Download Economic Impact of Seed Corn Production in Ontario

Economic Impact of Seed Corn
Production in Ontario
SW Ontario seed corn is a viable
growth area for Ontario’s economy
Economic Impact
In 2012 it is estimated seed corn sales were
$48 million which generated about $93.5
million in economic impact. This is the farm
gate value only and does not including seed
corn processing which generates additional
economic activity.
This extends to: $45.5 million in GDP, 409 jobs,
approximately $11.8 million in wages and
salaries and $3.3 million in taxes.
Estimated Aggregate Farm Gate Value
of Seed Corn Production
Canadian Dollars (Millions)
60
Direct Impact
(Sales)
Gross Output
Gross Domestic
Product
Jobs*
Wages and
Salaries
Taxes
2008 – 2012
Average
2012
-
$ 30,752,678
$48,428,401
1.93076
$59,376,008
$93,503,569
0.94033
$28,917,746
$45,538,805
8.44
260
409
0.24315
$7,433,695
$11,775,285
0.06718
$2,053,743
$ 3,253,215
* per $ million direct impact
** except Greenhouse, Nursery and Floriculture Production
50
40
In 2011 estimated seed corn sales were about $33 million and
exceeded $48 million in 2012.
30
20
The five-year average estimated sales value of seed corn production was
$30.7 million.
10
0
2008
2009
2010
Years
2011
2012
Employment
Future Investment
Future Seed Corn Acreage Plans
Employment
60%
Percentage of Respondents
Result
Multiplier
Crop Production**
80%
70%
60%
50%
40%
30%
20%
10%
0%
50%
40%
30%
20%
Keep about
the Same
10%
0%
0
1-10
11-20
21-30
31-40
41-50
Number of Employees
The majority (56%) of producers surveyed had
between 1 and 10 employees. Excluding the
largest producer, the average employment by
seed corn producers is 3.46 per operation.
Increase
Decrease
68% of the producers surveyed
plan to continue to allocate about
the same number of acres to seed
corn as they do now, 30% plan to
increase the number of acres.
Future Seed Corn Investment Plans
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Keep about
the Same
Increase
Decrease
80% of the producers surveyed
expect to invest a similar amount
in their seed corn operations in
the future as they do now, 17%
of producers plan to increase
investment
Detasseling generates employment for approximately
2,400 students for 3 to 4 weeks each summer
Economic Impact of Seed Corn
Production in Ontario
SW Ontario seed corn is a viable
growth area for Ontario’s economy
Market Opportunities
Three main opportunities exist that could increase seed corn production in Ontario:
• Western Canada corn expansion
• Seed corn exports
• Reducing / replacing imports
Western Canada expansion
•
•
•
•
Corn acreage set to expand in Western Canada over next
decade based on an increased research focus from several seed
companies
Estimates range from 5 million up to 10 million acres of corn
expected in Western Canada
Increased seed corn production opportunity of 1.5 million to 3
million units of seed
The increased production will likely come from existing seed
corn areas that are producing early maturity hybrids such as Ontario or from the
Minnesota / Wisconsin area
Reducing / replacing imports
Seed Corn Exports
•
•
Seed corn exports have declined
in the past decade but historically
there have been export markets in
the European Union (EU)
This is a potential opportunity for
sales growth, but it will take time to
develop and prove that the purity
required can be attained
Reducing Seed Imports
Seed Corn Plant Expansion
•
•
•
Long history of seed corn production
in Ontario – the grower is critical to the
growth and consistency The majority (67%) of seed corn
producers surveyed have been growing
corn seed for over 20 years
•
•
There is real potential to increase
production in the next 3 to 5 years
Opportunities for increased production
are limited mostly by the processing
capacity of the companies currently in
the marketplace
3 options to increase seed corn
production:
• Expand existing plant(s)
• Add new plant (existing seed
company)
• Add new plant (new entrant)