian Agricultural Income Stabilization/AgriStability diminishes the effectiveness of BRM programs in reducing business risk; 2) a relatively small share of farms exhibit risk balancing behaviour, and 3) BRM payments have no impact on the likelihood of risk balancing. Taken together, these findings suggest that the impact of BRM programs on the financial riskiness of farms is limited.

The risk balancing literature suggests that business risk management (BRM) programs may, through risk balancing (offsetting adjustments between business risk and financial risk), lead farmers to take on more financial risk than they would take otherwise, which, in turn, increases the risk of equity loss. Business risk management continues to be the central objective of Canadian agricultural policy, and this was re-enforced with the recent introduction of the Growing Forward II policy framework. However, it is not known whether Canadian BRM programs designed to offset business risk lead to increased financial risk and possibly higher levels of overall risk for individual farm operations. This paper aims to empirically examine the impact of Canadian BRM programs on the financial riskiness of farms using a longitudinal farm data set from Ontario. Results show that: 1) the lag of payment of Canadian Agricultural Income Stabilization/AgriStability diminishes the effectiveness of BRM programs in reducing business risk; 2) a relatively small share of farms exhibit risk balancing behaviour, and 3) BRM payments have no impact on the likelihood of risk balancing. Taken together, these findings suggest that the impact of BRM programs on the financial riskiness of farms is limited.

Bioproducts are often presented as one of the potential saviours of Canadian agriculture, offering non-food applications for agricultural products. However, relatively little is known about the sector or the characteristics of the firms. This paper presents an analysis of the Canadian bioproducts sector based on the first survey of bioproduct firms in Canada. The survey was performed by Statistics Canada in 2004 using 2003 firm results. The paper analyzes the responses to the bioproducts survey on two important dimensions, by region and firm size. The results indicate that for most of Canada's 232 bioproducts firms, bioproducts are just one part of the business activities, accounting for less than one third of employees and slightly more than one quarter of total firm revenue. Bioproduct activities provide both market and environmental benefits. The major challenges to the industry are financing and regulation. However, the relative importance of bioproducts, benefits and strategies and the focus and success of firms vary dramatically by region and by firm size.

Growing consumer interest in functional foods and nutraceuticals has been seen as a significant business opportunity for the agri-food sector. Many of the new firms in this sector are small and medium sized enterprises (SMEs). These SMEs often face difficulties in obtaining financing for their functional food and nutraceutical innovation activities. We develop and implement two models to show what factors affect a firm's decision to seek external financing and the level of financing obtained. Firm size, being privately held and engaging in contractual arrangements, have negative impacts on the likelihood of a firm seeking external funding, while firms which are intensively involved in the functional food and nutraceutical sector, with greater prospects for business expansion and/or are involved in partnerships are more likely to seek external financing. Larger firms and those involved in functional food and nutraceutical research and development receive a greater amount of capital when they decided to raise capital. However, firms focused on functional foods and nutraceuticals, as opposed to more diversified firms, and those involved in product development and concept scale-up receive less capital. Our findings highlight the importance of public support in addressing the capital requirements of functional food and nutraceutical firms and underscore the considerable burden in this respect borne by smaller sized firms.

Bioproducts are often presented as one of the potential saviours of Canadian agriculture, offering non-food applications for agricultural products. However, relatively little is known about the sector or the characteristics of the firms. This paper presents an analysis of the Canadian bioproducts sector based on the first survey of bioproduct firms in Canada. The survey was performed by Statistics Canada in 2004 using 2003 firm results. The paper analyzes the responses to the bioproducts survey on two important dimensions, by region and firm size. The results indicate that for most of Canada's 232 bioproducts firms, bioproducts are just one part of the business activities, accounting for less than one third of employees and slightly more than one quarter of total firm revenue. Bioproduct activities provide both market and environmental benefits. The major challenges to the industry are financing and regulation. However, the relative importance of bioproducts, benefits and strategies and the focus and success of firms vary dramatically by region and by firm size.

Growing consumer interest in functional foods and nutraceuticals has been seen as a significant business opportunity for the agri-food sector. Many of the new firms in this sector are small and medium sized enterprises (SMEs). These SMEs often face difficulties in obtaining financing for their functional food and nutraceutical innovation activities. We develop and implement two models to show what factors affect a firm's decision to seek external financing and the level of financing obtained. Firm size, being privately held and engaging in contractual arrangements, have negative impacts on the likelihood of a firm seeking external funding, while firms which are intensively involved in the functional food and nutraceutical sector, with greater prospects for business expansion and/or are involved in partnerships are more likely to seek external financing. Larger firms and those involved in functional food and nutraceutical research and development receive a greater amount of capital when they decided to raise capital. However, firms focused on functional foods and nutraceuticals, as opposed to more diversified firms, and those involved in product development and concept scale-up receive less capital. Our findings highlight the importance of public support in addressing the capital requirements of functional food and nutraceutical firms and underscore the considerable burden in this respect borne by smaller sized firms.

The agri-food chain today is significantly different from that of twenty years ago. Changing consumer demands, knowledge intensive technology, North American integration and globalization have all contributed to the evolution of the different segments of the chain, which include input suppliers, agricultural producers, food processors, and food distributors. The purpose of the performance report series is to create a picture of the economic health of the entire agri-food chain and its various segments, and to identify the challenges and opportunities that they will face in the future. To get a full picture of each component's and the whole chain's economic health, these reports will measure economic performance from several different perspectives; profitability, competitiveness, investment, productivity, innovativeness, etc. Traceability is the process of tracking or tracing the flow of products through a supply chain. Traceability systems can vary from simple traceback systems to systems that provide identity preservation and quality assurance. This report examines the extent of traceability in the Canadian dairy processing industry. The authors use a mail survey and Principal Component Analysis to better understand the drivers, the challenges and the costs and benefits experienced by firms which have implemented traceability systems. The report finds that most dairy processing plants had implemented a system of product traceability and are able to trace forward and backwards.

The agri-food chain today is significantly different from that of twenty years ago. Changing consumer demands, knowledge intensive technology, North American integration and globalization have all contributed to the evolution of the different segments of the chain, which include input suppliers, agricultural producers, food processors, and food distributors. The purpose of the performance report series is to create a picture of the economic health of the entire agri-food chain and its various segments, and to identify the challenges and opportunities that they will face in the future. To get a full picture of each component's and the whole chain's economic health, these reports will measure economic performance from several different perspectives; profitability, competitiveness, investment, productivity, innovativeness, etc. Traceability is the process of tracking or tracing the flow of products through a supply chain. Traceability systems can vary from simple traceback systems to systems that provide identity preservation and quality assurance. This report examines the extent of traceability in the Canadian dairy processing industry. The authors use a mail survey and Principal Component Analysis to better understand the drivers, the challenges and the costs and benefits experienced by firms which have implemented traceability systems. The report finds that most dairy processing plants had implemented a system of product traceability and are able to trace forward and backwards.

Advancement in biotechnology requires continued innovative activity by firms. To grow, biotechnology firms must understand the factors affecting their innovative activity. Such understanding also informs policy makers, and supports the development of policies promoting one's biotechnology sector. This study explores factors which determine innovative activity within the Canadian biotechnology industry. Innovative activity is measured as the natural log of the number of products/processes a firm has at different stages of the innovation spectrum. A model is developed to regress this measure on several determinants of innovation. Significant drivers of innovation include: collaborative arrangements, transfer of intellectual property, firm size and age, whether the firm was in the agricultural or human health biotechnology sectors and whether the firm focused on development or commercialization. Generally speaking, these factors all contributed to firms having more products/processes either under development, undergoing clinical trials or regulatory approval, or on the market.

From the protests in the streets of Genoa, Quebec and Seattle to the U.S. Senate, one doesn’t have to look far to find opposition to globalization and concentration.“… [D]o something about antitrust, the concentration that is clogging the free market …”1was one plea in the Senate debate of the Wellstone Amendment 2752. The proposal to place a moratorium on large agribusiness mergers and to establish a commission to review agricultural mergers, concentration, and market power was defeated 71 to 21 but provides an indicator of the concern felt in some quarters. Similar legislative proposals have been made in the European Union and again in the United States. Globalization and concentration have changed the agri-food sector. To experience global competitors, a firm does not have to enter new markets; the competitors will come to the firm. Adapting to the changing global landscape requires managers and policymakers to view the world differently, understand the factors behind the changes and plan how best to alter corporate strategy or government policy to meet the new challenges.

Innovative new products offer agri-food producers and processors an opportunity to differentiate their output from the commodities prevalent in the sector. Unfortunately, many new products do not live up to initial expectations and are eventually abandoned. However, even with products that are doomed to fail, there is occasionally a period of time after their introduction when strong, but fallacious, indicators of success appear. Sometimes the initial appearance of success is so strong that new entrants rush in, increasing demand and prices for production capacity, thereby strengthening the illusion of industry success. Eventually, supply catches up to the unsupported demand and the bubble bursts. The fall is often dramatic and painful. This paper provides a retrospective examination of the economic factors surrounding one example of such a situation, the Ontario emu bubble between 1993 and 1996.

This document contains the PowerPoint presentation given by the authors at the 2002 WCC-72 meetings, regarding innovation in the Canadian Agri-Food sector. Definitions relating to the dimensions and process of innovation as well as a case study are presented.

A summary report of the presentations and the discussion at the national workshop on innovation in the Canadian economy and the Canadian agriculture and food sector held on September 26-27, 2002 in Guelph, Ontario. This report is the second product of a joint collaborative agreement between the Research and Analysis Directorate of Agriculture and Agri-Food Canada (AAFC) and the Department of Agricultural Economics and Business of the University of Guelph. The first product of the collaborative agreement was the organizing and holding of the workshop. This report provides a summary and a synthesis of the presentations and the discussions at the workshop.

Innovative new products offer agri-food producers and processors an opportunity to differentiate their output from the commodities prevalent in the sector. Unfortunately, many new products do not live up to initial expectations and are eventually abandoned. However, even with products that are doomed to fail, there is occasionally a period of time after their introduction when strong, but fallacious, indicators of success appear. Sometimes the initial appearance of success is so strong that new entrants rush in, increasing demand and prices for production capacity, thereby strengthening the illusion of industry success. Eventually, supply catches up to the unsupported demand and the bubble bursts. The fall is often dramatic and painful. This paper provides a retrospective examination of the economic factors surrounding one example of such a situation, the Ontario emu bubble between 1993 and 1996.

This document contains the PowerPoint presentation given by the authors at the 2002 WCC-72 meetings, regarding innovation in the Canadian Agri-Food sector. Definitions relating to the dimensions and process of innovation as well as a case study are presented.

Murgo Farms Inc., addresses the challenges of choosing between the Hazard Analysis Critical Control Point (HACCP), International Organization of Standardization (ISO) 9000, and ISO 14000 systems for a business with grain farming, elevator and spraying enterprises. Murgo has recently entered markets that are more quality oriented and wishes to expand its activities in those markets. The President wonders whether HACCP or ISO 9000 might help that expansion. However, the company is also faced with significant environmental risks due to its spraying and manure spreading activities and its proximity to a local municipal water source. There are good reasons for Murgo to consider each of the systems, but there is also the question of whether the benefits for implementing any system are sufficient to do so immediately.

40 leaves (some unnumbered) : ; Includes bibliographical references (leaves 40). ; "August, 1993". This research was supported by the Natural Sciences and Engineering Research Council of Canada under Grant No. A5474. Cycle time management and reduction, CTM, is the manufacturing philosophy that follows TQM and JIT. CTM seeks to reduce the total time required to perform all the activities that occur during order processing, design, supply management, production and distribution of a product or service. Three models are developed for supporting CTM -- a simple stochastic model, a Markov chain model and a queueing model. The models must be fitted to the manufacturing environment in which they will be used. Three manufacturing environments -- make to order, assemble to order and make to stock -- are described. When a CTM model is applied to a manufacturing environment it identifies the activities that represent the largest components of cycle time. Those activities are then targeted for cycle time reduction.

This thesis is an investigation of agrifood value chain projects, and the effect public funding programs and incentives have on their conceptualization, implementation, operation, and results. This exploratory study utilizes five case studies from across the agrifood sector to gain an understanding of the benefits, costs, difficulties, and motivations behind these complex and expensive collaborative projects. This was accomplished using semi-structured interviews, along with an examination of supporting project proposals, progress reports, and other documentation. The results indicate that collaborating with partners is quite difficult, prone to failure, tends to exceed cost projections, and is difficult to manage. The conclusion is that developing a collaborative value chain initiative with the express purpose of securing cheap or free public funding often results in a needlessly complicated and difficult project that might have been better served by securing private investment.

Traceability is often perceived by food industry executives as an additional cost of doing business, one to be avoided if possible. However, a traceability system can in fact improve supply chain and marketing performance, as well as increase food safety and recall performance. This research was undertaken to understand how variables related to regulations, recall improvement, market response and supply chain improvement impact the perceived net benefits of traceability. Analysis of the results of a plant level survey of the Canadian dairy processing industry revealed that processors generally perceived net benefits from traceability and those who were looking for broader benefits than simply meeting regulatory requirements or reducing number of recalls actually perceived higher net benefits than those who only adopted for those reasons. The results of the study indicate that there is reason for food industry managers to re-evaluate their perceptions of the true costs and benefits of traceability and to take greater advantage of the benefits of such systems.