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November 2007

CCBAC Interim EDWG Sector Strategies

CCBAC is very pleased to make the Economic Development Working Group interim sector strategies available for use by the sector participants and stakeholders, the CCBAC working groups, the various ministries within the provincial and federal governments, and most importantly the citizens of the Cariboo-Chilcotin.

CCBAC is compelled to make this information available as quickly as is possible in order to meet its objective of developing and growing the overall economic activity within the Cariboo-Chilcotin.

CCBAC will identify each completed sector strategy as an ‘interim’ document through the use of this cover letter. To CCBAC this means that the interim strategy is a ‘stand alone’ document at the time of its release, and that the interim sector strategy has not been ‘integrated’ with other interim sector strategies in any manner or form. The use of the information contained within the interim sector strategy is the responsibility of the user. CCBAC does not endorse or support any specific use or proposal that uses the interim sector strategy material.

CCBAC supports all interim sector strategies in principle only at this time.

CCBAC intends to begin the sector strategy integration process immediately. At the conclusion of the integration process CCBAC intends to have completed a community diversification plan for the entire CCBAC area. The interim sector strategies will be an integral part of this plan.

For additional information on the attached interim sector strategy, please contact the members of the sector strategy advisory committee, members of the CCBAC EDWG, or Keith Dufresne CCBAC Manager.

On the behalf of the CCBAC Board

Keith Dufresne, CCBAC Manager

Agriculture Sector Strategy – Nov 2007 Cariboo Chilcotin “Agriculture” Sector Strategy Strategy Process Overview November 2007

This is a brief overview of the development of the Agriculture Strategy from its commencement in January 2006 to its acceptance as an “interim strategy” in November 2007.

This strategy generally followed the generic outline developed by the Economic Development Working Group (EDWG). From this outline, a more detailed workplan was drafted to help guide the process, timeline and budget.

The following additional steps were taken:

1. A diverse volunteer advisory group was recruited that included representatives of industry, industry associations, academic institutions, and government (see the “acknowledgements” page in the strategy for a complete list of advisors).

2. The advisory group first met in January 2006 and immediately suggested that because of the immense diversity of the agriculture industry that focus areas that could relate to that diversity of business types be reported on.

3. A Strategic Focus Report was produced which identified the primary areas of study to address industry growth – as suggested by the advisory committee.

4. Several contractors with specialized skills and knowledge were retained to develop and write specific reports areas consistent with the generic CCBAC outline, but also including Land Use Policy, Agribusiness Investment Recruitment, Education and Extension, Integrated Agriculture Opportunities, Market Development Support, Specialty Crops Opportunities, and Value Added Products and Processing Support. These among other concepts, were selected by the advisory.

5. Once the focus reports were in draft form, three community meetings were held in the region to gather input from industry and the general public. This information was used to re-confirm the direction of the strategy focus, refine the content and of the reports, and identify other industry policy and market issues.

6. The draft reports were reviewed by the advisory committee and then combined into a single document.

7. Upon completion of a draft final report, the document was presented to the CCBAC Economic Development Working Group and subsequently the CCBAC Board.

8. Further revisions were made by a separate contractor based on feedback from the CCBAC EDWG and Board of Directors.

2 PHONE: (250) 392-9747 Email: [email protected] Cariboo-Chilcotin Agriculture Sector Strategy

Final Report

November 22, 2007

Prepared for:

Cariboo Chilcotin Beetle Action Coalition Box 4883 Station Main, Williams Lake, BC V2G 2V8

By:

George W. Powell, Ph.D., P.Ag. Consulting for Natural Resource Management Solutions PO Box 4261 Station Main, Quesnel, BC, V2J 3J3 Email: [email protected]

With Contributing Consultants: Julie Gabert, JGabert Forestry Consulting David Zirnhelt, Stonefield Consulting

Editing Contributions: Jason Gordon, Orbis Enterprises Alan Madrigga, City of Williams Lake

3 Acknowledgments The Cariboo-Chilcotin Agriculture Sector Strategy development was coordinated by the Economic Development Working Group of the Cariboo-Chilcotin Beetle Action Coalition by Alan Madrigga, Economic Development Officer with the City of Williams Lake with the assistance of Jim Savage, Executive Director of the Quesnel Community and Economic Development Corporation. The Strategy was developed with guidance from an advisory committee, including the following: Duncan Barnett Cariboo Cattlemen’s Association Rob Borsato Quesnel Farmers Market / Mackin Creek Farm Gord Borgstrom BC Ministry of Forests and Range - Beetle Response Team Glen Brown Brown’s Composting Company Bill Chapman BC Ministry of Forests and Range Dave Connell University of Northern BC Paddy Doherty Dragon Mountain Farm / BC Agriculture Council Bruce Ernst Quesnel Cattlemen’s Association Bob Flinton Cariboo Cattleman’s Association (CCBAC Advisor) Julie Gabert Quesnel Farmers Market Betsy Ives College of New Caledonia Harry Jennings BC Ministry of Forests (Grasslands Strategy) Alan Madrigga Williams Lake EDO Christy Palmantier Williams Lake Indian Band George Powell BC Agroforestry Industry Development Initiative Jim Savage Quesnel CEDC Martin Sills BC Ministry of Agriculture and Lands Mark Yawney BC Ministry of Agriculture and Lands David Zirnhelt Producer/Consulting Farm Business Planner Heloise Dixon-Warren, BC Agritourism Alliance Director for Cariboo Chilcotin Coast, and President of the North Cariboo Agricultural Marketing Association, is thanked for her input in the development of the agritourism assessment and recommendations. The helpful insights of Lavona Liggins, (Agriculture and Agri-Food Canada), Dave Trotter (BC Ministry of Agriculture and Lands) and Dr. Lisa Zabek (British Columbia Agriculture Council) in the formulation of the agroforestry assessment and recommendations are gratefully acknowledged. Dr. David Connell (University of Northern British Columbia) is thanked for his insight and recommendations in the preparation of Community Health and Social linkages work. Dr. Lisa Zabek (British Columbia Agriculture Council) and Raman Gill (BC Ministry of Agriculture and Lands) are thanked for their advice and assistance in compiling the specialty crops list and identifying development support needs.

4 Executive Summary This strategy outlines the current agriculture sector in the Cariboo-Chilcotin region, discusses issues and trends of impact to the sector, and reports on methods and required actions by which the industry can both sustain itself and grow. The Strategy reports the opportunities for sector sustainability and growth, and provides recommendations that may be actioned by the private sector, government and communities.

Profile The sector is characterized by a large beef cattle industry and supporting forage production and variety of smaller-scale, non-beef enterprises. There are 1,188 farms in the region encompassing a total area of 400,177 ha. Agricultural land is used predominantly for livestock grazing and forage production. Beef operations are also highly dependent on access to Crown forage resources. The sector also depends on access to Crown water. Irrigation and fertilizer use is in- line with the provincial averages however, very little pesticides are used. There are small number of Certified Organic farms and farms employing agroforestry systems. More than half of farms use soil conservation practices. Gross farm receipts total $60,788,027 (2001) annually. Beef cattle farms account for more than half of this output. There is more than $935 million in farm capital invested in the region. The sector employs 7.1% of the regional workforce including 1,470 persons in primary production, 95 in food manufacturing and 825 in food and beverage retail. The total payroll from farm operations is $8,322,323 annually. Beef cattle production is the primary activity in the region and ranchers husband 19% of the provincial herd. Other livestock production is diverse but generally small-scale. Regional farms raise a significant number of horses and small amounts of dairy cattle, poultry, swine and wild boars, sheep, goats, rabbits, bison and specialty livestock such as llamas and alpacas. The region is home to less than 3% of the provincial bee colonies but production per colony is the highest in the province. Field crop production, consisting almost entirely of forages and fodder crops, accounts for 14% of the farms in the region. The majority of forage and grain production occurs on beef farms in support of beef operations. Horticultural production in the region is small-scale, but diverse and encompasses a variety of fruits, , vegetables and potatoes, as well as greenhouse and nursery production. Floriculture operations make a disproportionately large contribution to total farm receipts and paid farm labour. A small but growing number of farms produce specialty crops including hemp, , sea buckthorn, syrup and a variety of botanicals. Commercial wild food harvesting, including pine and berries, is an important activity in some parts of the region. Agritourism is active in the region on a small scale. There are no large-scale food and beverage processing businesses located in the region. Small- and micro-scale processing occurs throughout the region and accounts for a small portion of the provincial total. With the exception of beef cattle and some other livestock, the majority of regional products are marketed through private sales and direct farm gate sales. Cattle are sold privately or through auction markets, including the BC Livestock Producers Co-operative stockyards in Williams Lake. A small number of feedlot operations finish cattle in the region. There is only one licensed slaughtering facility in the Cariboo-Chilcotin. Most of the annual estimated $177 million worth food and beverage expenditures in the region is retailed through restaurants and large chain grocery stores. Seasonal Farmers Markets in the region are important direct-to-consumer outlets for primary and value-added agricultural production.

5 Previous and Ongoing Development Work An inventory of previous development studies identified the following common opportunities: • Capture greater local and provincial market share; • Production and value-added processing servicing growth niche markets; • Additional finishing and value-added processing operations; • Integrated opportunities for production and marketing; • Strategic partnerships to facilitate communication, policy development, and common goals; • Education and training on production, markets and marketing techniques; • Changing demographics and consumer preference for fresh foods and healthy products; • Regional organization to provide a unified voice for the sector; and, • Cooperative organizations and strategic alliances to build economies of scale. Sector Trends The primary macro-variables influencing the sector include demographic changes, global market forces and consumer social concerns. These sector drivers are reflected in the trends in consumer demand, primary production, processing and the role of government. The major consumer trends include increased demand for convenience and variety, ethnic foods, healthy food choices, and products from sustainable agriculture and organic farming. Two primary strategies have evolved in response to market developments: businesses responding to major ‘commodity’ markets, and others focused on a variety of smaller-scale, ‘niche’ markets. Commodity market players have focused on high-volume, high-input specialization and are dominated by large enterprises. Niche market players have focused on opportunities for higher margins on specialty products and/or to address ethical or environmental concerns. An evolving role of government has seen shifts towards increasing regulations and decreasing support for technology transfer and industry development. A regional SWOT analysis concluded: Strengths include benefits the sector provides the region; an entrepreneurial spirit, knowledge and experience of sector participants; the region’s land and natural resources; existing infrastructure, products and markets from which to expand; and a favourable reputation. Weaknesses include the lack of diversification; a lack of processing infrastructure; a lack of economy of scale in most operations; poor industry communication and coordination; limited training and access to information; lack of research and development support; the distance to major markets; limited access to venture capital; a complex regulatory environment; and, shortages of skilled labour. Opportunities include the local food markets; niche export markets; increased regional processing; niche production; outside investment attraction; agroforestry; agritourism; enhanced environmental stewardship; stronger connections to health and social programs; education, research and development; and government support programs. Threats include a lack of industry coordination (from varied expectations and lack of a regional organization); market pressures (trade issues, retail supply chain consolidation, increasing costs of production); regulatory changes; access to resources (investment capital, Crown land, forage and water); changing environmental (climate) conditions; a lack of public understanding of agricultural issues; and, a lack of new industry entrants.

6 Key growth and development opportunities include: 1. Local markets (farmers’ markets, regional food retailers and hotel, restaurant and institutional wholesalers). 2. Finishing and processing opportunities, including: • Beef industry cluster development; and, • Niche value-added processing. 3. Production opportunities, including: • Expansion of products from Certified Organic and Natural production systems; • Honey; • Specialty crops (e.g.hemp, rose hips, sea buckthorn); • Diversified livestock (e.g. rabbits, sheep, goats and bison); • Agroforestry and non-timber forest products; and, • Greenhouse production. 4. Agritourism. 5. Agricultural education, research and development. Land and Resource Management Issues Liaison and provide planning support between livestock producers and government agencies may be required to mitigate mountain pine beetle damage to rangeland infrastructure. Land and resource management issues affecting sector development include access to Crown lands (for livestock and agroforestry production), agriculture development areas, the economic viability of Crown land alienation, First Nations issues, water issues, set-backs adjacent to urban development, and the availability of three-phase power and other key resources. Investment Recruitment Growth of the sector can be realized from recruitment of new agribusiness investment. After assessing investor sentiment, investment could be facilitated by an agribusiness investment package including a compilation of regional production options, infrastructure and markets, regulatory environment and land use regulations, agriculture and business support programs, and general community information. Promotion material and a ‘one-stop’ agribusiness information and investment services centre would aid investment recruitment. Education and Extension Support Post-secondary agriculture education options are limited. The provincial Ministry of Agriculture and Lands (BCMAL) is the primary delivery agency of extension in the region. Internet resources are bountiful but largely unorganized; the Infobasket service of BCMAL screens and organizes information and maintains a dynamic listing of agriculture training and extension. BCMAL offers a wide range of relevant agriculture sector publications. Other significant extension resources available to the regional agriculture sector include those of a variety of government and industry associations. Extension support is needed in all forms. Recommended development actions to support education and extension include: 1. Additional full-time, community-based agricultural extension staff delivered through the BC Ministry of Agriculture and Lands, a new independent organization, or new university / colleges extension programs.

7 2. Expansion of agribusiness planning and business development resources delivered in partnership with community economic development organizations or expanded services and mandate of the Province of BC’s “Front Counter BC” program. 3. Improved access to internet resources working with the Infobasket program. 4. Consumer education and public outreach programs developed in partnership with Agriculture in the Classroom, school districts, regional farmers’ market and agritourism and the BCMAL and/or regional colleges and universities. Integrated Opportunities Opportunities for agriculture sector growth in the Cariboo-Chilcotin exist in the emerging areas of agritourism and agroforestry. Agritourism provides experiences and services in conjunction with agricultural activities. Agroforestry systems (the intentional integration of agriculture and forestry) offer certain production and economic advantages and the ability to integrate conservation practices into managed systems. Agritourism opportunities include various fixed attractions, events and services. The success of developing agritourism products depends heavily on promotion and the quality of delivery of the product or services. Development priorities for agritourism support are as follows: 1. Producer education support; 2. Development of additional regional agritourism organizations; 3. Alignment with provincial initiatives; 4. Expansion of community agritourism facilities and events; and, 5. Integration with other regional tourism attractions and activities. There is a wide range of suitable agroforestry options; silvopastoral systems and however represent the best immediate opportunities for the region. In partnership with agroforestry support organizations, development priorities for agroforestry support include: 1. Improving regional education, training and access to agroforestry information; 2. Establishing demonstrations of agroforestry practices within the region; 3. Conducting economic modeling of silvopasture and forest farming; and, 4. Quantifying the agroforestry potential of Crown lands in the region, and current legislative and policy constraints to agroforestry management on Crown lands. The agriculture sector also has natural connections to community nutrition and health issues and contributes positively to the social fabric of the region. Support programs and linkages to programs and organizations focused on nutrition and the socio-economic aspects of food can provide benefits to both agricultural sector and the region at large. Actions to strengthen the regional agriculture sector’s relationship with community nutrition and food systems include: 1. Partnership with Agri-Food Partners in Healthy Eating to develop a regional forum; 2. Support increasing the supply of fresh produce from regional producers to meet the requirements of the Good Food Box programs; 3. Develop a promotional strategy that ties healthy eating with the healthy food supplies from the Cariboo-Chilcotin; 4. Support regional food systems research and development work (e.g. farmers market and food system assessments); and, 5. Create of a regional Food Network Committee to foster communication and coordination of community nutrition and food security issues.

8 Market Development Support Development of the Cariboo-Chilcotin agriculture sector requires support for the creation and expansion of market channels that maximize returns to producers and encourage and support regional value-added processing and packaging. Actions to support marketing of regional agriculture products include: 1. Creation of a regional agricultural ‘market intelligence’ database; 2. Implementation of a “Buy local” marketing campaign and branding program including creation of regional agricultural marketing body, Cariboo-Chilcotin agricultural logo and/or slogan, and coordinated marketing material; 3. Mechanisms to increase shelf space for local products at food retailers including an analysis of the product standards and infrastructure requirements needed to access the major food retailers and HRI wholesalers and brokers; 4. Support for the expansion of the local farmers’ markets, including infrastructure improvements and promotion support; and, 5. Strategic partnerships and alignment to provincial and federal marketing support programs.

Specialty Crops Specialty crops are niche opportunities for new commodities, new uses for established commodities, or establishment of a crop new to the region. A short list of specialty crops suitable for future development work was assembled using a three-step methodology. The short list itemizes crops for initial development work however, they will require additional quantitative assessments of production suitability. Success often involves vertical integration of production with value-added processing and/or direct sales. Existing research and development support for value-added production in the region is minimal. Strategic partnerships with government, university and private sector stakeholders are essential to capitalize on specialty crop opportunities. Expansion of specialty crops should continue through support and expansion of existing development work (e.g. hemp, wild rose and non-timber products from birch).

Value Added Products and Processing Small-scale processing can add value to the whole range of existing and potential agricultural products in the region. The only immediate opportunity for medium to large scale processing exists for beef products. However, many other niche businesses are possible at a micro or small scale. Development of processing support will need to address the following: 1. A critical shortage of licensed slaughter capacity; 2. Information and training on processing, packaging and labeling standards; 3. Research and development support through either: (a) links to existing provincial support organizations (e.g. BCIT, Pacific Agri-Food Research Centre or University of British Columbia) or, (b) Creation of a regional Agriculture Enterprise Centre; and, 4. Economics and investment capital issues including factors limiting small operations (start-up costs, regulations, economy of scale) and the potential role of cooperatives.

9 Table of Contents

Executive Summary ...... 5 Introduction ...... 15 PART A - SECTOR PROFILE & GROWTH CHALLENGES 1. Regional Agriculture Sector Profile 1.1 Introduction ...... 16 1.2 Sector Overview...... 18 1.3 Agricultural Production...... 24 1.4 Food and Beverage Processing...... 33 1.5 Primary Markets and Marketing...... 35 1.6 Information Cited ...... 37 2. Inventory and Synopsis of Sector Studies and Initiatives 2.1 Introduction ...... 38 2.2 Regional Development Reports and Initiatives...... 38 2.3 Synopsis of Sector Studies and Initiatives ...... 39 2.4 Regional Agriculture Sector Development Examples...... 41 2.5 Summary of Common Opportunities ...... 42 3. Sector Trend Analysis 3.1 Introduction ...... 43 3.2 Agriculture Sector Drivers 3.2.1 Demographic Changes ...... 43 3.2.2 Globalization of Markets ...... 43 3.2.3 Consumer Sophistication ...... 44 3.2.4 Health and Social Concerns ...... 44

3.3 Sector Trends 3.3.1 Major Trends in Consumer Demand...... 45 3.3.2 Trends in Primary Production...... 46 3.3.3 Trends in Processing ...... 46 3.3.4 Role of Government...... 47 3.4 Strengths, Weaknesses, Opportunities and Threats...... 47 3.4.1 Strengths ...... 47 3.4.2 Weaknesses ...... 48 3.4.3 Opportunities...... 51 3.4.4 Threats...... 52 3.5 Key Growth and Development Opportunities 3.5.1 Local Market Development ...... 55 3.5.2 Finishing and Processing Opportunities ...... 56 3.5.3 Production Opportunities...... 57 3.5.4 Agritourism...... 62 3.5.5 Agricultural Education, Research and Development...... 62 3.6 Information Cited ...... 63

10 4.0 Community and Regional Aspirations for Sector Development 4.1 Introduction ...... 64 4.2 Summary of Community Meeting Comments ...... 64 4.3 Community / Industry Input ...... 66

5.0 Land and Resource Management Issues 5.1 Short-term Range Mitigation Activities & Recommended Actions 5.1.1 Recommended Actions ...... 68 5.2 Land Use Position Paper for the Agriculture Sector ...... 69 5.2.1 Current and Anticipated Crown Land Access Requirements ...... 69 5.2.2 Potential Agricultural Enhancement Areas...... 72 5.2.3 Economic Viability of Crown Land Alienation for Agriculture...... 74 5.2.4 Continuity Issues for Expansion of Existing Agricultural Operations onto Adjacent Crown Land ...... 77 5.2.5 First Nations issues related to Agricultural Development onto Crown Land...... 78 5.2.6 Water issues related to Current needs and Future Expansion...... 79 5.2.7 Set-Backs and Greenzones required for the Rural-Urban Interface ...... 80 5.2.8 Availability of Three Phase power or other key Resources needed for Agribusiness Development...... 80 5.2.9 Agricultural Land Reserve (ALR) Issues...... 81 5.2.10 Other Land Issues...... 81 5.3 Summary of Land Use Policy Recommendations...... 82

PART B - GROWTH OPPORTUNITIES AND DEVELOPMENT STRATEGIES 6. Agribusiness Investment Recruitment 6.1 Introduction ...... 86 6.2 Key Information for an Agribusiness Investment Package...... 86 6.2.1 Investor Sentiment ...... 86 6.2.2 Regional Production options and Potential...... 86 6.2.3 Regional Agri-Food Infrastructure and Markets...... 87 6.2.4 Regulatory Environment and land Use ...... 87 6.2.5 Agriculture and Business Support Programs ...... 87 6.2.6 General Community Information...... 87 6.3 Recommended Actions...... 88 7.0 Education and Extension 7.1. Introduction ...... 90 7.2. Agricultural Education and Extension Profile 7.2.1 Post-Secondary Education Programs ...... 90 7.2.2 Government Extension Programs...... 93 7.2.3 Industry Extension Programs ...... 95

11 7.3 Needs Assessment ...... 97 7.4 Development Priorities and Delivery Options ...... 98 8.0. Integrated Opportunities 8.1 Introduction ...... 101 8.2 Regional Agritourism Assessment 8.2.1 Agritourism Overview ...... 101 8.2.2 Current Opportunities and Initiatives...... 102 8.2.3 Development Support Priorities...... 104 8.3 Regional Agroforestry Assessment 8.3.1 Agroforestry Overview ...... 105 8.3.2 Current Opportunities and Initiatives...... 106 8.3.3 Development Support Priorities...... 109 8.4 Community Social and Health Links 8.4.1 Overview...... 112 8.4.2 Food and Nutrition Initiatives...... 113 8.4.3 Socio-Economic Initiatives...... 114 8.4.5 Recommended Socio-Economic Initiatives...... 115 8.5 Information Cited ...... 116

9.0 Market Development Support 9.1 Introduction ...... 117 9.2 ‘Market Intelligence’ Database ...... 117 9.3 Local Market Development...... 118 9.3.1 Recommended Actions - Local Market Development...... 118 9.4. Export Market Development ...... 120 9.4.1 Recommended Actions - Export Market Development...... 121 10. Specialty Crops Opportunities 10.1 Introduction ...... 122 10.2 Specialty Crop Short List ...... 122 10.2.1 Screening Method ...... 122 10.2.2 Specialty Crop Opportunities...... 127 10.3 Development Framework ...... 129 10.3.1 Additional Screening ...... 129 10.3.2 Research and Development Support...... 130 10.4 Literature Cited...... 134

11.0 Value-Added Products and Processing Support 11.1 Introduction ...... 135 11.2 Current Regional Processing...... 135 11.3 Small Scale Processing Support Needs ...... 136

12 12.0 Beef Based Industry Cluster Development ...... 139 12.1 Introduction ...... 139 12.2 Recommended Action ...... 139

13.0 Comprehensive Forage Strategy...... 140 13.1 Introduction ...... 140 13.2 Recommended Action ...... 140

14.0 Action Plan Summary...... 141 14.1 Introduction……………...... 141 14.2 Sector Expansion Targets………………………………………………………. 141 14.2.1 Beef Industry Expansion Target Statements…………………………………….141 14.2.2 General Agriculture Expansion Target Statements……………………………. 142 14.3 Policy Requirements……………………………………………………………… 142 14.4 Land & Resource Requirements………………………………………………….. 143 14.5 Business Development Requirements……………………………………………. 143 14.6 Infrastructure Requirements……………………………………………………… 144 14.7 Training & Extension…………………………………………………………….. 144 14.8 Opportunities for Collaboration & Partnership………………………………….. 145 14.9 New Potential Business Opportunities…………………………………………… 145 14.10 Investment Recruitment………………………………………………………….146 14.11 Major Recommended Projects………………………………………………….. 147

Appendix 1. Regional Agricultural Associations...... 148 Appendix 2. Summary of Common Opportunities from Existing Sector Studies And Initiatives ...... 150 Appendix 3. References Synopsis of Sector Studies and Initiatives ...... 151 Appendix 4. Sector Trend Analysis – Information Cited...... 157 Appendix 5. Land Use Position Paper – References Cited ...... 158

13 List of Tables 1-1. Land inputs for agricultural production, 2001 ...... 19 1-2. Agricultural land use in the Cariboo-Chilcotin, 2001...... 21 1-3. Crown grazing and hay cutting tenures in the Cariboo-Chilcotin, 2003 ...... 21 1-4. Farm operating expenses and capital in the Cariboo-Chilcotin, 2001 ...... 23 1-5. Number of beef cattle in the Cariboo-Chilcotin by class, 2001...... 24 1-6. Livestock production (excluding beef cattle) and colonies of bees in the Cariboo-Chilcotin, 2001...... 26 1-7. Hay and other field crops in the Cariboo-Chilcotin, 2001...... 28 1-8. Vegetable and potato production in the Cariboo-Chilcotin, 2001 ...... 30 1-9. Fruit, and production in the Cariboo-Chilcotin, 2001 ...... 31 1-10. Greenhouse production in the Cariboo-Chilcotin, 2001 ...... 31 1-11. Nursery products and Christmas trees in the Cariboo-Chilcotin, 2001 ...... 32 1-12. Food and beverage processing in the Cariboo Census Agriculture Region..... 33 1-13. Annual per capita and regional consumption of major food groups and selected foods, 2001 ...... 34 1-14. Average household and total annual food expenditures in the Cariboo-Chilcotin, 2001...... 36 3-1. British Columbia’s top 25 high growth farm commodities ...... 50 3-2. Strengths, weaknesses, opportunities and threats for the agriculture sector in the Cariboo-Chilcotin...... 54 7-1. Post-Secondary Agriculture Programs in British Columbia ...... 92 10-1. Specialty Crop Candidates for the Cariboo-Chilcotin ...... 123 10-2. Cariboo Chilcotin Specialty Crops Short List...... 128

List of Figures 1-1. Cariboo Regional District ...... 16 1-2. Number of farms by size in the Cariboo-Chilcotin, 2001...... 18 1-3. Number of farms in the Cariboo-Chilcotin, by commodity produced, reporting annual gross farm receipts greater than $2,500 ...... 22

14 Introduction The Cariboo Chilcotin Beetle Action Coalition (CCBAC) is a non-profit society formed to be effective with government regarding the Mountain Pine Beetle epidemic as it affects the future of Cariboo-Chilcotin communities. Strategy initiatives for regional business sectors such as Log Home Building, Secondary Wood Manufacturing, Tourism, and Agriculture were completed as a means to identify ways to grow these industries. The Agriculture Sector is an essential economic sector in the Cariboo-Chilcotin region, and is deeply rooted in the history and culture of the area. The sector is characterized by a large beef cattle industry and variety of other smaller scale agriculture activities. Historically, agriculture has provided a component of economic stability to the region. The focus of this strategy is to clarify baseline information, long-term trends and best practices, as a means to identify and specify development opportunities within the various sub-sectors of agriculture. The report is presented to two major parts: A. Sector Profile & Growth Challenges Reports the current sector profile, previous and ongoing sector development work, and provides an analysis of sector trends, strengths, weakness opportunities and challenges, as well as, land and resource management issues facing the sector. B. Growth Opportunities and Development Strategies Provides a strategic level overview of business and industry development opportunities for key sub sectors, and identified initiatives and itemizes where information is available: • Cooperation and partnership recommendations to build synergies, and organizational relationships and structures which facilitate critical mass to overcome sector economic challenges; • Specify economic goals and quantified development targets; and, • Estimated capital requirements, or next steps to complete feasibility and investment attraction will be outlined with each recommendation to stimulate and accelerate sector growth.

Topic areas of this section were identified early in the Strategy work by an Agriculture Advisory Committee. The group suggested key areas of focus for sector development. These topic areas were then prepared as specific reports which have been integrated into this broader Strategy document.

15 PART A - SECTOR PROFILE & GROWTH CHALLENGES REPORT 1.0 Regional Agriculture Sector Profile 1.1 Introduction 1.1.1 Purpose This profile outlines the scope and nature of the agriculture sector (primary production, food and beverage processing, markets) in the Cariboo-Chilcotin. The purpose of this document is to provide baseline socio-economic information on the sector for the development of a Regional Agriculture Sector Strategy and other planning and development activities of the Cariboo-Chilcotin Beetle Action Coalition. 1.1.2 Scope The Cariboo-Chilcotin is delineated as contiguous with the area encompassed by the Cariboo Regional District, specifically the municipalities of 100 Mile House, Quesnel, Wells and Williams Lake and surrounding unincorporated areas (Figure 1). Except where otherwise noted, information presented in this profile is based on the 2001 Census of Agriculture (Statistics Canada, 2002) for the Cariboo Regional District (Census District 5941). Data from the next comprehensive census of agriculture is scheduled for release in May 2007. Minor differences in the areas bounded by various political and administrative units relating to Cariboo-Chilcotin land use statistics are not factored into the interpretation of economic or production information.

Figure 1-1. Cariboo Regional District (Province of BC, BC STATS)

16 1.1.3 Regional Description and Demographics The Cariboo-Chilcotin encompasses 8.3 million ha in the central interior of British Columbia (8.7% of the provincial land area). The region is comprised of two major biophysical landforms: the broad interior plateau through the centre of the region and the montane areas: Pacific and Chilcotin ranges of the Coast Mountains in the southwest and the Cariboo Mountains to the east of the Quesnel Highlands. The plateau and highland areas form part of the Fraser Plateau and include three dominant ecological zones: • interior dry belt (Bunchgrass and Interior Douglas Fir leading biogeoclimatic zones) characterized by relatively long, dry summers, moderately long frost-free periods, and cool, dry winters; • interior wet belt (Interior Cedar-Hemlock and Engelmann Spruce-Subalpine Fir leading biogeoclimatic zones); and, • sub-boreal forests (Sub-boreal Spruce and Sub-boreal Pine-Spruce leading biogeoclimatic zones) characterized by colder weather and fewer frost-free days. The daily average growing season temperature is approximately 16oC; summer temperatures for low elevation lands adjacent to the Fraser River average close to 20oC (Ministry of Agriculture and Food, 1999). Frosts have been recorded in every month in most of the region, however the normal (1951-1980) frost-free periods range from 112 days to as low as 12 days at very high elevation sites (>1000 m). Precipitation varies with the geography of the region, with areas in the rain shadow of the Coast Mountains experiencing the driest conditions with less than 30 cm annually, and increasing to greater than 56 cm in the Quesnel highlands. The area encompasses four municipalities and a host of unincorporated communities organized within the Cariboo Regional District. The 2005 population of the region is estimated at 65,650, less than 2% of the provincial total. The population distribution is highly skewed to three main centres, 100 Mile House, Quesnel and Williams Lake, containing 35% of the regional total and secondary populations in the rural areas surrounding these communities.

17 1.2 Sector Overview Agriculture is a vital economic sector in the Cariboo-Chilcotin, and is deeply rooted in the history and culture of the area. The sector is characterized by a large beef cattle industry and supporting forage production and variety of smaller-scale, non-beef enterprises. Historically, agriculture has provided a component of economic and social stability to the region. 1.2.1 Farm and Farm Operator Profiles Regional Farm Operator Profile There are 1,860 farm operators in the region. The average age of regional farm operators is 51.6 years, in line with provincial and national averages. Sixty percent of farm operators are male and 40% female, also in agreement with provincial agricultural demographics. The large majority (94%) of regional farmers reside on their farms and conduct business as sole proprietors, unlimited partnerships or family corporations. Only eight farm operations (<0.01% of the regional total) are non-family corporations. Most farmers (69%) in the region spend more than 20 hours per week working for their agricultural operation and 45% work more than 40 hours per week. Slightly greater than half (55%) of farm operators are also employed in off-farm work not related to their agricultural operation. Regional Farm Profile There are 1,188 farms in the region (6% of the provincial total) with an average size of 832 acres, more than double provincial average of 315 acres. Although farms range in size from a few acres to over 30,000 acres, the majority of farms (609/1,188) are less than 180 acres in size (Figure 2).

Figure 1-2. Number of farms by size in the Cariboo-Chilcotin, 2001

Size (acres)

2,240 + 88

1,120 - 2,239 97

560 - 1,119 139

240 - 559 194

130 - 239 252

10 - 129 355

<10 63

0 100 200 300 400 Number of Farms (1,188 total)

18 Less than half of farm operations utilize physical inputs of any type (irrigation, fertilizer, herbicides, insecticides or fungicides) for production (Table 1). The number of farms utilizing irrigation (20.8% of farms) is lower than the provincial average (33%), however, the area irrigated (4.9% of farmland) is approximately equivalent to the provincial norm. Irrigation in the Cariboo-Chilcotin is related primarily to forage production on large fields, and smaller areas per farm of intensive horticulture production elsewhere in the province. Commercial fertilizer use (40% of farms) is approximately equivalent to the provincial average, however pesticide inputs are well below provincial norms, again reflecting the types of field crops grown in the Cariboo-Chilcotin.

Table 1-1. Land inputs for agricultural production, 2001

Land Inputs Cariboo-Chilcotin1 British Columbia2 Irrigation Farms reporting 247 6,861 Area (ha) 19,420 111,181 Fertilizer Farms reporting 473 8,214 Area (ha) 26,881 346,521 Herbicides Farms reporting 97 4,547 Area (ha) 1,670 149,256 Insecticides Farms reporting 13 2,723 Area (ha) 344 27,787 Fungicides Farms reporting 7 2,332 Area (ha) 33 24,395

1 1,188 farms in Cariboo-Chilcotin with a total area of 400,177 ha. 2 20,290 farms in British Columbia with a total area of 2,587,188 ha.

Organic Production Organic farming involves food and other agricultural production without the use of synthetic inputs such as chemical fertilizers, chemical pesticides, chemical growth regulators or hormones, and antibiotics. Organic production standards were established by the Certified Organic Associations of BC in collaboration with the BC Ministry of Agriculture and Lands. There are five farms (out of a total of 319 in BC) producing Certified Organic products in the region (4 producing fruits, vegetables or greenhouse products, and 1 producing animal or animal products). Organic production in the Cariboo-Chilcotin, as a percentage of all farms, falls below the provincial average.

19 Agroforestry and Conservation Practices Agroforestry is the intentional, integrated production of trees or shrubs with other crops and/or livestock. Agroforestry systems are employed to achieve synergies in production, and other economic, environmental or social benefits from integration in relation to conventional agricultural production. Five temperate agroforestry systems are employed in BC: shelterbelts, integrated riparian management, silvopasture, alley cropping and forest farming. Ninety-six farms (8% of regional total) have shelterbelts, an adoption rate 25% better than the provincial average (6% of farms). The number of farms employing other agroforestry practices and the type, extent and value of agricultural products derived from agroforestry systems in the region are unquantified. One or more of a variety of other soil conservation practices including crop rotations, permanent grass cover, winter cover crops, and green manure crops are employed by the majority (>747 out of 1,188) of Cariboo-Chilcotin farms. 1.2.2 Regional Agricultural Land and Crown Resource Use The total farm area in the region encompasses 400,177 ha (approximately 9% of the regional land base). The majority (58%, 232,582 ha) of the farmed area is owned by the farm operators, with remainder either leased from government (33%, 131,524 ha), rented or leased from others (8%, 33,974 ha), or share cropped with others (<0.01%, 2,097 ha). There are over 36,000 properties in the Cariboo Regional District either partially or fully within the provincial Agricultural Land Reserve (Cariboo Geographic Systems, 2003). Agricultural land in the region is used predominantly to support livestock grazing and forage production (Table 2). On an annual basis, 67% of the total farm area is pasture, either seeded or on land in a natural state. Moreover, a large proportion of cropland is cultivated for hay crops (see Section 3.3 for details). In addition to farmland, most beef cattle operations are highly dependent on access to Crown forage resources managed through the Ministry of Forests and Range and the Ministry of Agriculture and Lands. Livestock grazing and hay cutting is administered on Crown land through the Ministry of Forests and Range, through four Forest District offices in the region: 100 Mile House, Central Cariboo, Chilcotin and Quesnel. Livestock grazing is tenured on over 3 million ha of Crown range in the region with total of 320,387 AUMs authorized through 458 licenses or permits (Table 3); many of the grazing tenures are coincident and overlapping with timber or other resource tenures. Additionally, there are 170 agricultural leases on Crown land administered by the Integrated Land Management Bureau of the Ministry of Agriculture and Lands; these include 1 intensive and 20 extensive agriculture leases and 169 grazing leases1. There are also approximately 80 hay cutting permits on Crown land authorized to harvest 1,780 tonnes of forage (Table 3). Agricultural production in the region is also highly dependent on access to Crown water permitted through the provincial Ministry of Environment. There are approximately 1,293 permits for irrigation and 343 stock watering permits in the region (summary of Quesnel and Cariboo Water Districts, which includes the Bella Coola Valley).

1 Administration of grazing leases is in the process of being transferred to the responsibility of the Ministry of Forests and Range.

20 Table 1-2. Annual Agricultural Land Use in the Cariboo-Chilcotin, 2001

Area (ha) Percent

Tame or Seeded Pasture 29,179 7.3 Land in a Natural State used for Pasture 238,784 59.7 Crop Production (excluding Christmas trees) 58,972 14.7 Fallow Cropland 709 <0.1 All Other Uses (including Christmas trees) 72,532 18.1 Total 400,177 100

Table 1-3. Crown grazing and hay cutting tenures in the Cariboo-Chilcotin, 2003 (after Lohr 2003).

Grazing Tenures Hay Cutting Tenures Licences Licences and Authorized Used and Authorized Used Forest District Permits (AUM) (AUM) Permits (t) (t)

100 Mile 133 89,973 79,060 15 267 140 Chilcotin 104 71,292 65,852 30 688 688 Quesnel 93 31,663 31,017 13 372 372 Central Cariboo 128 127,459 125,863 22 453 428 Total 458 320,387 301,792 80 1,780 1,628

21 1.2.3 Farm Finance and Labour Summary Gross farm receipts (excluding forest products) total $60,788,027 annually, accounting for approximately 3% of the provincial primary agricultural output. Regional farms (102 of 1,188) also generate $3,825,341 in sales annually. The average gross receipts in the Cariboo-Chilcotin is $51,168 per farm, or less than half the provincial average. Twenty percent of farms generate greater than $50,000 per year in gross farm receipts with 19 of these operations reporting greater than $500,000 annually. Beef cattle farms account for 55% of the 1,046 farms reporting greater than $2,500 in annual gross farm receipts (Figure 3). Regional farm operating expenses total $61,808,600 annually or approximately 3% of the provincial expenditures (Table 5). Feed, purchase of livestock, wages and salaries, repair and maintenance of machinery and equipment, and interest payments are the largest operating expenditures for agriculture in the region. Total farm capital invested in the region is approximately $935 million (average of $787,092 per operation). The majority of regional farm capital relates to land and buildings (Table 4). Most farms (739 of 1,188) have less than $500,000 in total farm capital, with less than 7% utilizing more than $2,000,000 in total farm capital. The agricultural sector employs approximately 7.1% of the regional workforce (34,375) including 1,470 persons in primary agricultural production, 95 occupied food manufacturing and 825 in food and beverage retail (BC STATS, 2005). Paid work in the sector includes 19,358 weeks from 363 farm operations, of which 10,997 weeks is year round work and 8,361 weeks is seasonal or temporary work. The total payroll from farm operations in the region is $8,322,323 annually (Table 4).

Figure 1-3. Number of farms in the Cariboo-Chilcotin, by commodity produced, reporting annual gross farm receipts greater than $2,500

Others 16 Fruit 3 Vegetable 7 Dairy 7 Hog 10 Poultry & Egg 16 Mixed Livestock 41 Field Crops 146 Misc Specialty 226 Beef 574

0 500 1000 Number of Farms (1,046 total)

22 Table 1-4. Farm operating expenses and capital in the Cariboo-Chilcotin, 2001

Farm Operating Expenses Farm Capital

Machinery and Fertilizer and lime 2,055,034 equipment 111,040,397 Pesticides 209,026 Livestock 149,764,699

Wages and salaries 8,322,323 Land and buildings 674,259,963 Wages to family 2,655,122 Owned 544,827,756 Wages to others 5,667,201 Rented or leased 129,432,207 Contract work 2,441,848 Total $935,065,059 Seed and plant purchases 671,355 Feed and supplements 6,472,832 Livestock purchases 10,383,619 Veterinary services 1,809,134 Fuel 5,602,836 Repairs and maintenance of machinery 5,178,833 Rental and lease of farm machinery 548,965 Repairs and maintenance of farm buildings and fences 2,464,363 Rental and lease of buildings and land 1,260,702 Utilities 2,167,093 Interest expenses 4,605,374 Other expenses (excluding depreciation) 7,615,263 Total $61,808,600

23 1.3 Agricultural Production 1.3.1 Beef Cattle Beef cattle production is the primary agricultural activity in the region, accounting for approximately 55% of the farms with annual gross receipts greater than $2,500. Ranchers husband 135,148 head, or approximately 19% of the provincial herd. Other agricultural production (forage, fodder, grain and pasture production) supporting beef operations also factor significantly in the overall regional agricultural activity. Cow-calf operations are the most prevalent type of beef ranching with an average herd size of 250-300 (Ministry of Agriculture and Food, 1999). Calving occurs annually from late January to April. Livestock are pastured on Crown and private rangelands from the spring through the early fall, when most calves are sold and shipped out of the region. Approximately one quarter of calves produced in the region are retained for replacement of breeding stock or further feeding before sale (Table 5; Ministry of Agriculture and Food, 1999). Depending on the location within the region, winter feeding extends for 4 to 6 months and relies primarily upon hay and silage stores produced in the region or imported in from other jurisdictions. On average, 2,500 kg of hay is required to feed a mature cow for a 180-day winter feeding period. Summary statistics from the Cariboo Census Agriculture Region (CAR; incorporating both the Cariboo Regional District and the Fraser-Fort George Regional District) indicate the importance of beef cattle in the region (Ministry of Agriculture and Lands, 2006). Beef farms account for approximately 69% of farm capital, 56% of farm expenditures, 80% of the farm area and 40% of paid farm labour. Lohr (2003) provides additional detailed estimates of the scope and impact of beef cattle industry in the region based on the 2001 Cariboo CAR data. Lohr’s (2003) profile indicates that large cattle operations (> 200 head) account for most of the regional herd (58.7%), the largest portion of regional livestock value (57.4%), gross farm gate receipts (52.1%), return to capital (99.7%) and value added (82.4%). Larger beef cattle operations (>200 head) also tend to provide more employment and wages to non-family members.

Table 1-5. Number of beef cattle in the Cariboo-Chilcotin by class, 2001

Class of Beef Cattle Number Percent 3,359 2.5 Bulls, > 1 year old Cows 57,498 42.5 Heifers, > 1 year old 16,544 12.2 Replacement Heifers 10,864 Slaughter or feeder Heifers 5,680 Steers, > 1 year old 6,140 4.5 Calves, < 1 year old 51,607 38.2 Total 135,148

24 1.3.2 Other Livestock Livestock production within the region is diverse however, with the exception of beef cattle and horses, it is generally small-scale both in terms of total regional activity and as a proportion of the respective provincial industry segments (Table 6). Livestock enterprises in the Cariboo CAR, other than beef, account for 32.7% of farms, 23 % of regional farm gate receipts ($14 million), 14.8% of farm capital, 13.7% of farm expenditures including 5% of the regional farm paid labour (Ministry of Agriculture and Lands, 2006). Horses Second in size only to beef cattle production, horses comprise a substantial portion of regional livestock production and account for over 12% of the horse industry in BC. Horses are raised on over 61% of regional farms, and a high proportion of the regional herd is used for livestock handling and other tasks on beef cattle operations. The number of horses in the region used for trail riding, guide-outfitting, rodeos, showing and other commercial and non-commercial recreation are increasing (Ministry of Agriculture and Food, 1999). Net farm income from regional horse production however, is negative, accounting for approximately 3.5% of farm receipts, but 5.8% of farm expenses. Dairy Most of the dairy herds in BC are located in the Lower Mainland, Vancouver Island, and north Okanagan. Dairy cattle are produced on 29 farms in the Cariboo-Chilcotin, and this represents a small fraction (0.3%) of BC's herd. All milk produced for sale in BC is regulated by the BC Milk Marketing Board with a quota system in force. There is a single, licensed fluid milk producer in the region with a daily output of approximately 2,500 litres (Ministry of Agriculture and Lands, 1999). The nearest milk processing facility is located in Armstrong in the North Okanagan. Other dairy animals raised in the region are typically used to supply personal consumption and/or to nurse orphaned beef calves. Poultry Similar to other intensive livestock operations, poultry and egg production comprise a minor portion of regional agriculture. BC’s poultry and eggs are produced primarily in the Fraser Valley. A small portion of the provincial commercial flocks (0.1 to 0.2%) are resident in the Cariboo-Chilcotin and are kept primarily for personal use and limited farm-gate sales of meat and eggs (Table 6). There are no commercial poultry hatcheries in the region, however meat chickens, laying hens, turkeys and small numbers of ducks, geese, squab, pheasant and quail are produced. Regional production estimates for eggs and meat are unavailable for most poultry products, with the exception of turkey production of 16,167 kg per year. Swine and Wild Boars There are no pork production quotas in BC however, all swine sold for slaughter must be marketed through one of the BC Hog Marketing Commission’s facilities in the Peace River region, Okanagan, Vancouver Island or Fraser Valley. Of the approximate 35 commercial hog farms registered with BC Hog Marketing Commission, none are located in the Cariboo- Chilcotin. Most of the farms in the region raising hogs do so for their own consumption (Ministry of Agriculture and Food, 1999). Only 4 farms with swine production reported gross farm sales greater than $2,500. The region is also home to approximately 82% of the province’s wild boar production, but this industry segment only comprises 3 farms with a total of 36 animals.

25 Table 1-6. Livestock Production (Excluding Beef Cattle) and Colonies of Bees in the Cariboo-Chilcotin, 2001

Number of Number of Percent of BC Farms Livestock Production Bison (Buffalo) 5 548 6.1% Dairy Cattle, total 29 287 0.3% Dairy Cows 29 221 0.3% Replacement DairyHeifers 6 66 0.2% Swine 112 972 0.6% Wild Boars 3 36* 81.8% Hens and Chickens 298 15,995 <0.1% Turkeys 66 1,544 0.2% Other Poultry 100 1,398 0.2% Sheep 126 5,908 7.1% Horses and Ponies 733 6,418 12.0% Goats 57 585 3.1% Llamas and Alpacas 31 271 5.0% Rabbits 16 678 3.8% Colonies of Bees 29 778 2.7%

Sheep Sheep and lamb flocks in the region account for approximately 7% of sheep farmed in BC. Although BC produces less than 20% of its annual lamb requirement, sheep production in the region and elsewhere is declining. Approximately 3,131 lambs are produced annually in the Cariboo-Chilcotin, 7% of the provincial production. The majority (>40%) of the sheep industry is located on Vancouver Island and in the Fraser Valley. Large flocks (100 ewes/farm) are generally needed to create a financially viable operation (Ministry of Agriculture and Food, 1999). Average flock size in the Cariboo-Chilcotin is 22.7 ewes/ farm and reflects a high proportion of part-time sheep producers. Sheep milk is a minor commodity in BC, and no sheep dairies are located in the Cariboo-Chilcotin. Approximately 8,200 sheep were used in 2005 to control weeds in forested land in BC. Although sheep have been used within the region for this silvicultural purpose in the past, no activity was reported in 2005 (BC Ministry of Forests and Range, 2006).

26 Farming, Specialty Livestock and Others Other livestock husbandry in the region includes a small number of farms raising goats and rabbits and specialty livestock such as llamas and alpacas. Although a number of operations have tried game farming ventures including fallow deer, currently only bison farming has persisted in the Cariboo-Chilcotin. The region is home to 5 bison operations, representing approximately 6% of the provincial farmed herd. Diversified livestock producers generally rely heavily on private and farm gate sales. Colonies of Bees The region is home to slightly less than 3% of the provincial bee colonies. Despite the small base, the regional production per colony is the highest in the province (51.8 kg/colony/year), more than 50% greater than the provincial average of 33.9 kg/colony/year (BC Ministry of Agriculture and Lands, 2005). Based on 2005 production averages for the region, the Cariboo-Chilcotin produced approximately 50,860 kg of honey and 373 kg of bees with a total retail value exceeding $355,000. 1.3.3 Forages and Other Field Crops Field crop production accounts for roughly 14% of the farms in the region and contributes approximately $2,243,000 in gross farm receipts. Forage production on cultivated land and pastures represents the vast majority of crop production in the region. Tame or seeded pastures occupy 29,179 ha, or 12.5% of the pastureland in BC (Table 2). Additionally, approximately 1,680,000 kg of forage is harvested from Crown lands including native sedge hay grown on wetlands (Table 3). Forage and other field crops are cultivated on 58,232 ha of farmland in the region, of which approximately 45% is alfalfa or alfalfa mixtures and 49% is other tame hay and fodder crops (Table 7). In addition to alfalfa, popular forage species cultivated in the region include alsike and white clover, timothy, bromegrass, reed canary grass, tall fescue and orchardgrass (Fofonoff and Tingle, 2002). The regional production represents between 13-14% of the total provincial area cultivated for forages. Irrigation is employed for forage production on many operations, with a high proportion used for multiple-cut alfalfa crops grown on benchlands along the Fraser and Chilcotin Rivers (BC Ministry of Agriculture and Food, 1999). Single- cut alfalfa or other tame hay crops are typically grown elsewhere on the Fraser Plateau. The remaining 3,335 ha cultivated for field crops in the Cariboo-Chilcotin supports a variety of grain and fodder crops including small areas of wheat, oats, barley, silage corn, rye, buckwheat, field peas and mixed grains. Production of some species (e.g. silage corn) is restricted to warmer microclimates in the region and is almost exclusively cultivated on low- elevation benchlands along the Fraser River. A small number of farms (8) also produce forage crops (principally grass species) for seed production. The majority of grain and forage production in the region occurs on beef cattle farms in support of beef cattle operations (Lohr, 2003), and is consumed on the farm of production. Because of the large demand for forage to feed the beef cattle and other livestock production, the Cariboo-Chilcotin has a forage “deficit”. Thus, hay and grain stores are typically imported into the region for winter-feeding of livestock (BC Ministry of Agriculture and Food, 1999).

27 Table 1-7. Hay and Other Field Crops in the Cariboo-Chilcotin, 2001

Area in Percent of BC Number of Production Area in Farms (ha) Production Alfalfa and Alfalfa Mixtures 428 26,395 13.5% All Other Tame Hay and Fodder Crops 516 28,502 13.9% Wheat 9 184 0.6% Oats 68 1,003 3.1% Barley 38 1,349 3.8% Mixed Grain 13 869 30.8% Corn for Grain 2X*X* Corn for Silage 5X*X* Buckwheat 1X*X* Rye 8 96 5.9% Dry Field Peas 2X*X* Forages for Seed 8 223 0.5% All Other Field Crops 6X*X*

* Data were not released by Statistics Canada due to confidentiality constraints associated with crops produced by few representative farms.

28 1.3.4 Horticultural Production Horticultural production in the region is diverse and encompasses several industry segments including fruits, berries, vegetables and potatoes, as well as greenhouse and nursery production. Market Gardens Market gardens serving the local population and travelers have traditionally been an important part of agriculture in the region dating back to the earliest trading and gold rush settlements. Currently field production of horticultural crops (vegetables, fruits and berries) represents both a very small number of farms in the region and area cultivated (Tables 8 and 9). A highly diverse range of crops are grown in the region, but individually and collectively, they represent a small fraction of the provincial production. Similar to the provincial profile, potatoes represent the single largest vegetable field crop in terms of area cultivated and number of farms. Most horticultural operations are located near the major population centres in the region (100 Mile House, Quesnel and Williams Lake) and the majority of sales is through direct farm gate or local farmers markets. Field production of horticultural crops in the region generates annual gross farm gate receipts of approximately $219,000 and greenhouse vegetable production contribute an additional $42,600 (BC Ministry of Agriculture and Lands, 2006). Greenhouse and Nursery Production There are 41 farms in the region utilizing greenhouse production with a total of 79,113 m2 in production (Table 10). The majority (66%) of greenhouse operations are devoted to floriculture (flowers and bedding plants) with vegetable and other production facilities as well. Greenhouse production in the region has shown substantial growth relative to the other agricultural segments, with a 21% increase in the number of operations from 1996 to 2001. The largest proportion of this increase was accounted for by floriculture operations. As with most horticulture operations in the region, greenhouse production relies heavily on direct farm gate sales and thus most operations are located close to municipalities in the region. While few in number and accounting for a small portion of regional farm capital (<4%), floriculture operations have a large impact on important economic variables for the agriculture sector. Based on statistics for the Cariboo CAR (Cariboo Regional District and the Fraser-Fort George Regional District combined), floriculture, principally from greenhouse operations, generates 28% of gross annual farm receipts (or approximately $17 million) and provides for over 48% of the paid farm labour. There are 19 nursery operations in the Cariboo-Chilcotin producing a wide array of bulbs, perennial herbaceous plants, trees, shrubs and retailing related gardening and landscaping materials. Nursery production in the region represents approximately 0.5% of the provincial industry and a large proportion of nursery plant material demand is imported into the region. Additionally, there are 8 Christmas tree growers in the region with approximately 20 ha in production. Total nursery production in BC is expanding and is the second largest in producer of nursery stock in Canada, however, the number of nursery operations in the Cariboo- Chilcotin has remained stable in the last 5 years. The majority of production is located in the Lower Mainland, Okanagan and on Vancouver Island which have some of the lowest production costs in the country because of short, mild winters, a long growing season and abundant, good-quality water.

29 Table 1-8. Vegetable and Potato Production in the Cariboo-Chilcotin, 2001

Area in Percent of BC Number of Production Area in Type of Crop Farms (ha) Production

Potatoes 21 57 1.6% Sweet Corn 12 4 0.3% Tomatoes 5X*X* Cucumbers 10 2 1.5% Green Peas 11 2 0.2% Green or Wax Beans 13 5 0.6% Cabbage 8X*X* Cauliflower 6X*X* Broccoli 9 1 0.1% Brussel Sprouts 4X*X* Carrots 14 3 0.8% Rutabagas and Turnips 8 2 3.1% Beets 9 1 1.2% Radish 6X*X* Onion 10 X* X* Celery 2X*X* Lettuce 9X*X* Spinach 5X*X* Squash and Pumpkins 8 1 0.2% Rhubarb 2X*X* Asparagus 4X*X* Peppers 3X*X* All Other Vegetables 15 34 7.4% Total Vegetables (excluding 41 47 0.6% Potatoes) * Data were not released by Statistics Canada due to confidentiality constraints associated with crops produced by few representative farms.

30 Table 1-9. Fruit, Berry and Nut Production in the Cariboo-Chilcotin, 2001

Area in Percent of BC Number of Production Area in Type of Crop Farms (ha) Production Apples 6 4 <0.1% Pears 2X*X* Plums 1X*X* Cherries, Sweet 2X*X* Apricots 1X*X* 65X* Raspberries 8 1 <0.1% Blueberries 1X*X* Saskatoons 2X*X* Grapes 1X*X* Other Fruits, Berries and/or 1X*X* Nuts Total 19 14 <0.1%

* Data were not released by Statistics Canada due to confidentiality constraints associated with crops produced by few representative farms.

Table 1-10. Greenhouse Production in the Cariboo-Chilcotin, 2001 Area in Number of Production Percent of BC Type of Production Farms (m2) Production Floriculture 27 9,016 0.5% Vegetables 18 X* X* Other Greenhouse Products 7X*X* Total Area of Greenhouse 41 79,113 1.7% Production

* Data were not released by Statistics Canada due to confidentiality constraints associated with crops produced by few representative farms.

31 Table 1-11. Nursery Products and Christmas Trees in the Cariboo-Chilcotin, 2001

Area in Number of Production Percent of BC Type of Production Farms (ha) Production Nursery 19 23 0.5% Sod 000% Christmas Trees 8 20 0.3%

1.3.5 Specialty Crops and Other Production Specialty crops, as defined by the BC Ministry of Agriculture and Lands are “a new commodity, a new use for an established commodity, or an established crop new to another region.” Specialty crops can be harvested or produced through field cultivation, by wild crafting, or in agroforestry systems, and thus, they include a number of non-timber forest products. Specialty crops include commodities that are not generally associated with mainstream agriculture (i.e. eggs, forages, tree fruits, etc.). Most specialty crops are used in high-growth, niche markets such as those for herbal health and cosmetic products, nutraceuticals, floral and craft products, and specialty gourmet foods. Specialty crop producers are also typically engaged in small or micro-scale value-added processing (e.g. Christmas wreaths and swags from floral greenery) and most sales are generated from direct farm gate sales or through farmers markets and craft fairs. Individual specialty crop production estimates are generally not available, but regional production in this segment is estimated to encompass 1.7% of farms and generates 0.4% of gross farm receipts. Examples of specialty crops in production in the region include hemp, ginseng, sea buckthorn, a wide variety botanicals used for health and cosmetic products and two commercial producers of (Powell, 2005). Small –scale Commercial wild food harvesting, including mushrooms and berries, is also an important activity in some parts of the region and has cultural significance to regional First Nations. Pine mushrooms in particular are an important source of income for harvesters in the west Chilcotin (Powell, 2005). The volume and value of commercially harvested wild foods is largely unquantified. Mushrooms There are three producers in the Cariboo-Chilcotin with a combined production area of 46 m2 devoted to standard Agaricus button mushrooms. This represents less than 0.1% of the provincial total. The majority of mushrooms produced in BC are grown in the Lower Mainland. The province is near self sufficient in mushrooms, producing approximately 93% of demand, however regional production does not meet local consumption. Agritourism Agritourism is the marketing of farm experiences through farm vacations (e.g. farm bed and breakfast) and production tours. This growth area for diversification of farm services and integration with tourism sector is active in the region on a small scale. There are approximately 40 farms engaged in agritourism in the region (Schultz, 2001), however the economic contribution from regional agritourism is unquantified.

32 1.4 Food and Beverage Processing There are no large-scale food and beverage processing businesses located in the region (as defined by Weicker, 2006). Small-scale and micro-scale commercial food processing occurs throughout the region and accounts for approximately 8% of the provincial businesses in that sector (Table 12). Small meat processing businesses and micro-scale processors of specialty products dominate the regional food processing activity. There is only one licensed slaughtering facility in the Cariboo-Chilcotin processing cattle, bison, sheep, goat, pig, and specialty livestock (fallow deer, ostrich, and emu). A total of 3,427 cattle were slaughtered through the licensed facility in 2003, and there was an estimated 224 additional unaccounted for slaughtered (Myers et al., 2005) Overall, the value of food processing in the region (no beverage processors are located in the region) is a small fraction of provincial activity and of local demand for food and beverage products (Table 13). In BC the food and beverage industry contributes over $2.2 billion (2001) to the provincial gross domestic product (7% of the total provincial GDP) and is ranked the third highest among manufacturing industries. Most of the foods processing firms are located in the Lower Mainland (55%) and the Okanagan Valley (30%).

Table 1-12. Food and Beverage Processing in the Cariboo Census Agriculture Region (includes both the Cariboo Regional District and Fraser-Fort George Regional District).

Number of Percent of BC Processing Businesses Businesses Total

Beverages 0 0% Condiments, Flavourings and Seasonings 11 10.6% Confectionery, Snack foods 2 4.4% Dairy and Dairy Products 0 0% Eggs/Egg products 4 8.5% Bakery Products 6 3.6% Cereal, Pasta and Grain Products 0 0% Fruit and Berries 2 3.6% Soy, Nut, Seed and Other Legumes 0 0% Meat – Beef, Pork or Game 15 20.8% Nutraceuticals and Functional foods 2 1.9% Poultry 5 16.7% Vegetables 18 33.3% Combination of Products 3 5.0% Micro-scale Processors 25 21.4% Total 93 8.1%

33 Table 1-13. Annual Per Capita and Regional Consumption of Major Food Groups and Selected Foods, 2001 Cariboo-Chilcotin Per Capita Total1 Fruits, total (kg) 124.1 8,148,282 Fresh 63.3 4,156,215 Vegetables, total (kg) 192.3 12,628,195 Fresh 149.4 9,808,798 Tomatoes 8.3 65,659 Mushrooms 1.7 135,258 Peppers 2.9 166,774 Potatoes 74.0 4,862,706 Beverages, total (litres) 430.8 28,283,271 Alcoholic 85.8 5,644,704 Soft Drinks 113.6 7,456,236 Tea 73.0 4,791,794 Bottled Water 29.7 1,947,446 Fruit Juice 25.4 1,668,395 Vegetable Juice 1.5 98,489 Dairy Products Cheese (kg) 11.9 779,372 Fluid Milk (litres) 87.0 5,714,302 Yogurt (litres) 4.87 319,759 Red Meats (kg) 62.8 4,125,355 Beef 30.7 2,012,448 Pork 28.9 1,894,919 Mutton and Lamb 1.0 65,659 Poultry (kg) 36.5 2,396,554 Eggs (dozens) 15.9 1,041,352 Fish (kg) 9.7 633,609 Oils and Fats (kg) 30.9 2,028,863 Cereal Products (kg) 88.6 5,814,761 Pulses and Nuts (kg) 9.3 613,255 Sugars and Syrups (kg) 35.8 2,349,936

1 Regional consumption extrapolated from national per capita consumption averages and estimated Cariboo-Chilcotin population of 65,659 (2001).

34 1.5 Primary Markets and Marketing With the exception of beef cattle and some other livestock, the majority of agricultural production is marketed through private sales and direct farm gate sales. A small number of livestock producers finish and sell beef direct to consumers in the region, however, the primary market outlet for regional beef calves and feeders is the Alberta feedlot industry. Cattle are sold privately or through auction markets. The BC Livestock Producers Co- operative Association is a rancher owned and operated livestock co-operative that operates three stockyards, one of which is located in Williams Lake. The BC Livestock Co-op holds regular weekly auctions as well as special bull and horse sales. Electronic sales (The Electronic Auction Market, TEAM) are also held weekly in partnership with Calgary Stockyards. In 2005, the Williams Lake Stockyard sold 41,129 cattle worth $21.2 million (BC Livestock Producers Co-op, personal communication). Preliminary sales data for 2006 indicate higher volumes and values with over 49,000 head worth a total of $33 million already recorded as of May. Three local feeder associations in the region provide capital to purchase feeder cattle or to increase the base cow herd on member farms. These associations borrow money from banks or credit unions and purchase cattle or sheep for feeding (backgrounding) or finishing on members' farms or feedlots. The province provides loan guarantees to the association's lenders. Most feeder-cattle are shipped to Alberta backgrounding operations and finishing feedlots. The remainder are sold to a variety of feedlots in BC and the US. Because of the lack of cattle finishing in the region, many cattle shipped from the area are later imported slaughtered and/or processed for consumption. Sheep and lambs are primarily marketed privately, and historically through the Williams Lake Stockyards. The majority of animals, particularly lamb, are direct marketed to consumers. Auction sales in the region accounted for 810 animals in 1998 with a total value of $51,547. Wool is predominantly sold through the BC Sheep Breeders Cooperative Association. Most of the annual estimated $177 million worth food and beverage expenditures in the region (Table 14) is retailed through restaurants (33%) and large provincial or national chain stores (66%). Retail outlets source very little of their products directly from regional producers. Seasonal Farmer’s Markets in 100 Mile House, Quesnel and Williams Lake are an important direct-to-consumer, market outlets for primary and value-added agricultural production in the region. Estimates of the total volume and value of the region’s farmers market sales are not available. A preliminary assessment of the Quesnel Farmers Market indicated direct sales of $310,358 annually and an economic impact on the local economy of over $620,000 annually (Connell, 2006). There are no food service distributor companies based in the Cariboo-Chilcotin (Novacorp Consulting, 2005). Wholesale distribution companies based in the Okanagan, Lower Mainland and Alberta operate in the region.

35 Table 1-14. Average Household and Total Annual Food Expenditures in the Cariboo-Chilcotin, 2001 Per Cariboo-Chilcotin Household Total1 Annual Expenditures, total $6,862.96 $177,407,516 Purchased from Restaurants $2,247.44 $58,096,324 Purchased from Stores $4,615.52 $119,311,192 Meat $796.64 $20,593,144 Fish and Seafood $174.20 $4,503,070 Dairy Products and Eggs $670.28 $17,326,738 Bakery and Cereal Products $671.84 $17,367,064 Fruits and Nuts $556.92 $14,396,392 Vegetables $505.44 $13,065,624 Condiments and $157.04 $4,059,484 Sugar and Sugar Preparations $168.48 $4,355,208 Coffee and Tea $86.32 $2,231,372 Fats and Oils $66.04 $1,707,134 Non-Alcoholic Beverages $125.84 $3,252,964

1 Total regional expenditures extrapolated from provincial expenditure averages and estimated Cariboo-Chilcotin households of 25,850 (2001).

36 1.6 Information Cited BC Ministry of Agriculture and Food. 1999. Agriculture in the Cariboo-Chilcotin. Originally published as by the Cariboo Cattlemen’s Association, 1991, updated by T Briggs, 1995. BC Ministry of Agriculture and Food, Williams Lake, BC, 17 pp. BC Ministry of Agriculture and Lands. 2006. Selected agricultural statistics by economic region and type of farm: Cariboo. Online at: www.al.gov.bc.ca/stats/regional/cariboo.htm BC Ministry of Agriculture and Lands. 2005. Annual bee keeping statistics. BC Ministry of Agriculture and Lands. Victoria, BC, 3 pp. BC Ministry of Forests and Range. 2006. Vegetation management using sheep: Summary of forest plantation brushing with sheep, grazing activity for 2005. BC Ministry of Forests and Range, Victoria, BC, 2 pp. BC Stats. 2005. Community facts: Cariboo Regional District. BC Stats, Service BC, Ministry of Labour and Citizens’ Services, Victoria, BC, 2 pp. Cariboo Geographic Systems. 2003. Agriculture and forest policy review and development report. Prepared for the Planning Committee, Cariboo Regional District, Williams Lake, BC, 66 pp. Connell, D. 2006. Economic and Community Impact Assessment of the Quesnel Farmers’ Market: Preliminary Report, August 17, 2006. School of Environmental Planning, University of Northern British Columbia, Prince George, BC, 17 pp. Fofonoff, P. and J. Tingle. 2002. Forage Factsheet: 2002 Cariboo forage crop recommendations. BC Ministry of Agriculture Food and Fisheries, Williams Lake, BC, 4 pp. Lohr, Wayne. 2003. Regional agricultural socio-economic profile overview: Cariboo Region. BC Ministry of Sustainable Resource Management, Victoria, BC, 24 pp. Myers, Norris, Penny LLP. 2005. The Cariboo-Chilcotin Regional District beef industry product cluster report. Prepared for the Economic Development Office, City of Williams Lake, Williams Lake, BC, 47 pp. Novacorp Consulting. 2005. Directory of British Columbia food service distributors. British Columbia Restaurant and Food Service Association, Vancouver, BC, 34 pp. Powell, George, W. 2005. A regional profile of non-timber forest products being harvested from the Cariboo-Chilcotin, British Columbia area. Centre for Non-Timber Resources, Royal Roads University, Victoria, BC, 48 pp. Schultz, G. 2001. Agritourism and Direct Farm Marketing in the Cariboo and Chilcotin Coast Area. Prepared for the BC Ministry of Agriculture, Food and Fisheries, Williams Lake, BC, 33 pp. Statistics Canada. 2002. 2001 Census of Agriculture, Agriculture Community Profiles: Cariboo Regional District (CD 5941) tables, Statistics Canada, Ottawa, ON. Weicker, Ference. 2006. Focus on the Future: Developing the Agri-Food Industry in British Columbia. Final Report. Ference Weicker and Company Ltd., prepared for the Investment Agriculture Foundation of British Columbia, Vancouver, BC, 181 pp.

37 2.0 Inventory and Synopsis of Sector Studies and Initiatives 2.1 Introduction This section provides an inventory of previous agriculture related development studies and initiatives in the Cariboo-Chilcotin and summarizes the major findings of previous and ongoing development work applicable to the region. The purpose is to acknowledge and build upon previous and ongoing work, and thus avoid unnecessary duplication in the Agriculture Sector Strategy. 2.2 Regional Development Reports and Initiatives Table 2-1 is an inventory of Cariboo-Chilcotin agriculture sector development and strategy- related reports. As is self evident, information for the sector specific to the region is limited and many relate to land use policy and planning. Only two of these studies (Beef Industry Product Cluster Report, Agriculture section of the Williams Lake Economic Development Strategy) contain discussion of regionally based ‘strengths, weakness, opportunities and threats’ (SWOT) assessment.

Table 2-1 - Regional Development Reports and Initiatives Title Authors Sponsor Completed Agriculture and Forest Policy Cariboo Geographic Planning Committee, 2003 Review and Development Systems Cariboo Regional Report District Agritourism and Direct Farm Glynis Schultz Ministry of Agriculture, 2001 Marketing in the Cariboo and Food and Fisheries Chilcotin Coast Area Cariboo-Chilcotin Land Use Interagency Ministry of Sustainable 1994 Plan – Agriculture Strategy Management Resource Management, Committee Province of BC Cariboo-Chilcotin Regional Myers, Norris, Economic Development 2005 District Beef Industry Product Penny LLP Office, City of Williams Cluster Report Lake

Grazing Enhancement Fund R. Bailey and Ministry of Sustainable 1995 Cariboo-Chilcotin Region: Associates, Grazing Resource Management, Operations Guide Enhancement Fund Province of BC Management Committee Quesnel Farmers’ Market, Rob Borsato and Harvest, the 2006 Marketing and Communications Julie Gabert administrative Plan organization for the Quesnel Farmers Market Williams Lake Economic Lions Gate Economic Development 2003 Development Strategy – Consulting Inc., Office, City of Williams Agriculture Initiatives Sunderman and Lake Associates, Westcoast CED

38 2.3 Synopsis of Sector Studies and Initiatives The following sections list sector studies and initiatives reviewed as part of the Agriculture Sector Strategy development. A summary of key findings and conclusions is itemized in Apendix 2. A more detailed reference list is provided in Appendix 3, and detailed summaries of sector studies and initiatives are reported in: Powell, George, W. and Julie Gabert. 2006. Inventory and Synopsis of Agriculture Development Studies and Initiatives for the Cariboo-Chilcotin. Prepared for the Cariboo Chilcotin Beetle Action Coalition, Williams Lake, 49 pp.

2.3.1 Broad Sector Strategies and Initiatives BC Agriculture Plan; BC Ministry of Agriculture and Lands. 2006. Investment Agriculture Foundation of BC – Focus on the Future; Weicker, Ference. 2006. Williams Lake Economic Development Strategy – Agriculture Initiatives; Lions Gate Consulting. 2003. The Cariboo-Chilcotin Beef Industry Product Cluster Report; Myers, Norris, Penny LLP. 2005.

2.3.2 Land Use Planning and Policies Cariboo-Chilcotin Land Use Plan – Agriculture Strategy; BC Ministry of Sustainable Resource Management. 1995. Agricultural Land Commission Service Plan; BC Ministry of Agriculture and Lands. 2006. Access to Crown Land – State of the Industry Report; Press release, BC Ministry of Agriculture and Lands, May 9, 2006. Cariboo Regional District Agriculture Policy Review; Cariboo Geographic Systems. 2003. Cariboo-Chilcotin Arability Study; Cariboo Chilcotin Beetle Action Coalition. 2006

2.3.3 Labour and Targeted Producer Programs Agriculture Labour Market and Skills Development Initiative; BC Agriculture Council. 2004. Small Lot Agriculture Initiative; Small Lot Agriculture Initiative website: www.bcfarmfresh.com/services.asp Aboriginal Agriculture Initiative; Aboriginal Agriculture Initiative Steering Committee. 2002. Women in Agriculture Initiative; Eli Mina Consulting. 2006.

39 2.3.4 Agricultural Practices and Conservation Programs Agriculture Environment Initiatives; BC Agriculture Council. 2002. Organic Sector Development Program; Certified Organic Associations of BC. 2002. Agroforestry Industry Development Initiative; Sylvis Environmental. 2003.

2.3.5 Livestock Industry Initiatives Cariboo-Chilcotin Beef Industry Cluster; Myers, Norris, Penny LLP. 2005. Beef Cattle Industry Strategy; (Request for expressions of interest) Ministry of Agriculture and Lands. 2006. Horse Industry; BC Ministry of Agriculture, Food and Fisheries. 1999 BC Sheep and Wool Industry Development Plan; Sheep Project Advisory Committee. 1990 Grazing Enhancement Program; Bailey, R. 1995.

2.3.6 Horticultural, Specialty Products and Other Initiatives Landscape and Nursery Industry Strategy; BC Landscape and Nursery Association. 2003. Health Products and Functional Food Initiative; Industry Alliance Steering Committee. 2002. BC Beekeeping Industry Strategy; Don Cameron and Associates. 2004. Biodiesel in BC Report; Boyd, M., A. Murray-Hill and K Schaddelee. 2004.

2.3.7 Food and Beverage Processing Meat Industry Enhancement Strategy; BC Food Processors Association. 2004. Food Quality & Safety Initiative; BC Food Quality and Safety Steering Committee. 2003. Food & Beverage Processing Initiative; BC Food & Beverage Processors Steering Committee. 2004. Small Scale Food Processing; Small Scale Food Processor Association. 2003.

2.3.8 Marketing Agritourism and Direct Farm Marketing in the Cariboo and Chilcotin Coast Area; Schultz, G. 2001. BC Agritourism Initiative; BC AgriTourism Alliance web site: www.agritourismbc.org/ Quesnel Farmers’ Market - Marketing and Communications Plan; Gabert, J. 2006.

40 2.4. Regional Agricultural Development Examples Vancouver Island and the Gulf Islands Islands Agri-food Initiative strategic plan, 2004-2008; Investment Agriculture Foundation of BC (IAF). 2004. Parallel Opportunities for the Cariboo-Chilcotin: • Regional agriculture support organization; and, • Branding and local marketing support.

Lower Mainland of BC Economic strategy for agriculture in the lower mainland: Final report; Artemis Agri-strategy Group. 2002. Parallel Opportunities for the Cariboo-Chilcotin: • Support for niche markets and specialty product development through market-oriented research; and, • Need for regional coordination and planning to ensure long-term growth of the industry is not threatened by residential and industrial development.

Central Okanagan Regional District of Central Okanagan agriculture plan; Integra Community Planning Services. 2005. Parallel Opportunities for the Cariboo-Chilcotin: • Emphasis on local market opportunities and support for local marketing; and, • Enhanced regional agricultural extension and agri-business resources.

Saskatchewan Agricultural Subcommittee Report; Action Committee on Rural Economy (ACRE). 2001 a.

Agri-Value Subcommittee Report; Action Committee on Rural Economy (ACRE). 2001 b.

Parallel Opportunities for the Cariboo-Chilcotin: • Examination of key infrastructure needs that could facilitate regional development; • Creation of an agribusiness investment attraction program; • Building leadership, management and entrepreneurial skills; and,. • Supporting alliances and co-operative ventures to create critical mass.

41 2.5 Summary of Common Opportunities A summary of primary strengths, industry growth and opportunity-related results common to many of the sector development reports is provided as Appendix 2. The purpose is to provide a concise picture of the key elements to growing the agriculture industry as reported in previous strategy work. The items have also been considered in reporting a new SWOT in Section 3.

42 3.0 Sector Trend Analysis

3.1 Introduction As part of the process of developing an Agriculture Sector Strategy this section includes a critical analysis of current agricultural trends in the context of opportunities suitable for the Cariboo- Chilcotin. A strengths, weaknesses, opportunities and threats (SWOT) analysis was generated for the regional sector. Specific opportunities in line with current trends that can capitalize on the sector’s strengths are outlined with recommended actions to support development of these opportunities.

3.2 Agriculture Sector Drivers The agriculture sector in the Cariboo-Chilcotin is influenced by a complex array of environmental, economic and social factors that individually and collectively shape the sector’s opportunities and challenges. The primary macro-variables influencing the sector include demographic changes, globalization of markets; consumer sophistication, as well as health and social concerns related to the sector.

3.2.1 Demographic Changes 3.2.1.1 Urban growth Most of BC’s residents live in urban areas and follows a long-term trend of increasing urbanization in BC and Canada. Urbanization places both physical and cultural demands on the sector, including: • Alienation of the majority of the population from the land and food production. This has distanced the general public from issues of importance to agriculture; and, • Urban development in agricultural areas, leading to reduction of the agricultural land base, increased land costs, and rural - urban conflicts.

3.2.1.2 Immigration Canada and BC continue to be reshaped by immigration. Although the majority of the population continues to be of western European descent, significant immigration from Asia in the past two decades has resulted in large communities originating from India, China and Southeast Asia. The ethnic mix of Canadian society is further diversified by recent shifts to increased immigration from Eastern Europe, Latin America, the Middle East, and Africa.

3.2.1.3 Aging population The average age of citizens in Canada and BC is increasing from both longer life spans and a large cohort (“baby boomers”) of the population reaching retirement age. Within the next two decades, one-quarter of the Canadian population could be over the age of 60.

43 3.2.2 Globalization of Markets Despite large increases in population (world population has approximately doubled since 1961), per capita agricultural production has increased by approximately 25% in the past four decades (FAO, 2006). This has contributed to long-term declines in the real (inflation adjusted) value of major agricultural commodities. For example, the World Bank Food Index (an aggregate measure of food prices) fell from 139.3 in 1980 to 90.1 in 2002 (World Bank, 2003). Coincident to this, Canada has been shifting to more liberal trade through international agreements (e.g. North American Free Trade Agreement, and the General Agreement on Tariffs and Trade). This has created a fundamental shift in the major agricultural markets beginning with the ratification of the first “free” trade agreement with the USA in 1988. The effects of globalization of the agricultural markets on Canada have included: i. The volume and value of international trade in agricultural products continues to grow; ii. Increased opportunity to export products, while at the same time facing increased competition from imports; iii. Pressure to deregulate supply managed commodities (e.g. milk, eggs) and open these markets to foreign competition; iv. Vulnerability to currency fluctuations. From the 1990s through 2004, the lower value of the Canadian dollar compared to the US dollar supported export competitiveness. This trend has reversed in recent years; and, v. Pressure for greater international alignment or harmonization of Canadian regulations and standards.

3.2.3 Consumer Sophistication Increasingly sophisticated consumer tastes are dictating a greater variety of products and year- round delivery of traditionally seasonal produce. High quality, ‘affordable’ luxury items and rare/unique products are growing in popularity as counter to mass production and general uniformity of other offerings in the marketplace.

3.2.4 Health and Social Concerns Rising concerns about the relationship of diet to health and well being, and recent high profile incidents of food-borne illnesses and disease (e.g. E. coli outbreaks, and the incidents of bovine spongiform encephalopathy – BSE) have highlighted a growing concern about the quality and safety of food. Moreover, a growing segment of the population also considers other ‘intangible’ factors (e.g. ethical, environmental issues, food security) in their food purchase decisions. The primary health and social concerns influencing the agricultural markets include: i. Quality assurance, with the expectation of guaranteed clean, safe food; ii. Health issues with specific concerns about the relationship between diet, obesity, chronic diseases and quality of life;

44 iii. Environmental issues with regards to impacts of farming practices and agricultural chemicals on biodiversity, aesthetics, wildlife habitat, and water; iv. Ethical concerns about farm animal welfare and the use of genetically modified organisms; and, v. Food security and interest in local food systems, i.e., increasing concern about the impacts of imported food on social stability and equity, rural communities and quality of life.

3.3 Sector Trends Demographic change, global market forces, health and social concerns are shaping the sector through their influence on consumer demand. Because agricultural markets are largely demand driven, this is also reflected in the trends in primary production, processing and the role of government. 3.3.1 Major Trends in Consumer Demand

3.3.1.1 Convenience and variety • Increasing demand for convenient, high-quality, ‘ready to eat’ food (USDA, 2000); • Increasing proportion of food sales through restaurants; and, • Demand growth for gourmet foods and unique products.

3.3.1.2 Social, health and safety concerns, have increased demand for: • Products from sustainable agriculture, organic farming; • Third-party verification/certification of quality and safety, and the ability to trace food products to individual processing facilities and producers; and, • Healthy food choices and nutraceuticals.

3.3.1.3 Ethnic preferences. Increased demand for ethnic niche products resulting from immigration-driven demographic shifts (e.g. greater demand for soy-based foods, fish and seafood from Asian- Canadian communities).

3.3.1.4 Shifting export markets. The rate of growth in exports to the US, Japan and the European Union are slowing in relation to higher-growth markets in China, South Korea, Taiwan, Mexico, and Brazil (AAFC, 1998).

45 3.3.2 Trends in Primary Production Two primary production strategies have evolved in response to market developments: producers responding to the major agriculture ‘commodity markets’, and others focused on a variety of smaller-scale, ‘niche’ markets. 3.3.2.1 ‘Commodity’ production trends In response to a highly competitive global marketplace for major agricultural commodities, producers have taken steps to increase productivity and lower costs, including: • Specialized production of one or a limited number of commodities at an individual operation; • Increased size of operations to create economies of scale; • Use of genetically modified organisms to improve yields, reduce inputs, facilitate pest control or lower costs; • Increased use of other technology and inputs (e.g. computerized controls or machinery) to substitute for labour or improve efficiency.

3.3.2.2 ‘Niche’ production trends In response to opportunities for higher margins on specialty products and/or to address ethical or environmental concerns, niche production trends include: • Growth in low-input, sustainable agriculture and Certified Organic farming; • Increased production for non-food markets including health and cosmetic products, biofuels, essential oils, floral and craft products; • Diversification with non-traditional opportunities that leverage farm capital and integrate production, conservation practices and sales (e.g. agritourism); and, • Vertical integration on farms to include value-added processing/packaging and direct marketing to the consumer.

3.3.3 Trends in Processing Canadian food and beverage processing businesses have traditionally been oriented to the serve the domestic market and continue to supply greater than 80% of the food and beverages consumed in Canada (AAFC, 1998). Similar to the split in primary production however, processing has evolved in response to global competition and consumer demand trends. Large firms have adapted to a global trade environment by specialization, increasing scale and integration within a North American economy. Small and micro-scale operations have primarily focused on higher-margin, niche markets. Significant processing trends include: i. The growing importance of large firms and multinational corporations that have advantages of economies of scale, access to ‘state of the art’ research and development, efficient worldwide distribution systems and globally recognized brands; ii. Increased geographic concentration of major processing operations (particularly into Central Canada, and within BC, in the Lower Mainland); iii. Raw materials are sourced from low cost producers, world wide;

46 iv. Increased need for capital investment in high-technology processing or packaging equipment; v. Increased specialization of production capabilities to create efficiencies and address high capital investment requirements; vi. Increased use of quality control systems in processing (e.g. Hazard Analysis and Critical Control (HACCP) and International Organization for Standardization (ISO) systems); vii. Increased use of strategic alliances for co-packing or joint facility utilization; and, viii. Growth of niche processed products such as ‘ready-to-eat’, ethnic and gourmet foods and in products for hotels, restaurants and institutions.

3.3.4 Role of Government Governments have always played a dual role of both providing industry development support and regulating the industry by setting standards for production, processing, labeling and marketing. Political shifts in the last decade including increasing power of urban constituents and changing priorities for public expenditures have shifted the balance of this relationship such that there has been: i. Increasing involvement of all levels of government (federal, provincial, regional and local) in agriculture sector regulation; and, ii. Increasing number of regulations to address societal concerns for the environment and quality assurance, and to manage land use issues; iii. Decreasing support for technology transfer to producers and processors or for industry development.

3.4 Strengths, Weaknesses, Opportunities and Threats The strengths, weaknesses, opportunities and threats for the agriculture sector in the Cariboo- Chilcotin were determined from a review of sector strategies and studies (Section 2) and input from an Agriculture Sector Strategy advisory committee.

3.4.1 Strengths Strengths of the sector stem from the human, physical and natural resources of the Cariboo- Chilcotin, and the favourable position in, and resources of, British Columbia and Canada. The strengths of the agriculture sector in the region include: i. Benefits provided to the region. Agriculture strengthens and diversifies the Cariboo- Chilcotin economy, provides social stability, contributes to the quality of life for its residents and is part of the regional identity. ii. Entrepreneurial spirit. The entrepreneurial spirit prevalent in the sector and the willingness and ability to adapt to changes and capitalize on new market opportunities is a primary strength of the sector. This determination together with a long-term outlook and willingness to co-operate will facilitate sector development.

47 iii. Knowledge and experience. There are many knowledgeable and experienced industry participants. In particular there is considerable production knowledge of beef cow-calf operations, market gardens, and niche products, as well as meat processing expertise. iv. Land and natural resources. The region boasts a clean, natural environment with an abundance of natural resources to draw upon. Most of the region is highly suited to forage and browse production and can sustainably support a variety of livestock production. Smaller, but significant areas enjoy a favourable microclimate and soils that are capable of growing a greater diversity of horticultural and field crops. The Cariboo- Chilcotin enjoys agricultural land cost advantages relative to other areas in BC, and relatively few rural-urban interface issues relative to more densely populated regions. v. Existing infrastructure. Existing specialized infrastructure in the region supports the beef cattle industry and provides a base for future growth and diversification, including the largest livestock auction yard in BC (BC Livestock Producers Cooperative, Williams Lake) and the slaughter capacity and market channels of Rodear Meats. All agriculture sector segments in most of the region have reasonable access to high quality transportation links (road, rail and air), telecommunications, as well as the full range of services and supplies necessary for a wide range of primary production. vi. Existing products. Existing production of a variety of quality primary (e.g. beef, fresh vegetables, berries) and value-added products (e.g. beef roasts and steaks, processed meats, preserved vegetables, condiments, baked goods) demonstrates the viability of serving a wide range of consumer demand. vii. Reputation. The region is known internationally for its rugged, natural environment, hospitality and unique character. Moreover, the region shares Canada’s reputation for high quality, safe food to support sales, and having a stable business climate, and democratic governance with quality, universal social programs to support investment. viii. Existing markets. Farmers’ markets and other existing direct marketing outlets in the region provide a solid base from which to service regional demand. The region is centrally located within one day of travel to major urban markets in the Lower Mainland, Alberta, Washington State and Alaska. Furthermore, the region, like all of BC, is well positioned and has existing resources and infrastructure to access growth export markets in the Pacific Rim.

3.4.2 Weaknesses Weaknesses of the sector stem from limited range of current production and processing, communications and coordination, and access to information, research and other development support. Specific weaknesses of the agriculture sector in the region include: i. Lack of diversification. Of the five major agricultural commodity groups in BC (floriculture and nursery, dairy, poultry and eggs, cattle, and vegetables) only beef cattle has a substantial production base in the region (Weiker, 2006). Indeed, beef production accounts for over half of the regional agricultural output and this has made the sector vulnerable to production and market risks (e.g. the BSE crisis). Moreover, within the beef

48 segment, limited feeder capacity currently constrains vertical integration to include greater finishing, slaughter and processing, and thus most of the regional industry is dependent on calf sales. The regional agriculture sector is also not well positioned in growth areas. Of the agriculture segments with the best 10-year growth provincially (Table 1), only regional honey and floriculture/nursery production has been increasing proportionate to the provincial growth. Moreover, commodities important to the region have shown low or negative average annual growth. For example, 2000-2004 receipts from cattle and forages declined by 9.4% and 12.7%, respectively (Weiker, 2006). ii. Lack of processing infrastructure. Processing and packaging in the region is minimal and limits the growth and the value captured from the agricultural sector. Less than 8% of BC’s processing firms are located in the region, and other regions have larger firms, and therefore account for the majority of volume and value of manufacturing (Weiker, 2006). Regional cattle slaughter capacity is limited and a lack of freezer/cooler capacity ‘bottlenecks’ beef processing capacity. The existing slaughter facility requires HACCP certification. Other processing only occurs within small and micro-scale enterprises (Powell, 2006). Primary agricultural production has been growing (based on farm gate receipts) in line with provincial economic growth (approximately 2.0% per annum); however food and beverage processing has been growing at 4.3% (Weiker, 2006). The lack of processing infrastructure therefore limits total regional agricultural sector growth. iii. Communication and coordination is poor. Communication within the sector and to the public, government and other industries is weak. This limits others’ understanding of regional agricultural issues, restricts promoting regional investment opportunities and hinders industry coordination and cooperation. The lack of a formal regional agricultural organization limits the sectors’ effectiveness on important issues such as land use planning, and the potential political influence of an organization that incorporates all industry segments. iv. Lack of research and development support. Investment in R&D is low relative to other regions and economic sectors. Most agricultural research support is delivered through research universities and federal or provincial government facilities, none of which are located within the region. Incentives and support for private sector R&D in the region are limited. v. Distance to major markets. Shipment of bulk, low margin products out of the region is limited by the cost of shipping to major markets.

49 Table 3-1. British Columbia’s Top 25 High Growth Farm Commodities (BCMAFF, 2004). Growth, 1993 to 2002 (%) Greenhouse tomatoes 1080.4 Sweet cherries 632.2 Canola 349.2 Beans 325.3 Greenhouse sweet peppers 302.8 270.2 228.6 Honey 167.8 Table potatoes 163.8 Grapes 146.2 Floriculture 132.3 Forage & Grass seed 128.4 Barley 102.3 Nursery products 101.5 Mushrooms 95.4 Oats 78.7 Chickens 65.9 Greenhouse cucumbers 65.1 Cranberries 55.0 Wheat 51.5 Ginseng 47.4 Dairy products 38.6 Peas 35.7 Corn 30.6 Turkeys 21.7 vi. Lack of economies of scale. Many operations lack the critical minimum size necessary to achieve ‘economy of scale’ for profitably operating in commodity markets. Moreover, small operations may also lack sufficient volume or year-round capacity to meet large market orders. vii. Limited training and assess to information. Both producers and processors in the sector are challenged to stay current on a variety of technical, regulatory, market and marketing information. Formal and informal training opportunities are limited and uncoordinated. Extension and technology transfer is limited by a lack of regionally relevant materials (production guides, demonstrations sites, etc.) and personnel to deliver material. There is limited training and development support for First Nations’ agriculture. viii. Limited access to venture capital. Ready access to capital, and in particular, reasonably priced long-term loans (“patient capital”), is low and limits industry expansion and diversification. ix. Complex regulatory environment. The regulations governing the sector are complex, increase costs and create uncertainty that restricts investment.

50 x. Skilled labour shortages. Lack of skilled labour hinders the regional meat processing industry and some market garden operations.

3.4.3 Opportunities The region is well positioned to both expand and capture greater value from agricultural production and processing enterprises. Significant development opportunities centre around the local market, niche products, expanded processing, integrated opportunities and building information, research and other support capacity. Specific opportunity topics include: i. Local food markets. A large opportunity exists to capture greater local and provincial market share from imports. Regional agricultural production currently accounts for a small fraction of regional food sales. Local producers have potential competitive advantages in terms of being able to deliver the freshest products in the local markets, tailored to regional tastes. Moreover, increasing transportation costs are reducing the price advantage of imported foods (e.g. fresh produce from California and Mexico). ii. Export markets. Trade liberalization, and access to transportation (e.g. year-round ports) has enhanced the opportunity for export markets. In particular, high quality, niche products can be developed for growth markets in the North America and the Pacific Rim. iii. Increased processing. A strong opportunity exists for increased beef processing within the region as well as the opportunity to expand with a variety of other small-scale enterprises. Development of a ‘beef industry cluster’ to pool resources and broaden participation could leverage the existing beef production base to capture greater value. Demand for high-quality, unique products is increasing in all market segments; in particular the markets for processed organic, ethnic and health foods are increasing. Existing primary production in the region can supply raw materials to many more small- scale processing enterprises. iv. Niche production. There are many existing and potential markets for niche products highly suited for production within the region. There is an opportunity for expansion of the existing production of specialty crops (e.g. hemp, sea buckthorn), diversified livestock (e.g. bison), and products from specialized systems (e.g. Certified Organic). There are also many new high growth opportunities suitable for production in the region (e.g. hormone-free, grass finished ‘natural’ beef, nutraceuticals and functional foods). v. Investment attraction. The agriculture sector is positioned to grow through relocation of agri-businesses to the region. Additional agricultural investment from outside the region could be captured by promoting the production potential and highlighting the region’s production advantages relative to other areas. The Cariboo-Chilcotin enjoys relatively low land costs, few rural-urban issues (reducing the planning and regulatory burden), the potential for reduced energy costs for barns or greenhouses through wood-based biofuels or utilizing waste energy streams from existing forest product manufacturers. vi. Agroforestry and non-timber forest products. Agroforestry systems allow for integration of forest products into existing agricultural operations or production of agricultural products in managed forests. Silvopastoral systems (combining livestock and timber production) and forest farming (producing non-timber forest products from within managed forests) represent significant opportunities for the sector. In addition to the

51 potential for non-timber forest products (NTFPs) from managed systems, a bounty of wild NTFPs can be sustainably harvested from the region’s forestlands including mushrooms, berries and herbal medicines. vii. Agritourism. The natural beauty of the region and long history of agriculture provides an ideal basis for expansion of agritourism. Agritourism can diversify farm operations to include tourism products (e.g. bed and breakfasts, tours, trail rides or other recreation) and drive greater sales through farm retail outlets, farm restaurants or “u-pick” operations. Collaborative or co-operative ventures can be further developed to expand farm ‘circle tours’, agricultural festivals or to leverage the tourism appeal of existing agricultural markets (e.g. farmers markets, livestock auctions) or other events (e.g. rodeos, rancher appreciation day). viii. Enhanced environmental stewardship. Opportunities to simultaneously enhance environmental stewardship and support farm businesses exist with broader adoption of agroforestry, Certified Organic production and other environmental farm practices. An opportunity for expansion in large-scale composting exists through combining nitrogen-rich animal wastes or crop residues with carbon-rich wood wastes from the forest industry. ix. Stronger connections to health and social programs. Expansion of regional agriculture is complementary to other social goals including improving health through diet (e.g. the Act Now program), enhancing intergenerational and multicultural social connections (through farmers’ markets), addressing food security and local sustainability issues. x. Education, research and development. The Cariboo-Chilcotin could be home to industry leading resources in agricultural education, training, research and enterprise development. This would serve the development needs of the regional sector, and could also generate economic spin-offs and secondary investments as others are drawn into the region to access the training and development support. xi. Government support programs. Existing government support programs (e.g. the Agri- food Futures funds) provide the opportunity to leverage funds and other resources for many aspects of regional agricultural development.

3.4.4 Threats A lack of industry coordination, market pressures, access to resources, changing environmental conditions and the complex regulatory regime threatens regional agriculture. Specific challenges to development of the sector as described as follows: i. Varied expectations. Differences in how producers and processors, or different segments of the industry envision the future of the sector challenge the ability to cooperate on important issues. This is of particular importance in areas where a high degree of cooperation is needed for operational success (e.g. beef cluster development). ii. Trade issues. The more highly dependent the sector becomes on exports, the more vulnerable it is to trade issues and export restrictions of any kind. Export dependent producers are challenged by the ability to remain competitive in a global context. iii. Retail supply chain consolidation. Most food sales regionally, provincially and nationally are brokered through large chain grocery stores, and hotel, restaurant and

52 institutions (HRI). Centralized purchasing by large national food retailers and HRI wholesalers threaten the ability of small and medium business to access these markets. In the absence of co-operative selling, individual operations must be very large to the meet the minimum purchase orders and year-round delivery demanded by these major buyers. iv. Regulatory changes. As both production and processing become increasingly regulated by all levels of government, fundamental changes in the regulations can result in large and costly operational adjustments. v. Access to capital. Continued restricted access to start-up and expansion capital will threaten expansion of the industry. Moreover, high growth sectors (e.g. processing, greenhouse operations) and high margin segments (e.g. dairy) need greater start-up capital than most ventures. Thus, access to capital threatens to exclude participation in the most lucrative segments of the sector. vi. Access to Crown resources. Expansion of the sector, and in particular the cattle industry, are threatened by pressures from competing uses for Crown land and water resources (e.g. forestry, recreation and mining). Restrictions on new agriculture leases are further impacting agricultural expansion. vii. Increasing costs of production. Rising land, equipment, fuel, labour and other costs threaten profitability of the sector. The cost of land clearing is limiting additional agricultural lands from being brought into production. Demand from non-agricultural users who are buying agricultural properties for residential and recreational purposes is resulting in increased land costs and creates a barrier to new agricultural entrants. viii. Degradation and loss of agricultural lands. Invasive plants (noxious weeds) and forest encroachment/ingrowth threaten pasture and rangeland production. Recreational activities (e.g. off-road, all terrain vehicles), poor agricultural practices and lack of conservation measures threaten the vegetation and soil resources. Moreover, residential, commercial and industrial developments are permanently reducing the agricultural land base. ix. Climate change. Water shortages and increased pest or disease outbreaks may arise with climate shifts. x. Continued lack of industry cooperation and coordination. Lack of unified regional industry organization challenges the sector’s ability to negotiate positions on land use, environmental standards and other important issues. Sector growth is increasingly dependent on the efficiency and competitiveness of the system as a whole. Producers, processors, and retailers need to partner to efficiently meet market demands. Economies of scale necessary to compete in some markets will only be achieved regionally through joint ventures, co-operative structures or other collaborative means. xi. Lack of public understanding of agricultural issues. The growing urban population base alienated from agricultural production threatens the sector by reducing its political importance, and thus the ability to garner support for industry development, favourable regulations and land use policies. xii. Lack of new industry entrants. The average age of farm operators is increasing as fewer young people are entering the sector. The lack of new industry entrants threatens the long-term viability of the sector.

53 Table 3-2. Summary of the strengths weaknesses, opportunities and threats for the agriculture sector in the Cariboo-Chilcotin.

Strengths Weaknesses 1. Provides benefits to the region. 1. Lack of diversification. 2. Entrepreneurial spirit. 2. Lack of processing infrastructure. 3. Knowledge and experience. 3. Poor communication and coordination. 4. Land and natural resources. 4. Lack of research and development 5. Existing infrastructure. support. 6. Existing products. 5. Distance to major markets. 7. Reputation. 6. Lack of economies of scale. 8. Existing markets. 7. Limited training and access to information. 8. Limited access to venture capital. 9. Complex regulatory environment. 10. Skilled labour shortages.

Opportunities Threats 1. Local food markets. 1. Varied expectations. 2. Export markets. 2. Trade issues. 3. Increased processing. 3. Retail supply chain consolidation. 4. Niche production. 4. Regulatory changes. 5. Investment attraction. 5. Access to capital. 6. Agroforestry and NTFPs. 6. Access to Crown resources. 7. Agritourism. 7. Increasing costs of production. 8. Enhanced environmental stewardship. 8. Degradation of agricultural lands. 9. Stronger connections to health and 9. Climate change. social programs. 10. Continued lack of industry cooperation 10. Education, research and development. and coordination. 11. Government support programs. 11. Lack of public understanding of agricultural issues. 12. Lack of new industry entrants.

54 3.5 Key Growth and Development Opportunities 3.5.1 Local Market Development A significant opportunity exists to capture greater local and provincial market share from imports. Regional production and farm gate sales currently account for a small fraction of the approximate $177 million in regional retail food sales. Local producers have several potential competitive advantages in serving the regional market. Local producers can deliver the freshest meat and produce available in the local markets; some products can be retailed immediately at harvest (e.g. ‘u-pick’ operations), or within hours of harvest through farmer’s markets or farm gate stores. This allows regional producers to offer varieties of produce that do not ship well, but otherwise are unique and more flavourful, and can ripen them to maturity (and full flavour) before harvest. Whereas, imported produce is often picked ‘green’ to give it a longer shelf life and durability during shipping and handling, and typically a limited number of varieties are grown for uniformity, long-shelf life and ease of shipping. Local producers are also in a favourable position to use their knowledge and direct feedback from local consumers to tailor their products to regional tastes, and can build long-term consumer loyalty through the relationships they develop while conducting direct sales. Concurrently, increasing transportation costs are diminishing the price advantage of imported foods (e.g. fresh produce shipped from California and Mexico). Relationship to Sector Trends Local market development fits well with the major sector trends and capitalizes on the strengths and opportunities of the sector. Local markets provide an immediate link for the agriculture sector to address social concerns about food security and local food systems, and consumer demands for the ability to trace food sources, and for unique, fresh, convenient foods. Strong regional markets are ideal agri-business incubators, allowing small operations to test and develop new products before scaling up to service larger provincial, national and export markets. Additionally, the ambiance and unique character of farmers’ markets contribute more than just economically to the region by enhancing social connections and quality of life. Moreover, because local markets involve producers selling direct to the consumer, their interaction and relationships with the public help to bridge the rural-urban divide. A vibrant local marketplace helps build community and strengthen intergenerational and multicultural ties in line with demographic changes in society. Strengthening and developing the local markets for local production will also allow the agriculture sector to strengthen its linkages to health and social programs. Wider availability of fresh and healthy food choices in the region will have flow-through benefits for the health and well being of regional citizens. Moreover, new social programs can be developed pairing donations from the sector and government support to place regionally produced foods in schools, hospitals and other care facilities and subsidize those with limited income to help them obtain high-quality, healthy food. Recommendations, development and delivery partners to support local market development are reported in Section 9.

55 3.5.2 Finishing and Processing Opportunities The regional agriculture sector is well positioned to expand through increased beef finishing and processing as well as a variety of other small or micro-scale enterprises. Meat product manufacturing is a high-growth segment with an average 11.1% annual growth from 2000 to 2004 (Weiker, 2006). Development of a ‘beef industry cluster’ to pool resources and broaden participation could leverage the existing beef production base to capture greater value. Moreover, demand for high-quality, unique products is increasing in all market segments including growing markets for processed organic, ethnic and health foods. Existing regional production can supply raw materials to many more small-scale processing enterprises allowing for new enterprises or vertical integration and diversification of the existing businesses. Beef Industry Cluster Development As the largest agricultural sub-sector, beef producers provide a potentially important base for expansion of regional agribusiness. However, many producers are challenged by diminishing returns on calf sales. Building on pre-feasibility research (Myers et al., 2005), development of a beef industry cluster would assist the regional industry in capturing greater value from the commodity. A beef cluster would incorporate greater regional feeding, finishing, slaughtering, co-operative marketing, and other value added processing ventures. Relationship to Sector Trends Developing an industry cluster centered on beef fits with the industry trend of regional commodity specialization and strategic alliances to create efficiencies across the full supply chain from primary production to value-added processing. A cluster approach should create ‘economy of scale’ and provide diversification from production risks resulting in an internationally competitive and regionally stable sector. Fresh-cut products have ample local and export market opportunities. As New Zealand lamb producers have demonstrated, high quality, fresh meat products can be vacuum packed and shipped anywhere in the world. Ranch-branded beef roasts and steaks are already sold in the region and on a limited basis to other areas. With cluster development, regional access to export markets should be enhanced. Existing or new unique processed products can serve the local and provincial markets or tap into high growth export markets. For example, a Mexican-style beef sausage could service consumer demand for unique products, growing immigrant communities in BC and would have duty-free access into the massive Mexican food market. Mexico imports over $14.3 billion of agri-food products annually for a market including more than 25-million middle and upper income Mexicans. From 1995-2002, Mexican beef consumption grew at 4.1% annually (Ruiz 2003). Expansion aligned with other and trends and opportunities, such development of organic or ‘natural’ grass-finished beef products, are complementary and supported by the cluster approach. Recommended Actions to Develop This Opportunity Complete a regional Beef Industry Cluster feasibility study and business plan outlining: • An assessment of beef/forage supplies and finishing capacity needed to provide a steady supply of finished beef for slaughter and processing; • The means to reduce infrastructure bottlenecks (cooling and freezing facilities) and other strategic support needed;

56 • Case studies of successful agricultural cluster development highlighting best practices including an analysis of the success; • A competitive analysis of the potential profitability and viability of the various beef industry segments and a comparison of the regional characteristics to beef industry operations and plans in other jurisdictions (within BC, Alberta and the United States); • A market diversification plan; • Consultations with industry participants to set beef industry segment goals; and, • A gap analysis to identify missing information, support tools, policy and regulation changes necessary to achieve the beef industry segment goals. Niche Value-Added Processing Small-scale processing can add value to a whole range of existing and potential agricultural products in the region with a focus on niche markets. Value can be added to regional agricultural production, and greater returns achieved, by processing, packaging, or how the products are marketed (e.g. through links to agritourism products and services). Relationship to Sector Trends Small-scale processing is an ideal diversification strategy to complement the current and potential primary production. Niche processing operations, producing high-quality, unique products are consistent with agricultural development trends across Canada for industry segments without the scale, integration or globally recognized brands to compete effectively in the main processed products markets. Existing or new unique processed products from the Cariboo-Chilcotin can serve the local and provincial markets or tap into high-growth export markets. Many niche processed foods are possible from the existing regional agricultural output including fresh cut vegetable products (e.g. salad mixes and stir-fry vegetable blends), condiments, herbal teas, vegetable preserves (e.g. chutneys and pickles), flavoured honey, and fruit/berry preserves (jelly, jam, syrup, beverages). Moreover, many other small-scale ventures focused on serving the local market are possible that source raw materials from outside the region or combine local and imported inputs. Examples of the latter include baked goods, confectionery, and ready to eat/quick preparation foods such as meat pies or frozen entrees. Recommendations, development and delivery partners to support value added product and processing development are reported in Section 11. 3.5.3 Production Opportunities Returns from the primary agricultural outputs of the region, forages and beef calves, have diminished in recent years. There are opportunities however, to lower costs, improve environmental stewardship, expand production through an enhanced forage base and shift production to niche beef markets through greater adoption of organic, natural and agroforestry production methods. The beef industry would otherwise benefit from expansion of individual ranches and/or consolidation of smaller operations. This should allow the sector to compete more effectively in the North American markets, and paired with development of a beef industry cluster will enhance the capture of value through greater finishing, slaughter and processing in the region. Outside of the beef segment there is growing demand for niche products that are highly suited for production within the region. Expansion of organic/natural farming, greenhouse

57 operations, specialty crops, diversified livestock, honey and agroforestry represent strong production opportunities for the Cariboo-Chilcotin.

Organic / Natural Production Organic agriculture employs “holistic production” systems that work with a goal of production that is environmentally compatible and sustainable. Organic farming involves production without the use of synthetic inputs (fertilizers, pesticides, or growth regulators) and does not use crops or livestock derived through genetic engineering. Organically raised livestock are provided ethical husbandry that promotes good health and prevents disease; hormones and antibiotics are not utilized in Certified Organic livestock production. Certified Organic farms follow standards set by the Certified Organic Associations of BC (COABC) in collaboration with the BC Ministry of Agriculture and Lands. They currently represent a small portion of the total regional and provincial agricultural production. However, there is large demand growth in the organic food market of approximately 20% per annum (COABC, 2002) and domestic Organic food consumption is expanding at a faster rate than production. The region is favourable for Organic production because its diverse geography and cool, dry climate reduce pest and disease problems. Moreover, the low existing use of pesticide and chemical fertilizer inputs among conventional producers facilitates the rapid transition to organic production and reduces adjacency issues between Organic and non-organic operations. “Natural” production is not synonymous Certified Organic farming, but has many similar attributes. Natural production standards are not regulated however, there is an expectation among consumers that it relates to foods produced without pesticides, hormones or antibiotics and with high standards for animal welfare and environmental stewardship. Similar to Organic products, retail demand for naturally produced foods has shown strong growth. For example, a consumer backlash against the use of hormones and antibiotics in beef production has created a growing market for Natural beef products in the United States. Indeed, this is one of the fastest growing segments of the beef market with approximately 20% annual increases (West, 2005). Relationship to Sector Trends Expansion of Organic and Natural food production is strongly aligned with consumer demand trends for healthy food choices and social concerns regarding environmental stewardship and sustainability of the agricultural sector. It also fits well with the social and environmental ethics of many current and potential producers, or those concerned about the health consequences of farm operators exposed to agricultural chemicals. Natural and organic production can draw on ample compost production potential in the region. In particular there is strong potential to expand large scale composting production by combining nitrogen-rich animal wastes/crop residues with carbon-rich wood wastes from the forest industry.

58 Recommended Actions to Develop This Opportunity: As part of an overall regional agricultural investment attraction and support program, produce a Certified Organic and Natural foods production awareness strategy outlining: • The opportunities for expanded production in the region to encourage migration of existing operations to Organic/Natural production and recruitment of new industry participants; and, • Collaboration with local organic associations and the COABC to promote organic products and further develop the markets.

Honey Honey production is a high growth agricultural segment and the existing Cariboo-Chilcotin industry is both very productive (approximately 50% more productive per hive than the provincial average) and complementary to the large area in the region cultivated for forages and in permanent pastures or rangeland. Canada is the world's sixth largest producer of honey and gaining international market share. There are variety of other niche products derived from bee colonies including beeswax, protein-rich pollen, propolis (ingredient in cosmetics as well as a health tonic), and royal jelly, a special feed produced by worker bees for the queen bee, which is used in skin creams and lotions (Sereda and Gagnon, 2003). In BC, honey production has been one of the top agricultural growth areas in the past decade (Table 1). Relationship to Sector Trends Honey as natural sweetener is a growth market and other bee products can service the growth in demand for niche natural health and cosmetic products. Increased honey production can leverage the region’s strengths of low pesticide use (and thus transference to honey) and abundant natural resources. Recommended Actions to Develop This Opportunity: As part of an overall regional agricultural investment attraction and support program, assess the potential for expansion of regional honey production by outlining: • A cost-benefit comparison of Cariboo-Chilcotin production relative to existing centers of production on the Canadian prairies (including BC Peace region); and, • Market channels and transportation costs to major markets outside of the region.

Specialty Crops and Diversified Livestock Specialty crops are niche opportunities for new commodities, new uses for established commodities, or establishment of a crop new to the region. There are hundreds of niche production opportunities that can be explored, in particular herb, , and medicinal crops for nutraceuticals and functional foods, bioproducts (fuels, industrial oils), cosmetic and body

59 care are showing strong growth. Because of limited production, specialty crops can generate higher margins to overcome cost disadvantages associated as potential sector weaknesses (e.g. transportation costs to major markets). Although there is a wide choice of production possibilities, successful development of specialty crops in other jurisdictions has generally been achieved by focusing on the development of a limited number of products (Weicker, 2006). Specialty crop production has also tended to be small scale and vertically integrated with producers engaged in some on- farm value-added processing and/or direct sales. Because the markets for specialty crops and their value-added products are still developing, production risks can be reduced by selecting crops that have a multitude of potential end uses. For example, hemp is a crop that can be grown in the region for food and non-food purposes. There are over 25,000 documented hemp products ranging from foods derived from the seed or seed oil, and a variety of fiber uses including fabric, carpeting, paper and animal bedding. Likewise, rose hips and sea buckthorn are two shrub crops highly suited to production in the Cariboo-Chilcotin and can be utilized for a variety foods, pet, health and cosmetic products. Similar opportunities exist for a variety of niche markets for diversified livestock production. These include existing and developing demand for meat products outside of the mainstream of Canadian agricultural production (chicken, beef and pork), and secondary products including hides, hair and wool. The Cariboo-Chilcotin is highly suited for expanded production of diversified livestock in demand, including rabbits, sheep, goats and bison. Relationship to Sector Trends By their nature, specialty crops and diversified livestock production options are selected to fit within market niches and thus are at the leading edge of agricultural trends. This tends to align production with growth demand for health and functional foods, ethnic foods, and unique/gourmet foods and non-food products (fibre, cosmetics, etc.). Niche production operations, producing high quality, unique products are also consistent with agricultural development trends across Canada for industry segments without the scale or local demand to compete effectively in the commodity markets. A preliminary assessment of specialty crops suitable for the region is reported in Section 10.

Agroforestry and Non-Timber Forest Products Agroforestry is the intentional, integrated production of trees or shrubs with other crops and/or livestock. Agroforestry systems are employed to achieve synergies in production, and other economic, environmental or social benefits that result from integration in relation to conventional agricultural or forest management. Independent of agroforestry systems, the region produces a variety of non-timber forest products (NTFPs) including mushrooms (e.g. Pine mushrooms), wild berries and herbs that are harvested and sold primarily through informal market channels. Organization of the sector and greater alignment with the agriculture sector could result in expanded volume of NTFP harvest, and improved value capture through processing and marketing efficiencies and synergies.

60 Relationship to Sector Trends Production of wide range of niche agricultural and non-timber forest products are possible in agroforestry systems and thus can be fulfill consumer demand for unique, niche products in both local and export markets. Many agroforestry opportunities are suitable for integration with small scale value-added processing and direct marketing. For example, existing regional enterprises produce birch syrup and valued-added floral greenery products (wreaths and swags) that are shipped throughout North America. Agroforestry opportunities also fit well with consumer demand for natural products from sustainable production systems that address social concerns with regards to environmental values. Recommendations, development and delivery partners to support agroforestry development are reported in Section 8.

Greenhouse Production Greenhouse production in many segments (nursery products) and individual commodities (tomatoes, cucumbers, and peppers) have been among the best of agricultural growth areas in BC in the last 10 years (Table 1). Provincially, expansion in greenhouse vegetables, floriculture and nursery products has been facilitated by the mild climate of BC’s Lower Mainland and abundant, clean water needed for hydroponic operations. The Cariboo-Chilcotin has the opportunity to attract greenhouse investment through the potential competitive production advantages of the region. These include relative low land costs, abundant water supplies and the potential to reduce costs by utilizing wood-based biofuels or waste heat from existing forest products manufacturing. Relationship to Sector Trends This opportunity fits with consumer trends for high quality, fresh produce and floral products and for year-round delivery of traditionally seasonal products. Greenhouse production leverages regional strengths in land and natural resources and low-cost energy sources. The use of high-tech greenhouse operations aligns with the production trends towards specialization and higher technological inputs to achieve greater efficiencies and total annual production.

61 Recommended Actions to Develop This Opportunity As part of an overall regional agricultural investment attraction and support program, assess the potential for expanding regional greenhouse production by outlining: • A cost-benefit comparison of Cariboo-Chilcotin production for major greenhouse commodities relative to existing centers of production in BC (Lower Mainland, Vancouver Island and the Okanagan). The analysis should factor in the differences in land costs, water availability and energy costs demonstrating the trade off between higher winter/shoulder season heating required versus the potential for inexpensive energy inputs (wood biofuels, waste energy utilization); and, • Market channels and transportation costs to major markets outside of the region.

3.5.4 Agritourism Agritourism capitalizes on the novel entertainment, educational or recreation values of agriculture to provide a range of experiences (e.g. tours) and services (e.g. accommodation) in conjunction with agricultural production and marketing. Strong agritourism growth opportunities include school/education focused products (‘edu- tainment’), corporate retreats (e.g. meeting spaces, barbecues, and team building activities), wider adoption of farm stores/stalls for direct sales, on-site themed festivals or events (e.g. pumpkin harvest, Easter egg hunts). In addition to expansion of agritourism through individual attractions, events or services, collaborative or cooperative ventures can be further developed to create synergies and the ‘critical mass’ to draw in a greater customer baser for the regional enterprises. These can include the development of farm ‘circle tours’, or marketing and activities to leverage the tourism appeal of existing agricultural markets (e.g. farmers’ markets, auctions), agricultural fairs, exhibitions, festivals, rodeos and other events (e.g. rancher appreciation day). Relationship to Sector Trends Agritourism is a growth area and fits well with the demographic shifts of an aging population/more retired people and growth in the urban population looking for unique recreation and tourism products. Agritourism involves producers selling products and services direct to the consumer, thus, their interaction and relationships with the public helps to bridge the rural-urban divide, improving understanding of agriculture issues. Recommendations, development and delivery partners to support agritourism development are reported in Section 8.

3.5.5 Agricultural Education, Research and Development Access to education and extension resources is fundamental to realizing development opportunities in the sector. Agricultural entrepreneurs are more likely to act and be successful if they have up-to-date and accurate market and technical information. Additionally, new opportunities for production and processing increasingly rely on state of the art research and development support. Access to technical support and personnel are key barriers preventing

62 small and mid-sized businesses from successfully expanding and diversifying. As such, support for agricultural education, extension, research and development in the region is essential to the success of the sector. The opportunity exists for the region to be home to industry leading resources in agricultural education, training, research and enterprise development. These resources would not only serve the development needs of the regional sector, but could also generate economic spin-offs and additional investment as others are drawn to the region to access the training and development support. Relationship to Sector Trends Agricultural education, research and development support addresses all major sector trends by empowering the sector participants to capitalize on current opportunities and keeping them abreast of new developments, trends and technology. Recommendations, development and delivery partners to support regional agricultural education, research and development are reported in Section 7.

3.6 Information Cited Information cited in this section is noted in Appendix 4.

63 4.0 COMMUNITY AND REGIONAL ASPIRATIONS FOR SECTOR DEVELOPMENT

4.1 Introduction Input into the community and regional aspirations for sector development were obtained from the CCBAC Agriculture Sector Advisory Committee (see page 2) and a series of public information meetings. Input was also received directly from the CCBAC Table Agriculture Advisor, and industry representatives. The information meetings outlined the CCBAC Agriculture Strategy to agriculture producers and those in the general community interested in development of the Agriculture industry. Participants were encouraged to share their industry insights and identify goals and challenges.

4.2 Summary of Community Meeting Comments Specific meeting dates and times for the public information sessions were as follows: 100 Mile House When: Tuesday December 12, 2006 - 7:00 to 9:00 PM Where: The Lodge Conference Centre - 150 Cariboo Highway 97 North Williams Lake When: Wednesday December 13, 2006 – 7:00 to 9:00 PM Where: Gibraltar Room (Cariboo Memorial Complex) - 525 Proctor Street Quesnel When: Thursday December 14, 2006 – 7:00 to 9:00 PM Where: Quesnel Senior's Centre - 461 Carson Avenue

The following points summarize common issues brought forward by attendees of the community meetings. • Lobby the BC Integrated Land Management Branch to provide an improved pasture policy; and use water resources to add value to farm operations.

• Investigate Community Pastures as a way to facilitate new Agriculture operations.

• Investigate land use policies in other countries – Switzerland given as an example – credits provided for allowing recreation trails through agriculture leased lands.

• Re-establish a rural electrification program – to better allow control of livestock.

• Question as to the economic feasibility of continuing with grass fed cattle.

64 • The beef ranching industry is very “beat up”; resources need to focus on reducing costs of regional industry – ways to establish more low cost producers and increase the profitability of the industry.

• Winter feed options could be one way to increase the sustainability of the ranching industry.

• Credit system for Agriculture industry – similar to forest licensees that get credit for silviculture – if land is managed well, then the leaseholder gets some credit for that.

• Hemp production is a solid opportunity for growth within the agriculture sector. o Federal Government target in coming years of ensuring 5% of fuel is ethanol based; o Hemp has the potential to produce ethanol.

• Niche opportunities may show growth opportunities, such as: o Goat meat – huge ethnic market o Ducks that don’t fly o Sheep – ½ of sheep meat consumed in Canada is imported ! In BC 80% of sheep consumed is imported ! Record high prices for sheep in 2006

• Water issues include o Access challenges; o quality; o effect on forage production;

• Need economic details on the value of Agriculture land use in comparison to other industry land uses/tenure types.

• Apiary industry – continued challenges with increased provincial fees;

• Natural fireweed is great for honey / apiary operations.

• Honey production in the region is generally small scale; but the quality of some producers has driven their demand for product far beyond production capacity.

• Insurance requirements by BC Government on lands for honey producers are very high - $2 million dollars coverage required on one producer.

• Crop rotation as a means of sustainable land management – for forage, etcetera is being practiced by some farm producers.

• Pasture Renovation is also a practice being utilized by some producers; with varying success that seems in some cases to depend on the particular land parcel; soil chemistry etc.

65 4.3 Community/Industry Input In general, comments from the public meetings outlined challenges and bottlenecks to industry growth. Much of this information validated direction of the advisory committee. Specific goals and aspirations submitted from the CCBAC sector Advisor were: Targets associated with the Cattle Industry: 4.3.1 INCREASE GRAZING LICENSE AUMS BY 10% FOR THE NEXT 25 YEARS. The increase could be used to either extend the grazing season or increase cattle numbers.

4.3.2 TARGET 20,000 HA OF CURRENT FOREST LAND TO BE CONVERTED TO INTENSIVE GRAZING LAND FOR THE NEXT 30 YEARS. The increase could be used to either extend the grazing season or increase cattle numbers.

4.3.3 INCREASE LICENSED SLAUGHTER CAPACITY AND ASSOCIATED PROCESSING CAPABILITY TO MEET BEEF CONSUMPTION IN THE CARIBOO.

4.3.4 IDENTIFY 10,000 HA. OF ARABLE LAND THAT COULD BE CONVERTED TO DEEDED LAND FOR AGRICULTURE.

4.3.5 COMPLETE GRASSLAND RESTORATION ON 10,000 HA. OVER THE NEXT 10 YEARS.

4.3.6 SUPPORT PROGRAMS TO COMBAT THE SPREAD OF INVASIVE WEEDS.

For other sub-sectors of the Agriculture Sector similar targets are suggested as: 4.3.7 OTHER LIVESTOCK (PIGS, SHEEP, GOATS): INCREASE LICENSED SLAUGHTER CAPACITY AND ASSOCIATED PROCESSING CAPACITY TO MEET 50% OF CONSUMPTION IN THE CARIBOO – CHILCOTIN.

4.3.8 HONEY PRODUCERS: INCREASE HONEY PRODUCTION BY 20% OVER NEXT 10 YEARS

4.3.9 POULTRY: INCREASE PRODUCTION TO SUPPLY 40% OF CARIBOO CONSUMPTION IN MEAT AND EGGS.

66 4.3.10 FARMER MARKETS: INCREASE VALUE OF SALES BY 100% OVER NEXT 10 YEARS.

]

67 5.0. Land and Resource Management Issues 5.1 Short-term Range Mitigation Activities Importance for the Sector Removal of natural range barriers during beetle salvage logging and fence damage from falling beetle-killed trees presents immediate challenges to the normal operations of livestock producers in the region. The beef sub-sector forms the “backbone” of agriculture in the Cariboo and it is important to address their current operational challenges before planning for future expansion of the industry.

5.1.1 Recommended Actions Support continued liaison between livestock producers and government agencies, and provide planning support (where necessary and requested by the vested interests) to: 5.1.1.1 Map existing fences and natural range barriers to facilitate management coordination with forest licensees, and identify priority areas for new fence construction;

5.1.1.2 Explore preventative mitigation options such as small-scale salvage incentives to remove beetle killed timber from fence line corridors and agricultural leases; and,

5.1.1.3 Provide short-term and case-specific easing of Compliance and Enforcement standards where extensive fence damage currently severely restricts the ability of producers to keep livestock within permitted areas.

68 5.2 Land Use Position Paper for the Agriculture Sector Expansion of the agriculture sector within the region may require additional land area for agricultural production and/or processing operations. Identification of potential agriculture development areas, the production potential of these lands and the security of long-term operation through land use planning and zoning are essential for supporting expansion of existing operations and recruitment of new agribusiness.

In consultation with sector and sub-sector representatives, and drawing on the baseline information (Sections 1 to 3), the Position Paper will outline: • The current and anticipated future Crown land access requirements; • Potential Agriculture Development Areas and Crown land suitable for conversion to private agricultural lands; • The economic viability of Crown Land alienation for agriculture, including a sensitivity analysis of land costs relative to agricultural profitability; • Continuity issues for expansion of existing agricultural operations onto adjacent Crown lands; • First Nations issues related to agricultural development; • Water issues related to current needs and future expansion; • Set-backs and green zones required for the rural-urban interface; • Availability of three-phase power or other key resources needed for agribusiness development; • Agricultural Land Reserve issues and, • Other planning or land use issues as identified by the sector or sub-sectors.

5.2.1 Current and Anticipated Crown Land Access Requirements As noted earlier in Section 1.2.2 of the sector profile, 58% of the land area in farms is owned and a very significant amount –33%- is leased from government. Access to crown land is essential for the sector. At this time the only significant use of crown land in the agriculture sector is the cattle industry. Interviews with the horse (uses only 5600 acres in Cariboo and Fraser Fort George Regional Districts) and birch syrup sub sectors indicate that they could enhance their businesses with access to tenured crown land. Bee keepers have noted that they rely in some cases for access to Provincial Parks and that land use fees in parks is an administrative and cost barrier to their businesses. Bison ranchers would like to have access to grazing leases for their animals. Individual businesses in other sub sectors might be able to justify tenure on crown land on a case-by –case basis. Access to affordable land was not seen as a major limiting factor in the success of their businesses. Processed forage (hay, haylage, silage, grain) is produced almost exclusively on private land, although some operations have hay cutting and grazing permits which are important to their operations. Nevertheless the number of acres involved in these permits is relatively small. All those interviewed thought that for the most part land was available privately for those wanting to establish or expand businesses. However, most agreed that many existing businesses could benefit from having access to crown land for making their management easier, more efficient or increasing their scale of

69 operation in order to take advantage of economies of scale more units of production over which to spread overhead costs. The biggest limiting factor in industry expansion is general profitability of the sector and its sub sectors. The demand for crown land has fallen because of the lack of availability and a general inability to pay by applicants because of the price of timber on those lands. Most of the land is probably in the Provincial Forest and thus not eligible for conversion to private land. Thus the purchase option is ruled out. Lease without purchase is still possible, but there is bias in favour of most of the suitable land remaining in timber productions. Enhanced viability of the agriculture sector could be achieved by increasing access to crown land either as fee simple land or leased land for three general purposes: first, agro forestry activities (trees and grass, shrubs, forbs for different products e.g. berries, medicinal plants,) which would diversify the farms into new enterprises; second, increasing the spring, summer, fall and winter grazing for the cow herd and other beef enterprises such as stockers, back grounding, grass finishing; and third, processing forage for winter feed. Most of the conflicts with forestry uses would occur on these lands with the better soils. Some of these better soils which would justify clearing and cultivating are now or have been supporting crops of trees including Lodgepole Pine, Spruce and Fir.

5.2.1.1 First Nations Reserve Lands Significant amounts of arable land exists on First Nations reserves. Much of this land is underdeveloped or undeveloped and constitutes a large opportunity. Those sections of the First Nations Economic Development strategies which deal with this strength is recognized here. However, it is beyond the scope of this paper to duplicate the planning currently underway by the three aboriginal language groups on the Cariboo Chilcotin area. Suffice it to say that with capital, capacity development and access to extension services, thousands of acres could be brought under enhanced production. 5.2.1.2 Land in the Provincial Forest Most forested land in BC is in the Provincial Forest which means that the predominant land use is forestry or timber growing. Agricultural use under lease tenure is possible, but conversion to fee simple land for agriculture use requires that the Minister approve the removal of land from the Provincial Forest. The current review of the Land Act by the Provincial government is examining ways of facilitating land use conversion decisions. Currently a conflict between current forestry uses and conversion to deeded land for agriculture does not go to a mediating process, which existed at one time when the Land Commission arbitrated between the Forestland use and Agriculture land use. In order to stabilize some agriculture ventures and enhance the sector land in the Provincial Forest will have to be open for tenuring for forage and agro- forestry purposes.

5.2.1.3 Highest and Best Use case for Forestry versus Agriculture Currently, one major rationale for not converting land from the Provincial Forest to fee simple land is that a determination is usually made that the land shows greater value for the crown if

70 left in timber production. Much evidence has been provided by agriculture advocates within an outside of government that the economic returns are greater from agricultural uses either as forage production or cattle than from forestry. (John Wilson, former M.L.A., power point presentation). Discussions with agrologists indicate that the case can be made favoring agriculture uses. Limited research at this time could not find methodologies, which have been officially accepted by government as a basis for decision-making. As a result, government will have to accept a prima facie case for land conversion. If government values food security through more self-sufficiency and the health of the regional economy with the benefits of high multipliers brought by agriculture, then government needs to determine that the expansion of agriculture justifies converting land from timber growing at least for the next few decades. Economists from forestry and agriculture could probably split hairs on this matter. If government wanted, cost benefit analyses could take place, but then the arguments would ensue over what assumptions went into the analyses. There are indications that gross margins (Gross Margin=Total Revenue from Product minus costs directly attributable to crop production) for the production of agricultural crops and conifers are close to being equal and that gross revenues per acre of agricultural crops exceeds that of timber crops over the same time period: and that pasturing provides lower gross revenue but similar gross margins because of much lower harvesting costs. Suffice it to say that if government wishes to follow the regional desire to diversify the economy by enhancing agriculture, then crown land should be made available. Land use planning at the regional and sub regional level have indicated this is as an objective.

5.2.1.4 Current practices and carrying capacity. Many producers feel they can increase their production if the economics warranted. This can be seen by looking at the herd expansion from 1986 to 2001. The expansion has less to do with government policy and more to do with what is happening in the market place. Land use policy as it affected agriculture did not significantly change during this period. Post BSE crisis and the rise in input costs such as fuel and fertilizer; it would appear there are greater challenges than access to crown land. Keeping cost down or converting to less input intensive grazing and forge are critical to financial success. Improved management practices can improve the carrying capacity of the existing land base, but this varies from operation to operation. Best practices of sustainable agriculture points to a combination of cost effective intensive forage production mostly for winter feed and intensive management grazing on a range of soils and forest and grass covers. Estimates of up to 40% or even 100% increases in grazing are given for the intensive methods which generally restrict stock access to small units and then move them when they have eaten 50% of the volume, leaving 50% to ensure optimal recovery of the plants. These practices are more easily achieved on the private lands, than on extensive grazing licenses. (More research and trials should be conducted to obtain regional and sub regional data.) Depending on soil types and moisture regimes and location, tenured crown land might be utilized in this same way. It has been pointed out that for some operators, extensive, difficult to manage; grazing licenses are less preferable than opportunities to intensively manage on private or public lands. In principle this speaks to something like the grazing leases which have not been issued for sometime and which government encouraged ranches to purchase.

71 Land tenures need to be secure in order for the manager to improve management practices because there must or should be a Return on Investment for improvements needed to achieve these best practices. The producer will need a flexible tenure which would allow a range of uses between agroforestry and cattle production, from the most intense management of winter feed crops to holding areas during wet weather, to stockpiling grass for fall, winter and spring grazing.

5.2.2 Potential Agricultural Enhancement Areas (AEAs) An arability study is being conducted on the regions crown lands to determine suitability of lands for conversion to more intensive agricultural land uses. September 2006 will see field- testing of the map work done over the past months. Interviews with project managers and consultants indicate that there is land but not in sufficient quantities to justify the start up of new operations, as there is on Highway 16 west where these areas are called Agricultural Development Areas. Instead, these smaller areas are probably more appropriately called Agricultural Enhancement Areas (AEAs). Those lands along the highway 16 were identified during land use planning processes (LRMPs). In the Cariboo Chilcotin a much higher-level plan was created Cariboo Chilcotin Land Use Plan (CCLUP). It was followed by sub regional plans in the 100 Mile, Horsefly, Williams Lake and Chilcotin Forest Districts. Those are nearing completion .All these plans address the grazing targets and objectives by way of protecting the number of Animal Unit Months (AUMs) available for cattle grazing. However, none of the plans have dealt with the objectives set forth in the CCLUP of enhancing agriculture by allowing conversion of land in many of the zones, particularly in the Enhanced Resource Management, Special Resource Development, and Integrated Management zones(CCLUP 90 Day Implementation Process Final Report, p. 172). Indications are that most of the suitable land will be in the Provincial Forest. Areas will be identified for potential development in the arability study. Most of the areas will be small. Because many producers are struggling with the viability of their operations, it is desirable to make land available through the application driven process, which exists now and on a pilot basis. This would mean that government at the most senior level will have to make some best use determinations which would permit the conversion of “forest land” to agriculture or a combination of forest and agriculture (agro forestry). The process should involve a business case and a stewardship case in order to go forward. A pilot would allow for some learning to go on since this would be breaking new ground in crown land allocation, that is a flexible tenure which would see leasing and purchasing options available, including a direct sale option. There is considerable work being done on the development of agro forestry for industry diversification strategies (i.e. agroforestry practices include: alley cropping, forest faming, environmental and urban buffer strips, silvopasture, windbreaks, fiber farming, to name some). A flexible, multipurpose tenure or set of tenures is essential. For example a grazing tenure might involve a sale or lease not requiring land to be cultivated. Instead ”rough” pasture with grass between the stumps could be the use, which fits with the business and management plan for a particular operation.

72 Since there have been very few agricultural leases and no grazing leases issues in recent years, a change in policy is required. An application process should involve a business case, which would show how the addition of the tenure would beneficially affect the bottom line of the enterprise(s) and a stewardship case, which would show how potential land use conflicts be avoided. If there are other values to be protected then covenants could be utilized. The presentation of a stewardship case would allow the producer to incorporate an existing or modified Environmental Farm Plan into the planned crown land use. A proponent may well be protecting a red or blue listed species on their private land or managing for that species on some other crown tenure. This process would provide for the consideration and management of public values (water, wildlife, traditional uses) while a more complex process takes place to zone for plan the use of the AEAs.

5.2.2.1 Planning Agriculture Enhancement Areas (AEAs) In order to avoid the complex process of either taking land out of the provincial forest on a one- at- a- time basis for conversion to fee simple land or for designating the parcel or area as suitable for agriculture or agro forestry within the Provincial Forest, a planning approach should take place involving government, First Nations, producer and other stakeholder representation. These planning processes would be fine-tuning of the sub regional plans. The objectives of this planning would be to create zones (higher level designations) permitting the intended uses. Perhaps there is a precedent as one official h as suggested for this in the use of Commercial Recreation Areas that t have been recently been designated in parts of the Province. Once designated as higher-level zones, or permitted uses in existing the zones, approvals for tenures will be easier. This planning approach would also dovetail much easier with existing consultation with First nations (FIRST NATIONS) and would be consistent with the treaty process. Cumulative impacts of significant allocations of land from current uses to more intense management for agriculture and agroforestry uses would be easier to deal with that will the one at a time tenures. Government, industry, other stakeholders and FIRST NATIONSs will be able to deal more efficiently and effectively with these” block” designations. Settlement Corridor planning has been pending following the subregional planning processes. These corridors refer to agriculture a. commercial, industrial and residential developments along major transportation corridors. These are not to confused with “settlement lands” that may result from the treaty process. There is need to plan for the land requirement for treaties and for agriculture beyond these corridors. However, the most difficult challenges may be in planning the treaty lands and the industrial/development lands, both which may have an impact on agriculture.

5.2.2.2 Tenure as Security Discussions with representatives of cattlemen, bankers, consultants and accountants indicated that the form of tenure is not as critical and the length of the tenure. In other words, crown land does dot have to be deeded to the ranchers, but it does have to be under license or lease, which is secure. The ability to manage the land for the intended purposes must be clear, for example late season or winter grazing. In most cases the purchase of extensive grazing land

73 (rangelands) would be cost prohibitive given the generally lower productivity of those lands. Higher productivity lands (better soils and moisture regimes) are most likely affordable at market value as agricultural lands (Agricultural Land Reserve) and can be converted to private ownership if an applicant wishes. Leasing or licensing land is more economical options, since rental rates can reflect the agricultural uses and not the real-estate value. Increasingly, land sales reflect non-agriculture values, which are difficult if not impossible to recoup from agriculture enterprises. Such arrangement can be more acceptable to other users and potential users since the alienation is temporary. Land that is converted from growing trees to growing carrots or forage can always have trees planted at the end of the tenure, therefore are not a permanent loss to the forest land base. What is important to the financing of agriculture businesses is the security of the input resources such as land and water. The land is a resource to be managed to achieve certain environmental and business objectives (extending the grazing season, to save winter feed costs). To summarize, a short term approach to making crown land available would involve modifying current policy to allow for pilots one at a time. For the longer term, a planning initiative to designate blocks for agricultural enhancement (AEAs) needs to be started. There is some urgency if agriculture enterprises are to be stabilized so that they can reinvent their businesses to put them on a more secure economic footing.

5.2.3. Economic viability of Crown Land alienation for agriculture Recent data does not exist for most of the sub sector enterprises in BC. However, Statistic Canada,( Farm Financial Survey ) data exists for the Cariboo ( some specifically for the Cariboo Regional District which is the area of interest for the Cariboo Chilcotin Beetle Action Coalition and some for the larger regional of the Cariboo , Nechako and Prince George areas. Aggregated BC data generally suggests a break-even industry. This would mean on the whole the industry cannot afford to pay much for expansion of land holdings. However, farms grouped by different levels of income indicate that some categories of farms show returns (margins) of $100 to $200 per cow, which is available for return to overhead or for paying down debt. Taking average interest rates and putting payments over 10 to 20 years, cows will pay on average for land selling for just around 1000 per acre for good farmland and $250 to 600 pr acre for pastureland (crown land in 480 acre parcels is about half the price per acre) of 160 ac parcels. Large parcels are more cost effective to buy. According to ranch appraisers, recent sales of commercial ranches have seen premiums paid because the recreational purchasers find land in the Cariboo Chilcotin to be relatively inexpensive. But the prices paid probably exceed the ability of the cowherd to show a Return on Investment. According to one appraiser, the price of land and the value for agriculture production parted a long time ago when $1500 per cow unit was what the industry could pay from farm receipts. Now those prices are approximately $3000-3500 per cow unit, having been $2500 in the 1990s (personal comm. Holmes). An average operation that returns a net operating profit of $150 per cow has some capacity to pay additional land, but a business case would have to be made to ensure that was a good use of scarce capital, especially if retained earnings were the only source of investment capital. $150 of earnings from a cow can service a debt of approximately $1500 @ 8% over 25 years amortization, or $1250 over 15 years and $1000 over 10 years.

74 Discussions with accountants, appraisers, bankers, economists and operators indicate that, if necessary a well managed business can still afford to buy land to expand the business, although the cost of developing land can be as much as $1000 and as low as $700 per acre to get the first crop of forage from newly developed hayland. When existing developed private land prices are not much more that that, buying developed land is more cost effective than developing crown land to purchase. Renting or leasing from either the crown or other private owners is probably even more cost effective. One way to keep the price of crown land affordable for conversion to agriculture would be for the government to allow a clearing cedit equivalent to the silviculture allowance which varies from approximately $900 to $1500 per ha, depending on how heavy the timber is. The silviculture credit is the allowance by which stumpage is reduced to offset the cost of re-establishing a timber stand on the harvested land. So instead of charging the full stumpage for land that would have been reforested at this cost, a credit is given to invest in the farming of the land and the seeding of forage crops, that is establishing a different crop. There is a growing body of evidence available from the Ranch Management Consultants (who run the Ranching for Profit school, the Executive Link Program and Profit Probe benchmarking program for self enrolled producers) that show the greatest Return on Assets is going to those cattle enterprises which do not own land and do not own cattle, but rather rent them. There are limitations to renting land in the Cariboo because of geography—long ribbons of river valleys where private land is located, not the expanse of prairies and range land of some neighbouring regions such as the Canadian and American Prairies - although a large minority of the land comprising cattle operations is land rented from government and others. Through time, owning ranchland has been a good investment showing a rate of Return of about 5% (Alan Nation, Knowledge Rich Ranching). So, purchasing land from government for the expansion of landholdings or expanding cattle operations could be justified. Unfortunately the return is realized upon the sale of land. That does not help those wanting to continue the business enterprise but want to make some Return on Assets as they should, since the opportunity cost of the investments is probably 3-5% (the return if the money invested in the land was invested in other opportunities). There is a school of thought that says a ranch has a real-estate enterprise which owns the land and should rent it at market rates (for agriculture) to the forage operation which in turn should sell the grass or hay to the cattle enterprise otherwise cross subsidies exist, e.g. hay is fed to cows at cost, not at what the market would pay for the hay, thereby distorting the economics of production, or at least the accounting of the costs of production. By separating out the enterprises of a ranch into discrete enterprises: land owning enterprise, forage production, cow-calf, replacement, stocker, cull cow etc., then those enterprises which make money can be expanded and those that don’t can be controlled or possibly eliminated. The conclusion from the foregoing is that a business case should be made whether it is to buy, rent or lease land. There are even cases where land can be managed for a fee, or possibly rent- free. The service might be as simple as cows controlling mature grass, which might be a fire hazard, or controlling weeds or brush. A good business operator will need to make this case if only to him or herself, or the banks. Some banks like to work with the rancher to make the business case. The rancher is interested in a return on his investment, whereas the bankers main concern is the cash flow generated from the operation and its ability to pay loan

75 payments. Increasingly, however, a decent return for work and investment will drive ranchers to look a t alternate uses for earnings, including lifestyle, holidays, children’s education— those things that most people with other businesses, professions and jobs want for themselves and their families. There is evidence that those farmers taking holidays make more money than those that do not, although the cause and effect is not proven. Land purchase from government or others should be justified, not a lifestyle, but as business investments which make financial sense. Subsidies from outside income probably do more to distort the efficiencies of operations than many other outside influences on the business of farming. The crown should consider making land available to those enterprises that can make the business case for the land alienation. Evidence soon to be published (personal communication) from the 2006 farm financial survey indicates that there is a huge variability of profitability within revenue classes, as there is between revenue classes, which indicated that managements is a key to financial success, not size. This evidence supports the need to do case-by-case analyses to determine eligibility for crown land access. The consultant who did the work on the Beef Cluster for the region (Andrew Raphael of Meyers, Norris and Penny) concluded that the Cariboo could not compete with Alberta on finishing cattle and supporting a grain fed beef slaughtering facility. The region’s comparative advantage is its abundance of relatively inexpensive land producing forage and grass on crown land. Any land tenure options considered by government should take into account that it is access to this grass however realized will give the most benefits. Raphael’s conclusion (personal communication) speaks to the need for the region’s producers to manage intensively for fattening cattle on the regions forage-natural grasslands and intensive forage producing land (irrigated and improved pasture, including hayfields). A business and stewardship case for access to crown lands would assist government to decide who qualifies for access and on what conditions e.g. price and resource management objectives.

5.2.3.1 Relationship between crown land holdings and profitability Does access to crown land under lease, licence, or permit necessarily mean an operation will be profitable? On the surface, it would seem so according to 2001 Census of Agriculture data for the Cariboo Region, which includes the Fraser-Fort George Regional District. The beef industry owns 473,000 acres of land; lease 349,000 acres of which 81.4% is leased from government, or 284,000 acres. For the beef sector (with and without land leased) farm receipts minus total farm business operating expenses were $752,000, the average farm profit being $876. Those beef farms without government leased land had a negative income of - $1,123,000, or -$1791; whereas the beef farms with government leased land turned a positive $I, 875,000, or $8,083 per farm. The reason for the higher profitability of those farms with crown tenures is interest is unclear from the census data. While there is a positive relationship between leasing crown and net income, the reasons are unclear. It would appear not to be interest paid by those not having crown land. An interview with an agricultural economist (Don Low) indicated it might have to do with lower machinery and operating costs. Much more work needs to be done by extension workers to assist farmers in determining the factors contributing to profitability. The Profit Probe data from Ranch Management Consultants indicates that those operations that take 20 acres to support a cow make greater return on assets than those who have more productive land requiring 2-4 acres per cow. They say it

76 likely has to do with the fact that if the land is poorer it is obvious that expensive inputs will not show a return, whereas it might seem to be self evident that farming and producing more per acre on better land would show greater returns. It is not possible to be definitive examining the BC Stats for the sector. In conclusion, the positive contribution of crown land to the beef sector as a whole seems evident. Elsewhere in this document it is recommended to establish an Agriculture Enterprise Centre, which would be a repository for business and planning tools. Economic and financial data on various sub sectors would be available there including benchmarking information, which could assist in making the business case for land acquisition/expansion utilizing crown land.

5.2.3.2 Orders of magnitude of crown land needed for doubling of the Cariboo herd. Rough calculations indicate that 70% more crown land would need to be available for tenuring, this is in the order of several hundred thousand acres. Some of this land could be areas where the Pine Beetle wood is logged on both the better (more arable) and poorer sites (where silviculture would not be practiced). Since, early indications are that mere thousands of acres perhaps 10s of thousands of acres of arable land could be converted to more intensive agriculture management of some kind, anything approaching double digit increases in land being managed for beef production would be a significant feat in itself. Additionally, if probability of profit is factored into new and expanded operations, then there is downward pressure on those numbers. However, case-by-case, individual enterprises can justify access to crown land. It is likely the opportunities for profit enhancement will come from those operations that can steward and manage large, inexpensive tracts of land with a long grazing season, capable of fattening cattle and those operations that can reduce winter feeding costs for the mother cow herd.

5.2.4 Continuity issues for expansion of existing agricultural operations onto adjacent Crown Land. Current crown land policy requires an applicant to be within 15 km of the base of operations. This was recently expanded from 8 km. This is a reasonable distance to travel to put up hay and either truck or drive cattle. Any further would be too time-consuming for most operators. Depending on the overall size of the herd and nature of the different stocking classes of cattle (cow/calf vs. steers, or dry cows, etc.) to be managed on a lease (or lease /purchase), it may be difficult to use pastures this far away in short rotations together with the home land base. However, if seasonal and multi-seasonal stocking can be managed on the parcel thus without incurring trucking and moving costs, which are expensive, then this distance is manageable. We know, from interviewing appraisers, that close land is more valuable to those next door because they feel they can manage such land in a less costly fashion. This indicates that distance is an economic factor.

What is more important is how a piece of land fits into the management of the business. This would be reflected in the business case made for the application. Cost of transportation and

77 managing the parcel(s) needs to be accounted for in the case being made. There should be flexibility in award criteria for leases. If the purpose of the land was to keep cattle off other land, which might be susceptible to damage during a wet period, then proximity is critical for moving animal expeditiously from one pasture to another. Similarly, if the land is for a calving or breeding pasture then proximity to management is important. As a rule, the closer the better, but strategic location such as midway from home to distant crown grazing licenses would be equally important. It is recommended that preference be given to those with operations within a 15 km radius, but that the determining factor be how the parcel(s) fit into the business and stewardship plans which are presented with applications.

5.2.5 First Nations issues related to agricultural development onto Crown Land.

A cursory survey with some employees in First Nations organizations and government officials, including negotiators reveal little demand for agricultural land outside the current reserve boundaries. However, this interest may surface when treaty lands become negotiated. Currently land alienations are referred to the First Nations. This one at a time referrals can be time consuming for the First Nations with limited capacity to respond. It is preferable that a planning approach be initiated around settlement planning for corridors around communities to provide for industrial, residential and agricultural development. This is the Settlement Corridor planning referred to in the Agriculture Focus Paper prepared by George Powell for the CCBAC Agriculture strategy. Near communities it is essential to plan for agriculture and other uses at the same time to avoid conflict in the future, especially on the fringes of areas and where ALR land has to be protected. At the sub regional plan level, First Nations involvement has to be radically improved over the virtual absence from the initial CCLUP regional planning process. In the highway 16 corridor, a successful experience is reported involving the First Nations in the planning of the Agriculture Opportunity Areas. A similar process should take place as soon as possible for the proposed Agriculture Enhancement Areas of the Cariboo Chilcotin. By addressing larger parcels or pockets of arable land over the sub regions the First Nations and other interest can better assess cumulative impacts. This approach will probably be administratively more cost effective and produce better results. Wholesale alienation of crown land for agriculture could disrupt recent progress at the treaty tables. Uncertainty of impacts of grazing on traditional uses speaks to the need for stewardship planning for these enhancement areas. First Nations and government should be asked to address issues of crown land alienation by way of adding agriculture and range needs as topics to be negotiated under Forest and Range Opportunity Agreements or similar agreements concerning the disposition crown land. Such approaches would be consistent with the New Relationship being fostered between the provincial government and First Nations.

78 Under CCBAC’s funding some First Nations in the area are developing economic strategies in response to the MPB. In addition at the Provincial level the First Nations have a MPB strategy. Plans at this level need to be integrated into regional and local plans. First Nations hold land, which could be further developed for agriculture thus contributing to economic diversification in the wake of the MPB. They lack capital and to some extend like other farmers, capacity to respond to the challenges. Stewardship plans developed in an application to make the case for crown land could include addressing First Nations interests on the parcel. The cost of such plans could come of the purchase or rental price of the parcel of land. Chief David Walkem, Cook’s Ferry Band, who has been leading the province wide First Nations response to the Pine Beetle has expressed (CBC interview) the objectives of First Nations in the harvesting and mitigation of it’s impacts: 1. Document and record First Nations uses of the land, plants animals in the forest to be harvested; and 2. Develop tools to be able to manage for traditional practices into the future; and 3. Have First Nations voices and role in all programs being developed (federal, provincial and regional/local.

5.2.6 Water Issues related to current needs and future expansion There are 1,293 irrigation licenses and 343 stock watering permits in the Cariboo region. Virtually all the available water is allocated with the exception of the large rivers (Fraser, Chilcotin and Quesnel). In many cases, especially when the needs of fish are taken into consideration, streams are over allocated. If climate change continues, as surely it will, drought could become more prevalent. Drought management then will be foremost on the minds of private and public stewards of the land and resources. Soil and water conservation on rangelands by managing for healthy grass ecosystems will have to be built into stewardship plans. Water storage and conservation will become critical to maintain current production, to say nothing of the expansion or enhancement. Water then is a major limiting factor in any significant enhancement of the agricultural land base. In the Eastern areas, rainfall generally produces a crop of hay and provides significant water for grazing lands. Periods of drought will require careful management to prevent overgrazing. Haylands will have to be managed to conserve organic matter to ensure the soil absorbs and holds rainfall. Small streams and surface run off will have to be managed if there is to be intensive management of grazing lands. The availability of three-phase power could help some areas pump water for forage crops. Obtaining estimates from BC Hydro for communities of users would develop some scoping information on potential infrastructure investments by government, which would assist in expansion of the industry, or in some cases stabilizing it. Water quality and quantity can be a issue for market gardening. Water must be clean particularly for the fresh vegetable market. Many users often share a water supply, but have different priorities with respect to which licenses gets to use the water first. For this reason, if all water users are relatively efficient then, more water is available for those on lower priories

79 (by date of license establishment). If water reaching downstream users is contaminated then its usefulness for human food production is reduced. Attention needs to b paid to upstream water management for agriculture , forestry and other land uses. It is recommended that the federal government continue and expand the National Water Supply Program which cost- shares the improvement of water supply systems for agricultural users.

5.2.7 Set-backs and greenzones required for the rural-urban interface A review of the Ference Weicker report, Focus on the Future, and the particularly useful 2003 report to the Cariboo Regional District (CRD) by Cariboo Geographic Systems regarding forestry and agricultural policies at the CRD levels indicate few issues. Progressive implementation of the recommendations would assist in ensuring that when crown lands are converted to agricultural uses that the bylaws will protect agriculture ventures. Of critical importance is the full involvement of the CRD in the planning of the Agriculture Enhancement Areas, and in particular, the Settlement Corridors (these are a provincial initiative not yet implemented.) more agriculture, more settlement and more industry is bound to generate potential for conflict. Of specific importance here is the edge planning referred to in the Cariboo Geographic systems report. The Ministry of Agriculture and Lands is developing guidelines that will support local governments which are addressing urban/agricultural compatibility issues. (See “Edge Planning” under “Strengthening Farming”, Ministry of Agriculture and Lands website : www.agf.bc.ca/resmgmt/sf/edge/index). It is recommended that local government use these guidelines in their planning and development approval processes.

5.2.8 Availability of three-phase power or other key resources needed for agribusiness development According to BC Hydro, very few application s have been made for three-phase power, possibly because the initial estimates of $35,000 to $50,000 per km of line dampen enthusiasm. However, in the region there is interest in extending three-phase power our highway 20 further into the Chilcotin. If and when estimates are prepared, we will know if there is a gap between the ability to pay on the part of the producers and the amount Hydro is willing to finance based on revenues from producers. Such costs could be candidates for economic infrastructure dollars that could be made available to mitigate the fall down after the MPB. According to an irrigation supplier, it is the larger horsepower irrigation pumps, which need and benefit from three-phase. It would probably take a large pumping system to supply water to the benches of the major rivers to find any significant increase in agricultural production Power is only a part of the capital requirement of such systems. At a current cost of close to $29 per acre electricity cost, the economics for forage production probably does not show a positive picture. To a lesser extent, there is demand from isolated meat processors to have three-phase power It is not known, however, if the availability of three-phase is really a limiting factor in the further development of agriculture.

80 In order to cost potential developments applications should be made to BC Hydro. As a generic investment extending three phase power has never been the subject of a serious Cost/Benefit analysis, at least according to official who have worked on the economic development in the region over the past 15 years. Universities could be invited to have students investigate further the Cost /Benefit of three phase power extension to more farming areas. 5.2.9 Agricultural Land Reserve (ALR) issues No significant issues have been identified. However, if major areas not already in the ALR are proposed to be brought into the ALR as a result of the AEA planning process or lands deleted as a result of the Settlement Corridor planning process (if and when undertaken) then the Land Commission should be engaged early to work with local government, provincial ministries and First Nations and other stakeholders. More will be known when further regional arability study work is completed. Parties working on agriculture strategies and the planning processes recommended above, should be guided by the ALC document, ALR, Community Planning Guidelines.

5.2.10 Other Land Use Issues. Far and away the most critical issue identified is that of Invasive Plants. What the MPB and other forest pest are to the forest estate, Invasive Plants are to rangelands, pasturelands and intensive agricultural lands. Whatever land allocation strategies are implemented, they should, no must, account for land stewardship planning, which will control the spread of invasive plants. More intensive uses of arable land implies disturbance and as a result plans must be in place for monitoring and controlling invasive plants. Similarly, continued and expanded use and management of rangelands must carry the responsibility of controlling weeds. To the extent that the impacts of the MPB and other forest pests change the environment so as to favour Invasive Plants, then the MPB and attendant economic and environmental strategies must take into account and assist in implementing the Invasive Plant Strategy. The recreation use of crown land by mountain biking and ATVs can cause erosion issues. It is recommended that CCBAC support the Off-road Vehicle Coalition’s proposal for regulated use of ATVs on crown land. The fencing of subdivisions that adjoin crown rangeland should be required. A covenant should go on the title which stipulate the owner of the lot has to maintain the fences on their property line Drift of cattle onto roads and into residential areas creates conflicts. It is recommended that all subdivisions adjoining crown land be fenced and that local government enforce this requirement. Farmers markets have had difficulty being recognized in local planning in urban areas, with the result that less than optimal locations can result is inadequate marketing opportunities. It is recommended that local government work collaboratively with farmers markets associations to feature markets in land use planning. When crown rangeland is converted to other uses, there can be dislocation of the range user. Adequate consultation and mitigation should be undertaken well before land within range license areas is alienated.

81 5.3 Summary of Land Use Policy Recommendations

Land in the Provincial Forest 5.3.1 TO STABILIZE SOME AGRICULTURE VENTURES AND ENHANCE THE SECTOR, LAND IN THE PROVINCIAL FOREST WILL HAVE TO BE OPEN FOR TENURING FOR FORAGE AND AGRO FORESTRY PURPOSES.

Highest/Best Use of Crown Land 5.3.2 GOVERNMENT NEEDS TO DETERMINE THAT THE EXPANSION OF AGRICULTURE JUSTIFIES CONVERTING LAND FROM TIMBER GROWING AT LEAST FOR THE NEXT FEW DECADES.

Current Practices and Carrying Capacity 5.3.3 A FLEXIBLE, MULTIPURPOSE TENURE OR SET OF TENURES IS ESSENTIAL. For example a grazing tenure might involve a sale or lease not requiring land to be cultivated. Instead “rough” pasture with grass between the stumps could be the use, which fits with the business and management plan for a particular operation. The producer will need a flexible tenure which would allow a range of uses between agroforestry and cattle production, from the most intense management of winter feed crops to holding areas during wet weather, to stockpiling grass for fall, winter and spring grazing.

Potential Agriculture Enhancement Areas 5.3.4 APPLICATIONS FOR LAND TENURE SHOULD INVOLVE A BUSINESS CASE. Involving a business case in tenure considerations would show how the addition of the tenure would beneficially affect the bottom line of the enterprise(s) and a stewardship case, which would show how potential land use conflicts be avoided.

Planning Agriculture Enhancement Areas 5.3.5 A PLANNING APPROACH SHOULD BE INVOLVED (with government, First Nations, Producers, etc.) TO CONSIDER CONVERSION OF CROWN LAND FOR AGRICULTURE USE. In order to avoid the complex process of either taking land out of the provincial forest on a one- at- a- time basis for conversion to fee simple land or for designating the parcel or area as suitable for agriculture or agro forestry within the Provincial Forest, a planning approach should take place involving government, First Nations, producer and other stakeholder representation.

82 Economic Viability of Crown Land Alienation for Agriculture 5.3.6 ESTABLISH GOVERNMENT LAND CLEARING CREDITS SIMILAR TO THE FOREST INDUSTRY SILVICULTURE ALLOWANCE. One way to keep the price of crown land affordable for conversion to agriculture would be for the government to allow clearing credits equivalent to the silviculture allowance, which varies from approximately $900 to $1500 per ha.

5.3.7 THE CROWN SHOULD CONSIDER MAKING LAND AVAILABLE TO THOSE ENTERPRISES THAT CAN MAKE THE BUSINESS CASE FOR THE LAND ALIENATION.

Relationship between Crown Land Holdings and Profitability 5.3.8 ESTABLISH A CARIBOO-CHILCOTIN AGRICULTURE ENTERPRISE CENTRE. The centre would be a repository for business and planning tools. Economic and financial data on various sub sectors would be available there including benchmarking information, which could assist in making the business case for land acquisition/expansion utilizing crown land.

Expansion of Existing Agricultural Operations On to Adjacent Crown Land 5.3.9 It is recommended that preference be given to those with operations within a 15 km radius, but that the determining factor be how the parcel(s) fit into the business and stewardship plans which are presented with applications.

First Nations Issues related to Agricultural Development onto Crown Land 5.3.10 First Nations and government should be asked to address issues of crown land alienation by way of adding agriculture and range needs as topics to be negotiated under Forest and Range Opportunity Agreements or similar agreements concerning the disposition crown land. Such approaches would be consistent with the New Relationship being fostered between the provincial government and First Nations.

Water issues Related to Current Needs and Future Expansion 5.3.11 Soil and water conservation on rangelands by managing for healthy grass ecosystems will have to be built into stewardship plans.

83 5.3.12 Obtaining estimates from BC Hydro for communities of users would develop some scoping information on potential infrastructure investments by government, which would assist in expansion of the industry, or in some cases stabilizing it.

5.3.13 It is recommended that the federal government continue and expand the National Water Supply Program which cost- shares the improvement of water supply systems for agricultural users.

Set Backs and Greenzones required for Rural-Urban Interface 5.3.14 It is recommended that local government use urban/agriculture compatibility issue guidelines being developed by the BC Ministry of Agriculture and Lands in their planning and development approval processes.

Three Phase Power and Key Resources for Agribusiness Development 5.3.15 INVITE UNIVERSITIES TO INVESTIGATE COST/BENEFITS OF THREE PHASE POWER TO MORE FARMING AREAS. Universities could utilize students to investigate further the Cost /Benefit of three phase power extension to more farming areas.

Other Land Issues 5.3.16 AGRICULTURE STRATEGY DEVELOPMENT AND REGIONAL AGRICULTURE PLANNING PROCESSES SHOULD BE GUIDED BY THE AGRICULTURE LAND RESERVE DOCUMENT, ALR, COMMUNITY PLANNING GUIDELINES.

5.3.17 THE MOUNTAIN PINE BEETLE AND ATTENDANT ECONOMIC AND ENVIRONMENTAL STRATEGIES MUST TAKE INTO ACCOUNT AND ASSIST IN IMPLEMENTING THE INVASIVE PLANT STRATEGY.

5.3.18 IT IS RECOMMENDED THAT ALL SUBDIVISIONS ADJOINING CROWN LAND BE FENCED AND THAT LOCAL GOVERNMENTS ENFORCE THIS REQUIREMENT.

5.3.19 IT IS RECOMMENDED THAT LOCAL GOVERNMENT WORK COLLABORATIVELY WITH FARMERS MARKETS ASSOCIATIONS TO FEATURE MARKETS IN LAND USE PLANNING.

84 5.3.20 ADEQUATE CONSULTATION AND MITIGATION SHOULD BE UNDERTAKEN WELL BEFORE LAND WITHIN RANGE LICENSE AREAS IS ALIENATED.

85 PART B GROWTH OPPORTUNITIES AND DEVELOPMENT STRATEGIES

6.0 Agribusiness Investment Recruitment

6.1 Introduction Growth of the Cariboo-Chilcotin’s Agriculture Sector can be realized from expansion of existing operations and recruitment of new agribusiness investment from both within and external to the region. Investment recruitment would be facilitated by an agribusiness investment package to provide information to current and potential landowners on production opportunities and promotion of the regional advantages to other jurisdictions. This section outlines the important elements for developing a regional agribusiness investment package and the status of availability of this information. Recommendations are provided on how to proceed with the development of promotional material for investment recruitment.

6.2 Key Information for an Agribusiness Investment Package

6.2.1 Investor Sentiment Investment decisions can be motivated by a variety of variables including the range of opportunities available, the prevailing business ‘environment’, financial considerations and quality of life factors for the investor and their employees. An understanding of the primary motivations for agribusiness investors is needed to tailor the promotional strategy. For example, if the investor survey determines a high level of interest in Certified Organic production, the promotional material can highlight the low levels of regional pesticide use and success of existing organic producers. Status: Not currently available.

6.2.2 Regional Production Options and Potential The range of existing and potential production options needs to be compiled, emphasizing regional opportunities for high margin (e.g. dairy) and high growth (e.g. specialty crops, organic) production. Status: Regional agriculture sector profile completed by CCBAC. Likewise, a catalog of the available land base and its agricultural production capacity, as well as land suitably zoned and serviced for processing facilities, both with approximate ranges of land values. Status: Regional arability research in development by the Ministry of Agriculture and Lands. Catalog of industrial land zoned for agricultural processing facilities needed.

86 6.2.3 Regional Agri-food Infrastructure and Markets Key production and processing infrastructure needs to be documented including: • Regional availability and costs of water, sewage and power - three-phase electricity, waste energy from wood processing facilities or other alternative (biofuels) energy sources; • Transportation and shipping options and infrastructure (road, rail, air); • Existing processing and storage infrastructure; and, • Existing marketing infrastructure (e.g. farmers markets, livestock sales yard, etc.). Status: Some details are compiled in the regional agriculture sector and land use profiles completed by CCBAC; additional details on services and infrastructure at the community level are needed.

6.2.4 Regulatory Environment and Land Use Pertinent land use regulations on Crown land and policies and zoning restrictions associated with agricultural and processing facilities on private land within the municipalities and regional district needs to be itemized. Status: Crown land use zoning and targets set in Cariboo-Chilcotin Land Use Plan. Land use issues and policies are documented in reports completed by CCBAC and the Cariboo Regional District.

6.2.5 Agriculture and Business Support Programs A compilation is needed of various agribusiness support programs and resources from Federal and Provincial agencies, Community Futures groups, community economic development groups in the region. Status: Some programs are noted in the section 9.2 of the CCBAC Agriculture Strategy. A more full detailed compilation should be developed.

6.2.6 General Community Information Regional and community information is needed, outlining demographics, the environment, social infrastructure (hospitals, schools), recreational outlets and infrastructure (parks, recreational facilities) and other quality of life amenities. Status: Available for some, but not all of the communities of the Cariboo-Chilcotin

87 6.3 Recommendation Actions The following recommendations itemize actions for the development of promotional investment recruitment material suitable for targeting agribusiness in other jurisdictions to attract business relocation or expansion of their operations into the region.

6.3.1 ESTABLISH AGRIBUSINESS DEVELOPMENT AND PROGRAM DELIVERY PARTNERSHIPS Creation of the agribusiness recruitment package requires gathering and compiling the necessary information, and partners to provide direction on successful distribution of the investment material and appropriate marketing vehicles to reach the target audience. Suggested partners in the development of the package include: a. Industry representatives with national and international industry association affiliations;

b. Regional development support organizations: municipal and Regional District economic development offices, Community Futures groups;

c. Ministry of Economic Development - Invest British Columbia, for general support and improved profile of the agriculture sector in existing regional information; and,

d. Other government, academic or industry stakeholders interested in economic development or agribusiness.

6.3.2. COMPILE AGRIBUSINESS INFORMATION IN ACCESSIBLE FORMATS With the assistance of the development and delivery partners, compile remaining required information outlined in Section 6.2.

6.3.3 DEVELOP AGRIBUSINESS PROMOTIONAL MATERIAL(S) Promotional material may include a brochure, website and/or short video presentations featuring vignettes of current and potential production. Multiple versions of some promotional material may be appropriate to better target specific investors. For example, existing agribusinesses in the Fraser Valley may be primarily motivated by the relative low-land costs and greatly diminished urban interface issues, whereas, prairie producers may be more interested in the variety of production opportunities and the low level of agri-chemcial use. Potential selling points of the region to be highlighted include:

88 a. Relative low agricultural land costs; b. Less urban interface issues for producers (re: noise, odours or nutrient management); c. Lower use of agri-chemicals relative to other agricultural production areas as a potential to attract “natural” and Certified Organic producers or others sensitive to chemical residuals; d. Opportunities to leverage existing red meat production for primary and secondary processing; and, e. Opportunities for using low-cost energy and other waste streams (e.g. wood fibre) from forest industries to facilitate agricultural production (e.g. greenhouses) and processing facilities.

6.3.4 SUPPORT A ‘ONE-STOP’ AGRIBUSINESS INFORMATION AND INVESTMENT SERVICES CENTRE. Centralize resources allowing new business to access all pertinent information, resources and applications (federal, provincial and local government) for start-up or expansion. The agribusiness information and investment service centre should be established in conjunction with existing delivery agencies and business support programs. a. A potential delivery partner is the Province of BC’s “Front Counter BC” program. Front Counter currently serves as a single window service for clients of provincial natural resource ministries and agencies with an office in Williams Lake serving the region (among other locations in BC). Front Counter also offers “OneStop” business registry services as well as access to a wide range of government information and services available online via a Community Access Terminal. An expanded role would allow producers to access regional agribusiness information and programs related to markets, trade and business development support from any Front Counter location.

89 7.0 Education And Extension 7.1. Introduction Support to acquire, refresh and advance skills and knowledge in all aspects of agribusiness (production, conservation, processing, regulations, markets and marketing) is fundamental to realizing development opportunities in the agriculture sector. Agricultural entrepreneurs are more likely to act and be successful if they have up-to-date and accurate market and technical information. Additionally, new opportunities for production and processing increasingly rely on state of the art research and development support. Access to technical support information and personnel are barriers preventing small and mid-sized businesses from successfully expanding and diversifying. Moreover, extension to the general public about the agricultural sector and the social and economic benefits of supporting local production will build advocacy for the sector and strengthen market share for local products. As such, support for agricultural education and extension in the region is essential to the success of the sector. Agricultural education, research and development support addresses all major sector trends by empowering the sector participants to capitalize on current opportunities and keeping them abreast of new developments, trends and technology. As part of the process of developing an Agriculture Sector Strategy this section includes a profile of regional agriculture education and extension resources and a needs assessment as expressed by agriculture sector representatives and strategy documents. Recommendations for program development and delivery options are provided.

7.2. Agricultural Education and Extension Profile Education is a life-long process requiring formal and informal opportunities and resources. The opportunity exists for the region to be home to industry leading resources in agricultural education, training and enterprise development. These resources would not only serve the sector development needs, but could also generate economic spin-offs and additional investment as others are drawn to the region to access the training and development support. The following sections outline important existing post-secondary education, government and industry organization’s extension resources relevant to the agriculture sector.

7.2.1 Post-Secondary Education Programs The Cariboo-Chilcotin falls within two post-secondary catchment areas: the northern portion is aligned to the University of Northern BC and the College of New Caledonia in Prince George with a joint regional campus in Quesnel. The central and south are aligned to Thompson Rivers University in Kamloops with a regional campus in Williams Lake. Neither of the regional campuses currently offers agriculture-related programs locally, although the College of New Caledonia has a farrier program in development for delivery in Quesnel. Table 1 itemizes post-secondary educational institutions in BC that offer courses or programs in agriculture or food-related areas. Information was compiled from the Province of BC’s education planner website (www.educationplanner.bc.ca).

90 As evidenced by Table 7.1, most post-secondary education is concentrated on technical aspects of horticulture or general resource management programs with some applicability rangeland or pasture management. Clearly, within the region and the province, the agriculture sector has not been a priority or focus for most post-secondary education and training institutions. It is unclear, how effective the current set of programs are in servicing agriculture sector development needs or the extent to which new program development could enhance regional agriculture. Outside of BC, there are scores of agriculture-related programs that the sector and individual operations can access. The costs, distance to access these resources, and regional relevance limit their effectiveness in addressing regional needs. Some examples of post-secondary agriculture support programs include: • Agricultural Resource Economics programs at the University of Arizona (ag.arizona.edu/arec/pubs/dmkt/dmkt.html). This program has developed a guide to help agricultural operators market their products and services directly to the consumer. • Agriculture Programs at the University of Saskatchewan (www.extension.usask.ca) offers a variety of production, processing and business support programs and adult education. • Western Integrated Resource Education (WIRE), Integrated Management Program at the University of Wyoming (agecon.uwyo.edu/wire/default.htm) provides a ranch/farm management course that emphasizes the process of management. Key post-secondary extension resources are referenced through the InfoBasket service of the BC Ministry of Agriculture and Lands (see section 7.2.2).

91 Table 7-1. Post-Secondary Agriculture Related Programs in British Columbia Institution Program BC Institute of Technology Integrated Resource Management Diploma Food Technology Diploma Camousun College Horticulture Technician Certificate Capilano College Landscape Horticulture Technician College of New Caledonia Farrier Training (in development) Kwantlen College Advanced Farrier Training Certificate Commercial Floristry Certificate Horticulture Technician Certificate Horticulture Technology Diploma Malaspina College Horticultural Technician Certificate Resource Management Officer Technology Diploma Nicola Valley Institute of Technology Natural Resource Technician Certificate Natural Resource Technology Diploma North Island College Greenhouse Management Certificate Northern Lights College Land Administration Diploma Land and Resource Management Diploma Northwest Community College Applied Coastal Ecology Program First Nations Land Stewardship Certificate Okanagan College Horticulture Pre-apprenticeship Certificate Selkirk College Integrated Environmental Planning Technology Diploma Simon Fraser University Undergraduate / Graduate programs in Pest Management, Resource and Environmental Management Thompson Rivers University Retail Meat Processing Certificate Animal Health Technology Diploma Animal Welfare Certificate Undergraduate program in Natural Resource Science Horticulture Certificate Horticulture and Management Diploma Pre-Veterinary Medicine Program University College of the Fraser Valley Agriculture Technology Diploma Horticulture Crop Production Certificate Integrated Pest Management Certificate Livestock Production Certificate Milker Training Certificate University of BC Undergraduate / Graduate programs in Land and Food Systems University of Northern BC Undergraduate / Graduate programs in Natural Resources Management and Environmental Planning University of Victoria Undergraduate and Graduate programs in Biology

92 7.2.2 Government Extension Programs BC Ministry of Agriculture and Lands The provincial Ministry of Agriculture and Lands (BCMAL) is the primary delivery agency of agricultural production, processing and business support information in the region. The Ministry maintains a regional office in Williams Lake with three professional staff providing extension services as part of their mandate. The extension services of other commodity, production and processing specialists located throughout the province can be accessed by the regional agriculture sector through the Ministry’s website (email contact) or the Enquiry BC information line (1-800-663-7867). There are a limited number of regionally-specific extension publications, primarily focused on forage production. In addition, the information resources from a BCMAL co-sponsored training course in “Small Farm Development” (delivered by the College of New Caledonia in 2000) is available through the Cariboo Regional District Library. Internet resources related to the agriculture sector are bountiful with literally millions of agriculture related web pages online from around the world. This information is largely unorganized and comes without assurance as to the quality and relevance. An extension resource of BCMAL circumvents this information clutter. Infobasket (www.infobasket.bc.ca) is a collection of online agriculture information that has been screened and organized into production related groups (labeled “communities”). The current configuration includes focused information on: agritourism, agroforestry, apiculture, beef, berries, bioproducts, bison, field vegetables, food, forage, freshwater aquaculture, game birds, goats, grains, grapes, greenhouse vegetables, horses, organics, ornamentals, range, ratites, sheep, specialty crops, tree fruits and waterfowl. Infobasket also maintains a dynamic listing of upcoming agriculture training and extension events on its main page under: “General Calendar of Events”. BCMAL has also produced a wide range of production and processing publications including Cariboo-Chilcotin regional forage crop recommendations that can be ordered or accessed in digital format online (www.agf.gov.bc.ca/publicat/publications.htm). These include: • Production and field crop factsheets; • Food safety and quality publications; • Industry competitiveness – publications about animal, plant and other value added BC industry sectors; • Resource management publications and conceptual plans; and, • Pest management information (newsletters and publications). Business management publications hosted by BCMAL are also available to order or access in digital format (www.agf.gov.bc.ca/busmgmt/index.htm). These include: • Business plan guides; • Business management tools; • Management and technology publications; • “Planning for Profit” commodity specific economic information; • Labour management and human resources publications; • Business structure and arrangements; and, • Succession and estate planning guides.

93 Agriculture and Agri-Food Canada The federal department of agriculture also maintains dedicated resources for producers, suppliers and processors, as well as markets, regulations and federal assistance programs (www.agr.gc.ca/index_e.php). Most of the important information maintained by Agriculture and Agri-food Canada is cross-linked and referenced through the InfoBasket service of the BC Ministry of Agriculture and Lands. In addition to creating and hosting agricultural information, the federal government supports funding of education and skills development through the Canadian Agriculture Skills Services. This program is designed to help farm families or individuals, improve their income and income choices, by offering financial support for training in farm business related skills, or skills for off-farm employment, or both. BC Ministry of Small Business and Revenue The provincial Ministry responsible for small business supports the “Small Business BC Education Centre” (www.smallbusinessbc.ca/seminars-list.php). This general business development resource includes extension services essential for agri-business including seminars tailored to small businesses owners at all stages of business development (concept through set-up and expansion). Small Business BC partners with government and local business to provide experts in the field of small business startups delivering “Brown Bag” lunch series, half-day seminars and workshops, evening and weekend seminars and workshops. Farm Credit Canada Farm Credit Canada (www.fcc-fac.ca) is Canada's largest provider of business and financial services to the agriculture sector. FCC operates out of 100 offices across Canada, including five locations in BC, none of which are located in the Cariboo-Chilcotin. FCC offers a variety of services including lending products, business financing, venture capital, loan life and accident insurance, farm business software and marketing support through online agricultural products and farm property market websites. As part of FCC’s agribusiness support function it offers “AgriSuccess” workshops; a multi-day course on farm management principles.

Extension Programs Based Outside of BC Many other provincial, state and government agencies around the world provide extension services and resources that can be accessed by the Cariboo-Chilcotin agriculture sector. Examples of these programs include: Centre for Agribusiness, Training and Education (CATE) CATE (www.agtraining.ca/courses/) helps find training that suits specific interests in regards to agriculture and agribusiness including day or evening courses, distance learning, workshops, and degree or certificate programs. CATE is a partnership of government, industry academic institutions and First Nations in Saskatchewan. Sustainable Agriculture Research and Education (SARE) The SARE program (www.sare.org/publications/all_pubs.htm) is part of the US Department of Agriculture’s Cooperative State Research, Education, and Extension Service promoting “farming systems that are profitable, environmentally sound and good for communities

94 through a nationwide research and education grants program”. The SARE program provides online resources and publications for farmers, ranchers and agricultural educators. National Sustainable Agriculture Information Service (ATTRA) ATTRA is supported by a grant from the US Department of Agriculture and provides information and other technical assistance to agricultural producers, extension agents, educators, and others involved in sustainable agriculture. Publications on production practices, alternative crop and livestock enterprises, innovative marketing and organic certification are available for download off of ATTRA’s website (attra.ncat.org/).

7.2.3 Industry Extension Programs Industry extension programs exist for all major commodity groups and processors relevant to the Cariboo-Chilcotin. Most of the important extension resources is cross-linked and referenced through the InfoBasket service of the BC Ministry of Agriculture and Lands. Relevant industry extension programs are listed below. BC Agriculture Council - Environmental Farm Plan The BC Agriculture Council as an industry partner with the BC Ministry of Agriculture and Lands and Agriculture and Agri-food Canada provides regular training workshops (www.bcac.bc.ca/efp_workshops.htm) for developing and implementing environmental farm plans. Many of these sessions are tailored to specific commodity groups (e.g. cattle producers) in partnership with additional industry associations. BC Agroforestry Industry Development Initiative The Agroforestry Industry Development Initiative was developed to enhance and increase agroforestry activities in BC. The Initiative, with funding from the Investment Agriculture Foundation of BC has regular workshops providing basic extension and information on agroforestry systems (www.woodlot.bc.ca/agroforestry/). BC Agritourism Alliance The BC AgriTourism Alliance (BCATA) actively supports training and education for it’s membership with an emphasis on marketing, expanding shoulder seasons, advertising and working with tourist trade. BCATA is designing a series of workshops, seminars, speaking engagements, courses, conferences, operation guides, brochures, booklets, and online education and training to address the long-term training needs of the industry. The BCATA website (www.agritourismbc.org) lists current and upcoming training and educational opportunities. BC Cattlemen’s Association The BC Cattlemen’s Associations maintains some online resources and links to information on beef production, farm support services and training opportunities (www.cattlemen.bc.ca/supp_serv.htm) BC Food Processors Association The BCFPA is a non-profit ‘umbrella’ organization representing all segments of the food, beverage and nutraceutical processing industry. The Association coordinates delivery of HACCP (Hazard Analysis and Critical Control Point), food safety and quality systems, product

95 development, production, sanitation and microbiology training in partnership Guelph Food Technology Centre. The BCFPA maintains planning tools online (www.bcfpa.ca/planningTools/mies_tools.html) to assist the meat processing industry. BC Herb Growers As part of the BC Herb Growers Association mandate to promote, facilitate and enhance herb growing it provides regular networking and training opportunities to access current market information, workshops and conferences. The BCHGA maintains some online resources (www.bcherbgrowers.com/) including a BC herb crop data base with botanical and product information. Canadian Farm Business Management Council – Farmcentre.com The Canadian Farm Business Management Council (CFBMC), a non-government organization supported by private industry and Agriculture and Agri-Food Canada. The CFBMC is the only Canadian organization devoted exclusively to the development and distribution of farm management information. Through it’s website (farmcentre.com) it delivers training programs and resources to assist farm managers build their skills. The website contains over 4,000 pages of information on how to successfully start, operate and grow a modern farm. It has one of the largest farm management resource libraries on the Internet with over 200 free files (PDF books and software programs) and 50 books, CDs and videos for sale covering a wide range of farm management issues. Certified Organic Producers Online resources and training opportunities related to Certified Organic production in BC are maintained at: www.organicagcentre.ca/Extension/bc.html. FarmWest FarmWest representing dairy and forage producers, maintains online resources and publications (www.farmwest.com) primarily related to forage crop production, but including a growing body of general and commodity specific agriculture information. Online publications in digital format are distributed through a virtual “Library” and a calendar of events including agricultural training and extension opportunities are also hosted. Food Safe The Foodsafe Training Program (www.foodsafe.ca/index.htm) teaches safe food handling procedures to students, workers, supervisors, and operators in the food services industry. Foodsafe was developed cooperatively by government, business, health, safety, and education in BC and it is also used across Canada and around the world.

96 7.3 Needs Assessment Current education and extension needs, access barriers and priority actions for education and extension were assessed through input from the CCBAC Agriculture Sector Advisory Committee and from the review of existing agriculture sector strategies for various commodity and production groups (Section 7.2). Most of the agriculture sector strategies reviewed identified education, extension and access to relevant and practical information as a high priority and ongoing need for sector development. Most of the industry development reports however, are not specific as to the type of training, education or extension. The CCBAC Agriculture Sector Advisory Committee identified education and extension services to the sector as critical for sector development. Members identified the challenge of developing locally based agriculture information and extension opportunities to drive local application and utilization of locally developed data. A critical gap in extension services was noted within education institutions and all levels of government moving away from supporting agriculture programs in recent years.

Specific education and information needs expressed by the advisory committee included: • A means to get business information about agriculture issues and concepts to help business decisions; • Demonstration and operational business trials (research) for a variety of production practices; • Hands on training for developing production and processing skills (of particular importance to organic producers and existing meat processing operations); • Advice/extension services directed to individual operations; • Additional regionally relevant technical transfer materials (i.e. print, web); • Dedicated, regionally based extension personnel with a 10-15 year transitional commitment – community-based, emphasizing local application development; • Support for First Nations agricultural development; and, • Community awareness and education to help promote the sector and build local markets.

97 7.4 Recommendations - Development Priorities and Delivery Options Education and extension support is needed in all forms (regional personnel, formal and informal training opportunities, web and print based extension materials, demonstrations). The overriding challenge for the sector will be meeting the diversity of information needs and desired delivery options with limited resources.

7.4.1 SUPPORT ADDITIONAL FULL-TIME, COMMUNITY-BASED AGRICULTURAL EXTENSION STAFF

Extension staff should focus on addressing the agricultural sector’s desire for active extension services to individual operations (i.e. one-on-one consultation). In partnership with various stakeholder organizations extension services must develop regional applications from locally developed data and address support for First Nations agriculture development. Another key support function should be in facilitating access to existing programs by individuals or groups. This would involve assisting with identifying appropriate training and education forums and producer support programs (e.g. Canadian Agriculture Skills Services or other education and training tax credits / incentives). Extension staff can also serve an ongoing liaison role by conveying the information needs identified by regional agriculture sector to training institutions to assist in better responding to the needs of the agriculture sector. Delivery Options:

1. Lobby for expanded services of the BC Ministry of Agriculture and Lands operating through the existing Williams Lake office or satellite offices located in the region. Extension services could be delivered solely under the auspices of the Province of BC or jointly delivered with resources and/or personnel from Agriculture and Agri-food Canada;

2. Create and support an independent organization dedicated to regional agriculture and agribusiness education and extension. Extension services could be employed though a combination of staff and facilitated peer networks (producer to producer). This group could potentially operate under the auspices of existing industry organizations (e.g. the BC Agriculture Council) or the proposed Regional Agricultural Roundtable and would require funding and logistical support from the provincial and federal governments; or,

3. Support the creation of university or college extension staff positions following the model of the land grant universities in the United States. This option would be initially hindered by the current lack of agriculture education programs in the region and the multiple post- secondary jurisdictions operating in the Cariboo-Chilcotin.

98 7.4.2. SUPPORT EXPANSION OF AGRIBUSINESS PLANNING AND BUSINESS DEVELOPMENT RESOURCES

These resources would include agribusiness development tools and sample business plans, and an agricultural ‘market intelligence’ database supplying current information on:

• Local, national and export market opportunities for key regional products;

• Links to buyers and wholesale markets; and,

• Information on high growth opportunities including organic, health and functional foods, specialty ethnic foods and markets for convenience and premium products.

Delivery Options:

1. Create a regional agribusiness support centre in partnership with one or more of the community economic development organizations active in the Cariboo-Chilcotin; or,

2. Lobby for expanded services and mandate of the Province of BC’s “Front Counter BC” program. Front Counter currently serves as a single window service for clients of provincial natural resource ministries and agencies with an office in Williams Lake serving the region (among other locations in BC). The expanded role would allow producers to access government information and programs related to markets, trade and business development support from both the Federal and Provincial Governments.

7.4.3 SUPPORT IMPROVED ACCESS TO INTERNET RESOURCES Organization and filtering of the large volume of digital publications and software resources available to the agriculture sector would improve the adoption and applicability of technology transfer to the regional sector.

Delivery Option: 1. Work with the BC Ministry of Agriculture and Lands to refine the existing Infobasket program. Work should be focused to build additional content directly related to the Cariboo-Chilcotin agriculture sector’s needs, and to create filtering capabilities to prioritize information sources based on relevance to the region.

99 7.4.4 DEVELOP CONSUMER EDUCATION AND PUBLIC OUTREACH PROGRAMS These outreach programs would serve multiple purposes of: • promoting regional agriculture and products;

• informing the general public of the social, environmental and economic benefits of supporting regional agriculture to build advocacy for the sector; and,

• creating a positive sector image for attracting investment and new entrants, particularly in elevating agriculture as a career path among youth.

Delivery Options:

1. Working in partnership with the provincial “Agriculture in the Classroom” organization and school districts within the Cariboo-Chilcotin, support outreach and information on agriculture in the school system with programs (awareness and career path) tailored with appropriate material to each of primary, intermediate and senior students; 2. Working in partnership with regional farmers’ market organizations develop and support community outreach and awareness programs designed to inform and build advocacy with the general public; and, 3. Working in partnership with the BC Ministry of Agriculture and Lands and/or regional colleges and universities create and maintain internet or print resources providing an overview of regional agriculture and contacts to regional organizations and resources.

100 8.0 Integrated Opportunities 8.1 Introduction Opportunities for sector growth exist in the emerging areas of agritourism and agroforestry. Agritourism provides experiences and services (e.g. accommodation) in conjunction with agricultural activities. Agroforestry systems (the intentional integration of agriculture and forestry) offer certain production and economic advantages and the ability to integrate conservation practices into managed systems. The agriculture sector, through the production of fresh, nutritious food, also has natural connections to community nutrition and health issues and contributes positively to the social fabric of the region. Support programs and linkages to programs and organizations focused on nutrition and the socio-economic aspects of food can provide benefits to both agricultural sector and the region at large. 8.2. Agritourism 8.2.1 Agritourism Overview Agritourism capitalizes on the novel entertainment, educational or recreation values of agriculture to provide a range of experiences (e.g. tours) and services (e.g. accommodation) in conjunction with agricultural production and marketing. Provincially, agritourism is a growth sector that fits well with the demographic shifts of increased retirees and urban population looking for unique recreation and tourism products. Agritourism involves producers selling products and services direct to the consumer, thus, their interaction and relationships with the public helps to bridge the rural-urban divide, improving understanding of agriculture issues. The natural beauty of the Cariboo-Chilcotin and long history of agriculture provides an ideal combination for expansion of agritourism. Many agricultural operations in the region already offer agritourism products as their primary or supplementary farm activity. These include bed and breakfasts, camping and rustic accommodation, guest ranches, horse riding and equestrian facilities, hay wagon/sleigh rides, school tours, working farm holidays, farm/building rental for parties and weddings, barn dances, animal displays, display gardens, fishing, winter sports, as well as self-guided, cycling and bus tours (Schultz, 2001). Several farms also incorporate attractions such as picnic areas, corn mazes, entertainment/music and children’s play areas to improve sales at farm stores / retail outlets, farm restaurants, “u-pick” operations, roadside stands and at farmers’ markets. In addition to expansion of agritourism through additional individual operations, collaborative or cooperative ventures can be further developed to create synergies and the ‘critical mass’ to draw in a greater customer baser for the regional enterprises. Existing community agritourism assets include rodeo and farm fair/exhibition facilities.

101 8.2.2 Current Opportunities and Initiatives Regional Agritourism Opportunities The British Columbia Agritourism Alliance (BCATA, 2006) identifies many potential opportunities in agritourism for fixed attractions, events and services including: Fixed Attractions • e.g. historical farm museums and displays, display gardens, working farm/ranch, food processing facilities Events • On Farm Activities and Special Events (e.g. barn dances, corn maze, corporate picnics, educational tours/workshops, entertainment/music, festivals, hay rides/sleigh rides, haunted house/barn) • Off Farm Events/Sales (e.g. fairs, farmer's markets, rodeos) Services • On Farm Accommodation (e.g. working farm/ranch holiday, guest ranch and ranch activities, bed and breakfast, campsites/RV parking, restaurant, cabins, picnic areas) • Tours (e.g. school, self-guided, bus, cycling, winery and garden tours) • Retail sales (e.g. farm gate sales, U-pick crops, gifts, crafts, farm processed foods, promotional wear and merchandise) • Leisure/Recreation (e.g. horseback riding, winter sports, fishing, animal displays, gardening, hiking) All of the opportunities identified by BCATA either already exist on small scale in the region or have potential for adoption. The success of developing agritourism products depends heavily on promotion and the quality of delivery of the product or services. BCATA lists the following as factors influencing the success of agritourism operations: • Farm operator's capability to accommodate to the demands of agritourism (i.e. meeting visitor expectations, government regulations, etc); • Accessibility of the farm site to major travel routes and urban centres; • Capacity of farm facilities to accommodate agritourism; • Farmer's attitude and resources for agritourism product development; and, • Strategic alliances with other rural tourism groups and industry stakeholders.

Regional Agritourism Development Currently, one group within the region is focused on supporting individual and cooperative agritourism development. The North Cariboo Agricultural Marketing Association, (also know as “FARMED” – Farming, Agriculture, Rural, Marketing, Eco, Diversification). FARMED was formed in May 2006 and is a producer led organization dedicated to diversification of agriculture and the products and experiences associated with rural living in the North Cariboo. FARMED defines the North Cariboo as including the following communities of Alexandria, Barkerville, Bouchie Lake, Cinema, Marguerite, McLeese Lake, Moose Heights, Nazko, Quesnel and Wells. The goals of FARMED are to develop a diverse agriculture industry by: 1. Developing a strong voice for agriculture with diverse experiences and products in the North Cariboo;

102 2. Creating, encouraging and enhancing partnerships between members which are then able to market and promote one another; and 3. Developing the North Cariboo as a destination for visitors interested in experiences and settings combining rural living and agriculture. Regional agritourism development priorities identified by FARMED include the following: 1. Development of a farm tour brochure (“Circle Farm Tour Brochure”); 2. Alignment with, and participation in, BCATA’s quality assurance and highway signage programs; 3. Development of “comment cards” for members to make available to their customers; 4. Implementation of a Code of Standards; 5. Development of FARMED signage and website; 6. Development and delivery of regional agritourism educational workshops; 7. Development of promotional materials and media releases; 8. Delivery of a regional “Agriculture Awareness and Marketing Tour” and, 9. Development of alliances with groups and agencies involved in tourism and economic diversification. In addition to FARMED, many local fall fair, exhibition and rodeo associations in the region operate with volunteers to build and maintain community agritourism assets (rodeo and exhibition facilities) and hold agriculture related events.

Provincial Agritourism Development The BC Agritourism Alliance (BCATA) is comprised of industry stakeholders and private sector organizations with interests in the development of a sustainable agritourism sector in the province. To support agritourism, BCATA has identified the following priority goals: 1. Development of strategic partnerships to cost share development work; 2. Code of standards for agritourism products and services; 3. Provincial product development and marketing strategy; and, 4. Agritourism training programs. BCATA’s research has identified policies and programs strategically important for agritourism product development and marketing. Those relevant to the development of agritourism in the Cariboo-Chilcotin include: 1. Coordinating and linking policies and programs to encourage strategic alliances and reduce program redundancies and costs; 2. Establishing organizational structures and processes to support effective local and regional coordination and marketing; 3. Promoting agritourism product quality and identification, and integrating with regional and local programs that build local identity and distinctive product positioning in the minds of consumers; 4. Standards allowing diversity and entry of small operators; 5. Promoting local involvement and alliances enabling communities to manage their operations suited to their needs and leading to more cost-effective promotion programs;

103 6. Facilitating local product development and marketing. Ideally, the provincial organization should act as facilitators for promoting agritourism products and services in the marketplace; and, 7. Amending policies to be flexible for diverse operations and facilities: development policies, planning, building permits, health and safety regulations, business and property taxes that have important effects on the viability of small-scale agritourism operations. BCATA activities relevant to the regional agritourism development include: 1. A provincial Code of Standards (quality assurance program) to develop a world class reputation for quality; 2. Education and awareness activities including regional forums, regional / local presentations, workshops and training opportunities; 3. Developing strategic alliances with the goal of building an interest in agritourism, a strong product offering and marketing partners; 4. Website and internet marketing: for stakeholders and consumers (www.agritourismbc.com) to learn about agritourism and to promote properties, products or services.

To date, BCATA has had no projects and little exposure within the region (identified by BCATA as part of the “Cariboo Chilcotin Coast”).

8.2.3 Development Support Priorities Both the regional participants and the provincial organization emphasize that successful agritourism development relies primarily on producer knowledge, quality assurance and strategic cooperative ventures for product development and promotion. Thus, the development priorities for agritourism support in the Cariboo-Chilcotin are as follows: 1. Producer Education Support. Working through existing provincial and regional agritourism organizations support education and outreach programs informing new and existing producers of the range of agritourism opportunities and steps for establishing successful agritourism ventures. 2. Development of Regional Agritourism Organizations. Using the North Cariboo Agricultural Marketing Association (FARMED) as a model, support the development of subregional agritourism industry groups and assist with developing and delivering priority cooperative products and marketing initiatives (e.g. producer education, agritourism promotion or local farm tours). 3. Alignment with Provincial Initiatives. Support continued alignment and coordination of regional activities and organizations within the provincial ‘umbrella’ organization of the BC Agritourism Alliance.

104 4. Expansion of Community Agritourism Events and Assets. This can include support for additional community agricultural attractions (e.g. additional or expanded tourism/entertainment facilities at farmers’ markets, rodeo and exhibition facilities), or local fairs and events that highlight regional products (e.g. a ‘flavour of the Cariboo’ event, or cooking competitions, or marketing opportunities at regional rodeos). 5. Integration with Other Regional Tourism Attractions. Research by BCATA (2006) indicates travelers with an interest in agritourism are also likely to seek out tourism products that include “exploration, learning, outdoor activities, cultural and heritage attractions.” Therefore, there are natural strategic partnerships and linkages between the emerging agritourism sector and existing heritage and cultural tourism (e.g. Barkerville), as well as eco- or adventure tourism ongoing in the region. Support should also be provided to initiatives that leverage opportunities to improve promotion and sales of Cariboo-Chilcotin agricultural products at regional tourist attractions.

8.3 Agroforestry 8.3.1 Agroforestry Overview Agroforestry is the intentional, integrated production of trees or shrubs with other crops and/or livestock. Agroforestry systems are employed to achieve production synergies in relation to conventional agricultural or forest management, and other economic, environmental or social benefits that result from integration. Agroforestry systems allow for the introduction of forest products into existing regional agricultural operations or production of agricultural products in managed forests. There are five common temperate agroforestry land use systems: • Shelterbelts – using trees and shrubs to protect crops, livestock and buildings from the wind; • Silvopasture – the integration of livestock and tree production; • Integrated Riparian Management – using trees or shrubs to protect the zones adjacent to water courses and bodies, while also sustainably providing niche products such as floral greenery or specialty crops; • Alley Cropping – the production of a broad range of field or specialty crops between widely spaced tree or shrub rows; and • Forest Farming – the production of non-timber forest products in the natural shade of a closed forest. Agroforestry has several potential advantages over conventional agricultural or woodlot systems. The first is the potential for production gains through efficient capture and utilization of sunlight and soil resources. If structured properly, the multiple canopy and rooting layers in an agroforestry configuration make better use of the land’s production potential and can generate more in total per unit area than separating production into single use forestry or agriculture operations. The second area of advantage is based in economics. Agroforestry systems offer the means to generate annual cash flow in a perennial production system. Tree and shrub crops are long- term endeavors but also require early investment for planting and maintenance. Inflation

105 through time means the initial investment reduces the “real” return from these systems in the future. Agroforestry systems blend annual production (and cash flow) into long-term production investments, meaning you can offset some or all of the discounting of future profits from the tree or shrub crop. Moreover, because the workload of the “agro” and the “forestry” components are often complementary (distributed to different seasons), agroforestry systems can make better year-round use of an operation’s labour, machinery or other capital. The third area of agroforestry advantage is in the environmental services provided by these systems. In addition to a long history of successful use as wind breaks, trees and shrubs are also being used in novel applications to filter dust, odours or noise. As a visual “green” barrier, trees and shrubs can also provide a buffer between farms and suburban development. Trees and shrubs contribute to the diversity and wildlife habitat of agricultural landscape. Trees and shrubs also have the capacity to fix and hold carbon; sequestration in agroforestry systems can assist in reducing net “greenhouse” gas emissions.

8.3.2 Current Opportunities and Initiatives Regional Agroforestry Opportunities There is a wide range of suitable agroforestry practices for efficient utilization of limited high- capability agricultural lands in the region, and for broadening and diversifying production on marginal land otherwise limited to forage or browse production. Cultivation of rapid-growing trees (e.g. hybrid poplar, Siberian larch) on agricultural land could also offset some of the wood fibre declines for the regional forest industries that will arise when Crown forest harvesting decreases after the salvage of beetle-killed timber. Independent of agroforestry systems, the region already produces a variety of non-timber forest products (NTFP) including mushrooms (e.g. pine mushrooms), wild berries and herbs that are harvested and sold primarily through informal market channels (Powell, 2005). Organization of the wildcrafters and greater alignment with the agriculture sector could expand the volume of NTFP harvest, and improve the value captured through processing and marketing efficiencies. Appropriate regional systems could be developed using any of the agroforestry practices to achieve a variety of production or conservation goals. However, silvopastoral systems and forest farming represent the best immediate opportunities for the regional agriculture sector. Silvopasture Many factors contribute to the suitability of greater silvopasture adoption in the region. First, there is already both an extensive managed forestland base and substantial livestock industry (principally cattle) in the region. The regional beef industry could benefit from expanded forage availability in silvopasture systems. The development of intensive area-based silvopasture management on private holdings or on new Crown agroforestry tenures (in conjunction with existing woodlot tenures or otherwise) could increase the total production (of timber and non-timber resources) and value derived from the land. The province and region has a long history of forest grazing on both mature open-forests and regenerating forestland. In addition, custom grazing of forest plantations with sheep to provide cost-effective, chemical free vegetation control around tree seedlings has been utilized in the region for over 25 years. However, it is important to note that silvopasture systems are not synonymous with the majority existing forest grazing practices in the region. Agroforestry systems are distinguished by intensive and active integration of all components (overstory and

106 understory). While forest grazing as practiced does involve livestock production on forestlands and there is management employed to minimize and mitigate negative interactions in these systems, it is not universally considered an agroforestry practice. With most existing forest grazing there is no designed manipulation of the forest stand attributes (density, spatial patterns) or individual trees (e.g. pruning) to enhance understory forage production or accommodate livestock use. Nor, with the exception of some plantation vegetation management by sheep, do these systems factor in animal welfare, or the timing and intensity of grazing to reduce competition or enhance nutrient cycling in the timber management schemes. Therefore, regional forest grazing practices generally lack the intentional integration conventionally associated with agroforestry. Provincially and within the Cariboo-Chilcotin, operational experience and research on forest grazing have contributed a substantial knowledge base important for the successful development of silvopasture systems. For example, forage seeding on forestland and its impact on tree regeneration, and the relationship between livestock management and tree damage and growth are both well understood. However, additional information will be needed to establish operational production guidelines suitable to the region and there is a lack of economic information related to silvopasture systems to direct business planning and production and land use options. Forest Farming Comparable to the development potential for silvopasture, the region’s extensive area of managed forestland also lends itself to the establishment of a variety of forest farming operations. Similar to silvopasture, forest farming can make efficient use of limited high production land within the region (e.g. areas with favourable microclimates and soils on river benches), and is also compatible with forest management activities that enhance both the timber value and understory production (e.g. pruning and spacing). There are a large number of NTFP crops suitable for the region that fit with the market trend of increasing demand for niche products. Provincially there are over 200 non-timber species commercially harvested or cultivated on forestland, and regionally over 70 species are currently utilized for food, floral greenery, health and cosmetic products, arts and crafts stock (Powell, 2005). Currently, the majority of regional NTFPs are wild harvested without planned integration with forest management activities or are derived from small areas of private land. To capitalize on forest farming opportunities, there is a need for strong ties and parallel development of regional value-added processing capacity and marketing channels for NTFPs. There are a few existing forest farming enterprises in the region (e.g. birch syrup producers) to provide a development platform for expansion, however for most opportunities there is little or no information or operational demonstrations available for supporting development.

Agroforestry Industry Development Initiative The Agroforestry Industry Development Initiative (the “Initiative”) is a provincial program developed to enhance agroforestry activities in BC to achieve a vision of a dynamic, self- sustaining agroforestry sector. The Initiative was formulated to capitalize on agroforestry’s potential to diversify and strengthen the agricultural and small-scale forestry sectors. The purpose of the Initiative is to assist the development of the agroforestry in BC, and thereby increase production opportunities, promote stewardship, increase producer incomes and enhance community stability.

107 Funding is derived from the Investment Agriculture Foundation (IAF) of BC as trustees of a joint federal/provincial government Agri-Food Futures Fund; $500,000 has been allocated for cost-share projects with private sector partners (individuals, producer groups, community and non-government agencies). The Agroforestry Management Committee (AMC), a volunteer group of private sector stakeholders, oversees the Initiative; advising this group are government agroforestry specialists. The Federation of BC Woodlot Associations administers the Initiative. The Initiative’s strategic goals were developed with direct input from current and potential agroforestry practitioners and guide the priorities for developing agroforestry projects: “Building Partnerships” to demonstrate agroforestry practices; “Raising Awareness” through supporting education, training and access to agroforestry information; “Improving Linkages” between producers, processors, wholesalers and consumers; and, “Supporting Marketing” with an agroforestry marketing strategy and brand. Since 2003, the Initiative has hosted or supported a number of information sessions and regional workshops, a website and a quarterly newsletter. The Initiative is also working with partners to develop agroforestry production guides and directories and is developing the BC Agroforestry Information Network, providing stakeholders with access to BC-based contacts with expertise in various aspects of agroforestry practices. There are ten Initiative-sponsored agroforestry demonstrations underway covering a wide range of practices including silvopasture, integrated riparian management; alley cropping and forest farming. The Initiative has a funding mandate through 2008 and new agroforestry demonstration, extension, education or marketing projects are welcome through that period. Funding is available on a 50% cost-share basis; a portion of the industry contribution may be “in-kind” – compensation for labour, materials or use of machinery or land. Contributions into the project from other Federal or Provincial government sources is welcomed, but cannot be matched by the Initiative funding. In partnership with the Quesnel Community and Economic Development Corporation (QCEDC), the Initiative has one project active in the region: Birch Agroforestry Development. This project will research and compile existing information and producer knowledge on birch tapping and processing into a ‘user-friendly’ production manual for prospective birch agroforestry practitioners. The QCEDC and its partners will also deliver a minimum of two workshops providing: • An overview and on-farm demonstration of birch tapping; • An overview and on-farm demonstration of birch syrup processing; • Information on relevant processing food safety and labelling regulations; and, • Markets and marketing information and training. In looking to future development, research and a pre-feasibility assessment of potential new niche birch products will also be completed. In addition to syrup, other birch products from agroforestry systems could be developed including sap drinks (birch tonic, birch wine, -fruit juice blends), crafts (from wood and bark) and non-traditional wood products.

108 BC Ministry of Agriculture and Lands Provincially, the BC Ministry of Agriculture and Lands (BCMAL) has an agroforestry support program and one agroforestry specialist operating from Abbotsford. BCMAL has expressed that a program priority is support for addressing community and resource sustainability issues arising from pine beetle impacts. Specific to agroforestry opportunities, an “Agroforestry MPB Strategic Framework” has been written identifying silvopasture and forest farming as opportunities to add stability to and diversify both local and provincial economies. In partnership with the BC Agriculture Council and with Technical Assistance Component funding of $800,000 through the Greencover Canada Program, BCMAL is also developing research, technical transfer and capacity building projects for silvopasture, forest farming systems and integrated riparian management. These projects, while provincial in scope will develop and deliver agroforestry materials directly relevant to agroforestry development in the Cariboo-Chilcotin. Activities planned through this program include: • Synthesis of pertinent silvopasture and forest farming information; • Decision-making tools to aid industry and producers in business planning; • Decision-making tools to aid producers and agencies in land use planning and policy development; and, • Partnership building.

Agriculture and Agri-food Canada – Agroforestry Division In addition to funding support and partnership with BCMAL activities, Agriculture and Agri- food Canada jointly sponsored a silvopasture workshop to explore the concept, review related US and Canadian approaches, and to identify issues related to implementation in BC. The two-day workshop was held in August 2006 in Kamloops with representation from industry, NGO’s, federal and provincial agencies. Participants identified clarification of the legislative and policy framework for silvopasture activities on Crown lands and development of extension and training materials as among the priority actions to be addressed to facilitate silvopasture development.

8.3.3 Agroforestry Development Support Priorities Regional stakeholders and the provincial organizations emphasize the importance of research, demonstration, extension and education to the successful growth of agroforestry opportunities. Thus, working with existing agroforestry delivery agencies, the development priorities for agroforestry support in the Cariboo-Chilcotin are as follows: 1. IMPROVE REGIONAL EDUCATION, TRAINING AND ACCESS TO AGROFORESTRY INFORMATION to assist producers with identifying and implementing agroforestry opportunities;

2. ESTABLISH DEMONSTRATIONS OF AGROFORESTRY PRACTICES within the region to generate relevant production knowledge base;

109 3. CONDUCT ECONOMIC MODELING OF SILVOPASTURE AND FOREST FARMING; and,

4. QUANTIFY THE AGROFORESTRY POTENTIAL OF CROWN LANDS IN THE REGION, and current legislative/policy constraints, to assess opportunities for expanded integrated management timber and non-timber resources (including forages).

Actions Specific to Silvopasture Development 5. COMPILE SILVOPASTURE INFORMATION AND TRAINING MATERIALS WITH A PRODUCER FRIENDLY TECHNOLOGY DELIVERY METHOD. As previously noted, silvopasture systems can draw on a substantial knowledge base. This information however, needs to be compiled and adapted into producer-friendly technology transfer and training materials. General guidelines and support material for converting woodlots or pastures to silvopasture configurations, and managing silvopasture systems are priority information needs. Refinement of silvopasture management will also require new, regionally relevant information. Research is required to establish appropriate tree stocking standards and distribution patterns for silvopasture configurations. Some of this information could be generated through adaptation of existing regional silvicultural studies. For example partnership with university or government research agencies such as: • University of BC research at Gavin Lake led by Tom Sullivan examining understory response to thinning and fertilization of lodgepole pine (Pinus contorta). This study could be adapted to assess cattle usage of thinned and fertilized sites, forage quality and quantity, and wildlife competition for forage. • BC Ministry of Forests and Range research at Knife Creek led by Harold Armleder examining variable density spacing (clump distributions) in Douglas-fir (Pseudotsuga menziesii) forests. These sites could be adapted to examine the relationship of understory to forest stand structure and implications for integrated management.

6. IMPLEMENT SILVOPASTURE OPERATIONAL TRIALS TO DETERMINE REGIONAL COST-BENEFIT AND FOREST CONVERSION SUITABILITY Most silvopasture information gaps however, will require new research that specifically tests agroforestry configurations and compares them to conventional forest and pasture management. Likewise, an assessment of the most suitable regional forest types (pine, Douglas-fir, deciduous) for conversion to agroforestry management is required.

110 Economic modeling and business decision support tools are also essential to silvopasture implementation. This could be achieved by further refinement of a pilot silvopasture economic model developed by the BC Ministry of Agriculture and Lands, and conducting operational silvopasture trials to complete a cost-benefit analysis. This analysis would require establishing 4-6 operational silvopasture locations, collecting and/or modeling annual forage/livestock returns and timber production in relation to alternate management options (pasture, silvopasture, woodlot).

Actions Specific to Forest Farming Development Unlike silvopasture systems, the post-harvest handling, processing and market outlets for most forest farming crops are not well defined. Nor are there many operational examples of forest farming systems suitable to the region to promote and develop production techniques. Priority actions for forest farming support therefore include: 7. ESTABLISHMENT TWO FOREST FARMING DEMONSTRATIONS BASED ON EXISTING ACTIVITIES (e.g. birch syrup or floral greenery) OR NOVEL APPLICATIONS; and,

8. DEVELOP ENTERPRISE AND MARKETING SUPPORT TOOLS FOR NON TIMBER FOREST PRODUCTS PRODUCTION, including marketing support and value-added NTFP processing support. Product development and marketing support activities for the region should include: • A synthesis of existing forest farming information and resources, including pertinent specialty crop information concern best management practices for crop identification, handling and processing, and product standards where available; • Screening specific forest farming production opportunities (in conjunction with other specialty crop evaluation work); and, • Documenting existing NTFP buyers and processors, and their standards, pricing, etc.

Non-timber forest product(NFTP) market and product development would also support integrated riparian management opportunities and the wildcrafting businesses in the region. Given the current lack of NTFP tenure arrangements for securing and protecting production on the majority of Crown land, the focus of regional forest farming development should be initially limited to private land, community forests or other areas where long-term access and integrity of the forest farming management prescriptions can be guaranteed.

111 8.4 Community Health and Social Links 8.4.1 Overview The agriculture sector through the production, processing and distribution of food is unique as a business segment because of the direct connections to health, the environment and social issues. These natural linkages create opportunities for the agriculture sector to participate in the development and delivery of community nutrition and social programs. Many regional agricultural producers and residents are concerned with food security issues and support the sustainable development of the agricultural sector. Food security can be defined as a condition when everyone has access to nutritious, safe, personally acceptable and culturally appropriate foods, produced sustainably with respect for social issues. Food security issues thus relate to health, social equity and the economy. Health: Quality food is one of the foundations of good health. The consensus among health professionals is that diet is a primary determinant of health at every stage of life. Diet-related health challenges within the region and the province are increasing. These include adult and childhood obesity, type II diabetes, cancer, dental health, and malnutrition (e.g. approximately 25 % of calories come from non-recommended food sources and children are not meeting minimum recommended calcium, fruit and vegetable consumption levels). The regional agriculture sector can contribute to improving this situation. Social Equity: A principle of social equity requires that healthy, quality food is available to everyone, not just those who can afford to pay for it. Nor is it acceptable to many that our food supply is derived in part from the exploitation of people or the environment in other countries. Improving the social equity of our food supply requires ensuring people are able to earn a living wage by growing, producing, processing, handling, retailing and serving food; Economy: Assessing food security involves a ‘full system’ accounting to reveal the costs and risks of a food system. This includes incorporating the costs of long-distance food transport, high-input agriculture effects on the environment, and poor public health, as well as determining the economic, political and social risks associated with dependency on outside jurisdictions to feed our population. In this regard, supporting regional agriculture addresses food security issues. The following sections provide examples of regional and provincial initiatives addressing health and social aspects of food, with recommendations on how the regional agriculture sector can strengthen ties to these programs.

112 8.4.2 Food and Nutrition Initiatives Agri-Food Partners in Healthy Eating (AFPHE) ActNow BC is a Government of BC initiative to support a goal of “making the province the healthiest jurisdiction ever to host an Olympic and Paralympic games.“ In response to this initiative, BC food industry representatives formed the Agri-Food Partners in Healthy Eating (AFPHE). The AFPHE’s purpose is to promote, support and encourage industry initiatives and activities that make the healthy food choices easy and to provide as many BC products as possible for healthy food options. AFPHE is working with the BC Ministry of Health, the BC Ministry of Agriculture and Lands and other groups to meet its goals: • Improving the recognition of BC food as healthy food; • Active industry leadership and participation in ActNow BC; • Raising the profile/recognition of BC food industry and products; • Promoting healthy product innovation and development; • Expanding markets for healthy BC products; and, • Unifying industry efforts to promote healthy eating. Key projects of AFPHE include a communication strategy, outreach events, community forums to facilitate collaborative activities with government agencies and NGO’s, and developing a marketing strategy. The marketing would promote BC products in the healthy eating campaign and options for improving the distribution and access to healthy BC food products throughout the province.

Good Food Box Programs The Good Food Box programs are non-profit, community co-operatives operating in Quesnel, Williams Lake and 100 Mile House. They provide monthly, bulk produce buying and distribution open to anyone interested in good nutrition and fresh food access, although the program is tailored primarily to those with barriers to getting fresh fruits and vegetables into their homes. Although they do buy from local agricultural producers whenever possible, based on price and availability, a significant portion of the produce purchased is often sourced from outside the region through grocery wholesale and retail chains. A fee is charged for the food box service, however the programs are not self-sustaining. The food cost is covered by the consumer, and the other operational costs are supplemented by donations, government grants, and volunteer contributions.

Healthy Eating and Active Living The Healthy Eating and Active Living (HEAL) in Northern BC is a cooperative venture of northern health agencies, communities and non-government organizations working to promote healthy eating and lifestyles to reduce the incidence of type II diabetes. HEAL is actively engaging farmers markets, community gardens, First Nations and agricultural producers as partners in this process.

113 8.4.3 Food and Nutrition Initiatives - Recommended Actions Actions that can be undertaken to strengthen the regional agriculture sector’s relationship with community nutrition include: 1. PARTNER WITH THE BC AGRI-FOOD PARTNERS IN HEALTHY EATING (AFPHE) TO DEVELOP A CARIBOO-CHILCOTIN COMMUNITY FORUM TO FACILITATE PROMOTION OF REGIONAL AGRICULTURAL PRODUCTS; 2. ENHANCE THE CAPACITY OF REGIONAL AGRICULTURAL PRODUCERS TO INCREASE SUPPLY OF THE FRESH PRODUCE REQUIREMENTS OF THE GOOD FOOD BOX PROGRAM CO-OPERATIVES; 3. WORK WITH APPROPRIATE AGENCIES TO PROMOTE LINKAGES BETWEEN HEALTHY EATING AND REGIONAL FOOD SUPPLIES. Working with all of the above groups (AFPHE, Good Food Box programs, HEAL) and other interested stakeholders develop a promotional strategy that ties healthy eating with the healthy food supplies from the Cariboo-Chilcotin.

8.4.4 Socio-Economic Initiatives The 'Good Food' Value Chain David Connell at the University of Northern British Columbia’s School of Planning is heading a research program to support and build the capacity of local food systems. A local food system refers to the entire value chain from the farm gate to the dinner plate and includes producers, marketing agencies, input industries, processors, retailers, farmers markets, and consumers. The ‘Good Food' Value Chain research program involves improving markets for local foods, increasing awareness of local food issues, and ensuring equitable access to ‘good food’ for all residents. Relevant research and support activities planned or currently underway include: 1. Economic and Community Impacts of Farmers Markets, measuring impacts of farmers markets across BC to quantify their contributions to increase their visibility. Work to date has included an assessment of the Quesnel Farmers Market in the summer of 2006; and, 2. Local Food Systems Assessment Tool development, to assist communities quantify the supply and demand of local food and potential infrastructure (storage, processing, retail space) needed to connect the supply with demand. Pilot projects are planned for 2007 in Prince George and Salt Spring Island.

Regional Food System Networks Many groups in the region are already actively supporting local food systems to achieve a greater degree of food security through a variety of activities including the Good Food Box programs, community gardens, farm co-operatives, and community kitchens.

114 There are several ‘grass ’ food system groups in the region working independently and collaboratively towards food security goals. For example, the Horse Lake Community Farm Co-operative which is working with the Land Conservancy of BC to purchase and preserve a 133 acre farm and protect its heritage, agricultural and ecological values. Goals of the co- operative include community involvement in the farm operation, organic farm production, education and cultural activities. Similarly, in 100 Mile House a community garden operated by the Cariboo Family Enrichment Centre allows users with differing gardening skills to grow healthy food for themselves and potentially augment the vegetables supplied to the local Good Food Box program.

8.4.5 Socio-Economic Initiatives - Recommended Actions Actions that can be undertaken to strengthen the regional agriculture sector’s relationship with regional food systems include: 1. EXPAND FOOD NETWORK RESEARCH TO ADDRESS FOOD SYSTEM GAPS Support expansion of regional ‘Food Network’ related research and development work (e.g. additional farmers market assessments in the region). By quantifying the sources and full cost of food consumed in the region, strategies can be developed to address situations where the current systems are failing to meet community needs and values; and,

2. ESTABLISH A REGIONAL FOOD NETWORK COMMITTEE. The committee’s purpose would be to establish priority information and support needs, facilitate communication between the agriculture sector, community food security groups, academia, health and social services agencies with an interest in improving nutrition, local food production and food security.

115 8.5 Information Cited British Columbia Agritourism Alliance. 2006. Web site resources. http://www.agritourismbc.org/agritourism/research.php Powell, G.W. 2005. A regional profile of non-timber forest products being harvested from the Cariboo-Chilcotin, British Columbia area. Centre for Non-Timber Resources, Royal Roads University, Victoria, BC, 48 pp. Schultz, G. 2001. Agritourism and Direct Farm Marketing in the Cariboo and Chilcotin Coast Area. Prepared for the BC Ministry of Agriculture, Food and Fisheries, Williams Lake, BC, 33 pp.

116 9.0 Market Development 9.1 Introduction Development of the Cariboo-Chilcotin agriculture sector requires support for the creation and expansion of market channels that maximize returns to producers and encourage and support regional value-added processing and packaging. In particular, support for direct producer-to- consumer marketing (e.g. farmers’ markets) and market outlets for emerging specialty crop and niche products are needed. This section outlines three strategic programs to support marketing for agricultural products from the Cariboo-Chilcotin: a regional ‘market intelligence’ database, local market development support and export development support. 9.2 ‘Market Intelligence’ Database Agricultural entrepreneurs are more likely to act and be successful if they have up-to-date and accurate market information. Market outlets for the major regional commodities (live beef cattle and forages) are well established and centralized pricing for both within and outside the region are readily available. Wholesale pricing for fresh vegetables, honey and other livestock (e.g. sheep, goats) is not readily available regionally, but can be obtained for important provincial and inter-provincial markets. The markets, volumes and values for a range of other specialty crops, diversified livestock, and niche products are for the most part not well established or centralized. The lack of market information impedes effective agribusiness planning and the value captured by the sector in these areas.

9.2.1 CREATE AND MAINTAIN A REGIONAL AGRICULTURAL ‘MARKET INTELLIGENCE’ DATABASE.

The database should be created and maintained supplying current information on: i. Local, national and export market opportunities for key regional products; ii. Links to buyers and wholesale markets; and, iii. Information on emerging high growth opportunities including organic, health and functional foods, specialty ethnic foods and markets for convenience and premium products. Development and maintenance of the database will require a three-step approach: 1. Establish development and delivery partnerships. Potential partners in this process will include industry associations (e.g. BC Herb Growers Association, United Flower Growers Coop, BC Bison Association, BC Agritourism Alliance, local farmers market associations and farmers institutes, etc.), regional community economic development organizations, Ministry of Agriculture and Lands, and Agriculture and Agri-food Canada (Agri-food Trade Service). 2. Build market information from a core group of initial products and adding information as resources become available. Synergies can be obtained from working in parallel with other regional development initiatives to centralize important market and marketing information, specifically those for value-added beef products, specialty crops and non-timber forest products / agroforestry production.

117 3. Establish mechanisms to aid cost-recovery of the information. Potential revenue models include a brokerage fee assigned to sales generated from the market database, subscription fees or listing fees for wholesalers and retailers trying to source unique raw materials or processed products.

9.3 Local Market Development An opportunity exists to capture greater local and provincial market share from imports. Regional production and farm gate sales currently account for a small fraction of the approximate $177 million in regional retail food sales. Even among the beef industry, where the Cariboo-Chilcotin produces approximately 20% of the provincial herd, local production only directly services a small portion of regional demand. This is because large numbers of regional beef are shipped out of the province for finishing and processing, later to be re- imported for retail or restaurant sales. 9.3.1 Local Market Development – Recommended Actions Action is required in three key areas: 1. ESTABLISH A REGIONAL “BUY LOCAL” MARKETING CAMPAIGN AND BRANDING PROGRAM. A buy local marketing campaign and branding of regional agricultural products would support both the direct-to-consumer local markets and sales of local product in major food retailers and restaurants. Success in other jurisdictions (e.g. Vancouver Island) has been achieved by focusing on quality niche products and engaging the public and media to support the regional brand. Actions required to support this include development of the following: i. Regional agricultural marketing body. This group’s function would be to coordinate activities, authorize and manage use of the Cariboo-Chilcotin agricultural brand, and liaise with regional producers and retailers. The marketing body could be formed as a sub-committee to the proposed regional agriculture ‘roundtable’ or a council with representation from local farmers’ market/agricultural marketing groups, commodity groups, and food processors. ii. Cariboo-Chilcotin agricultural logo and/or slogan. Branding of regional agricultural products and services tied to the Cariboo-Chilcotin’s natural/rugged reputation have a strong potential to support sales, as it has done in other areas. Brand development would need to be strongly tied to quality control and safety assurances and should be strategically linked to the “Buy BC” program, BC Agritourism Alliance and other marketing initiatives. iii. Coordinated marketing material. In-store or in-restaurant promotions and signage utilizing the logo/slogan would assist consumers in identifying local food choices and build customer loyalty. Local marketing could also be supported through the development and expansion of marketing materials including regional and/or subregional directories of local farm products and services with print and internet distribution.

118 2. IDENTIFY MARKET LINKAGES TO INCREASE THE SHELF SPACE FOR LOCAL PRODUCTS AT COMMERCIAL FOOD RETAILERS. The majority of food sales are through large retail chains and restaurant sales, both of which typically utilize centralized purchasing/wholesalers located outside of the region. Actions required to support this include development of the following: i. Regional agricultural marketing body. As previously described, the formation of a marketing body could serve an important liaison function between regional producers / processors and food retailers (restaurants and retail grocery businesses). A primary function of this group would be to synthesize the current purchasing patterns and sales to local grocery stores, hotels / restaurants / institutions (HRI) and the opportunity and requirements (minimum volumes, quality, packaging, labeling, and seasonality) for wholesale. Starting references for this process would be the BC Ministry of Agriculture and Lands’ “How to sell to major food retailers in BC” guide and “Guidelines for BC Food Producers and Processors on Selling to Food Service Distributors”. ii. Analysis of the product standards and infrastructure requirements needed to access the major food retailers and HRI wholesalers and brokers. After determining the standards for achieving wholesale buyers’ listings, conduct a series of analyses evaluating the feasibility of establishing necessary storage, processing or packaging/labeling infrastructure for key products (e.g. fresh cut and processed beef and other meats, vegetables, Certified Organic products, specialty products). Due to the complexity of this process and abundance of food products in the market, obtaining a listing is not easy. Morever, there is resistance from retailers to changing the product mix because one product will need to be removed from the shelf to make room for another and national brands and private labels dominate the market. The analyses should examine the potential role of marketing co-operatives, co-packing facilities and strategic partnerships to overcome ‘economy of scale’ issues. Moreover, the cost-benefit of establishing regional facilities versus joint ventures with adjacent regions (Highway 16 corridor, Prince George region and the Thompson Okanagan) should also be assessed. iii. Cross-promotional opportunities. Examine the feasibility and marketing options of using the regional branding campaign to promote and support retailers that increase shelf space for local products.

119 3. DEVELOP SUPPORT TOOLS NEEDED FOR EXPANSION OF LOCAL FARMERS’ MARKETS. Support for the expansion of the local farmers’ markets, including infrastructure improvements to broaden the range of product availability, will strengthen local food sales. Actions required to develop tools in support of farmers’ markets include the following: i. Assessment of Current Sales and New Opportunities. A preliminary assessment of the Quesnel farmers’ market was completed in 2006. A full assessment of this and the other regional markets is required, outlining: • Customer profiles and preferences including a ranking of expanded product offerings; • Specific support infrastructure (e.g. water, power, parking, signage, awnings, seating, entertainment venues and information kiosks) necessary to expand the size and variety of products offered through the markets or improve market ambience and customer experience; and, • Site or regulatory constraints that prevent the sale of certain items at the markets. Economic assessments and community impacts of farmers markets in BC are underway by Dr. David Connell of the University of Northern BC with support from the BC Association of Farmers Markets. Support and planning of regional initiatives should continue to be aligned and in partnership with these initiatives. ii. Assessment of New Market Potential. An assessment should be conducted of the viability of additional farm markets to serve other areas within the region, as well as, the feasibility of year-round indoor sites to extend sales of regional processed foods, shelf stable produce and other products beyond the current seasonal markets.

9.4. Export Market Development British Columbia is a net importer of food products, annually purchasing $144 million in agricultural products and $829 million in processed food and beverages, over and above what is produced in the province. In addition to the provincial market place, the Cariboo-Chilcotin agriculture sector is geographically well positioned to access interprovincial and international markets in the United States and Asia-Pacific. Regional ‘export’ market development support would benefit from many of the actions itemized for local market development, specifically: 1. Creation of a regional agricultural marketing body; 2. Analysis of the product standards and infrastructure requirements; and, 3. Coordinated marketing material. Additional emphasis on strategic partnerships and alignment to provincial and federal marketing support programs will ensure cost-effectiveness and should minimize duplication (if these programs address the needs of Cariboo-Chilcotin producers and processors). Potential strategic partners in the development of the export market opportunities include:

120 1. Agriculture and Agri-food Canada - Agri-food Trade Service and Agricultural Products-Markets Information Program; 2. Industry Canada – Strategis, market research program; 3. BC Agriculture Council - “Buy BC” program; and, 4. BC Ministry of Agriculture and Lands – Industry Competitiveness Branch.

9.4.1 Export Market Development – Recommended Action

1. COMPLETE AN ANALYSIS OF FOOD PRODUCTION QUALITY ASSURANCE MEASURES TO MEET INTERNATIONAL REGULATORY AND MARKET DEMAND REQUIREMENTS. It is essential to determine quality assurance measures for production and processing needed to meet international regulatory and market demands and preserve Canada’s reputation for safety and quality. An analysis needs to be conducted within key agriculture sub sectors of the procedures to meet these standards and actions to remedy current gaps. Synergies can be obtained from working in parallel with other regional sector development activities, specifically those for assessing the feasibility of a beef industry cluster, specialty crops and non-timber forest products (e.g. birch syrup, floral greenery).

121 10.0 Specialty Crop Opportunities 10.1 Introduction Specialty crops are niche production opportunities for new commodities, new uses for established commodities, or establishment of a crop new to a region. Because of limited production, specialty crops can generate higher margins to overcome cost disadvantages associated as potential sector weaknesses (e.g. transportation costs to major markets). There are hundreds of niche production opportunities that can be explored. In particular, herb, spice, and medicinal crops for gourmet, nutraceuticals and functional foods, bioproducts (e.g. biofuels, fibre, phytochemicals), cosmetic and body care products are showing strong growth. Although there is a wide choice of production possibilities, successful development of specialty crops in other jurisdictions has generally been achieved through focused development. Specialty crop production has also tended to be small scale and vertically integrated with producers engaged in some on-farm value-added processing and/or direct sales. Because the markets for specialty crops and their value-added products are still developing, production risks can be reduced by selecting crops that have a multitude of potential end uses. This section provides an assessment of specialty crop opportunities suitable for the Cariboo- Chilcotin and itemizes a short list of candidate specialty crops with a high suitability for the region. An assessment and development framework is outlined that may be used to expand the business cases and feasibility of further development of the crop list.

10.2 Specialty Crop Short List 10.2.1 Screening Method The regional short list of specialty crops for future development work was assembled using a three-step methodology. The first step was to compile specialty and alternate crop candidates (Table 10-1) based on four primary sources: • BC Ministry of Agriculture and Lands “Alternate Crops List” (Oliver, 2001); • Non-timber forest products commercially harvested from the Cariboo-Chilcotin (Powell, 2005); • Botanical forest products listing from the BC Ministry of Forests and Range (De Geus, 1995); and, • Crop sheets from the “Guide to Agroforestry in British Columbia” (Small Woodlands Program, 2001). The second step of preliminary screening involved eliminating species from the candidate list that met any of the following conditions: • Invasive plants, noxious and nuisance weeds or plants otherwise deemed to threaten or harm natural resources or wildlife habitat in the region; • Threatened or endangered plants (red-listed); • Plants illegal to produce in Canada; • Plants unsuited for production (outside controlled environments) based on the predominant plant hardiness zones in the Cariboo-Chilcotin; and,

122 • Plants unsuited to the predominant soil types in the Cariboo-Chilcotin.

Table 10-1. Specialty Crop Candidates for the Cariboo-Chilcotin Potential Products1 Common Name Scientific Name A C F G L M S Fir, Subalpine2 Abies lasiocarpa XX Maple, vine Acer cernatum X Maple, Manitoba Acer negundo X Maple, sugar Acer saccharum X Yarrow Achillea millefolium XXX Calamus (American sweet flag) Acorus americanus X Calamus (Shi Chang Pu) Acorus tatarinowii X Kiwi (hardy varieties) Actinidia spp. X Maidenhair Adiantum pedatum X Anise hyssop (Licorice mint) Agastache foeniculum X Agrimony Agromonia eupatoria X Hooker's onion Allium acuminatum X Shallots Allium cepa X Nodding onion Allium cernuum X Garlic Allium sativum XX X Chives Allium schoenoprasum. X Alder, green, Sitka Alnus crispa XX X Alder, mountain Alnus tenuifolia XX X Marshmallow Althea officinalis X Saskatoon Amelanchier alnifolia X Pearly everlasting Anaphalis margaritacea X Dill Anethum graveolens XX Angelica (Dong quai) Angelica archangelica X Angelica (Bai-zhi) Angelica dahurica X Chamomile, Roman Anthemis nobilis XX Red columbine Aquilegia formosa X Wild sarsaparilla Aralia nudicaulis XX Bearberry (Kinnikinnick) Arctostaphylos uva-ursi XX XX Meadow arnica Arnica chamissonis X Heart-leaved arnica Arnica cordifolia XX Arnica Arnica montana X Northern wormwood Artemisia campestris X Sagebrush Artemisia tridentata X Wild ginger Asarium caudatum XX Astragalus Astragalus americana X Balsamroot Balsamorhiza sagittata XX Blue Wild Indigo Baptisa australis X Paper birch Betula papyrifera XX X Deer fern Blechnum spicant XX Calendula (Marigold) Calendula officinalis XX Hemp Cannibus sativa XXX X X Caragana Caragana arborescens X Nuttal's bitter cress Cardamine nutallii X Blue cohosh (Papoose root) Caulophyllum thalicatroides X blight Chenopodium capitatum X Pipsissewa (Prince's pine) Chimaphila umbellata XX

123 Pyrethrum Chrysanthemum cinerarifoilum X Feverfew (Tanaset) Chrysanthemum parthenium X Common Name Scientific Name A C F G L M S Chrysanthemum Chrysanthemum coronarium X Small-flowered blue-eyed Mary Collinsia parviflora X Lilly of the valley Convallaria majalis Bunchberry Cornus canadensis X Red-osier dogwood Cornus stolonifera XXX (Filbert) Corylus avellana X Hazelnut, beaked Corylus cornuta X Black hawthorn Cratageus douglasii X Saffron Crocus sativus X Pumpkin Cucurbita pepo XX Pacific bleeding heart Dicentra formosa X Few-flowered shootingstar Dodecatheon pulchellum X Round-leaved sundew Drosera rotundifolia X Echinacea Echinacea angustifolia XX Echinacea Echinacea pallida XX Echinacea Echinacea purpurea XX Crowberry Empetrum nigrum X Fireweed Epilobium angustifolium XX Scouring rush Equisetum hyemale X Wild strawberry Fragaria virginiana XX Northern bedstraw Galium boreale XX Bedstraw Galium verum XX Alpine Gaultheria humifusa X Western teaberry Gaultheria ovatifolia XX Wintergreen Gaultheria procumbens XX Gentian Gentiana spp. X Jerusalem artichoke Helianthis tuberosis X Cow parsnip Heracleum lanatum XX Sweet grass Hierochloe odorata Sea buckthorn Hippophae rhamnoides XX X Hops Humulus lupulus XX Juniper, common Juniperus communis XXXX Juniper, Rocky Mountain Juniperus scopulorum XXX Aromatic cedar Juniperus virginiana X Bog laurel Kalmia occidentalis X Labrador tea Ledum groenlandicum XX Motherwort Leonurus cardiaca X Lovage (Chuan xiong) Levisticum officinale X Lobelia Lobelia inflata X Biscuit root Lomatium canbyi X Biscuit root Lomatium cous X Biscuit root Lomatium farinosum X Twinberry, black Lonicera involucrata X Arctic lupine Lupinus arcticus X Skunk cabbage Lysichiton americanum XX Oregon grape Mahonia aquifolium XXXX Chamomile Matricaria spp. X Ostrich fern Matteuccia struthiopteris XXX Field mint Mentha arvensis XX X

124 Cornmint Mentha arvensis "piperascens' X X X Common Name Scientific Name A C F G L M S Spearmint, Scotch Mentha gracilis XX X Spearmint, native Mentha spicata XX X Peppermint Mentha x piperita XX X Catnip Nepeta cataria X Evening primrose Oenothera biennis XX Devil's club Oplopanax horridus XXX Falsebox Pachistima myrsinites XX Peony Paeonia albiflora trichocarpa X Peony (Bia Shao) Paeonia lactiflora X Peony Paeonia officinalis XX Ginseng Panax quinquefolius X Wild (American feverfew) Parthenium integrifolium X Coltsfoot Petasites palmatus X Parsley Petroselinum crispum X Myrobalan Phyllanthus emblica X Pine mountain heather Phyllodoce empetriformis X Spruce, Norway Picea abies X Spruce, Engalmann Picea engalmannii XXX Spruce, hybrid Picea engelmannii x glauca XXX Spruce, white Picea glauca XXX Spruce, black Picea mariana XX Pine, white Pinus albicaulis X Pine, lodgepole Pinus contorta XXX Pine, mugo Pinus mugo X Pine, ponderosa Pinus ponderosa XX Plantain (Psyllium) Plantago ovata X Licorice fern Polypodium glycyrrhiza X Balsam poplar Populus balsamifera XX X Trembling aspen Populus tremuloides XXX Allheal (Heal-all) Prunella vulgaris X Cherry, bitter Prunus emarginata XX Cherry, pin Prunus pensylvanica X Cherry, choke Prunus virginiana XX Douglas-fir Pseudotsuga menziesii X Rhubarb Rheum x hyridum X Roseroot Rhodiola rosea X Gooseberry, wild Ribes divaricatum X Currant, northern black Ribes hudsonianum X Gooseberry Ribes lacustre X Currant, trailing black Ribes laxiflorum X Currant, black Ribes nigrum XX Rose, prickly Rosa acicularis XXXX Rose, Nootka Rosa nutkana XXXX Rose, Wood’s Rosa woodsii XXXX Red raspberry Rubus idaeus XX Thimbleberry Rubus parviflorus X Black berry Rubus spp cv X Sorrel, garden Rumex acetosa X Sorrel, sheep Rumex acetosella X Yellow dock, curly dock Rumex crispus X

125 Common Name Scientific Name A C F G L M S , Bebb's/diamond Salix bebbiana XX Willow, pussy Salix caprea/discolor X Willow, Pacific Salix lucida XX Willow, Scouler's Salix scouleriana XX Elderberry Sambucus canadensis X Elderberry,red Sambucus racemosa XXX Bloodroot Sanguinaria canadensis X Soapwort Saponaria officinalis X Bull rush Scirpus americanus XX Buffalo berry (Soopalallie) Sheperdia canadensis X Goldenrod Solidago canadensis X Goldenrod Solidago odora X Mountain ash Sorbus sitchensis X Snowberry Symphoricarpos albus X Tansy Tanecetum vulgare X Western red cedar Thuja plicata XXXX Lemon thyme Thymus xcitriodorus XX Linden Tillia spp. X Clover, crimson Trifolium incarnatum X Clover, red Trifolium pratense X Cattail Typha latifolia XXXX Stinging nettle Urtica dioica XX X X Alaska Vaccinium alaskaense XX Cranberry Vaccinium macrocarpon XX , black / mountain Vaccinium membranaceum XX Billberry Vaccinium myrtillus XX Blueberry, oval-leafed Vaccinium ovalifolium XX Cranberry, bog Vaccinium oxycoccos XX Huckleberry, red Vaccinium parvifolium XX Blueberry, bog Vaccinium uliginosum XX Lingonberry Vaccinium vitis-idaea XX Blueberry, velvet-leafed Vaccinum myrtilloides XX Mullein Verbascum thapsus X Speedwell Veronica officinalis X Cranberry, highbush Viburnum edule X Violet, early blue Viola adunca X Violet, marsh Viola palustris X

1 Potential commercial uses/products from these crops include: A = aromatic compounds, essential oils C = craft stock F = food products G = floral or floral greenery L = landscape or restoration plants M = medicinal or cosmetic products S = smoke wood, biofuel feed stock, alternate fibres 2 Tree species listed are included for potential non-timber products (e.g. sap, floral greenery), however they may be managed for both timber and non-timber values using an agroforestry system.

126 The final selection criteria involved selecting crops with high suitability to cluster development. A cluster approach focuses development along the value-chain addressing key infrastructure, research and development gaps with recognition of all aspects production, processing and sales: primary production, primary processing/extraction, secondary/value- added processing and wholesale/retail marketing. Based on this goal, two criteria were used to select a specialty crops short list; crops with: • A variety of commercial end uses (e.g. food, medicinals, cosmetic or body care products, floriculture, landscape and restoration, fibre or other bioproducts); • Existing or developing markets for end products aligned to high growth areas of agriculture (e.g. specialty/ethnic foods, health products, nutraceuticals and functional foods). The specialty crops were not screened based on potential production methods that could be employed. Many of the crops are suited to conventional field production, greenhouses, agroforestry systems, organic production or in some cases wildcrafting. Primary and secondary processors can source materials from any or all of these systems and individual producers are best able to decide which systems best suits their skills, interests and resources. It is also important to note that smaller areas within the region with favourable microclimates and soils, or producers investing in controlled environments (e.g. greenhouses), will have broader production opportunities than those presented in this report.

10.2.2 Specialty Crop Opportunities Table 10-2 presents crops suited to the biophysical production potential of the majority of agricultural landbase within region, and having multiple commercial products potential aligned with growth trends in agriculture. As evidenced by Table 10-1, a large number of specialty crops are potentially suited for production in the region, and individual producers do not need to select crops from the short list to develop a profitable enterprise. Several small-scale operations in the region already successfully grow, process and market specialty crops not on this short list. In light of the inherent production risks associated with niche production however, it is prudent for individual businesses to diversify their production options and look to vertical integration (individually, or through strategic partnerships or co-operative arrangements). For example, a specialty crop business can be built around the production and processing of a variety of floral greenery (e.g. evergreen boughs and other foliage) for wholesale or direct to consumer markets. Likewise, an individual enterprise based on medicinal plants may opt for small-scale production of 10s or 100s of species/varieties to mitigate production risks and satisfy consumer demand for variety rather than focussing on one or two crop options.

127 Table 10-2. Cariboo Chilcotin Specialty Crops Short List Common Name Scientific Name Garlic Allium sativum Bearberry (Kinnikinnick) Arctostaphylos uva-ursi Paper birch1 Betula papyrifera Hemp Cannabis sativa Sea buckthorn Hippophae rhamnoides Juniper, common Juniperus communis Oregon grape Mahonia aquifolium Mint Field Mentha arvensis Red (Ginger) Mentha gracilis Spearmint Mentha spicata Peppermint Mentha x piperita Devil's club Oplopanax horridus Rose Rose, prickly Rosa acicularis Rose, Nootka Rosa nutkana Rose, Wood’s Rosa woodsii Red elderberry Sambucus racemosa Nettle Urtica dioica

1 Refers to non-timber products derived from birch

128 10.3 Development Framework and Recommended Actions 10.3.1 Additional Screening The specialty crop short list (Table 1) itemizes species that should form a foundation for initial development work and can be expanded through time as new information and opportunities become available. Most crop options however, will require additional quantitative assessments of production suitability, including defining specific cultivated varieties (if appropriate) and matching production to local soil types and sub-climates of the region. Additional screening must also address other practicalities of crop management and potential markets. The latter can be accomplished by adapting the “Specialty Crops Evaluation Framework” (BC Ministry of Agriculture and Lands, 2006). The Evaluation Framework was not specifically developed as a sector or regional development tool, but rather for individuals to determine available production and market information to better assess risks and suitability relative to their own resources. There is however, common information generated from evaluation that would be beneficial for screening development options in the region.

1. COMPLETE A DETAILED PRODUCTION OPPORTUNITY ASSESSMENT OF THE SPECIALTY CROPS SHORT-LIST. Working from the specialty crops shortlist, additional screening should be focused on the following elements of the evaluation framework: Questions about the crop plant. • Can the plant host a regulated or quarantined pest of other crops in the region? • Is the plant toxic to animals or humans? • Are there worker safety concerns with respect to crop management / harvest? • Does the plant have traditional uses or other cultural importance to First Nations? Questions about crop management. • Is the needed propagative material (e.g. seeds, seedlings, cuttings) available? • Are crop fertility requirements well understood, especially as related to quality? • Are other essential management techniques (e.g. pruning) known? • Are the crop’s pests (disease, insect, mammal, avian) documented and mitigation measures understood and available? • Are soil and water (volume and quality) requirements known? • Is there adequate information regarding how and when to harvest? • Are product quality standards available and achievable in the regional climate? Questions about the product • Are there processors accessible to sell the product to or to contract? • Are there brokers/buyers or other known marketing avenues? • Are there worker safety concerns with respect to processing? • Is the product market well established? Is the market saturated? Is the market volatile (e.g. boom bust cycles)? • Is there a minimum volume of product (at market standard) needed for market entry and continuity? • Is there enough information to assess production costs and returns?

129 • Is growth in product demand expected? • What is the potential for competition from other regions (or national, international)?

10.3.2 Research and Development Support Commercialization of Specialty Crop Products As previously noted, success in specialty crop endeavors often involves vertical integration of production with value-added processing and/or direct sales. Specialty crops can provide the feedstock for high-growth, high-value agricultural products: cosmetic and body care products, natural health products, nutraceuticals and related products. Product development in these areas however, generally requires high-cost, sophisticated and technically demanding support and there is a high failure rate for new introductions. This creates high barriers to entry for new products, but without product development support, regional specialty crop production will not expand significantly. Moreover, without strong links tying production to branded or proprietary products, specialty crops are at much greater risk of becoming a mainstream agricultural commodity. Regional producers would then face declining crop values as additional primary production is added from around the world to service common markets. The process of developing and commercializing a new product requires an understanding in two key areas, as outlined by Wellness West (2006) in its “Commercialization Roadmap”: 1. A decision model based on understanding marketing and distribution alternatives, processing technologies, product category and format options; and, 2. A process model based on product manufacturing technology development, product testing, market development and business planning and development. In all cases a clear understanding of all segments of the value chain from primary production to retail, and strategic alliances between segments, is advantageous. There are however, critical elements for successful cluster development of specialty crops that are currently not well supported in the region, including: • Individual producer knowledge of production techniques (good management practices – GMPs) and quality standards required for end products; • Regional testing and research infrastructure (laboratory); • Technical expertise and training related to processing; • Support mechanisms for start-up enterprises to meet regulatory requirements for nutritional testing, product labeling, etcetera; • Pilot projects based on specific products / crops to demonstrate the viability of specialty crop segment to investors; • Information on markets and product development activities (i.e. potential competition) in other jurisdictions; and, • Business development programs and training appropriate to agribusiness.

The likelihood of success with individual crop opportunities and value-added products thus depends on many overarching support needs for the regional agriculture sector as a whole. These factors include access to venture capital, market development support, research and

130 development support for new value-added products and the availability of agriculture education and extension.

Strategic Partnerships for Development Existing research and development support for value-added production in the Cariboo- Chilcotin is minimal. Strategic partnerships with government, university and private sector stakeholders are essential to capitalize on specialty crop opportunities for the region. 2. FORMALIZE AND RESOURCE A REGIONAL SPECIALTY CROPS DEVELOPMENT COMMITTEE A regional development committee or committees focused on specific opportunities would be used to coordinate activities, develop partnerships and leverage industry funds for research and development activities. Potential partners active in BC include: • University and technical institutes, in particular, the BC Institute of Technology (BCIT)’s Herbal Evaluation and Analysis Lab; • The BC Ministry of Agriculture and Lands, specialty crops and industry development programs; and, • Agriculture and Agri-food Canada, in particular, for product development support infrastructure and technical expertise at the Summerland Research Station. The sector shouldn’t however, limit the scope of partnerships to BC-based agencies and organizations. Considerable expertise (private and public) in production, processing and commercialization exists throughout Canada and this development work could provide a strategic platform to recruit agribusiness investment into the region.

Links to Existing Trials and Development Work A logical platform for the expansion of specialty crops is through support and expansion of existing development work and trials. Examples of specialty crop research and development activities ongoing in the region include work focused on hemp, wild rose and non-timber products from birch. All of these examples also meet the screening criteria for the regional specialty crops short list. Hemp Hemp (Cannabis sativa) is a specialty crop that can be grown in the region for food, fibre and other non-food products. There are over 25,000 documented hemp products ranging from foods derived from the seed or seed oil, and a variety of fiber uses including fabric, carpeting, rope, fiberboard, paper and animal bedding.

131 A Hemp Steering Committee in 100 Mile House is directing research trials in partnership with the BC Ministry of Agriculture and Lands (Jammi Kumar), five local agricultural producers, the Canim Lake First Nation, and researchers at Thompson Rivers University in Kamloops. Production trials on approximately 50 ha in 2006 focused on hemp’s potential for grain production and food products derived from hemp oil. For 2007 plans include trials to determine the fibre characteristics from regional hemp production. 3. SUPPORT SOUTH CARIBOO BASED HEMP PRODUCTION TRIALS RESEARCH. 4. DEVELOP A PILOT HEMP PROCESSING PLANT IN THE SOUTH CARIBOO Development of strategic partnerships is underway with private Canadian firms already active in the development and sale of hemp products. Future support is needed to expand South Cariboo based trials and to demonstrate the commercial processing potential through a small- scale, pilot processing plant. A primary manufacturing facility in the south Cariboo could then facilitate further investment and development of value-added manufacturing.

Wild Rose Fruits and flower petals from native wild rose species (Rosa acicularis, R. woodsii, R. nutkana) are currently utilized by several small-scale regional enterprises for food, health and cosmetic products (Powell 2005). These shrub crops are highly suited to production in the Cariboo-Chilcotin and could be utilized for the development of additional value-added food, pet, health and cosmetic products. The largest specialty crop enterprise in the region is The Hills Health Ranch in 108 Mile. Through considerable research and development investment in partnership with government and university partners they have developed proprietary natural herbal spa and health products (including oils, lotions and facial scrub) based on rose hips. The Hills Health Ranch currently has a partnership with the University of Northern British Columbia (UNBC) to collaborate on research, curriculum development and education in the health sciences. The collaboration includes support of research and development of rose-based health products and determining the health benefits of the plant utilizing faculty and resources from UNBC. This model of collaboration on product development and support could be replicated for other specialty crops in the region.

Birch – Non-timber Products Three existing businesses in the region commercially tap paper birch (Betula papyrifera) and process the sap into table syrup. With strategic development support, additional birch syrup enterprises and other non-timber products could be created from this regional specialty crop, while maintaining or enhancing the solid wood production from birch and supporting associated forest industries. Currently the non-timber yield from birch is being supported through the BC Agroforestry Industry Development Initiative in partnership with the Quesnel Community and Economic

132 Development Corporation (QCEDC). This project is utilizing cost-share funding from the Investment Agriculture Foundation of BC to research and compile existing information and producer knowledge on birch tapping and sap processing into a production manual for prospective birch agroforestry practitioners. The QCEDC and its local partners will also deliver a minimum of two workshops in the spring of 2007 and 2008 providing: • An overview and on-farm demonstration of birch tapping; • An overview and on-farm demonstration of birch syrup processing; • Information on relevant processing food safety and labeling regulations; and, • Markets and marketing information and training. In addition to syrup, other non-timber birch products that could be developed include (Byrne and Dow, 2006): • Raw sap and fruit blended beverages, wine; • Leaf-bud derived beverages (“birch beer”); • Value-added food products from birch syrup (e.g. candy, marinades and sauces); • Bark and wood for crafts; • Bioproduct extracts including xylitol, betulin, and papyriferic acid; and, • Oils from bark for cosmetics, salves, and medicinal preparations.

5. SUPPORT COMPLETION OF A PRE-FEASIBILITY ANALYSIS OF CARIBOO CHILCOTIN BASED BIRCH SAP DRINK OF PRODUCTION OPPORTUNITIES. A pre-feasibility assessment of new birch sap drinks is planned as part of the birch agroforestry project however, additional support is required to support development and commercialization of these and other potential products.

133 10.4 Literature Cited

BC Ministry of Agriculture and Lands. 2006. “Framework for evaluating specialty crops.” (www.agf.gov.bc.ca/speccrop/publications/evaluate_spcrop.htm) Byrne, W. and K. Dow. 2006. Market and Product Development for Birch Timber and Non-Timber Products: Current Status and Potential in British Columbia. The Centre for Non-Timber Resources, Royal Roads University, Victoria, BC. De Geus, P.M.J. 1995. Botanical forest products in British Columbia: An overview. BC Ministry of Forests, Integrated Resources Policy Branch, Victoria, BC, 51 pp. Oliver, A. 2001. Alternate Crops List. BC Ministry of Agriculture and Lands. Accessed online at: http://www.agf.gov.bc.ca/speccrop/publications/documents/alternatecropslist.pdf Powell, George W. 2005. A Regional Profile of Non-Timber Forest Products being Harvested from the Cariboo-Chilcotin, British Columbia Area. The Centre for Non- Timber Resources, Royal Roads University, Victoria, BC. Small Woodlands Program. 2001. Guide to Agroforestry in British Columbia. Co- published by Small Woodlands Program of BC and Forest Renewal BC, Smithers, BC, 319 pp. Wellness West. 2006. Commercialization roadmap for functional foods, natural health products and related end products - brochure. Accessed online at the Western Canada Functional Food and Natural Health Product Network website: http://www.bcfn2.com/

134 11.0 Value-Added Products and Processing Report 11.1 Introduction Small-scale processing can add value to the whole range of existing and potential agricultural products in the Cariboo-Chilcotin. In general, value can be added to agricultural output and greater returns achieved, by processing, packaging, or how the products are marketed (e.g. through links to agritourism products and services) with a focus on niche markets. Supporting value-added ventures and new product development will help diversify the regional agriculture sector, promote greater investment and capture higher returns. As part of the process of developing an Agriculture Sector Strategy this section outlines actions for the production of a detailed Regional Value-added Production and Processing Strategy. 11.2 Current Regional Processing There are no large-scale food and beverage processing businesses located in the region. Small-scale and micro-scale commercial food processing occurs throughout the region and accounts for less than 8% of the provincial businesses in that sector. Small meat processing businesses and micro-scale processors of specialty products dominate the regional food processing activity. The 2006 directory of BC Food Processors lists the following value- added products from Cariboo-Chilcotin businesses: • baked goods; • birch syrup; • dried and fresh herbs; • echinacea and ginseng drink concentrate; • eggs; • fresh-cut, canned, and pickled vegetables; • fresh cut and frozen poultry, beef, lamb, pork (conventional and Certified Organic); • fresh cut and frozen ratites (emu and osterich); • fudge; • honey and honey products; • jams and jellies; and, • meat products (sausage, jerky).

135 11.3 Small Scale Processing Support Needs and Recommended Actions Based on the current agriculture sector profile, the only immediate regional opportunity for medium to large scale processing exists for beef products, and the feasibility is being assessed within the context of a Beef Industry Cluster analysis. Other fresh and frozen cut meat requires federally licensed slaughter capacity within the region. However, many other niche processed food businesses are possible at a micro or small scale, utilizing existing regional agricultural output including fresh-cut vegetable products, condiments, teas, vegetable preserves (e.g. pickles), flavoured honey and honey products, and fruit/berry preserves (jelly, jam, syrup, beverages). Moreover, other micro or small-scale ventures focused on serving the local market are possible that source raw materials from outside the region or combine local and imported inputs. Examples of the latter include baked goods, confectionery, and ready to eat meals/quick preparation foods. Establishing new processed food products, however, can be complicated from both developing and implementing the processing and packaging technologies and adhering to production, labeling and marketing regulations. Development of value added processing support will need to address information gaps in the following key areas: Resolution of a critical shortage of licensed slaughter capacity for the full range of livestock produced in the region. Small-scale production of diversified livestock and value- added meat products are hindered by current regulations that have made the economics of small abattoirs marginal or in some cases uneconomical to operate. Also of particular importance is work towards resolution of disposing specific risk material (SRM) and a limited number of federal inspectors for small operations. Without knowing the way in which or having the facilities to dispose of SRM, slaughter plants cannot remain open. 1. COMPLETE A REGIONAL LIVESTOCK SLAUGHTER DEMAND ANALYSIS DETAILING SPECIES VOLUME AND PRODUCER LOCATIONS WITHIN THE REGION. Quantification of livestock slaughter demand and geographic orientation of feeder animals will determine preliminary facility needs and location requirements that can facilitate market developments of small livestock producers.

2. SUPPORT REGIONAL SPECIFIED RISK MATERIAL (SRM) DISPOSAL INFRASTRUCTURE. Federal and provincial regulation is being established stipulating allowed methods of SRM disposal. Central or common disposal facilities may provide economies of scale advantages to regional slaughter plants thereby increasing business viability.

Information and training on processing, packaging and labeling standards. Achieving quality and safety assurance standards is of paramount concern to access domestic and export food markets. Access to centralized information and training for processors and employees is required to support processing agribusinesses.

136 Potential development and delivery partners to support this initiative include: • Canadian Food Inspection Agency; • BC Ministry of Agriculture and Lands; • BC Food Processors Association; and, • Small Scale Food Processors Association.

Research and development support. New product development can require technically sophisticated equipment and laboratory/analytical expertise. Moreover, the high-tech equipment necessary to produce or package prototypes or pilot production of new items can be prohibitively expensive for micro or small-scale ventures. Research and development facilities and technical support are crucial to establish and expand value-added processing ventures. Given that dedicated support does not currently exist within the region, two primary delivery options can address this gap and a feasibility study should be undertaken to guide selection: 3. ESTABLISH LINKS TO EXISTING PROVINCIAL (AND/OR EXTRAPROVINCIAL) SUPPORT ORGANIZATIONS OR OTHER INITIATIVES SUPPORTING VALUE-ADDED PROCESSING. Within BC, three institutions have dedicated agri-food development capacity and could serve as development and delivery partners: • Food Processing Resource Centre, BC Institute of Technology, Burnaby; • Pacific Agri-Food Research Centre Summerland - Food Science, Agriculture & Agri- Food Canada, Summerland; and, • University of British Columbia, Food Science Group & Food Information Service, Vancouver. Additionally, potential partners and research capacity exist through government and university sponsored facilities throughout Canada. The primary disadvantage of facilities outside of the region is the distance from the Cariboo-Chilcotin. This would impose difficulties on agricultural producers looking to develop new products or packaging but that must also maintain their agricultural operations within the region.

4. CREATE REGIONAL CAPACITY THROUGH THE FORMATION OF AN AGRICULTURE ENTERPRISE CENTRE. An example of this type of facility in the forest products manufacturing sector is the Wood Enterprise Centre in Quesnel. The Wood Enterprise Centre (WEC) (www.woodent.com) is a shared-use facility managed and maintained by Community Futures of the North Cariboo. It has had great success in incubating small value-added forest products manufacturing businesses, through supplying a variety of specialty equipment to help its clients increase productivity, reduce overhead costs and minimize capital investments. Similarly, investment in a variety of common agri-food processing and packaging equipment and use on a cost-

137 recovery basis through a shared use facility would stimulate small scale agri-food processing enterprises. Using the experiences and knowledge of the WEC staff, and in collaboration with food research and development specialists from BCIT, UBC and/or Agriculture and Agri-food Canada, regional stakeholders should undertake a feasibility study. Key elements include analyzing the operating parameters, equipment needed and potential locations. In determining the location, the analysis should examine the cost-benefit of establishing a regional facility versus joint ventures with adjacent regions (Highway 16 corridor/Prince George region or the Thompson Okanagan).

Economics and finance access issues. The economics of small-scale production and venture capital access issues must be fully explored and factors limiting small operations (regulations, economy of scale) detailed. 5. REPORT THE POTENTIAL ROLE OF PROCESSING CO-OPERATIVES, CO- PACKING FACILITIES AND STRATEGIC PARTNERSHIPS TO OVERCOME ‘ECONOMY OF SCALE’ ISSUES. The report should compare these costs with sending product for custom contract processing at existing facilities in BC or elsewhere.

Obtaining venture capital for food processing investments can be a major barrier to industry expansion. 6. EXAMINE VENTURE CAPITAL AND FINANCING OPTIONS TO DEVELOP NEEDED REGIONAL PROCESSING CAPACITY. Working in partnership with Agriculture and Agri-food Canada, BC Ministry of Agriculture and Lands and BC Ministry of Small Business and Revenue, industry stakeholders should examine options for government supported venture capital funds or loan guarantees to support processing investment in the region.

138 12.0 Beef Based Industry Cluster Development 12.1 Introduction As the largest agricultural sub-sector in the Cariboo Chilcotin region, beef producers provide an important base for expansion of regional agribusiness. Yet, many producers are challenged by diminishing returns on beef cattle sales to finishing operations in Alberta and unpredictable export markets. In 2005 Meyers Norris Penny was contracted by community and local cattle industry stakeholders to complete the Cariboo-Chilcotin Beef Industry Cluster report. The report recommended a three phased strategy to achieve a goal of local and regional beef industry sustainability in the light of industry issues including Bovine Spongiform Encephalopathy (BSE). CCBAC Agriculture Advisory Committee meetings identified the need to expand the scope of the strategy methodology to the entire Cariboo Chilcotin region (covered by the Cariboo Chilcotin Land Use Plan).

12.2 Recommended Action 1. SUPPORT COMPLETION OF A CARIBOO CHILCOTIN REGIONAL BEEF BASED INDUSTRY CLUSTER FEASIBILITY AND BUSINESS PLAN The plan should include: i. The infrastructure and other strategic tools needed to reduce cattle processing and production and processing bottlenecks; ii. Case studies of success stories highlighting best practices including an analysis of the success; iii. A competitive analysis of the potential profitability and viability of the various beef industry segments and a comparison of the regional characteristics to beef industry operations and plans in other jurisdictions (within BC, Alberta and the United States); iv. A Market Diversification plan; v. Extensive consultation with industry participants to set beef industry segment goals; and, vi. A gap analysis to identify missing information, support tools, policy and regulation changes necessary to achieve the beef industry segment goals.

139 13.0 Comprehensive Forage Strategy 13.1 Introduction Forage supplies are essential to the profitable continuance and expansion of the beef and other livestock industries in the region, and represent a potential export product. Yet, the relative efficiency and quality of forage production from cultivation is largely un-quantified. Moreover, the heavy reliance of the livestock industry on Crown forage resources dictates a close relationship between expansion of the forage sub-sector and the health of native rangelands, land use planning decisions, and forest and range management policies.

13.2 Recommended Action 1. COMPLETE A COMPREHENSIVE ASSESSMENT OF CURRENT FORAGE PRODUCTION AND FUTURE POTENTIAL. The report should consider current demand and a potential growth of the interior beef herd. The strategy should identify specific measures to maintain and enhance regional forage production and outline the economic, production, sustainability, land use and regulatory issues pertinent to the sub-sector. Specific issues that should be addressed include: i. Review of pasture, hay and silage production on private lands and recommendations to optimize winter feed production capacity and quality;

ii. Summary of forage resources lost to noxious weeds, forest in growth and encroachment and potential production gains through Crown grassland restoration;

iii. Examination of forage production in Community Pastures and the potential production gains through pasture rejuvenation and/or expansion of the program; and,

iv. Assessment of the agroforestry potential of region (possibly in conjunction with proposed Ministry of Agriculture and Lands’ agroforestry modeling work) to explore silvopasture opportunities for integrated forage and timber production.

140 14.0 Action Plan Summary

14.1 Introduction This section of the document summarizes the recommendations of the main report body, and outlines action topics under headings which are consistent with other sector strategy work completed by the Cariboo Chilcotin Beetle Action Coalition. A table of major projects is provided at the end of the section. The projects listed combine, in many cases, several recommendations from the various report areas.

This section may be used as a stand alone summary report from which readers can more quickly view recommended courses of action for growth and sustainability of the Cariboo Chilcotin Agriculture sector. It is important however to utilize the full body of the strategy’s various report areas and their specific recommendations and context when considering implementation.

14.2 Sector Expansion Targets A review of community and industry input sessions as well as land use policy research provides the background for a number of strategic level targets that can reduce bottlenecks to industry expansion. Because of the wide diversity of agriculture as a whole, the target statements concentrate on addressing bottlenecks to industry sustainability and growth in contrast to revenue or job targets that may be proposed by other CCBAC strategies. Much of the focus is on land base issues, which of course are much more crucial to the agriculture sector than perhaps other sectors.

As identified earlier in the strategy, the agriculture sector in the Cariboo Chilcotin is mostly comprised of beef cattle producing operations, and a variety of smaller scale, non beef enterprises. With this in mind the target statements are outlined below in two categories – Beef Industry and General Agriculture – and may be nearly verbatim to the previous sections of the document.

14.2.1 Beef Industry Expansion Target Statements

Many of these targets will require intensive consultation with other land based resource users, First Nations and government. Land area targets are for the Cariboo Chilcotin Land Use Plan area.

• Increase grazing license Animal Unit Months by 10% for the next 25 years. The increase could be used to either extend grazing season or increase cattle numbers. • Target 20,000 hectares of current forest land for conversion to intensive grazing land for the next 30 years. • Increase licensed slaughter capacity and associated processing capability to meet 100% of beef consumption in the Cariboo Chilcotin. • Identify 10,000 hectares of arable crown land that could be converted to deeded land for agriculture sector expansion.

141 • Complete grasslands restoration on 10,000 hectares over the next ten years. • Increase program resources and initiatives by 50% to combat the spread of invasive plants.

14.2.2 General Agriculture Expansion Target Statements

• Increase licensed slaughter capacity and associated processing capability to meet 50% of other livestock (pigs, sheep, goats, poultry) consumption in the Cariboo Chilcotin. • Increase honey production by 20% over the next 10 years. • Increase the value of sales at farmers markets by 100% over the next 10 years. • Increase greenhouse operations to sustain demand of local consumer markets. Existing operations and demand as wells as projections of future consumption would need to be determined. • Promote certified organic and natural foods production in parallel with estimated regional production capacity for local and domestic markets. • Expand agri-tourism to capture equal market share of regional tourism sub sectors. This would involve the alignment and coordination of regional activities with the BC Agritourism Alliance.

14.3 Policy Requirements

The Agriculture Sector Strategy emphasizes a coordinated planning approach to land use. As such, policy requirements and land and resource requirements are closely linked. Because of the huge scope of the agriculture sector and the many types of agriculture businesses, policy requirements identified in the strategy and noted here are almost exclusively related to land and resource issues and access to land. These were seen by the strategy advisory committee as the most widely applicable to the sector as a whole, versus analyzing policy requirements for each type of agricultural enterprise in the region.

• Applications for Crown land tenure should involve a business case and government approval should be measured against that business case. • Flexible, multi purpose land tenure or tenure sets should be established. • Establish policy that allows for short term and case specific easing of compliance and enforcements standards where damaged fencing from crown beetle killed timber is preventing compliance. • As a means to maximize positive economics of farm and ranch operations in the region, priority should be given to Crown land applications with a 15 kilometre radius of existing operations. This priority approval should also be based on stewardship and business plans. • Establish government land clearing credits comparable to the forest sector silviculture credits (varies from $900 to $1,500 per hectare).

142 • Continue to expand the Federal National Water Supply Program. • Ensure that regional agriculture planning processes are guided by the BC Agricultural Land Reserve, Community Planning Document. • Through the BC Ministry of Forests and Range, establish small scale salvage incentives to remove beetle damaged timber from fence line corridors and agricultural leases. • First Nations and government should address issues of crown land alienation by adding agriculture and range needs as topics to be negotiated under Forest and Range Opportunity Agreements or similar agreements concerning the disposition of Crown Land.

14.4 Land & Resource Requirements

As mentioned above the Strategy promotes coordinated planning that supports multiple lands uses. The following items

• As a means to enhance the sector make provincial forest lands available for grazing tenures and agro forestry purposes through an involved planning approach that includes governments, First Nations and producers. • To accommodate current needs and future expansion of rangelands build water and soil conservation into stewardship plans to maximize healthy grassland ecosystems. • Encourage municipal and regional governments to use urban/agriculture compatibility issue guidelines, being developed by the BC Ministry of Agriculture and Lands, in their planning and development approval processes at urban rural interface areas. • All residential subdivisions adjacent to crown land should be fenced and this requires enforcement. • Local government work collaboratively with farmers markets associations to feature markets in land use planning. • To eliminate dislocation of agricultural range users, ensure adequate consultation and mitigation options are efforts are undertaken before lands within range license areas is alienated. • Coordinate Mountain Pine Beetle economic and environmental strategies to assist existing invasive plant strategy programs.

14.5 Business Development Requirements

The Cariboo Chilcotin Agriculture sector is almost entirely comprised of small businesses. As with many small business enterprises limited capacity is a key challenge to their future business development. The following items reflect development resources that could be implemented to enhance growth opportunities of regional agriculture sector businesses. • A large amount of digitally based business development information is available through government and non-government agencies. To increase utilization of these resources by

143 the sector a compilation and delivery of Agribusiness information in easily accessible formats should be completed. • Support expansion of locally delivered Agribusiness planning and business development resources (examples include – export market linkages, new market information, whole sale and retail buyer linkages). • Establish local resources and funding to foster pilot projects for new niche crops and products. • One stop permitting process that could be delivered through Front Counter BC.

14.6 Infrastructure Requirements

Infrastructure requirements noted in the strategy are varied and may be covered in other “Requirements” sections if they are soft infrastructure such as services. The brief list below includes physical infrastructure that may require additional support from soft infrastructures such as staff and administrative services.

• Provide three phase power to rural areas to support agribusiness multiple land uses associated with agribusiness. • Provide high speed internet access to rural areas to support market development and agritourism. • Construction of Agribusiness Centre(s) to provide a venue(s) to deliver various business development or extension services to the agriculture sector. • Rangeland fencing including upgrading of existing fences and establishment of new fence lines as required.

14.7 Training & Extension: Education and extension support is needed in all forms (regional personnel, formal and informal training opportunities, web and print based extension materials, demonstrations). The overriding challenge for the sector will be meeting the diversity of information needs and desired delivery options with limited resources. The following are key requirements noted in the strategy.

• Support additional full time, community based extension staff for one on one consultation and facilitating access to existing programs. • Support training and assist in development agribusiness planning and business development resources through regional delivery agency. • Develop consumer education and public outreach programs on agribusiness opportunities and requirements for successful agribusiness ventures. • Education and outreach programs informing new and existing producers of the range of agritourism opportunities and steps for establishing successful agritourism ventures.

144 14.8 Opportunities for Collaboration & Partnership

Agribusiness and program delivery are most likely to be successful if implemented through the utilization of partnership between local, regional, provincial, and national agencies. Each of the report areas of the strategy note agencies and groups to be involved in establishing policy and implementing actions (so they will not all be repeated here).

After one meeting, the strategy advisory committee recognized the value of their discussions between various agriculture representatives. As a key recommendation, the advisory committee agreed that the establishment of a Cariboo-Chiloctin Agriculture Rountable organization could be a very positive vehicle to seeing the strategy work move forward to implementation.

Some of the partner groups noted in the Strategy and process discussions include but are not limited to the following.

• Industry representatives with national and international association affiliations. Examples include Cattlemen’s Associations, Organic Grower associations, etc. • First Nations – communities and tribal councils • Municipal and Regional District economic development offices and corporations. • Community Future Development Corporations. • British Columbia Government - BC Ministry of Economic Development - Invest British Columbia; Ministry of Forests and Range, Ministry of Agriculture and Lands, etc. • Other government, academic or industry stakeholders involved in economic development or agribusiness.

14.9 New Potential Business Opportunities

The strategy work focused to a large extent on understanding the existing industry, markets and opportunities to grow and diversify current operations. The Sector Trend Analysis notes growth and development opportunities in:

• Finishing and Processing o Beef Industry Cluster Development o Niche Value Added Processing

• Production/manufacturing o Organic Foods o Honey o Specialty Crops and Diversified Livestock o Agroforestry and Non Timber Forest Products o Greenhouse Production

145 • Agritourism • Agricultural Education and Research and Development

These development topics were further discussed in standalone strategy sections.

Further resources are required to improve economic modeling of the various initiatives, educate potential partners and investors about the opportunities, and increase funds to establish crop production trials (example hemp production research and processing support in 100 Mile House).

14.10 Investment Recruitment

Investment recruitment initiatives identified in the strategy focus on the development of agribusiness promotional materials. The highlight of these promotional materials would include the following:

• Diverse marketing mix including website and/or short video presentations featuring vignettes of current and potential production. • Multiple versions of some promotional material may be appropriate to better target specific investors. For example, existing agribusinesses in the Fraser Valley may be primarily motivated by the relative low-land costs and greatly diminished urban interface issues, whereas, prairie producers may be more interested in the variety of production opportunities and the low level of agrichemical use. • Potential selling points of the region to be highlighted include relative low agricultural land costs, less urban interface issues for producers, lower use of agri-chemicals relative to other agricultural production areas as a potential to attract “natural” and Certified Organic producers or others sensitive to chemical residuals. In addition, opportunities to leverage existing red meat production for primary and secondary processing and opportunities for using low-cost energy and other waste streams (e.g. wood fibre) from forest industries to facilitate agricultural production (e.g. greenhouses) and processing facilities.

146 14.11 Major Recommended Projects

This project list combines specific recommendations from the various strategy reports to reduce duplication amongst initiatives. It is suggested that a Cariboo Chilcotin Agriculture Roundtable organization be established to lead the work of implementing the projects. Other various partners would be consistent with the detailed report recommendations and section 14.8.

Project Summary Years 1-2 Years 3-10 Total Construction and administration of Cariboo Chilcotin $2,000,000 $800,000 $2,800,000 Agriculture Enterprise Centre.2 Identify lines and construction of three phase power and $200,000 $800,000 $1,000,000 high speed internet to rural areas3 Upgrading existing fence lines and construction of new $200,000 $400,000 $600,000 fence lines as required. (cost sharing with other land users to be determined) Agribusiness planning (local and export market $40,000 $60,000 $100,000 opportunities and linkages to whole sale buyers) Product and market development planning of agriculture $40,000 $60,000 $100,000 sub sectors (green houses, organic foods, honey, agritourism, farmers markets, specialty and ethnic foods) Assessment of existing regional processing and value $50,000 $50,000 added capacity and growth opportunity analysis. Investment attraction (brochure, website and/or short video $120,000 $80,000 $200,000 presentations featuring vignettes of current and potential production) Coordination of Urban / Rural interface planning $60,000 $40,000 $100,000 Consumer and producer education and outreach programs $120,000 $80,000 $200,000 for agriculture, agritourism and agroforestry. Feasibility, training and pilot projects for specialty crops $300,000 $800,000 1,100,000 agroforestry and silvopasture (including First Nations Non Timber Forest Products). Total $6,250,000

2 This organization will take on the administration and implementation of many of the soft cost items recommended outlined in the strategy. 3 Three phase power and advanced communications to rural areas has been identified in a number of the sector strategies. A coordinated funding approach and planning strategy is required. Appendix 1. - Regional Agricultural Organizations 150 Mile Livestock Association Cariboo Sheep Breeders Association Box 699, 150 Mile House, V0K 2G0 Box 2, RR#1, Shanley, Quesnel, V2J 3H5

Anahim Lake Cattlemen’s Association Central Cariboo Beekeepers Association Box 3392, Anahim Lake, V0L 1C0 428 Richard St., Williams Lake, V2G 3L7

BC Interior Bison Association Chilcotin Livestock Association, RR#1, C-8, Judson Rd., Box 42, Alexis Creek, V0L 1A0 Lone Butte, V0K 1X0 Chimney Creek Livestock Association Big and Beaver Lakes Stock Association Box 23, RR#1, Widgeon Rd, Box 129, Big Lake, V0L 1G0 Williams Lake, V2G 2P1

Big Creek Livestock Association District ‘H’ Farmers’ Institute Box 16, Hanceville, V0L 1K0 RR#1, 70 Mile House, V0K 2K0

Bridge Lake Farmers Institute Forest Grove Farmers Institute C-19, S-55, RR#1, Lone Butte, V0K 1X0 Box 229, Forest Grove, V0K 1M0

Bridge Lake Livestock Association Green Lake-North Bonaparte Stockmen C-10, Buchanan Site, RR#1, RR#1, Watch Lake, Lone Butte, V0K 1X0 70 Mile House, V0K 2K0

Canim Lake Livestock Association Harvest Direct Marketing Association Box 11, Buffalo Creek, V0K 1G0 500 North Star Rd., Quesnel, V2J 5P6

Cariboo Bred Heifer Cooperative Horsefly Livestock Association 5641 Bastin Rd, Quesnel, V2J 6R1 Box 249, Horsefly, V0L 1L0

Cariboo Cattlemen’s Association Kersley Farmers Institute Box 4389, Williams Lake, V2G 2V4 RR#1, Box 23, Cariboo Site, Quesnel, V2J 5E5 Cariboo-Chilcotin Cooperative Feeders Association Lac La Hache Livestock Association 282 Barnard St, Williams Lake, V2G 1E9 Box 225, Lac La Hache, V0K 1T0

Cariboo Direct Farm Marketing Association Lone Butte Farmers Institute C-184, Horse Lake Site, RR#1 RR#1, C-191, W. Sheridan Site, Lone Butte, V0K 1X0 Lone Butte, V0K 1X0

Cariboo Organic Producers Association North Cariboo Growers Co-op Association c/o Dragon Mountain Farms 1218 Cariboo Hwy., 97N, Quesnel, V2J 2Y4 4451 Garvin Road, Quesnel, V2J 6R1 Quesnel Cattlemen’s Association RR#3 Rawlings Rd., Quesnel, V2J 3H7 Quesnel Cooperative Feeders Association South Cariboo Regional Cattlemen’s 5641 Bastin Rd, Quesnel, V2J 6R1 Association RR#1 North Bonaparte Rd., Riske Creek Livestock Association 70 Mile House, V0K 2K0 Box 4389, Williams Lake, V2G 2V4 Tatla Lake Livestock Association Rose Lake Livestock Association Box 669, Tatla Lake, V0L 1V0 Box 37, 150 Mile House, V0K 2G0 West Quesnel Farmers Institute Soda Creek Cattlemen’s Association Box 4485, Quesnel, V2J 3J4 Box 8, RR#2, Bailey Rd, Williams Lake, V2G 2P2 Williams Lake Farmers’ Market Association Box 78, RR#1, Widgeon Rd., V2G 2P1 South Cariboo Farmers Market C-184, Horse Lake Site, RR#1 Lone Butte, V0K 1X0

149 Appendix 2 - Summary of Common Opportunities from Existing Sector Studies and Initiatives A summary of primary strengths, industry growth and opportunity-related results common to many of the sector development reports is provided below. The purpose is to provide a concise picture of the key elements to growing the agriculture industry as reported in previous strategy work. Strengths 1. Agriculture strengthens and diversifies local and regional economies. 2. Diversity of: climate, production opportunities, existing and potential products, markets, and industry participants. 3. Clean, natural environment. 4. International recognition for safe, high quality products. 5. Proximity to major growth export markets (Pacific Rim countries). 6. Many knowledgeable, experienced and committed industry participants with the desire to adapt to changing conditions and new opportunities.

Opportunities 1. Capture greater local and provincial market share from imports. 2. Production and value-added processing, serving growth niche markets (health products, organic and natural foods, etc.). 3. Additional finishing and value-added processing operations. 4. Integrated opportunities for new production and marketing (e.g. agroforestry, agritourism, links to health, social and other community programs). 5. Strategic partnerships between: industry segments, producers and processors, industry and government to facilitate communication, policy development, and further common goals. 6. Education and training for the sector: production opportunities and techniques, markets and marketing techniques. 7. Regional agriculture sector organization, spanning all commodity groups and levels of the value chain (production through to sales), to provide a unified voice for the sector for planning, promotion and support. 8. Changing demographics and consumer trends focusing on fresh foods, healthy lifestyles and products. 9. Branding to build production identification and customer loyalty. 10. Co-operative organizations and strategic alliances to build economies of scale for production, processing, distribution and marketing. 11. Leverage development funds from existing cost-shared support programs.

150 Appendix 3 – Reference Synopsis of Sector Studies and Initiatives

Broad Sector Strategies and Initiatives BC Agriculture Plan BC Ministry of Agriculture and Lands. 2006. Backgrounder: BC Agriculture Plan, February 17, 2006, 2006AL0003-000098. BC Agriculture Planning Committee web site: www.harvesttohome.bc.ca.

Investment Agriculture of BC – Focus on the Future Weicker, Ference. 2006. Focus on the Future: Developing the Agri-Food Industry in British Columbia. Final Report. Ference Weicker and Company Ltd., prepared for the Investment Agriculture Foundation of British Columbia, Vancouver, BC, 181 pp.

Williams Lake Economic Development Strategy – Agriculture Initiatives Myers, Norris, Penny LLP. 2005. The Cariboo-Chilcotin Regional District beef industry product cluster report. Prepared for the Economic Development Office, City of Williams Lake, Williams Lake, BC, 47 pp.

Land Use Planning and Policies Cariboo-Chilcotin Land Use Plan – Agriculture Strategy BC Ministry of Sustainable Resource Management. 1995. Cariboo-Chilcotin land use plan, 90-day implementation process: Final report. Province of BC, Victoria, BC, 183 pp.

Agricultural Land Commission Service Plan BC Ministry of Agriculture and Lands. 2006. Agriculture Land Commission 2006/07- 2008/09 Service Plan. Online at www.bcbudget.gov.bc.ca/2006/sp/alc/alc.pdf

Access to Crown Land – State of the Industry Report Press release, BC Ministry of Agriculture and Lands, May 9, 2006.

Cariboo Regional District Agriculture Policy Review Cariboo Geographic Systems. 2003. Agriculture and forest policy review and development report. Prepared for Planning Committee, Cariboo Regional District, Williams Lake, 66 pp.

151 Cariboo-Chilcotin Arability Study Cariboo Chilcotin Beetle Action Coalition. 2006. Cariboo-Chilcotin Arability Project Overview.

Labour and Targeted Producer Programs Agriculture Labour Market and Skills Development Initiative BC Agriculture Council. 2004. BC Agriculture Labour Market and Skills Initiative: Three Year Strategic Plan, 2004-2006. Prepared for Investment Agriculture Foundation of BC, Victoria, BC, 28 pp.

Small Lot Agriculture Initiative Small Lot Agriculture Initiative website: www.bcfarmfresh.com/services.asp

Aboriginal Agriculture Initiative Aboriginal Agriculture Initiative Steering Committee. 2002. Aboriginal Agriculture Initiative Strategic Plan and Program Plan, 2003-2006. Prepared for Investment Agriculture Foundation of BC, Victoria, BC, 25 pp.

Women in Agriculture Initiative Eli Mina Consulting. 2006. Women in Agriculture Initiative Revised Strategic Plan, 2006-2007. Prepared for Investment Agriculture Foundation of BC, Victoria, BC, 16 pp.

Agricultural Practices and Conservation Programs Agriculture Environment Initiatives BC Agriculture Council. 2002. Agriculture Environment Funds Strategic Plan. Prepared for Investment Agriculture Foundation of BC, Victoria, BC, 19 pp.

Organic Sector Development Program Certified Organic Associations of BC. 2002. BC Organic Sector Strategic Plan 2002/03 – 2004/05. COABC, Vernon, BC, 41 pp.

Agroforestry Industry Development Initiative Sylvis Environmental. 2003. British Columbia Agroforestry Strategic Plan: 2003- 2008. Prepared for the Investment Agriculture Foundation of BC, New Westminster, BC, 47 pp.

152 Livestock Industry Initiatives Cariboo-Chilcotin Beef Industry Cluster Myers, Norris, Penny LLP. 2005. The Cariboo-Chilcotin Regional District beef industry product cluster report. Prepared for the Economic Development Office, City of Williams Lake, Williams Lake, BC, 47 pp.

Beef Cattle Industry Strategy Ministry of Agriculture and Lands. 2006. Request for expressions of interest: Beef Cattle Industry Strategy. Industry Competitiveness Branch, BCMAL, Victoria, BC, 9 pp.

Horse Industry BC Ministry of Agriculture, Food and Fisheries. 1999. BC Horse Industry in 1990s. BC Ministry of Agriculture, Food and Fisheries, Victoria, BC, 55 pp.

BC Sheep and Wool Industry Development Plan Sheep Project Advisory Committee. 1990. BC Sheep and Wool Industry Development Plan. Prepared for Ministry of Agriculture, Fisheries and Food, Victoria, BC, 55 pp.

Grazing Enhancement Program Bailey, R. 1995. Grazing Enhancement Fund Cariboo-Chilcotin Region: Operations Guide. Grazing Enhancement Program, Interagency Management Committee, Province of BC, Victoria, BC, 55 pp.

Horticultural, Specialty Products and Other Initiatives Landscape and Nursery Industry Strategy BC Landscape and Nursery Association. 2003. Strategic Plan, 2004-2007. 26 pp.

Health Products and Functional Food Initiative Industry Alliance Steering Committee. 2002. Health Product and Functional Food Industry 5 Year Strategic Plan. Prepared for the Investment Agriculture Foundation of BC by the BC Herb Growers Association, Associated Ginseng Growers of BC, BC Sea Buckthorn Growers Association and the BC Functional Food and Nutraceutical Network; 26 pp.

153 BC Beekeeping Industry Strategy Don Cameron and Associates. 2004. BC Beekeeping Industry Strategic Plan. Strategic Planning Committee, British Columbia Honey Producers Association, 21 pp.

Biodiesel in BC Report Boyd, M., A. Murray-Hill and K Schaddelee. 2004. Biodiesel in British Columbia Feasibility Study Report. WISE Energy Co-op, Victoria, BC. 126 pp.

Food and Beverage Processing Meat Industry Enhancement Strategy BC Food Processors Association. 2004. BC Meat Industry Enhancement Strategy (Presentation) 14 pp. Published online at: www.bcfpa.ca/documents/mies_dec_04updated.pdf

Food Quality & Safety Initiative BC Food Quality and Safety Steering Committee. 2003. Food Quality and Safety Strategic Plan: 5 Year Plan, 2004/05 – 2008/09. Prepared for Investment Agriculture Foundation of BC, Victoria, BC, 58 pp.

Food & Beverage Processing Initiative BC Food & Beverage Processors Steering Committee. 2004. A Strategic Plan for the Food & Beverage Processing Industry. Prepared for the Investment Agriculture Foundation of BC, Victoria, BC, 36 pp.

Small Scale Food Processing Small Scale Food Processor Association. 2003. Small Scale Food Processing: Products and Services Request.

Marketing Agritourism and Direct Farm Marketing in the Cariboo and Chilcotin Coast Area Schultz, G. 2001. Agritourism and Direct Farm Marketing in the Cariboo and Chilcotin Coast Area. Prepared for the BC Ministry of Agriculture, Food and Fisheries, Williams Lake, BC, 33 pp.

BC Agritourism Initiative BC AgriTourism Alliance web site: www.agritourismbc.org/

154 Quesnel Farmers’ Market - Marketing and Communications Plan Gabert, J. 2006. Quesnel Farmers’ Market Marketing and Communications Plan. Prepared for Harvest, organizing body for the Quesnel Olde Time Farmers Market, Quesnel, BC, 9 pp.

2.4. Regional Agricultural Development Examples Vancouver Island and the Gulf Islands Investment Agriculture Foundation of BC (IAF). 2004. Islands Agri-food Initiative strategic plan, 2004-2008. Island Agri-food Initiative Advisory Committee, Investment Agriculture Foundation of BC, Victoria, BC, 29 pp. Parallel Opportunities for the Cariboo-Chilcotin: • Regional agriculture support organization; and, • Branding and local marketing support.

Lower Mainland of BC Artemis Agri-strategy Group. 2002. Economic strategy for agriculture in the lower mainland: Final report. Greater Vancouver and Fraser Valley Regional Districts, Burnaby, BC, 54 pp. Parallel Opportunities for the Cariboo-Chilcotin: • Support for niche markets and specialty product development through market- oriented research; and, • Need for regional coordination and planning to ensure long-term growth of the industry is not threatened by residential and industrial development.

Central Okanagan Integra Community Planning Services. 2005. Regional District of Central Okanagan agriculture plan. Regional District of Central Okanagan, Kelowna, BC, 55 pp. Parallel Opportunities for the Cariboo-Chilcotin: • Emphasis on local market opportunities and support for local marketing; and, • Enhanced regional agricultural extension and agri-business resources.

Saskatchewan Action Committee on Rural Economy (ACRE). 2001 a. Agricultural Subcommittee Report. Action Committee on Rural Economy, Province of Saskatchewan, Regina, SK, 35 pp. Action Committee on Rural Economy (ACRE). 2001 b. Agri-Value Subcommittee Report. Action Committee on Rural Economy, Province of Saskatchewan, Regina, SK, 26 pp.

155 Parallel Opportunities for the Cariboo-Chilcotin: • Examination of key infrastructure needs that could facilitate regional development; • Creation of an agribusiness investment attraction program; • Building leadership, management and entrepreneurial skills; and; • Supporting alliances and co-operative ventures to create critical mass.

156 Appendix 4 - Sector Trend Analysis - Information Cited

AAFC. 1998. The Canadian Food and Beverage Processing Sector - Adapting to a Global Market. Agriculture and Agri-food Canada, Online at: www.agr.gc.ca/misb/fb-ba/ BCMAFF. 2004. Fast Facts Agriculture and Food. BC Ministry of Agriculture, Food and Fisheries, Victoria, BC, 25 pp. COABC. 2002. BC Organic Sector Strategic Plan 2002/03 – 2004/05. Certified Organic Associations of BC, Vernon, BC, 41 pp. FAO. 2006. Agricultural Production Indices. FAOSTAT, Food and Agriculture Organization of the United Nations. Online at: www.fao.org/es/ess/index_en.asp last updated 24 April 2006. Myers, Norris, Penny LLP. 2005. The Cariboo-Chilcotin Regional District beef industry product cluster report. Prepared for the Economic Development Office, City of Williams Lake, Williams Lake, BC, 47 pp. Powell, G.W. 2006. Cariboo-Chilcotin Regional Agriculture Sector Profile. Prepared for the Cariboo Chilcotin Beetle Action Coalition, Williams Lake, BC, 28 pp. Powell, G.W. and J. Gabert. 2006. Inventory and Synopsis of Agriculture Development Studies and Initiatives for the Cariboo-Chilcotin. Prepared for the Cariboo Chilcotin Beetle Action Coalition, Williams Lake, BC, 49 pp. Ruiz, A. 2003. Overview of the Mexican Cattle and Beef Sector. Agri-food Trade Service, Agriculture and Agri-food Canada, Ottawa, ON. Schultz, G. 2001. Agritourism and Direct Farm Marketing in the Cariboo and Chilcotin Coast Area. Prepared for the BC Ministry of Agriculture, Food and Fisheries, Williams Lake, BC, 33 pp. Sereda, P. and R. Gagnon. 2003. Canada's Agriculture, Food and Beverage Industry Factsheet: Canada's Honey Industry. Market and Industry Services Branch, Agriculture and Agri-Food Canada, Ottawa, ON. USDA. 2000. Trends in U.S. Agriculture, USDA, National Agricultural Statistics Services. Online at: www.usda.gov/nass/pubs/trends/index.htm Weicker, F. 2006. Focus on the Future: Developing the Agri-Food Industry in British Columbia. Final Report. Ference Weicker and Company Ltd., prepared for the Investment Agriculture Foundation of British Columbia, Vancouver, BC, 181 pp. West, B. 2005. Natural Beef Market in the United States, December 2005. Agri-food Trade Service, Agriculture and Agri-food Canada, Ottawa, ON. World Bank. 2003. Global Economic Prospects 2004: Realizing the Development Promise of the Doha Agenda. World Bank Development Prospects Group, p 277.

157 Appendix 5 - Land Use Position Paper for the Agriculture Sector

References Cited

Agricultural Land Commission, ALR & Community Planning Guidelines, policy as of August 2006

Agricultural Institute of Canada, review of Discussion Paper: Big Farms, Small Farms, and Strategies for Sustainable Agriculture… November 8, 2005.4 pp

BC Legislature, Select Standing Committee on Agriculture and Fisheries, Second Report, July 2000

BC Legislature, submissions on agriculture lease policy to Select Standing Committee on Agriculture and Fisheries, 1999-2000

Cariboo Geographic Systems, Agriculture and Forestry Policy Review and Development Report, Cariboo Regional District, 2003, 66 pp

Fraser Basin Council, Invasive Plant Strategy of BC,circa 2006

Gerrish,Jim, Management-Intensive Grazing, Green park Press, Ridgeland, Mississippi, 2004

Government of Alberta, AFRD, Land Rental, FAQs,August 24, 2006

Government of Alberta,Economic,Productive & Financial Performance Of Alberta Cow/Calf Operations: Fescue Grassland, Production Year-2000, November 2003

Government of Alberta, Economic,Productive,&Financial Performance Cow/Calf, Southern Alberta, Production Year-2003, July, 2005

Government of BC, Crown Lands Branch, Ministry of Environment, Lands and Parks, Presentation to select Standing Committee on Agriculture and Fisheries review of BC’s Agri-Food Policy, Feb 1,2000

Government of BC, the New Relationship Progress Report, undated ,circa Summer 2006

Government of BC, MAL Agricultural Statistics, Water use in the Industry by Province, 1996; Farm Investment in Environmental Protection, by Farm Type,2001

Government of BC, MAFF, Selected census statistics for BC Farms-Cariboo, March 2003

158 Government of BC ,MAL,Selected Agricultural Statistics by Economic Region and Type of Farm-Cariboo, based on 2001 Census of Agriculture

Government of BC, Land and Water BC, Agricultural Policy-2004

Government of BC, Census of Agriculture 2001 and Historical Comparisons, BC Summary, May 2002, 7 pp.

Government of BC, MAFF,,Cow-Calf Farm Business Analysis,Summary Report 1989 to 1993

Government of BC, The Cariboo-Chilcotin Land-Use Plan: 90-Day Implementation Process Final Report, February 1995 (Includes the Cariboo-Chilcotin Land-Use Plan, October 1994

Government of BC, Horsefly Sustainable Resource Management Plan

Government of BC, Williams Lake Sustainable Resource Management Plan

Government of BC, Ministry of Agriculture and Lands, Land Use Operational policy – Extensive Agriculture, October 5, 2005

Government of BC, Ministry of Agriculture and Lands, Land Use Operational Policy- Intensive Agriculture, October 21, 2005

Government of Canada, Statistics Canada- Catalogue no. 21F0008, Farm Financial Survey, 2005

Kentucky State University, Extension Publication, Should I Buy More Land, on line August 2006

Lohr-A-Lee, Agricultural Socio-Economic Profile: Cariboo Region, March 31, 2003

Lohr-A-Lee, Cariboo Beef Cow-Calf Socio-Economic Profile, May 12, 2002

Maynard, Hug, and Nault, Jacques, Big Farms, Small Farms, September 2005

Meyers Norris Penny, The Cariboo-Chilcotin Regional District Beef Industry Product Cluster Report, July 21,2005,43 pp

Nation, Alan, Knowledge Rich Ranching ,Green Park Press, Richland Mississippi, 2000

Powell, George W., Proposed Focus for the Development of the Cariboo-Chilcotin Beetle Action Coalition’s Agriculture Sector Strategy, April 13,2006,16 pp.

159 Ranch Management Consultants, “If you don’t keep score, it’s just practice.” 2003

Ranch Management Consultants, “Capitalize or Concessionize”,newsletter, Profit Probe, September 2006

Ranch Management Consultants,”The Value For Grazing”, newsletter, Profit Probe, October 2006

US Department of Agriculture, “Grazing Land Economics:Understanding Internal Rate of Return and Net Present Value”, Grazing Land technology Institute, Fort Worth Texas, August 1996

Weicker,Ference, Focus on the Future : Developing the Agri-Food Industry in British Columbia ,Report from Phases One and Two, 2005

Wilson, Dr. John, MLA, Power Point, Doing the Best With What We Have,

PEOPLE INTERVIEWED

Adams, Janet, ILMB, Victoria Allen, Janet, Horticulture, Sheep, Quesnel BC Awmack,Ken, MAL, Williams Lake Bailey, Cheri Lynn, Birch Syrup, Beaver Valley Balogh, Al, MoFR, Williams Lake Barnett, Duncan, Consulting Agrologist, Rancher, Regional District Director Bawtree, Len, Rancher, Enderby Benisch, Dan, Bison, Big Lake Bolton, Barry, Organics, 108 Mile Borgstrom, Gordon MoFR, Kamloops Borsato, Rob, Farmer, Quesnel Brundrige,Rick, Planner, Cariboo Regional District Case, Richard, Consulting Ecologist, Beaver Valley Cline, Barrie, Remax Realty, ranch sales Cochrane, Bruce, Cattle and Sheep, Castle Rock Cornwall, Mabel, PMT, Williams Lake Coward, Laura, MAL, Victoria Dawson, Rick, ILMB, Williams lake DeBoer, Pat, MAL,Kelowna Dever, Terry, BCAL, Victoria Doherty, Paddy, Organics and Sheep Enemark, Gord, MAL,Victoria Flinton, Bob, rancher, forester, Williams Lake France, Bob,BC Cattlemen’s Association Forbes, Jim, MAL,Dawson Creek Frisk, Tony, CIBC, Kelowna

160 Fritenburg, Bev, ILMB,Williams Lake Frye, Colin, Agriculture Land Commission, Burnaby Gardner, Bruce, Appraiser, Williams Lake George Morris Centre, Guelph, Ontario Gordon, Winona, Xatsul First Nation Graham, Roger, Negotiator, BC Government, Ministry of Aboriginal Relations and Reconciliation Grilz, Perry, MoFR, Range Hall, Ray, Horticulture, Hydroponics, Williams Lake Hall, Richard, Forester, Canim Lake First nation Haywood-Farmer, David, Rancher, BC Cattlemen’s Association Hemingway, Nigel,Consultant, Cariboo Regional District Holmes, Les, Ken McPherson Appraisals, Kelowna Horne, Gus, Rancher, Cattle and Industrial Hemp Huber, Ken, Horse Rancher, 70 Mile House Huffman, Grant, Rancher Hume, Ron, Murray Hume Agencies, Williams Lake Kempthorn, Trevor, First Nations Agriculture Lending Association, Kamloops Kvist, Ken ,Water Management, Williams Lake Leppanen,Penti, BC Lands,Williams Lake Low,Don, MAL,Creston MacPheat, Curtis, BC Hydro, Prince George Mervyn, Doug, Rancher Monroe, Laura, MAL, Victoria Mumford, Rick, Chilcotin Area Director , Cariboo Regional District Nairn, Mark,Rancher, Riske Creek O’Keefe, Michael, Springfield Ranch,Williams Lake Ostergaard, Peter, MEPR, Victoria Parnall, Grant, MAL, Victoria Peterson,Terry,Vernon Powell, George, Agriculture Consultant, Quesnel, BC Raphael, Andrew, Myers, Norris and Penny, Calgary Ray, Wayne, Rancher, Nechako Valley Reedy, Andrew, MoFR, Victoria Savage, Jim, Quesnel Community and Economic Development Corporation, Quesnel Shaffer, Marvin, Energy Consultant, Whiterock Sills, Martin, MAL, Williams Lake Thuman, Pete, Birch Syrup, Horses, Mixed Farm Vanderburg, Ken, ILMB, Williams Lake Watt, Bill, Consulting Agrologist, Williams Lake Winger, Vern, Highlands Irrigation, Williams Lake Wilson, Dr. John, Rancher, Quesnel Woolridge, Mark, BC Assessment, Williams Lake Yawney, Mark, MAL, Prince George

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