A new report suggests the agriculture and food industries should adopt automotive-style, just-in-time cross-border shipping practices to improve the flow of food products across the border.
The report, An Economic Analysis of Agriculture and Food Cross Border Movements: Windsor-Detroit and Sarnia-Port Huron, was conducted by the George Morris Centre. It found that efficiencies in the cross-border movement of agri-food at both border crossings examined in the study have improved over the past decade.
The improvements were attributed to dramatic changes in exchange rates, as well as continual changes to regulatory oversight, border/customs issues, food safety and environmental regulations, the report found.
But William Anderson, CBI director and Ontario research chair in cross-border transportation policy, said continuing dialogue among the two national governments, various industry associations and the Beyond the Border and Regulatory Cooperation Council initiatives are essential to improving business practices that will reduce cross-border costs and delays for producers and food processors in the future.
"Naturally, the key challenge in the agri-food industry is perishability," Anderson said. "This new report indicates that, similar to other industries, food producers are increasingly using just-in-time production and processing practices to fulfill commitments to major retailers. Crossings at Detroit and Port Huron account for 75% of Ontario exports to the US and 64% of Ontario's imports from the US, and agri-food is an important part of that flow. Essex, Kent and Lambton Counties, including the rapidly growing greenhouse industry, are especially dependent on cross-border shipments. We have to continue to work cooperatively to find new and better ways to make that cross-border flow more efficient."
