Toronto Region Well Positioned to Take Lead as North America’s Food Cluster

Around the world, and in particular in Europe regions have been successful in establishing and marketing industry clusters as a way to promote and grow their regions.

Although the concept of industry cluster is nothing new to North American economic development professionals, European policymakers seems to have a leg-up when it comes to create competitive advantages for their regional clusters by organizing the cluster stakeholders in member organizations, driven by a growth and marketing strategy executed by a central cluster management overseen by a Board of Directors.

Looking to create growth and return on investment, the cluster management is actively pursuing a growth strategy built on objectives similar to that of a business. This includes a market driven approach to determine focus and investment activities. The industry and the market opportunity in large set the agenda for the cluster.

The cluster is actively pursuing a marketing and branding strategy in order to assist their stakeholders as well as to attract inward investments. Within several industries a number of European clusters are actively competing to position themselves as the ‘go-to-cluster’ for innovation and entrepreneurship.

Within the European food industry, there are over a dozen clusters utilizing this strategy many just a cluster name or yet to be realized – but a handful are very successful and well recognized.

Clusters like Food Valley (Netherlands), Oresund Food (Sweden & Denmark) and Vitagora in France all enjoy international recognition and continue to attract foreign direct investments thanks to their active marketing efforts.

Should a non-European food company or R&D organization look to establish itself on the continent – there would be several well known clusters that would be the natural first point of consideration.

In North America the situation is different. Although there are many metropolitan areas that have a bolstering food industry, but no region has yet capitalized on the opportunity to organize a cluster and position themselves as the go-to region for food technology and innovation.In North America several regions has gained status as the go-to area for particular industries, in most cases mostly due the sheer volume and presence of the particular industry stakeholders. Examples can be Silicon Valley for IT, Houston for oil and gas. Los Angeles for entertainment, and more recent emerging areas as for instance New York and California for cleantech.

In the food industry, the situation is a bit different. Based on the initial definition of a cluster, pretty much every city in North America has a food cluster. There are industry, government and academia that interact, collaborate and compete in some degree. These can all be called food clusters – but is a result of coincidence rather than a cluster with a purpose.

There is an opportunity for the Greater Toronto Region to be the first mover within the food industry and position the region as the leading and go-to cluster for food innovation and food development.

Toronto based, Accelligent Management Group has recognized this opportunity, and in the fall of 2009, representatives from the company started meeting with key stakeholders in the greater Toronto region. After several months of lobbying towards local, regional and federal stakeholders – in large due to the interest in seeing the local economy benefit from this opportunity, there is now a project underway to further explore this opportunity.

There should not be a major lift to organize the already significant food industry in the Greater Toronto Area into a cluster with purpose. By doing so, the industry and its stakeholders will signalize to the world that the region has a leading industry and should be on top of the list for companies and organizations looking for a North American point of entry.

Building on the proven models and structure from Europe, the regional industry stakeholders need to address critical issues like organizational models, governance structure long and short-term goals.

The window of opportunity is closing, as there is an increasing interest in the concept of using cluster development as a tool to drive economic growth. Also, throughout North America several regions well positioned to pull the trigger on a Food Industry Cluster Initiative, and some have already have indicated the interest in building a food cluster.In the Greater Toronto Region, the non-profit organization TRRA (Toronto Region Research Alliance) has taken on the role as the “Clusterpreneur” to further explore and define the opportunity.

City of Iksan, South Korea to Develop Food Cluster With Help From Europe

The European Union Chamber of Commerce in Korea (EUCCK) earlier this month signed a memorandum of understanding with representatives from the city of Iksan, in the North Jeolla Province to build a food cluster in the city.

Under the agreement, both the EUCCK and Iksan will attempt to attract food companies and research institutes from both at home and abroad. In particular, European firms are major targets. Iksan is already contemplating how to best market the cluster internationally, and is planning to have a cluster pavilion at SIAL France 2010 Food Expo

Acknowledging Europe’s increasingly competitive food processing and food production industry, and the continent’s track record in developing successful clusters, Ikan has developed a plan to build what they refer to a “Foodopolis”. This will be a comprehensive food complex, involving literally everything needed by the food industry.

EUCCK will act as an outreach to European companies looking to establish partnerships or operations in South Korea. The organization has a significant track record in attracting companies to Korea – recently Danone invested in Muju, near Iksan.

French Cluster Hosts Taste – Nutrition – Health International Congress

The French Health and Nutrition cluster, Vitagora is once again hosting its annual conference aimed at companies, R&D organizations and  other stakeholders in the food, health and nutrition segment. The conference finds place in Dijon, France – the home of Vitagora Cluster March 23 and 24th.

Vitagora is rapidly building a reputation as one of the leading food and nutrition clusters in world. Over the past year, the cluster management has hosted and organized several international in and outbound missions to help its members create collaborative opportunities and partnerships.

Industry Cluster Development In Remote Regions: Desert Knowledge Australia

Desert Knowledge Australia is an organization dedicated to drive and support “the know-how, ideas, innovations and perspectives of that Aboriginal and non-Aboriginal people of the Australian desert”  Australian Desert has posted two videos that provide insight into two of the organization’s cluster development initiatives.

The video from Desert Knowledge Australia Mining Services Network, shows how a network of small and medium sized companies in a remote regions is working together to jointly create a better offering to the major mining and metal companies operating in the area.

The agri-food cluster Bush Products and Local Foods Network has developed a video that shows the dynamics of the clusters, as well as provides testimonials from the members about their experiences and the benefits of being apart of the network.