Ontario agri-business generates $2.3 billion
Dec. 16, 2013 – Ontario’s agri-business sector generates almost half a billion dollars in tax revenue to federal, provincial and municipal coffers annually, a new study reveals. The report also shows that the province’s grain elevators, feed manufacturers and crop input suppliers contribute $2.3 billion to the provincial economy and support more than 22,000 jobs throughout rural Ontario.
“This study identifies for the first time in real terms the economic impact that Ontario’s agri-business sector has in the province of Ontario,” says Dave Buttenham, CEO of the Ontario Agri Business Association (OABA) which commissioned the study. “Feed manufacturers, crop input suppliers and grain elevators are a key part of Ontario’s rural fabric, providing jobs for thousands of Ontarians, supporting the provincial economy and contributing millions in tax revenue.”
Grain elevators provide grain handling, drying, storage and marketing services. Feed manufacturers produce livestock and poultry feed, supplements and pre-mix products as well as provide technical and nutritional support to farmers. Crop input supply businesses retail agricultural seeds, plant nutrition and crop protection products, as well as provide associated services and consulting.
Overall, the crop input supply, grain elevator and feed manufacturing sector accounts for almost one quarter of the total Gross Domestic Product generated by Ontario’s farmers, supporting job creation, a stable tax base and thriving rural economies.
“These results really help underline agriculture’s role as the leading driver of our provincial economy,” adds Buttenham. “Our members are often over-looked when people think about agriculture, but they’re a vital link in Ontario’s food production system.”
The study was completed this past summer by MNP LLP, a national accounting and business consultancy, and is based on data and statistics from government agencies and departments, as well as interviews with municipal politicians and industry and government officials.
For more information on OABA, visit www.oaba.on.ca.