Revised January 2013
Submitted by:
The Proponent .. . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 5
The Land ... . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 5
Goal .. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 7
Capital Investment and Financial Summary
... . . . . . . . . . . . . . . . . . . . . . . . 28
Management skil ls/qualifications of proponent
.. . . . . . . . . . . . . . . . . . . 29
Liabil ity Insurance Requirements .. . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
Contingency plan ... . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . 30
OPERATIONS
Field development .. . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . 33
Other operational considerations .. . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
43
Fisheries and wetlands .. . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 46
Resource uses values .. . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . 47
Forest management activities .. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47
Aboriginal traditional territories and
land uses .. . . . . . . . . . . . . . . . . . .
48
POTENTIAL EFFECTS
Land use and resource management
considerations .. . . . . . . . . . . . . 49
Social, cultural and economic
considerations .. . . . . . . . . . . . . . . . . . . .
. . 50
Aboriginal considerations .. . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 51
Mitigating Potential Effects to land
use and resource management 55
Mitigating Potential Effects to social,
cultural, and economic 57
Mitigating Potential Effects to Aboriginal
considerations .. . . . . . 58
PUBLIC CONSULTATION
Planned consultation ... . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . 61
Project evaluation ... . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . 61
APPLICABLE POLICIES & APPROVALS
Strategic Framework ... . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . 62
APPENDICES
Appendix B: Integrated Pest Management
Plan ... . . . . . . . . . . . . . . . . . . 70
Appendix C: Environm
EXECUTIVE SUMMARY
THE PROJECT
The Northeast Superior Forest Community
(NSFC) in partnership with the
Northeast Superior Regional Chiefs
Forum has been building a new
and exciting industry for the
region. The development of
the Chapleau-Sultan Wild Blueberry
Farm has been a concept
for the economic diversification of
Chapleau area, as well as
the wider Northeast Superior region
that has been under development
for more than 8 years.
With primary concepts and
partnerships developed through the
efforts of the Chapleau Regional
Development Corporation, the NSFC
has been working diligently on
turning this idea into reality.
We have seen the tremendous
opportunities that emerge with the
consideration of maximizing our
forest resources and using them
in a new way. The
Chapleau-Sultan Wild Blueberry Farm is
the first opportunity that puts
planning into action. We
all recognize that by bringing new
users of forest resources into
the economy brings with it the
opportunity to help support our
existing industry partners and to
ensure that our communities in
the Northeast Superior continue
to grow and thrive. We
need to continue to look for
economic opportunities that are
rooted in assets our area
possesses like the blueberry.
Over the past several years we
have been working to ensure
this industry is one that can
work for our area, is
financially viable, and is
sustainable for the long term.
We knew at the onset that
there are very dramatic upfront
development costs associated with
this type of farm, as well
as a gap of up to
7 years between site development
and the generation of a full
crop. These were barriers that
were identified early, and stressed
the importance of undertaking
our initiative with very intensive,
thorough planning process and
taking the time we need to
make sure we are developing a
concept that can work.
Once initial plans were identified
as possible, this was followed
by a Site Assessment study,
which was tasked with looking
within the region to find the
best quality land for the
development of blueberry farms. Of
the properties identified, the
Sultan flats area near Chapleau
ranked as our largest quantity
and highest quality of soil.
This property has a great
proximity to the highway, as
well as the road network
necessary to make this a
prime candidate for blueberry
farming. With the
support of Tembec Inc. mill is
fed through fibre that comes
from this portion of the
forest, we have moved forward with
a clear and concise project
plan for the Sultan area, as
well as developed a business
plan to make sure we are
fully prepared for this undertaking.
THE PROPONENT
The Northeast Superior Forest Community
is a not-for-profit economic
development corporation that has been
operating in the Chapleau region
for the past six years.
Our organization represents a
partnership between the communities of
Chapleau, White River, Wawa,
Dubreuilville, Hornepayne and Manitouwadge,
as well as the Northeast
Superior Regional Chiefs Forum. NSFC
has the mandate of seeking
out ways of diversifying the
regional forest based economy as
a response to the forest
sector downturn see over the past
decade. One of our key areas
of exploration is the field of
Non Traditional Forest Resources
with the strategy of finding
new and innovative economic
drives for economies that come
from our forest resources.
THE LAND
We have requested the issuance of
a land use permit (LUP) in
order to establish interim tenure
over the land in question and
to allow us to begin the
development process. In order
to support this process we
have developed this detailed
project proposal as requested by
The Ministry of Natural Resources.
It is the responsibility of
MNR, and other relevant
provincial ministries and agencies to
review the proposal in order
to ensure consistency with
applicable legislation and policy
direction. This has been undertaken,
the project is now required to
undertake pubic and Aboriginal
consultation
Projects, in order for a disposition
of lands to occur.
HE CHAPLEAU-SULTAN SITE PRESENTS THE
HIGHEST POTENTIAL FOR DEVELOPMENT
DUE TO THE HOMOGENEITY OF
THE LAND, THE LARGE SITE
CAPACITY, ACCESSIBILITY, HIGH NATURAL
DENSITY FOUND ON SITE, SANDY
SOILS AND PROXIMITY TO A
SUPPORTING COMMUNITY. THIS SITE
IS CONSIDERED THE JEWEL IN THE
CROWN THE CHAPLEAU-SULTAN SITE
CAN PROVIDE SOME OF THE
BEST LANDS FOR WILD BLUEBERRY
DEVELOPMENT IN ONTARIO AND EVEN
CANADA (NORTHEAST SUPERIOR FOREST
COMMUNITY WILD BLUEBERRY FIELD
ASSESSMENT REPORT
2011, LEVEL PLAINS ENTERPRISES
THE DEVELOPMENT STRATEGY
We are planning for 5 phases of
development, with a 100+ hectares
of land harvested and developed
each year, in an effort to
ensure costs and workload are
manageable. With a 10-year
development strategy in place,
resources approved and allocated, this
project is ready to move into
active development with the support
of Tembec, our local industry
partner.
The project plan and proposal has
taken into consideration the
commitment of the NSFC and
NSRCF to sustainable, environmentally
conscious development. We have
considered mitigation strategies for bears,
and birds, as well as impacts
on water shed, environment and
existing land users. It has
become a clear priority that
this development will move forward
as an enhancement to the daily
way of life of residents, as
well as a new economic driver
for the region.
GOAL
To develop and establish the
Chapleau-Sultan Wild Blueberry Farm as
a world class production centre
for wild blueberries.
PROJECT PROPONENT
The Northeast Superior Forest Community
(NSFC) is the project proponent.
The NSFC is a not for
profit, forest sector based,
economic development organization.
The NSFC has a board of
directors and a general manager
directing project management staff.
As an organization the NSFC
is advocating and working
towards the development of blueberry
farms within the NSFC region
as a way to diversify and
reinvigorate the regional economy.
NSFC has secured funding to cover
the administrative efforts and costs
associated with establishing a
tenure agreement with the Crown.
Establishing tenure on the
proposed areas for development on
Crown land is the first step
towards successfully developing and
sustaining a commercial blueberry
business. The long-term goal
is to create a viable
commercial blueberry development capable of
attracting local entrepreneurs having
the financial resources and business
know-how to invest in a
long-term agricultural venture with
low or no payback for several
years.
Once tenure is established, investors
will be sought to invest
in or take over the development
of the farms as they are
established. If this does not
occur, the NSFC will continue
to leverage funds to contribute
to the substantial upfront
development costs for the wild
blueberry fields.
Once the Chapleau-Sultan Wild
Blueberry Farm is more established,
NSFC would continue to work
towards facilitating the transfer of
the business operation to a
local entrepreneur or a regional
Non Timber Forest Products
Cooperative.
FOUNDATION
Although the wild Lowbush Blueberry
is traditionally harvested and
sold locally on a small scale
in Northern Ontario, the region
has yet to initiate commercial
production operations that have
provided established long-term economic
benefits to several Canadian
provinces. Recognizing this
opportunity, NSFC launched an
investigation into potential crop
production areas across the region
that exhibit key characteristics
for managed wild Lowbush Blueberry
production. The Chapleau region
sites were identified as a
priority development area in
establishing the Northeast Superior
Region as a globally competitive
wild blueberry producer.
A SITE ASSESSMENT CONDUCTED BY
PETER BURGESS OF AGRAPOINT SUGGESTED
THAT WITH PROPER
DEVELOPMENT, MAINTENANCE AND MARKETING
STRATEGIES, THE CHAPLEAU, SULTAN SITE
COULD BECOME A
WORLD CLASS PRODUCTION CENTRE OF
WILD BLUEBERRIES THAT COULD COMPETE
WITH OTHER AREA OF
CANADA, INCLUDING NOVA SCOTIA AND
QUEBEC. 1
Combining the natural environment
features with sound development
planning, operation and marketing
strategies, this area has the
potential to become a viable
world class wild blueberry
production centre that could compete
with other Canadian provinces.
Once the Chapleau-Sultan Wild Blueberry
Farm is established, additional sites
across the region could be
developed. Development of these
smaller sites would be facilitated
within the supportive framework of
an established regional industry.
Realizing this vision requires the
participation and support of
organizations, people and businesses
willing and able to invest
in growing operations. The
guidance of government and
industry experts will be instrumental
in driving the early stages
of development. The imagination
of entrepreneurs capable of
developing associated value-added
business will play a vital
role in expanding the economic
potential of the resource once
the farm is in production.
The NSFC is working in
partnership with Level Plains
Enterprises Inc., a Wawa based
company that established a successful
wild blueberry venture in Wawa
in 2008. Our goal is
to increase the economic potential
of our region through economies
of scale and shared expertise.
NSFC will work with government
agencies, First Nations and Aboriginal
communities, and the public to
develop the project sustainably
and improve regional prosperity.
Given the regional economic climate,
our hope is that the
Crown will recognize the potential
of this industry and afford it
priority for development within the
NSFC region.
DISPOSITION REQUEST
Expectations regarding the use of
the natural resource base:
The NSFC is requesting a
disposition of lands in the
Chapleau area for agricultural
production of wild Lowbush
blueberries. A land disposition
would allow NSFC to move
forward with the planning and
development necessary to bring a
commercial blueberry farm into
production over the next several
years.
REQUEST : 551 HECTARES OF CROWN
LAND WITH THE NSFC AS THE
PROPONENT; NSFC IS PROPOSING THAT
THE AREA BE DIVIDED INTO 5
PARCELS.
L ICENCES & PERMITS : LAND USE
PERMITS - LEASE AGREEMENTS -
FOREST RESOURCE LICENSE (SEE DETAIL
BELOW.)
START OF TENURE : 2012
Access to existing resources:
Access to a secure land base
is paramount to the ely
owned land, this means securing
Crown land suitable for blueberry
farming. The type of
tenure and the terms of the
tenure agreement must be determined
with consideration for the security,
investment and financing requirements
for the project.
In consultation with the Chapleau
Ministry of Natural Resources
(MNR) it was determined that land
use permits (LUP) would be the
appropriate form of tenure for
the initial stages of project
development. For the proposed
undertaking, LUPs could be
issued to coincide with the scheduled
development of each parcel.
A land use permit may be issued
by the Crown for a term
up to 10 years; rental fees
are paid yearly, in addition
to a one-time administration fee.
Land use permits would also
allow development to proceed
while ensuring lower rental fees
during the capital intensive start-up
period. The LUPs provide
an interim form of tenure and
could be converted into lease
agreements in the future if
necessary. To secure appropriate
financing for development and continued
operation of a commercial
blueberry farm, future lease agreements
remain the long term objective.
These can be implemented as
the parcels are established, and
as their value increases through
improvements and the creation of
value added business ventures.
Development Projects (RSFDP Class EA).
A successful Class EA outcome
affords projects on Crown land
to proceed within 5 years of
approval.
NSFC will have to secure a
Forest Resource Licence and Approval
to Commence Cutting Operations,
issued under sections 27(1) or
29(2) & 47, and 44(1) under
the Crown Forest Sustainability Act
prior to the harvest of any
merchantable trees on Crown land.
NSFC is committed to
working with Tembec to ensure
that the proposed project does
not interfere with forestry operations
and affords them the opportunity
to harvest merchantable timber
from the project area.
Owing to the significant size of
the LUP, MNR has requested that
the boundaries of each parcel
be clearly marked with flagging
tape and all corners be marked
more permanently. Should it be
determined that a lease agreement
is required, NSFC will be
required to undertake a legal
survey of the parcels. The
survey must be completed under
the requirements established by the
Crown and at the expense of
the proponent. Marking of
boundaries, legal surveys and the
required Forest Resource Licence will
be obtained subsequent to the
successful outcome of the
environmental assessment. Any
transfers of tenure will be
conditional on the requirement to
implement activities as approved in
the project plan and will be
subject to approval by Chapleau
District office of the Ministry
of Natural Resources. Transferees
may be required to submit a
business plan to MNR.
Proposed fee structure : Reasonable
rates for Land use permits
and/or lease agreements are vital
to allow the fledgling industry
to start strong and continue to
grow.
(PL 2.03.01) seek to achieve a
fair return for public land
through the application of
market value. The MNR is
presently studying fair market value
for the proposed area given
the absence of precedent for a
wild blueberry operation on
provincial Crown land.
The proposed project area is
forested Crown land located along
both the north and south
sides of Highway 667, approximately
35 km southeast of Chapleau in
the Sultan Flats. The land
is located within a General
Use Area (G1770) described as
a general resource extraction and
management area with the intent
of expansion of the forest,
mining and trapping sectors. The
land use policy accommodates
dispositions for agricultural purposes. A
total of five parcels of land
are proposed for development over
a 5 year period. See
Appendix D for maps showing the
location of the proposed area.
PROPOSED AREA- CONSIDERATIONS
Of the areas identified in The
Northeast Superior Forest Community
Corporation Wild Blueberry Field
Assessment Report - 2011, the
Chapleau sites in the Sultan
Flats were recommended as the
priority for development based on
site characteristics. The quality of
land is excellent with sandy
soils, optimal topography, geology
and climate, an abundant natural
density of wild blueberry plants,
as well as proximity to
communities and transportation networks.1
NSFC has presented a development
proposal to the MNR for an
assemblage of sites in proximity
to one another, totaling 551
hectares within the Sultan Flats.
The combined project area
would create enormous capacity for
commercial wild blueberry production.
LAND CAPACITY IS THE QUANTITY OF
SUITABLE AREA THAT CAN SUPPORT
THE PRODUCTION OF WILD
BLUEBERRIES. LARGER SITES ARE
FAVOURED OVER SMALLER SITES AS
MORE AVAILABLE AREA WILL PRODUCE
HIGHER YIELDS COMPENSATING ANY INPUT
COSTS REQUIRED TO DEVELOP, MANAGE
AND HARVEST THE SITE.2
NSFC recognizes that detailed planning
and consultation is required with
the MNR, First Nation and
Aboriginal communities, and the
public to better understand the
suitability of this request.
NSFC recognizes that preliminary
boundaries are subject to change
to accommodate environmental,
regulatory, Aboriginal or public
concerns and values. NSFC remains
flexible in the determination of
final boundaries for the
proposed development, and is able
to give consideration to
alternatives for developing the
proposed blueberry farm, including:
Revising proposed area boundaries while
giving consideration to site
capacity being a key attribute of
this proposal (target 551 ha)
Other suitable sites in proximity to
the preferred location
Netting down the proposed development
area would not result in the
dismissal of this venture as
no longer viable however a
smaller project area would require
an extended period to recover
project start-up costs resulting in
fixed costs being spread over
fewer producing hectares.
Variable development costs would
decrease proportionally with hectares
developed as would associated future
revenues.
According to the Northeast Superior
Forest Community Corporation Wild
Blueberry Field Assessment Report;
a minimum land capacity of
200 ha is required for
wild
world class production centre, maximizing
the area to be developed will
be instrumental to this projects
success. Given this NSFC would
target a final area of 500
hectares once detailed planning has
been completed.
THE CHAPLEAU-SULTAN SITE PRESENTS THE
HIGHEST POTENTIAL FOR DEVELOPMENT DUE
TO THE HOMOGENEITY
OF THE LAND, THE LARGE SITE
CAPACITY (AREA), ACCESSIBILITY, HIGH
NATURAL DENSITIES FOUND ON SITE,
SANDY SOILS AND PROXIMITY TO
A SUPPORTING COMMUNITY. THIS
SITE IS CONSIDERED THE "JEWEL
IN THE
CROWN". THE CHAPLEAU-SULTAN SITE
CAN PROVIDE SOME OF THE
BEST LANDS FOR WILDS BLUEBERRY
DEVELOPMENT IN ONTARIO AND EVEN
CANADA. 1
APPLICATION APPROVAL PROCESS
project, consideration of its potential
environmental effects, and a
prescribed evaluation and consultation
process. Because of concerns
regarding the natural, cultural and
socio-economic affects of this
undertaking, an opportunity must be
provided for regulatory agencies,
the public, Aboriginal and First
Nation communities and other
interested parties to review and
comment on this project proposal.
PROPOSED TIME FRAMES
Below is a description of proposed
time frames within the project
planning and approval process.
This process and schedule is
subject to change depending on
MNRs review of the proposal
and the level of interest that
may arise.
Project Proposal Submission
November 2012 Project Plan Review
& Categorization December 2012
Project Proposal revised
December 2012 Public Consultation
begins January 2013
Obtaining Applicable Licenses or Permits
Following successful EA decision
Project Implementation begins
as soon as permitting is
secured
MILESTONES
Completion of project proposal : A
preliminary Project Proposal was
provided to the Ministry of
Natural Resources in January 2012.
Other ministries including Ministry
of the Environment, Ontario
Ministry Agriculture, Food, and
Rural Affairs, Ministry of Aboriginal
Affairs and the Ministry of
Northern Development and Mines
were subsequently forwarded a copy
of the draft project proposal
for comment. Subsequent revisions
were made to the Project
Proposal document through the course
of the year, under the
guidance of the Ministry of
Natural Resources.
Project Plan Review and Categorization:
The Ministry of Natural
Resources reviewed the Project
Proposal, categorized it as a B
undertaking, and provided
recommendations on consultation and next
steps according to the requirements
of the RSFDP Class EA.
There may be additional requirements
for revisions to the Project
Proposal as a result of
the formal public comment period.
Proposed timeframes may require
adjustment as this proposal moves
through the approvals process.
Obtaining regulatory approvals and
permits: Necessary licenses and
permits will be required prior
to project initiation. No work
will begin on the project
until appropriate permits have been
obtained. The MNR will determine
all required approvals and NSFC
will complete all surveys, licence
and permitting applications subsequent
to a favourable environmental
assessment outcome.
Construction schedule & start -up
date: Operational activities are
anticipated to begin in 2013.
The construction schedule is
dependent on the timing for the
completion of the RSFDP Class
EA for this undertaking.
Further discussion on operational
activities and proposed development
schedules is provided in the
Operations section.
DEVELOPMENT MODELS
There are two agricultural models
for farming wild blueberries
used in Canada: the traditional
model which consists of fields
that are developed fully for
blueberry cultivation and an agroforestry
model which develops fields to
provide both blueberry cultivation
and managed timber.
The traditional approach is common in
the Atlantic provinces where
blueberry farms are often developed
in areas that have been
clear cut, recently burned or are
considered abandoned farmland.
The agroforestry model has been
successfully implemented in
. Jean area where commercial
blueberry operations are established in
forested areas. Detailed
information on the agroforestry model
is provided in Appendix C.
Organic production models are presently
most suited to small scale
application. Much of the organic
production industry is based on
small operations or from berries
harvested from the wild.
DEVELOPMENT ALTERNATIVES
Below is an outline of options
that NSFC has considered to
be economically viable alternatives
for the proposed undertaking.
Alternatives:
- 551 hectares using the traditional
model into full blueberry fields
2. Develop project area using both
the traditional model and the
agroforestry model
- 434 hectares using the traditional
model into full blueberry fields
PREFERRED ALTERNATIVE
Alternative #2 was determined to
be preferred option for development .
This alternative applies the
traditional model at the outset
to develop a large amount of
the identified area. It
also establishes an agroforestry pilot
project on a designated portion
of the area during successive
field development. The site
plan in Appendix D shows
where the two models are
proposed.
Rationale: The traditional development
model simplifies the establishment
and management of the fields
ensuring that the early years
of the project are focused
on successfully establishing the
farm and launching the business.
GIVEN THAT BLUEBERRIES ARE WORTH
APPROXIMATELY $1.00/KG TO FARMERS, THE
ANNUAL OUTPUT OF MANAGED FIELDS
RANGES FROM $3360 TO $8967/HA,
WHICH IS FAR SUPERIOR TO
THE AVERAGE TIMBER
GROWTH OF CANADA S FORESTS OF 1.59
M3 /HA/YEAR (LOWE ET AL. 1996)
WITH AN APPROXIMATE VALUE OF
$100/HA/YEAR.1
This alternative also values the
need to work cooperatively over
the long-term with existing industry
in later years by refocusing on
managing blueberries and forests on
the same land base. An
agroforestry pilot project could help
to establish a future strategy
for increasing the number of
blueberry operations on Crown land
and expanding the industry within
the region.
In general, once the trees have
been removed from the identified
production area, development and
management proceeds in the same
way regardless of whether you
are working entire fields or
strips within a field. See
the Operational Activities Section
for additional information on how
the development and management
of the fields would occur.
Under this alternative, organic production
may be viable over the long
term in projects that that
include development in proximity to
sensitive features (i.e. water
bodies). These areas could be
earmarked as future organic
production zones of the operation
1
and developed accordingly. Organic
production could provide product
diversification opportunities once the
farm is well established.
Implementing the agroforestry pilot
project as the last phase of
development allows time for NSFC
and its partners to explore the
net effects of an agroforestry
approach on the proposed commercial
blueberry business as well as
on the management of Crown timber.
It also allows for resource
management planning under this model
in addition to examining
implications on associated forest
certification. See Appendix C
for detailed discussion of
agroforestry objectives and methodology.
DEVELOPMENT TIMELINE
Given the total area (551
hectares), the project proposes
development in a phased approach
spanning over several years.
Changing forested land into blueberry
producing land takes approximately
5-6 years once field development
begins. This includes time
for removing the overstory of
trees, allowing stumps to decay
before preparing the fields, a
growing season, and then a
flowering and harvest season.
PRE FEASIBILITY STUDY
NSFC Commercial Blueberry Production
Business Plan 20081 was developed
as a feasibility study for
this project. It analyses the
viability of a commercial blueberry
production in the Northeast
Superior region. This feasibility
study formed the foundation and
template for business planning
and market analyses required for
development of specific blueberry
production projects throughout the
region.
Why wild blueberries? The
Lowbush Blueberry is a native
plant. It flourishes locally in
well-drained, acidic soils that
are low in fertility and
unsuitable for other agricultural
purposes. There is an existing
commercial blueberry industry in
Canada in which demand far
exceeds supply. With Ontario
being significantly underdeveloped in
this industry, the success of
this commercial blueberry project is
highly feasible.
Chapleau shares similar climate,
geology, soil, and vegetation
characteristics with the Atlantic Canada
and Quebec locations where the
wild Lowbush Blueberry industry is
a major economic contributor.
In these areas, agricultural
management techniques are being
used to dramatically increase yields
from the native crop of wild
blueberries; this managed crop is
marketed as a wild blueberry
crop.
There is no defined life span
for an established wild
blueberry field if properly managed, a
field could continue to produce
indefinitely. Considering the capacity
to produce wild blueberries
indefinitely, the management, harvesting
and processing activities will
provide employment opportunities that
will continually be available on
an annual basis.2
Drawing from the experience and
success of established operations
NSFC can apply the lessons
learned and best practices for
the Chapleau development and
operations.
Industry Overview: The global wild
blueberry industry is confined to
eastern North America, where the
plant is part of the native
vegetation. Currently wild blueberries
are mainly grown in Quebec,
Nova Scotia, New Brunswick,
Prince Edward Island and Newfoundland
on both private and Crown
lands. About 95% of total
"low-bush" production (based on 2003
data) was marketed as processed
(frozen). 1
1
The Northeast Superior Forest
Community Commercial Blueberry Production
Business Plan 2008
2 Level Plains Business Plan January
2010
The market for wild blueberries :
With their reputation as a
healthy food choice, blueberries
have been a growing part of
years. The growth may be
due in part to increased
demand for this antioxidant-rich
fruit. While overall the fruit
industry is becoming more
competitive, both domestic and
global markets are still increasing
as the benefits of eating
blueberries become widely known.
The table below shows the status
of markets for wild blueberries.
Canada's Exports of Wild Blueberries
to All Countries ($CAD)
2007 2008 2009 2010 Growth
wild blueberries - fresh 7,641,673 12,720,465
5,863,984 8,060,784 5.50%
wild blueberries - processed 183,889,813
159,016,984 120,859,657 122,248,533 -33.50%
Canada's Exports of Wild Blueberries
to All Countries (Quantity,KGM)
2007 2008 2009 2010 Growth
wild blueberries - fresh 4,219,339 7,210,348
4,939,028 6,693,712 58.60%
wild blueberries - processed 36,933,934
38,164,143 35,980,919 43,560,965 17.90%
Canada's Top 10 Blueberry Markets
($CAD) includes wild and cultivated
blueberries
Country 2007 2008 2009 2010 Growth
TOTAL: 323,707,933 301,309,121 236,365,651 245,153,119
-24.30%
United States 214,471,801 197,721,842 152,329,458 151,431,165
-29.40%
Germany 17,201,009 18,410,272 25,149,536 20,923,835 21.60%
Japan 33,600,297 28,857,222 18,997,067 21,999,062 -34.50%
Netherlands 7,056,938 11,358,814 6,992,744 11,089,010 57.10%
France 7,702,150 7,911,740 6,866,362 6,048,126 -21.50%
China 9,095,513 5,773,458 4,522,775 6,905,515 -24.10%
United Kingdom 15,912,021 16,027,928 8,065,032 6,105,329
-61.60%
Belgium 7,636,864 4,321,906 4,981,148 5,273,651 -30.90%
Australia 5,298,950 4,041,201 3,325,022 5,409,425 2.10%
South Korea 53,655 522,787 295,944 2,990,589 5473.70%
These statistics on blueberry markets
are complete through year end
2010.2
1
http://www4.agr.gc.ca
Market Channels: A well defined
marketing system has evolved in
blueberry producing areas for
getting the crop from the field
to the end user. These
market channels involve the
following1:
Growers grow and harvests blueberries.
A grower may or may not
be a buyer or processor.
Buyers buy blueberries from the
grower and sells to the
processor. The buyer is usually,
but not necessarily, a grower
himself.
Processors buy blueberries from the
buyer or directly from the
grower. The processor (freezes)
these berries at this plant.
They are then either resold
immediately or stored and held for
future sales. Some processors are
also large growers.
Manufacturers buy blueberries (mostly
frozen but sometimes fresh) for
use in the manufacturing of
blueberry pies, tarts, muffins, etc.,
or other manufactured products.
Customers of the blueberry growing
industry include processors, food
wholesalers and retailers, manufacturers,
value-added industries, and consumers.
Large quantities of berries
at competitive costs are
required to supply processors and
value added
Northeast Superior region in participating
at the scale required by this
growing industry.
Commercial blueberry products go well
beyond a fresh product and can
include: frozen, concentrate, puree,
dried, sugar infused, and
powder. A wide range of
value-added products can also be
produced from berries including:
nutraceuticals, liquor and wine,
baked goods, syrups, jams, ice cream,
yogurt, and health and beauty
products.
Additional information regarding feasibility
and market analysis are
available in the NSFC Commercial
Blueberry Production Business Plan
2008.
Key Ingredients: Business Development
Vision. The long term vision is
to be influential in creating
create a successful and thriving
blueberry production industry in
the Northeast Superior region.
The vision for this project is
to develop and launch a
large scale mechanized commercial blueberry
growing operation in the Chapleau
area.
Industry analysis shows that blueberry
production on a commercial scale
is required to be competitive
in markets other than the fresh
market. Current hand harvesting
in the wild is low yield
and high cost, ruling out
a sustainable and significant entry
into the processing and other
value-added markets. Thus it
is imperative that commercial
blueberry production is established.
The value of a clear vision is
that it attracts the kind of
support needed to nurture the
industry. It also motivates people
to buy-in throughout the region,
helping to produce the critical
mass necessary to grow the
industry cooperatively across the
region and to achieve economies
of scale.
In the short term, the business
development strategy will focus on
fresh wild blueberries with the
production of a quality
controlled fresh product, branded and
shipped to market. Branding
and promotion will highlight the
high quality and truly wild
Northern Ontario blueberry. This
will support a premium pricing
strategy; distribution will focus on
selected high quality produce retail
outlets and direct-to-consumer venues,
such as fa .
An existing cold storage facility in
Chapleau may be used to set
up a processing facility that
will start by processing fresh
berries, eventually introduce freezing
and subsequently add a central
processing facility for Northeastern
Ontario providing other distribution
access for other wild blueberry
farming operations. A separate
process will be undertaken relating
to this facility.
In the mid- term, freezing berries
could assist the development of
smaller scale value- added activities,
at the cottage industry level,
and marketing to smaller
manufacturing operations (wineries, etc.).
In the future it will become
viable to enter into the larger
scale frozen blueberry market to
serve customers in the food
manufacturing industries. As the
quantity of berries being
produced increases, from both the
Chapleau-Sultan Wild Blueberry Farm
as well as through other
growing activity across the region,
further local processing will be
added for sale of frozen
berries to these manufacturers.
Ideally, the centrally processed
berries would also be shipped back
to NSFC communities who choose
to expand their blueberry
operations to include value-added
manufacturing.
As part of planning for
long-term product diversification from
the blueberry farm, is interested
in exploring possibilities of
establishing some form of organic
managed in accordance with organic
certification guidelines for Ontario
produce and would become a
separate value added product
line. Development of organic
production would be through the
same methods except there would
be no use of chemical soil
applications.
Key ingredient: economies of scale.
Economies of scale are
very important in established
commercial blueberry producing areas
for both the individual
farmer as well as the industry
as a whole. This is
referred to as internal and external
economies of scale.
With internal economies the cost
per unit depends on size of
an individual firm.1 Blueberry
growers can reduce the cost per
unit through operational efficiencies
that increase production. Economies
of scale are achieved because
as production increases, the cost
of producing each additional unit
falls.2
External economies of scale occur
when firms benefit from the
whole industry getting bigger.3 In
the case of blueberries, growers
benefit from better infrastructure,
access to specialized labour,
improved techniques for production,
good supply networks, large scale
product branding, and global trade
opportunities.
In Nova Scotia there are 1,000
growers (with over 33,000 acres
(13,350 ha) in production and
an average yield of some 5,000
pounds per acre (2025 pounds
per ha) fuelling a small
number of major processing operations.4
Economies of scale permit Nova
Scotia growers to sell blueberries
at a competitive price. They
also facilitate the development
of entire systems supplying the
food processing industry in Canada
and U.S. and diverse markets
overseas.
NSFC will work to achieve similar
economies of scale for Northeast
Superior Region of Ontario as
a long-term goal for business
development.
Key ingredients: long term strategy
and incremental progress . For
many agricultural products, including
the blueberry, grand visions can
be realized through focused,
strategic and incremental actions over
time. In many instances,
the time
1
http://www.investopedia.com/terms/e/economiesofscale.asp#ixzz1UpSuFB2S
2
http://www.investorwords.com/1653/economy_of_scale.html#ixzz1UpTBmRj4
3
http://www.economicshelp.org/microessays/costs/economies-scale.html
involved is substantial decades,
not years. When improvements are
realized in a regional industry,
year-to-year over time, the results
can be astonishing.1
Taking a phased approach to
development of the Chapleau-Sultan
Wild Blueberry Farm will help
to ensure success for the
project. A slow but steady
rate of development will grow
local knowledge and capacity for
farm establishment and management
activities.
Key ingredients: partnerships. Keeping
in mind long term goal of
developing a region wide commercial
blueberry industry approach will
consider existing industries and the
challenge of balancing stakeholder
interests on Crown land.
During the planning and implementation
phases, engaging new partnerships
and working with existing partners
will be a priority to both
establish and continue to grow
the industry. NFSC partners include
member communities, First Nations,
Tembec, MNR, and Level Plains
Inc.
Level Plains Inc. brings solid
experience and a spirit of
cooperation to both hands on
farm development as well as the
vision for a region wide
blueberry industry. Its principals,
Trevor and Tracy Laing, have
successfully developed a blueberry
farm in Wawa, and conducted
site assessments across the NSFC
region. Trevor continues to
share his valuable experience
and advice and is considered our
blueberry expert in regards to
this project.
SWOT Analysis is a planning tool
that involves conducting a scan
of the internal and external
environment. As part of the
pre-feasibility study, it can be
used to analyze a
SWOT analysis: Strengths are internal
characteristics that are helpful to
achieving the objective. Strengths
can give the business an
advantage over others in the
industry.
- As the proponent, NSFC has a
business development vision and a
long term strategic vision for
the proposed project.
- To offset high costs of planning
and field development NSFC plans
to obtain funding and leverage
additional dollars making this
project attractive to investors.
- Once an operation is well
established, it has an indefinite
life-span.
- The proposed land has high
density of the native Lowbush
Blueberry suitable for a more
intensive, managed blueberry growing
operation.
- Local interest in economic
development, diversification and new
business opportunities is strong.
- There is strong technical and
advisory support from government for
resource use and economic
development activities.
- Wild blueberries are high in
antioxidants which have many health
benefits including anti-aging effects,
cancer inhibiting properties, heart
health, urinary tract health,
vision health.1
- Opportunities for value added products.
- Partnerships and cooperation with other
growers in the region will
provide external economies of scale
for industry growth through
marketing, processing and sales.
- Relative proximity to large market
for fresh produce in southern
Ontario.
- Substantial and reliable transportation
network is in place and the
Chapleau-Sultan Wild Blueberry Farm
is with relative proximity to
major markets of Sault Ste
Marie, Sudbury, and Toronto.
There is relatively easy access
to US markets via Sault Ste.
Marie and to international markets
via the Great Lakes Seaway.
SWOT Analysis: Weaknesses are internal
attributes that are harmful to
achieving the objective. They
can place the business at a
disadvantage relative to others.
- Fresh blueberries are cla improper
handling and storage. According
to the Ontario Ministry of
Agriculture, Food and Rural Affairs
(OMAFRA), a one-
-life by one day.
- Initial development costs are high
and production is delayed when
opening fields from forests.
The time involved is substantial
and there is virtually no
income generated during the early
stages of developing the fields.
- As the proponent, NSFC is an
organization that is funded through
Natural Resource funding is on
a yearly basis making
multi-year projects challenging to plan
and conduct.
- Inability to control markets driven
by supply and demand.
- Location of the farm is farther
than ideal from markets.
- Crop will require good weather,
adequate rainfall and abundant
pollinators (bees) to produce high
yields.
SWOT Analysis: Opportunities are external
chances that are helpful to
achieving the objective; these have
the potential to increase sales
and profits.
1
www.nswildblueberries.com
- A large population base with a
growing appetite for fresh,
foods and high quality specialty
foods and a significant food
processing industry create the demand
required for this new Ontario
industry to succeed.
- The anti-oxidant properties of the
wild blueberries are a good
selling feature and will continue
to create demand for blueberry
products into the future.
- The blueberry production industry is
modest in size in Ontario,
compared to Nova Scotia and Quebec;
however there appears to be
room in the market for an
Ontario business, provided it can
compete.
- There is potential to put
Ontario on the map (with
Northeastern Ontario as the capital)
in wild blueberry production if
the industry is developed
successfully.
- There is a sufficient base of
lands that could be developed
for blueberry production.
- Northern Ontario communities are
participating jointly in a number
of activities to promote regional
economic development and there
is the potential to involve a
number of communities in a
co-operative development of a
blueberry production industry. This will
help build critical mass.
- There is potential to join
forces with an industry organization
when engaged in commercial
production; this would provide access
to information, markets and
marketing resources.
- There is an existing and well
supported bee industry in
Ontario to help support pollination
requirements for the blueberry farm.
- Bees as pollinators provide an
opportunity to spin off a value
added industry based on wax,
honey and other bee related
items.
- Distances are relatively close to
fresh markets such Toronto and
Sault Ste Marie as well to
borders for shipping processed
exports.
SWOT Analysis: Threats are external
elements of the environment that
are harmful to achieving the
objective. Threats could result
in trouble to the operation.
- Blueberry production and blueberry
prices exhibit considerable variability.
Producti