Fresh Ideas, Growing Together

Ontario-Grown, Ontario Processed Kosher Chicken

Working to support the Ontario consumer need for locally grown, kosher processed chicken

CFO has been working to meet the needs of existing and evolving consumer markets for locally grown chicken. One market in particular is the Ontario kosher chicken market servicing the Jewish community. The Jewish population in Ontario has grown to 195,500 people* who represent 1.5% of the Ontario population and 60% of the total Canadian Jewish population. The demand for kosher chicken is steady throughout the year with the exception of two peak periods around Pesach (Passover) in March/April and Rosh Hashanah (Jewish New Year), Yom Kippur and Sukkot in September/October.
 
The Ontario kosher market is currently underserviced by product sourced from outside Ontario. A locally sourced fresh quality product will be made available in 2017. CLICK HERE for more details. 

CFO proactively engaged the community, industry and stakeholders with the goal of developing an experienced and viable kosher processor that will provide Ontarians with Ontario‑grown kosher chicken.

CFO has supported this work through investment in significant internal resources and contracted external expertise to provide advice and guidance to ensure business plans were robust, appropriately funded and economically viable for the long term.

CFO’s Objective:
Support an experienced and viable kosher processor who will process Ontario produced chicken for the Ontario and National Jewish Community

The Opportunity:
Investors submitted business proposals to potentially become a kosher processor in Ontario. The proposals must have provided supporting evidence that would adequately satisfy the following Applicant Criteria and Key Success Factors

Applicant criteria was as follows:
A successful kosher processor would have the following qualities in its governance and strategy:

Approach

  • Leadership, vision and drive committed to delivering a successful outcome of Kosher supply

Certification

  • Kosher certification and supervision by a major recognized North American kosher certification agency

Financial

  • Financial strength to fund a significant capital project and to fund working capital of a start-up operation
  • Financial forecasts and models that detail the first years of operation and demonstrate the long term viability of the proposal
  • Financial management capabilities, including an understanding of available government grants and incentives programs such as Growing Forward 2 and SR&ED 

Operations

  • Access to an existing food processing plant facility or track record in managing a project to construct one
  • Operations management capabilities, including animal care, processing, food safety, environmental and waste management, and plant maintenance programs
  • Procurement expertise to access Ontario chicken suppliers
  • Access to human resources

Go to Market  

  • Sales and marketing experience/capabilities including local and broad market exposure tactics, customer acquisition strategies and execution, supply management/distribution, and product diversification
  • Sales and marketing plans including product details, volumes, margins and pricing across the supply chain
  • Understanding and engagement with the Jewish community and distribution channels;

Regulatory     

  • HACCP certification plan / CFIA / Provincial and regulatory experience
  • Environmental and waste management compliance for a slaughterhouse

Industry          

  • Be an active participant in the industry, working with CFO through a Memorandum of Understanding recognizing that the supply for kosher chicken processing is not tradeable, transferable or rentable and cannot be pledged as security for indebtedness

Key Success Factors:

In the medium term to long term, following the ramp up of production, key success factors for business viability include:

  • Committed and capable management team
  • Top quality product (e.g. colour, taste, consistency)
  • Distribution and availability of product for food service and grocery customers
  • Leveraging technology in processing to improve efficiency (e.g. cutting and packaging processes) and meet growing product demand and sales
  • Product extensions, including turkeys and ducks to achieve volume and utilize resources; and
  • Innovative “value-added” products appealing to consumers (e.g. ready to eat)

The Process:

CFO invited potential investors to submit proposals that develop a viable and long term business.

In order to ensure objectivity, fairness and equitable application of this initiative, proposals were assessed by Deloitte and evaluated against the criteria and key success factors. Proposals satisfying the criteria and recommended by Deloitte as having long term robust, appropriately funded and economically viable solutions were submitted for consideration by the CFO Board.

For more information or general inquiries, please contact CFO:

koshersolution@ontariochicken.ca

*Statistics Canada, 2011 Census Profile