With 10 billion people projected to be on planet Earth by 2050 how can Alberta's agricultural expertise be put to use >
On October 31, 2011, the global population reached seven billion. It’s predicted to grow by another two billion by 2050. At this rate, we’ll have to grow and raise more food in the next 50 years than we’ve produced cumulatively over the past 10,000 >
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Smart Food Shipping
Edmonton is remote, as big cities go, which presents a challenge for area food processors that have to get their highly perishable products to larger markets to the south. The problem spurred nine food processors that might otherwise consider themselves competitors to form the Food Processors Logistics Research Council and initiate the Freight Consolidation Project, whereby the members combine their individual shipments into larger loads that qualify for preferred carrier rates.
“Consolidation isn’t something new, but it doesn’t happen because most processors don’t want to ship products with their competitors. This is simply a smarter way of doing business that stresses collaboration and gives these small to medium-sized processors access to distant markets cost-effectively,” says Brian Dumsday, senior associate of QGI Consulting, which manages the project.
Under the program, processors such as Sunrise Bakery Ltd. and pizza-maker Crust Craft Inc. no longer pay “less than truckload” rates because they pool their small shipments into one larger load that is picked up by the carrier and delivered to customers in Calgary and Vancouver. The pilot project, which started last June, has cut carrier costs by an average of 36% for the participants. There are now three loads moving to Calgary and Vancouver each week, which is improving the market competitiveness and long-term expansion opportunities for the companies involved.
The pilot has been so successful the council is looking into establishing a common warehouse in Edmonton and hiring a market representative in the U.S. Northwest. And others want in too. “We have already started to get interest from Calgary food processors,” notes Dumsday. “It’s a simple process that can be repeated in virtually any community.”
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