industrial lands strategy task force agenda - february 14, 2019 · 2019. 3. 4. · in 2017, the...

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To: Industrial Lands Strategy Task Force

From: Gord Tycho, Senior Planner, Regional Planning Theresa Duynstee, Senior Planner, Regional Planning

Date: January 22, 2019 Meeting Date: February 14, 2019

Subject: Agri-Industrial Activities in Metro Vancouver

RECOMMENDATION That the MVRD Board: a) receive for information the report dated January 22, 2019, titled “Agri-industrial Activities in

Metro Vancouver”; andb) endorse the inclusion of the recommendations in the report dated January 22, 2019, titled “Agri-

industrial Activities in Metro Vancouver” in the draft Regional Industrial Lands Strategy.

PURPOSE To provide the Industrial Lands Strategy Task Force with the report on locating agri-industrial activities in Metro Vancouver outlining the factors influencing the location of various types of agri-industrial activities in the region, as well as staff recommendations.

BACKGROUND As part of developing the Regional Industrial Lands Strategy, a series of white papers, reports, and other deliverables are under development. In 2018, the Industrial Lands Strategy Task Force expressed interest in exploring the location of agri-industrial uses in the region. A white paper and associated staff recommendations are now ready for Task Force consideration.

INDUSTRIAL AND AGRICULTURAL LANDS Both industrial and agricultural lands face significant pressure for conversion to other uses, and are increasingly used for activities not clearly aligned with the intended use. The two types of land uses are often posited against one another – with agricultural interests advocating that agri-industrial uses be located on industrial lands, and industrial interests advocating that they occur on agricultural lands.

Local governments want to attract agri-industrial activities that support farm viability through improved access to local and global markets. However, challenges emerge when the agri-industrial business approved in the ALR either grows beyond what was originally permitted / considered consistent with the legislative framework or leaves the site. In these cases, there is greater probability that the remaining building infrastructure be utilized by a non-agricultural business, that the land value increases, preventing farmers from buying the land, or that the parcel becomes ripe for speculation and ALR exclusion.

5.3

Industrial Lands Strategy Task Force

Agri-Industrial Activities in Metro Vancouver Industrial Lands Task Force Regular Meeting Date: February 14, 2019

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With an aim to better understanding what is happening on the ground in the region, Metro Vancouver commissioned EcoPlan to identify the benefits, detriments, and associated implications for locating different types of agri-industrial uses on either land designated or zoned for industrial uses or in the Agricultural Land Reserve (ALR). SUMMARY OF FINDINGS EcoPlan first developed a provisional definition for ‘agri-industrial activities’ to guide the study. It is: “All commercial or industrial activities in primary production from local agriculture, as well as the upstream and downstream activities related to the agri-food and seafood sector, excluding retail and other consumption activities”. Typology of Activities Next, a typology of activities was developed based on common food system categories, and agricultural and industrial sector studies. The types of business categorized in this study are:

1. Farm Support Services; 2. Farm Input industries; 3. Primary Agricultural Production; 4. 1st Order Processing; 5. 2nd Order Processing; 6. Wholesale; 7. Warehousing & Distribution; and 8. Organic Waste.

The primary difference between 1st and 2nd Order Processing is the latter requires infrastructure and servicing (such as water and sewer), which is more readily available in urban areas. Agri-industrial categories numbered 1 to 4 are mostly related to local agriculture whereas the categories numbered 5 to 8 are generally related to the larger national/global food system. Farm Support Services typically occupies commercial or industrial land; Farm Input Industries, Primary Agriculture Production, and 1st Order Processing typically occupy agricultural land; 2nd Order Processing, Wholesale, and Warehousing & Distribution tend to occupy industrial land (if or when the need for infrastructure and servicing requirements can only be met by infrastructure generally available in more urban areas); and, Organic Waste tends to occupy agricultural or industrial land. See Figure 1 for a summary of these agri-industrial categories and their locations. Locational Factors The white paper found that three main factors currently determine where each category of agri-industry activity tends to locate in the region.

ALR regulations limit industrial/commercial uses from locating on agricultural land. These regulations permit storing, packing, preparing, and processing activities on agricultural land so long as at least 50% of the product involved is grown/raised on site. Activities that wish to handle more than 50% of off-site product cannot locate in the ALR without a variance.



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Consequently, agri-industrial activities occupying agricultural land tend to be directly linked to local farming.

Infrastructure, servicing and transportation requirements. Agri-industrial activities (such as 2nd Order Processing, Wholesale, Warehousing and Distribution) that have significant transportation or servicing requirements (such as water and sewer) can only access this infrastructure in more urban areas. These same activities are typically linked with the national /global food system. Note that access to these services is influenced by Metro Vancouver’s Urban Containment Boundary and associated regional policy limiting the extension of water and sewer services.

The economic context. Agricultural land is relatively less expensive to purchase and has a lower tax rate than industrial land. All other locational factors being equal, businesses will likely want to occupy agricultural land rather than industrial land.

Figure 1: Agri-Industrial Category Locations

Conclusions The white paper concludes that agri-industrial businesses are not a significant threat to either the industrial or the agricultural land base. Of the categories explored, some are firmly separated onto agricultural or non-agricultural land by the requirements of provincial legislation. While other categories of activities can be found on both land bases, it is primarily at a small scale (i.e. small sub-sectors within an agri-industry category that take up a relatively minimal amount of land). For four of the agri-industrial activity categories (Primary Agricultural Production, Farm Support Services, Wholesale, and Warehousing & Distribution), legislation governing the ALR leaves little ambiguity about where these activities are best situated. Obviously primary agricultural production is on agricultural land, and the other three on industrial land.



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However, for the other categories in the typology, the white paper did identify areas where policy clarification or further study may be warranted; that being for Farm Input Industries (e.g. farm-based composting / feed production), Organic Waste, and 1st and 2nd Order Processing. The white paper identifies that the 50/50 rule provides clear guidance as to where activities can locate, but that in the case where a farm based composting operation grows and incorporates waste from municipal sources or for large-scale organic waste processing facilities, it is challenging to find a suitable location in the region. In terms of 1st and 2nd Order Processing, again, the legislative framework provides good guidance about what is allowed on agricultural land. However, the ‘industrial’ character of the building infrastructure associated with some production and processing (i.e. large enclosed buildings with a concrete base) can alienate farming from future uses of agricultural land. It posits agri-industrial zoning as an area that requires further exploration, but acknowledges that past experiences with this tool have led more to general industrial use rather than supporting agricultural viability. STAFF ANALYSIS AND RECOMMENDATIONS Stemming from the white paper’s conclusions, staff have developed a set of draft recommendations. Staff presented and received feedback from the Regional Planners’ Advisory Committee at the January 18, 2019 meeting. Although the RPAC meeting was a municipal member meeting, staff invited representatives from the Agricultural Land Commission, Port of Vancouver, and FVRD given that a number of reports on the agenda were agricultural / industrial related. The recommendations are intended to address the conclusions in the white paper. RPAC received the consultant white paper and staff recommendations on table, and helped reshape the recommendations to be more focused on the challenges laid out in the white paper. 1. Issue: Organic waste management facilities in the ALR are expanding beyond permitted uses to

an industrial scale while existing regulations have limited the ability of agricultural producers to

pursue innovative opportunities for waste management.

Recommendation: That the Ministry of Agriculture, in consultation with the Agricultural Land

Commission, amend legislation to define under what conditions, if any, large scale organic waste

processing facilities are permitted in the ALR.

2. Issue: While building infrastructure is permitted in the ALR under the 50:50 rule, the legislation

does not provide clarity about potentially detrimental changes in the size (footprint) or scope of

the permitted use. Sometimes the use expands beyond what was originally permitted /

considered in relation to the 50/50 rule, and then has little connection to local food production.

Also, if the business leaves the site, there is greater probability that the building infrastructure be

utilized by a non-agricultural business.



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Recommendation: That the Ministry of Agriculture produce guidelines or amend legislation to:

a) define the metrics used to measure the 50/50 rule (ie. volume, weight) to facilitate consistent

application; and

b) limit the value-added infrastructure of an approved use to a portion of the agricultural parcel

and define a cap on building infrastructure footprint.

ALTERNATIVES 1. That the MVRD Board:

a) receive for information the report dated January 22, 2019, titled “White Paper: Agri-industrial Activities in Metro Vancouver”; and

b) endorse the inclusion of the recommendations in the report dated January 22, 2019, titled “White Paper: Agri-industrial Activities in Metro Vancouver” in the draft Regional Industrial Lands Strategy.

2. That the MVRD Board receive for information the report dated January 22, 2019, titled “White Paper: Agri-industrial Activities in Metro Vancouver” and provide alternative direction to staff.

FINANCIAL IMPLICATIONS There are no financial implications associated with this report. SUMMARY / CONCLUSION This report conveys the findings of a white paper on the types and location of agri-industrial activities in Metro Vancouver. The main objective of the white paper was to improve understanding of the benefits, detriments, and associated implications for locating different types of agri-industrial uses on either land designated or zoned for industrial uses or in the Agricultural Land Reserve (ALR). The white paper concludes that agri-industrial businesses do not comprise a significant threat to either the industrial or the agricultural land base, but that there are a number of areas that warrant further consideration. As a result of the white paper’s findings, staff have identified recommendations and is seeking endorsement from the Industrial Lands Strategy Task Force to include the recommendations in the draft Regional Industrial Lands Strategy. Attachment: White Paper - Agri-industrial Activities in Metro Vancouver, dated December 2018. (Orbit Doc #28299748)

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White Paper Agri-Industrial Activities in Metro Vancouver Prepared for: Metro Vancouver – Industrial Lands Strategy Task Force Prepared by: EcoPlan International December 2018

ATTACHMENT


Contents Executive Summary ........................................................................................................................... i

Introduction ............................................................................................................................. i

Agri-Industry Definition and Typology ..................................................................................... i

General Profile and Trends in the Agrifood and Seafood Sector .......................................... iii

Location of Agri-Industrial Activities...................................................................................... iii

Conclusions ............................................................................................................................ iv

1. Introduction ........................................................................................................................... 1

1.1 Purpose & Scope ............................................................................................................. 1

2. The Agri-Industrial Sector ...................................................................................................... 2

2.1 Agri-Industrial – Provisional Definition to Guide Study ................................................... 2

2.2 Agri Industrial Typology ................................................................................................... 3

3. General Profile and Trends in the Agrifood and Seafood Sector .......................................... 6

4. Agri-industrial Categories Detailed Description .................................................................... 8

1. Farm Support Services ....................................................................................................... 8

2. Farm Input Industries ........................................................................................................ 9

3. Primary Agricultural Production ...................................................................................... 10

4. 1st Order Processing ......................................................................................................... 11

5. 2nd Order Processing ........................................................................................................ 13

6. Wholesale ........................................................................................................................ 14

7. Warehousing & Distribution ............................................................................................ 15

8. Organic Waste ................................................................................................................. 16

5. Summary of Factors Driving the Location of Agri-Industry ................................................. 17

5.1 Regulatory Context ........................................................................................................ 18

5.2 Infrastructure and Servicing .......................................................................................... 19

5.3 Economic Context .......................................................................................................... 20

5.4 Location Tendencies ...................................................................................................... 20

6. Conclusion ........................................................................................................................... 22

6.1 No Additional Study ....................................................................................................... 23

6.2 Categories Warranting Further Investigation ................................................................ 24

6.3 Relative Impact on The Agricultural/Industrial Land Base ............................................ 25


White Paper: Agri-Industrial Activities in Metro Vancouver

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Executive Summary Introduction Metro Vancouver’s Industrial Lands Strategy Task Force is currently guiding the development of a Regional Industrial Lands Strategy that will recommend goals and actions with an aim to ensuring there is sufficient industrial land to meet the needs of a growing and evolving regional economy to the year 2050. This White Paper is one among a series of such papers that will inform the development of the Regional Industrial Lands Strategy. The purpose of this paper is to better understand the range of uses that may appear on both agricultural and industrial land, and to what extent they comprise a threat to the integrity or supply of each land base. It was completed to address concerns about a shortage of industrial land on one hand, and threats to the agricultural land base on the other. Industrial land in Metro Vancouver is in short supply (with a current vacancy rate of 1.5%)1and under significant pressure to convert to residential, retail, and commercial uses.2 Agricultural land is under a related pressure as high real estate prices in Metro Vancouver are driving up the cost of farmland, undermining the feasibility of farming and resulting in the use farmland for other purposes (particularly residential)3. There are varying perspectives about the types of activities that have a connection with both the agricultural and industrial sectors and whether they should be allowed in the Agricultural Land Reserve. From the perspective of preserving productive farmland, any activity that requires building infrastructure of an industrial character (e.g., large scale, enclosed structures with concrete floors) provides a window for permanently converting farmland to a non-agricultural use. At the same time, non-industrial uses introduced on industrial land put further pressure on an already scarce supply, and can inhibit the viability of industrial businesses that are essential to a diverse regional economy. Between these two concerns comes the consideration of where to locate activities that appear be related to both agriculture and industry. This study used interviews and supplementary research to develop a definition and typology of agri-industrial activities; provides analysis of the size, trends, and growth expectations of each category of activities; and describes the benefits, detriments, and associated implications for locating different types of agri-industrial uses on either land designated or zoned for industrial uses or in the Agricultural Land Reserve (ALR).

Agri-Industry Definition and Typology ‘Agri-industry’ is not a term commonly used to group subsectors of the economy. More commonly, studies and policy focus more narrowly on agricultural, or more broadly on the agrifood and seafood sectors in Canada and B.C. As such, a provisional definition of ‘agri-industrial’ sectors and uses was developed to guide the study toward understanding the activities that may compete for industrial or agricultural land.

1 Colliers – Metro Vancouver Industrial Market, Q3 2018 2 Metro Vancouver 2015 Industrial Lands Inventory Summary Report. 3 Vancity Credit Union, “Home on the Range: Cost pressures and the price of farmland in Metro Vancouver”, 2016.



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The following definition was used: All commercial or industrial activities included in primary production from local agriculture, as well as the upstream and downstream activities related to the agrifood and seafood sector excluding retail and other consumption activities.

This definition helped to orient research and stakeholder interviews. A typology was developed to help organize the agri-industrial sector into categories of generally shared characteristics (e.g., types of use, location requirements, servicing needs) that could be then be further analysed. A typology was developed drawing on common food system categories, though with additional refinements and distinctions based on consultation and research findings. The typology of agri-industrial consists of the following eight categories:

1. Farm Support Services Ancillary services that support primary agricultural operation.

2. Farm Input Industries Industries that provide material inputs for primary agricultural production.

3. Primary Agricultural Production Any activity directly involving the growing of crops or raising of livestock for sale.

4. 1st Order Processing Activities that add value to primary agricultural products or make them ready for access to the market that usually includes washing, sorting and repackaging with minimal requirement for transportation and infrastructure services, such as basic electric power, natural gas, potable water, and sanitary sewer.

5. 2nd Order Processing Activities that add value to primary agricultural products or make them ready for access to the market and require significant access to transportation and infrastructure services (i.e., stable high-wattage electrical supply, sewerage and large volume potable water connections).

6. Wholesale The sale of large quantities of food products (local or imported) that are then processed or repackaged and sold by retail outlets, or used by restaurants and other food services.

7. Warehousing & Distribution Food distribution activities related to the operation of the regional, national and global food supply chain.

8. Organic Waste The large-scale processing of organic waste from livestock farms, food processing or municipal waste streams.



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General Profile and Trends in the Agrifood and Seafood Sector The Agrifood and Seafood industry is the most closely related sector to our definition of agri-industrial where data and trends are tracked by provincial and federal governments. This sector includes primary production in agriculture, aquaculture and commercial fisheries, and processing food and beverages.4 In 2017, the agrifood and seafood sector produced $14.2 billion in sales, and $3.9 billion in international exports. The sector contributed $4.5 billion to the B.C. GDP, or approximately 2.0% of the provincial total. The total labour force for the sector was 71,170 in 2016, or approximately 2.9% of the provincial total5. In Metro Vancouver, labour force in the sector was 29,145, or 2.2% of the regional total.6 Over the last 20 years, employment in the agrifood and seafood sector in B.C. has fluctuated around this level going from a low of 53,900 in 1999 to a high of just over 71,000 jobs7 in 2005. From 1997 to 2017, the average growth in employment in this sector was -4.1%, or -0.2% annually. At the same time B.C. employment across all industries has grown by over 600,000 (32.6%, or 1.6% annually). 8 Food and beverage processing, one of the largest sub-categories of the agrifood and seafood sector, account for 70% ($9.8 billion) of the value in the BC agrifood and seafood sector9 and has a provincial labour force of approximately 29,940 (1.2% of the total labour force). In Metro Vancouver, the labour force for food and beverage processing was 18,055 (1.3% of the total regional labour force).

Location of Agri-Industrial Activities There are three main factors that determine where each category of agri-industrial activity tends to locate: the regulatory context (particularly the Agricultural Land Reserve, Metro Vancouver’s Urban Containment Boundary and zoning), infrastructure and servicing, and the economic context. In general, the factors result in the following:

ALR regulation limits industrial/commercial uses locating on agricultural land: ALR regulations permit storing, packing, preparing and processing activities on agricultural land so long as at least 50% of the product involved in these activities is grown/raised on

4 B.C. Ministry of Agriculture, Sector Snapshot 2017: B.C. Agrifood and Seafood, July 2018. 5 Statistics Canada - 2016 Census. Catalogue Number 98-400-X2016290. This statistic varies from the equivalent reported in the B.C. Ministry of Agriculture, Sector Snapshot 2017: B.C. Agrifood and Seafood, July 2018. The difference comes from minor differences in sampling between the Census and the Labour Force Survey. For statistics from both sources, the following NAICS categories are included: 1100 – 1129, 1151, 1152 (Agriculture); 1141 Fishing; 311 Food manufacturing; and 312 Beverage and Tobacco Product Manufacturing. 6 Statistics Canada - 2016 Census. Catalogue Number 98-400-X2016290. 7 ‘Jobs’, or employed labour force is lower than the total labour force, cited above. 8 BC Stats, B.C. Employment by Detailed NAICS Industry, www2.gov.bc.ca/gov/content/data/statistics/business-industry-trade/number-of-businesses-and-employment-by-industry, accessed Dec. 10, 2018. 9 B.C. Ministry of Agriculture, Sector Snapshot 2017: B.C. Agrifood and Seafood, July 2018



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the farm. Similarly, the production of composting or feed for livestock, requires at least 50% of the product be used on the farm where it is produced. This policy, often referred to as the “50/50 rule”, plays a critical role in determining what agri-industrial activities are permitted to locate on ALR land. Any variance to this rule requires approval from the Agricultural Land Commission (ALC).

Infrastructure, servicing, and transportation requirements reinforce ALR regulations: Agri-industrial activities that have significant transportation or servicing requirements (such as water and sewer) can only access this infrastructure in more urban areas. These requirements are more commonly associated with agri-industry activities that have less of a relationship with local agriculture (i.e., 2nd Order Processing, Wholesale, and Warehousing & Distribution). As a result, the limited availability of infrastructure tends to prevent more industrialized processes from locating on agricultural land. The limits of where more significant infrastructure is located is influenced by Metro Vancouver’s Urban Containment Boundary and regional policy limiting the extension of regional sewerage and water services.

High industrial land prices incentivize operations to locate on ALR land where possible: Agri-industrial activities that qualify as a farm use or successfully apply to the ALC for an exception (e.g., a non-farm use permit) will usually locate on agricultural land instead of industrial land because of the relatively lower land prices and tax rates. So anywhere that the other factors do not constrain the choice, agricultural land is the preferred location for an agri-industrial business.

Locational tendencies generally align with an agri-industrial activity’s place in the larger food system: Since the ALR requires farm uses to be associated with local agricultural production (through the 50/50 rule), activities located on farm-land are directly linked to the local food system (although not exclusively); activities that are primarily associated with the national or global food system tend to locate on industrial land.

Conclusions In Metro Vancouver, there are concerns over the supply and integrity of industrial and agricultural land bases, which are under pressure for conversion from a variety of sources, such as residential development. This competition for land can result in rezoning of these land bases and rising land prices that affect the viability of associated businesses. There are direct links between the status of the two land bases as some proponents identify the conversion of agricultural land to be a possible solution to the region’s industrial land shortage.10 An overall conclusion of this study is that agri-industrial businesses are not a significant component of the threat to either land base. Of the typologies explored in this study, several of them are firmly separated into agricultural or non-agricultural land by provincial legislation. Where there is some overlap or policy ambiguity, it is usually of a very small scale (i.e., small subsectors within an agri-industrial category that take up minimal amounts of land).

10 Mithram, Peter, Supply squeeze driving Metro’s hot industrial land market, Business in Vancouver, August 1st 2018.



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For four of the study’s categories, ALR regulation leaves little ambiguity about the most suitable location: farm support services, primary agricultural production, wholesale, and warehousing & distribution. Generally, these categories fall appropriately within either agricultural or industrial land, and are required to do so by provincial legislation. However, additional investigation pertaining to the potential overlap in the use of agricultural and industrial land may be warranted for the following categories in the typology: Farm Input Industries and Organic Waste For farm-based composting operations that have grown beyond the ALR 50/50 rule and for a large-scale organic waste processing facility, there is a struggle to find a suitable location in a highly urbanized region such as Metro Vancouver. The nature of the operations results in these uses locating on both agricultural and heavy industrial land as they are generally incompatible with most other uses primarily due to odours. They are, however, generally not permitted on ALR, though some have received special permission. Rendering plants in particular have few location options as they need significant infrastructure and are best located near processors or transportation lines, but that raises the likelihood of conflict with neighbouring uses. 1st Order Processing and 2nd Order Processing Processing activities are the most commonly identified activities that typify the blend of agriculture and industry, and where there are more diverse viewpoints. They are permitted on ALR land so long as they adhere to the 50/50 rule, and can receive variances when they do not. They are seen as an important way to improve the feasibility of local agriculture through the introduction of value-add opportunities to farmers, and the efficiency of locating near to primary production. On the other hand, given the more industrial character of the building infrastructure associated with 1st and 2nd Order Processing activities (e.g., large enclosed buildings with concrete bases), they represent one of the more direct threats to the integrity of agricultural land as they tend to be converted to industrial activities with no relationship to local agriculture, when the agri-industrial business vacates the property.



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1. Introduction

1.1 Purpose & Scope Metro Vancouver’s Industrial Lands Strategy Task Force is currently guiding development of a Regional Industrial Lands Strategy that will outline goals and actions to ensure there is sufficient industrial land to meet the needs of the regional economy to the year 2050. This White Paper is one among a series of such papers that will inform recommendations in the Regional Industrial Lands Strategy. The purpose of this paper is to better understand the range of uses that may appear on both agricultural and industrial land, and to what extent they comprise a threat to the integrity or supply of each land base. It was completed to address concerns about a shortage of industrial land on one hand, and threats to the agricultural land base on the other. Industrial land in Metro Vancouver is in short supply (with a current vacancy rate of 1.5%)11and under significant pressure to convert to residential, retail, and commercial uses.12 Agricultural land is under a related pressure as high real estate prices in Metro Vancouver are driving up the cost of farm land, undermining the feasibility of farming and resulting in requests to convert farmland to other uses (particularly residential)13. In this context, people have raised concerns about the types of activities and uses that appear to have a connection with both the agricultural and industrial sectors and how they may comprise an important part of the threats to both land bases. From the perspective of preserving productive farmland, any activity that requires building infrastructure of an industrial character (e.g., large scale, enclosed structures with concrete floors) provides a window for permanently converting farmland to a non-agricultural use. At the same time, non-industrial uses introduced on industrial land put further pressure on an already scarce supply, and can inhibit the viability of industrial businesses that are essential to a diverse regional economy. Between these two concerns comes the consideration of where to locate activities that appear be related to both agriculture and industry. This study has developed a definition and typology of agri-industrial activities; provides analysis of the size, trends, and growth expectations of each category; and describes the benefits, detriments, and associated implications for locating different agri-industrial activities on either land designated or zoned for industrial uses or in the Agricultural Land Reserve (ALR). Research for the paper is based on a review of relevant studies and economic statistics, and interviews with 20 representatives from the local agricultural and food processing industry, municipal planning departments in Metro Vancouver and Abbotsford, academia, the Agricultural Land Commission, the B.C. Ministry of Agriculture, and industrial real estate. Input on preliminary findings was also solicited during a presentation to the Metro Vancouver Agricultural Advisory Committee.

11 Colliers – Metro Vancouver Industrial Market, Q3 2018 12 Metro Vancouver 2015 Industrial Lands Inventory Summary Report. 13 Vancity Credit Union, “Home on the Range: Cost pressures and the price of farmland in Metro Vancouver”, 2016.



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2. The Agri-Industrial Sector

A key part of project work was to develop an understanding of what is meant by agri-industrial in the context of this study. This section describes the development of a working definition and a typology of agri-industrial activities.

2.1 Agri-Industrial – Provisional Definition to Guide Study ‘Agri-industrial’ is not a term commonly used to group subsectors of the economy. More commonly, studies and policy focus more narrowly on agricultural, or more broadly on the agrifood and seafood sectors in Canada and B.C. As such, a provisional definition of ‘agri-industrial’ was needed to guide the study based on the purpose of understanding overlapping activities that may compete for industrial or agricultural land. One of the few studies that has focused on agri-industry is a series of reports conducted for the City of Abbotsford which examined the challenges, options and viability for supporting agri-industrial land along the Fraser Highway Corridor. In the study Rural Agri-Industrial Study: Resolution of Uses along the Fraser Highway Corridor the following definition was used:

Commercial or industrial activities and enterprises that provide inputs and services to primary agriculture production or add value to primary agriculture production14

The Abbotsford report provides further distinctions within this definition, separating activities into the following categories: primary processing, the sorting, washing, grading, and packing of raw agricultural products; secondary processing, the transformation of raw products through manufacturing into non-perishable products; and the suppliers of inputs and services to primary agriculture. During the consultation for this study, a similar working definition was used to frame discussions. Most often, stakeholders identified any value-add processing (e.g., washing, sorting freezing, juicing) as an agri-industrial activity. Many also identified the upstream and downstream supports of agriculture, such as mechanics for farming equipment, or the warehousing and trucking that connects farms to markets as an agri-industrial activity. However, others took an even broader perspective, noting that agriculture itself is an industry. Some primary agricultural production (i.e., growing crops in greenhouses) involves processes and capital investments that resemble industrial uses (such as warehousing and manufacturing facilities). Further, others noted and that all these agri-industrial activities take place as part of a larger food system. This includes the global movement of food products (both raw and processed) in and out of our region that are partially or totally independent of Metro Vancouver’s local agricultural sector.

14 Zbeetnoff Agro-Environmental Consulting, Rural Agri-Industrial Study: Resolution of Uses along the Fraser Highway Corridor, 2012.



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As such, a more expansive provisional definition was used to guide this study’s development. It is the following:

All commercial or industrial activities included in primary production from local agriculture, as well as the upstream and downstream activities related to the agrifood and seafood sector excluding retail and other consumption activities.

2.2 Agri Industrial Typology The focus of this study – concerning the overlap between agricultural and industrial land use – is different from the work in Abbotsford which focused more on finding means to support and expand upon the local agricultural sector. As such, a typology was developed with a more comprehensive scope. In addition to the tiers of processing and agricultural supports identified in the study for Abbotsford, this study also considers other food system categories that can reasonably be associated with industrial and/or agricultural land. During consultation, it was determined that common food system categories provided a good basis for developing a typology since activities within the food system categories generally have shared characteristics relevant to this study (location requirements and challenges, servicing needs). They also align well with commonly used categories from studies of the agricultural sector (e.g., inputs and support services, production, and processing) and industrial activities (e.g., warehousing, distribution) making them more comparable to other studies. This not only makes the typologies more intelligible to diverse audiences, but also allows for connecting studies, data sources and stakeholder groups to categories within the typology. The diagram of the food system used in Metro Vancouver’s Regional Food System Strategy (Figure 1) is typical of many such diagrams. The figure illustrates the supply chain connecting the products of farmers, ranchers, and fishermen to the final consumers. Importantly, the diagram indicates the interrelationship of a local food system with a larger national and global system. For example, raw food products are coming from local primary agriculture (here called “farming + fishing”) as well as being imported. Conversely, many of our local food products (raw or processed) are exported. The diagram also illustrates the waste produced at every step through the supply chain. An activity considered in this study that is not covered in this diagram is the trade-enabling component of agricultural imports and exports travelling through the region and not linked to the local food system. These activities are primarily associated with the trade-enabling functions provided by the Port, and by the rail or trucking activities crossing the border, which take up space on industrial land in Metro Vancouver and utilize capital-intensive storage/shiploader infrastructure. Finally, the typology excludes the categories from the food system that were not seen as relevant to the exploration of the overlap of agricultural and industrial activities (e.g., consumption supporting uses such as retail or households). The diagram has been adapted here (red squares) to indicate which aspects of the food system are included (and elaborated upon) in this study.



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Figure 1: Diagram of a Regional Food System

Source: Metro Vancouver, Regional Food System Strategy (2011)

The main variation to commonly used categories is within food processing. Where other studies separate processing based on the degree of modification to raw food products into primary (non-transformational sorting, washing and freezing) and secondary (transformational processes such as juicing or slaughter), this study uses the terms 1st Order and 2nd Order Processing based on the criteria of infrastructure and servicing requirements. While similar, the distinction is important, as infrastructure and servicing has more impact on the location of activities than does the degree of processing.

The red squares

indicate the

parts of the food

system that the

typology for this

study has

focused upon



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The typology of agri-industrial consists of the following categories:

1. Farm Support Services Ancillary services that support primary agricultural operation. Examples include crop spraying services, fertilizer application, farm labour contractors, dairy testing, veterinary and livestock breeding services.

2. Farm Input Industries Industries that provide material inputs for primary agricultural production. Examples include production of livestock feed, compost, or fertilizer.

3. Primary Agricultural Production Any activity directly involving the growing or raising of raw agricultural products. Examples include open-air field crops, livestock pens, greenhouses (with and without direct use of the soil), and more industrialized forms with permanently enclosed structures with non-translucent walls.

4. 1st Order Processing Activities that add value to primary agricultural products or make them ready for access to the market but require minimal access to infrastructural services, such as basic electric power, sewer services and potable water. Examples include sorting, cleaning, packaging and freezing of fruits and vegetables.

5. 2nd Order Processing Activities that add value to primary agricultural products or make them ready for access to the market and require significant access to infrastructure. Examples include larger-scale cleaning, or more intensive processing (i.e., transformation of the primary product) such as dairy-product manufacturing, baking, or abattoirs.

6. Wholesale The sale of large quantities of food products (local or imported) that are then processed or repackaged and sold by others. Examples include wholesale of local agricultural products, local seafood, or imported food products.

7. Warehousing & Distribution Activities related to the operation of the regional food supply chain and which connect the local agri-industry to larger markets. Examples include warehouses, cold-storage facilities, logistics centres, and major import/export infrastructure specifically related to food and agricultural products (e.g., granaries).

8. Organic Waste The large-scale processing of organic waste from livestock farms, food processing or municipal waste streams. Examples include large scale composting facilities or rendering plants.



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3. General Profile and Trends in the Agrifood and Seafood Sector The Agrifood and Seafood industry is the most closely related sector to our definition of agri-industrial where data and trends are tracked by provincial and federal governments. This sector includes primary production in agriculture, aquaculture and commercial fisheries, and processing food and beverages.15 This section gives an overview of existing data and trends for the agrifood and seafood sector as well as one of its largest sub-sectors, food and beverage manufacturing. Agrifood and Seafood Statistics are regularly tracked at the provincial level for the agrifood and seafood sector, which combines data on primary production in agriculture, aquaculture and commercial fisheries, and processing of food and beverages.16 In 2017, the agrifood and seafood sector produced $14.2 billion in sales, and $3.9 billion in international exports. The sector contributed $4.5 billion to the B.C. GDP, or approximately 2.0% of the provincial total. The total labour force for the sector was 71,170 in 2016, or approximately 2.9% of the provincial total17. In Metro Vancouver, labour force in the sector was 29,145, or 2.2% of the regional total.18 Over the last 20 years, employment in the agrifood and seafood sector in B.C. has fluctuated around this level going from a low of 53,900 in 1999 to a high of just over 71,000 jobs19 in 2005. From 1997 to 2017, the average growth in employment in this sector was -4.1%, or -0.2% annually. At the same time B.C. employment across all industries has grown by over 600,000 (32.6%, or 1.6% annually). 20 Food and Beverage Manufacturing Food and beverage processing, one of the largest sub-categories of the agrifood and seafood sector, account for 70% ($9.8 billion) of the value in the BC agrifood and seafood sector21 and has a provincial labour force of approximately 29,940 (1.2% of the total labour force). In Metro Vancouver, the labour force for food and beverage processing was 18,055 (1.3% of the total regional labour force). Comparing the share of provincial employment that takes place in the region, it appears that Metro Vancouver is home to more food processing than primary food production (60% of the provincial total versus 41% respectively).

15 B.C. Ministry of Agriculture, Sector Snapshot 2017: B.C. Agrifood and Seafood, July 2018. 16 B.C. Ministry of Agriculture, Sector Snapshot 2017: B.C. Agrifood and Seafood, July 2018. 17 Statistics Canada - 2016 Census. Catalogue Number 98-400-X2016290. This statistic varies from the equivalent reported in the B.C. Ministry of Agriculture, Sector Snapshot 2017: B.C. Agrifood and Seafood, July 2018. The difference comes from minor differences in sampling between the Census and the Labour Force Survey. For statistics from both sources, the following NAICS categories are included: 1100 – 1129, 1151, 1152 (Agriculture); 1141 Fishing; 311 Food manufacturing; and 312 Beverage and Tobacco Product Manufacturing. 18 Statistics Canada - 2016 Census. Catalogue Number 98-400-X2016290. 19 ‘Jobs’, or employed labour force is lower than the total labour force, cited above. 20 BC Stats, B.C. Employment by Detailed NAICS Industry, www2.gov.bc.ca/gov/content/data/statistics/business-industry-trade/number-of-businesses-and-employment-by-industry, accessed Dec. 10, 2018. 21 B.C. Ministry of Agriculture, Sector Snapshot 2017: B.C. Agrifood and Seafood, July 2018



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Employment growth in food & beverage manufacturing has been more robust than the larger agrifood and seafood, with higher growth rates from 2001 to 2016 provincially (0.2% versus 0.9%) and within the region (0.7% versus 0.9%).

Metro Vancouver BC

2016 Total Labour Force

2001 to 2016 average annual growth rate (%)

2001 to 2016 average annual growth rate (%)

Agrifood & seafood 2840 0.7% 0.2%

Food & beverage manufacturing 2150 0.9% 0.9%

Total Labour Force (all sectors) 282510 1.8% 1.3%

Growth prospects of Agrifood and food manufacturing The B.C. agrifood and food manufacturing sector is driven by domestic consumption and exports, both of which may be expected to grow substantially in the coming years. Domestic consumption is driven by the population and consumption behaviours. There is an increasing consumer demand in eating locally grown and prepared food22. In a 2014 survey of public attitudes toward food and agriculture in British Columbia, survey respondents indicated that their top concern around food and agriculture was “contaminated food products from countries like China”.23 Behaviours and attitudes like these, combined with substantial expected population growth, will likely drive continued growth of the domestic market for local products. At the same time, exports from B.C. are also expected to grow. With food production in large Asian markets like China and Japan expected to drop, and with a more health and food safety

22 Vancouver Economic Development Commission, The Economy of Local Food In Vancouver, August 2009. 23 McAllister Opinion Research, BC Public Attitudes Toward Agriculture and Food, 2014.

41%

Metro Vancouver share of labour force The rest of BC

60%

Food and Beverage Manufacturing

Total BC labour force = 29,910

Agrifood & Seafood

Total BC labour force = 71,170

Table 1: Agrifood & Seafood and Food and Beverage Manufacturing Labour Force - Metro Vancouver share 2016



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conscious middle class growing across Asia, it is expected that demand for B.C. food exports, known for high quality and stringent health standards, could rise significantly.24 25

4. Agri-industrial Categories Detailed Description This section provides a detailed description of each agri-industrial category, as well as discussion on the size and trends, locational considerations (e.g., regulation and infrastructure), and other concerns.

1. Farm Support Services Description These are the ancillary services required for running an agricultural operation. The two 2012 NAICS industry categories of 1151 support activities for crop production and 1152 support activities for crop production include examples such as crop spraying services, fertilizer application, farm labour contractors, dairy testing, veterinary and livestock breeding services. However, based on consultation a broader definition is considered here, including services such as mechanics (i.e., for farm equipment) or fence post producers. These services are considered critical to the functioning of the local agriculture industry. Size and trends Through consultation it was suggested that the businesses offering farm support services in Metro Vancouver are unlikely to be wholly dedicated to agricultural clients. In places like the prairies, where agriculture dominates more of the economy, these support services are highly specialized. But in Metro Vancouver they typically need a diversity of clientele to be feasible. For example, in a 2008 study conducted for Maple Ridge, only one specifically agricultural supporting service (a farm equipment dealer) was identified, and they attributed only 15% of their business to local farming sector. Farm services in Maple Ridge are primarily obtained from Pitt Meadows, Abbotsford and Chilliwack, places with larger farming sectors.26 Even in Abbotsford, the most economically productive farming region in Canada, a feasibility study for an agri-industrial area along the Fraser Highway determined that there was not a business case for a significantly sized agri-industrial area; a more modest 36-hectare concept was suggested as a pilot. Of the more restricted definition using NAICS codes 1151 and 1152, there were approximately 2,400 people employed in Metro Vancouver27 in the farm support services sector in 2017 including 109 businesses with employees.28

24 BC Ministry of Agriculture, Market Guide for B.C. Agrifood and Seafood Exporters: Japan, 2017. 25 BC Ministry of Agriculture, Market Guide for B.C. Agrifood and Seafood Exporters: China, 2017. 26 Zbeetnoff Agro-Environmental Consulting and Quadra Planning Consultants, maple Ridge Agricultural Area Planning Situational Analysis: 2008 Update, March 2009. 27 BC Stats, B.C. Employment by Detailed NAICS Industry, www2.gov.bc.ca/gov/content/data/statistics/business-industry-trade/number-of-businesses-and-employment-by-industry, accessed Dec. 10, 2018 28 Statistics Canada, Canada’s Business Register, prepared by BC Stats, Vancouver CMA Business Location Counts by Industry and Employee Class Size, December 2017.



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Location considerations Given the diversity of businesses in this category, location considerations are varied. Generally, these are not permitted farm uses and so are typically located in commercial or industrially zoned areas. Servicing requirements are similarly diverse, though are likely the same as a general commercial use. Given the distances travelled for such services suggested by the Maple Ridge study (i.e., inter-municipal or inter-regional), it can be assumed that co-location with agriculture is generally not required. Other concerns Feedback from planning staff at the City of Abbotsford cautioned against using support services or farm input industries as part of land use regulations supporting agri-industrial. Given the diversity of these uses and the likelihood of them supporting a broader set of sectors (i.e., not only agriculture), it would be prohibitively difficult to define permitted uses in a satisfactory way or to monitor and enforce a relationship to local agriculture.

2. Farm Input Industries Description These are industries that provide material inputs for primary agricultural production. This includes materials such as those related to soil nutrient management (e.g., composting or fertilizer) and feed for livestock. These input materials can be imported or produced on farm, and may involve infrastructure or structures with a more industrial character (e.g. grain elevators in Township of Langley). These do not include composting food products from municipal waste streams, which is included under Category 8 (Organic Waste). Size and trends Farmers are not required to have a business permit, so with some of these activities happening on farm it is difficult to be confident in the size of this sector, but it is likely very small. StatsCan employment data shows that for Animal food manufacturing (3111) and Pesticide, fertilizer and other agricultural chemical manufacturing (3253) there are only 310 and 140 people employed in the region (roughly half of the provincial total), respectively. For both of these NAICS categories, agriculture may not be the only purpose. Location considerations For related activities that utilize at least 50% of farm produce (e.g., animal manure-based fertilizers and compost or grain for livestock), these activities can take place on a farm with minimal infrastructure. For feed production for larger feedlots, such as examples from the Township of Langley, access to rail lines for grain elevators seems to be an important part of economic efficiency. However, these examples are relatively few and are not growing at a pace that threatens agricultural or industrial land supply. More industrial manufacturing of these inputs (particularly those involving chemical inputs) are likely located on heavy industrial land, needing access to transportation (port, rail, truck routes) and infrastructure.



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Other concerns As with Farm Support Services, the only concern that arose during consultation was the ability to properly define and restrict which of these inputs serves a sufficiently agricultural clientele if it were to be included as part of “agri-industrial” land use regulations.

3. Primary Agricultural Production Description In Metro Vancouver, agricultural production involves a range of forms and levels of capital investment. Activities include open-air field crops, livestock pens, hoop houses for livestock shelter, barns and feedlots, hoop houses and greenhouses for crops (with and without direct use of the soil), and more industrialized forms which are permanent enclosed structures with non-translucent walls (e.g., structures for growing mushrooms, bean sprouts, hydroponic herb production, and cannabis). Size and trends The Agricultural Land Reserve in Metro Vancouver is approximately 60,000 ha. In 2011, Metro Vancouver had 29,790 hectares of actively farmed land, approximately 49% of all ALR land in the region. In 2016, there were approximately 2412 farms29 employing 9800 people30 in the region. Greenhouses and crop barns (the more ‘industrial’ forms of production) make up a very small portion of the actively farmed ALR land in the region, using 441 hectares and 23 hectares respectively (less than 1% of the regional total).31 While greenhouses expanded through the 1990s, growth had dropped by the mid 2000s, with very little new space being added since then due to increases in the cost of natural gas (among other reasons).32 In 2011, the region had 258 greenhouses representing 3.1 million square metres of space. Though the number of greenhouses dropped to 225 by 2016, the space had increased slightly to 3.2 million square metres.33 In sum, growth is modest. More recently there have been concerns about the growth of cannabis production operations. While cannabis is a permitted activity on the ALR, the Provincial Government has enabled local government to prohibit concrete floors in new facilities on ALR land, but this does not prevent the conversion of existing greenhouses with concrete floors to cannabis. Data will not be available until the next census of agriculture for a complete picture, but there is indication of large-scale conversion of vegetable growing in greenhouses to cannabis, such as the recent announcement of plans by Agraflora to convert a 20-hectare facility in Delta from tomatoes, which will make it Canada’s second largest cannabis growing facility.34 The conversion of agricultural land (including greenhouses) to cannabis is generally not supported by local governments, and the Metro Vancouver Board has supported a motion to encourage relevant authorities (provincial, federal,

29 Statistics Canada, 2016 Census of Agriculture. 30 Statistics Canada, 2016 Census. 31 B.C. Ministry of Agriculture, Metro Vancouver Agricultural Land Use Inventory – 2010/2011, 2014. 32 Province of British Columbia, B.C. Jobs Plan Special Report: The B.C. Greenhouse Sector, 2011. 33 Statistic Canada, Census of Agriculture 2011 and 2016, Table 32-10-0420-01. 34 Gyarmati, Sandor, Another Delta greenhouse to become huge cannabis grower, Delta Optimist, December 20, 2018.



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and municipal) to protect agricultural land for food production by prohibiting cannabis production on agricultural land and directing commercial cannabis production facilities to industrial lands.35 Generally, cannabis operations tend to favour industrial land near urban areas given their need for stable high-wattage power supplies, security, and proximity to major distribution centres and access to a sufficient and experienced labour force3637. Consultation with a Commercial and Industrial Land Broker in Vancouver suggests the cannabis production on industrial land is for the most part constrained in Metro Vancouver by high industrial land prices. More growth is happening in other parts of Canada (e.g., Ontario, prairie cities) where industrial land prices are lower. The size and growth of the industry is significant enough, however, that it may drive up the cost of industrial and commercial land across the country as it has done in some American jurisdictions where legalization had already happened.38 Finally, it was suggested during consultation that some hydroponic operations (herbs, sprouts, etc.;) may be locating on industrial land in some areas. However, the Business Registry statistics suggest that this is a very small sector, with under 40 such businesses (NAICS 111419 other food crops grown under cover) in all of Metro Vancouver. Location considerations Primary production occurs throughout Metro Vancouver’s agricultural land, though greenhouses tend to be concentrated in certain areas (e.g., Delta). Some locations are preferred due to climatic conditions (i.e. hours of sunshine) and is not evidently a result of infrastructural constraints as natural gas and hydro power, which are readily available across the region. Access to trucking, the port and labour force are likely bigger factors for the location of more industrialized growing operations like cannabis and other greenhouse crops. Other concerns A more often cited issue with intensive growing is traffic and parking. As greenhouses are larger employers than a field-based crop, they generate significant traffic and parking problems that can conflict with local vehicle traffic including farm tractors that require more road space.

4. 1st Order Processing Description These are activities that add value to primary agricultural products or make them ready for access to the market but require minimal access to infrastructure. This includes activities like sorting, cleaning, packaging and freezing of fruits and vegetables. It can also include more involved processing of food products, though usually at a small scale (i.e., one that does not require larger scale sewerage, potable water supply, or electrical connections).

35 Metro Vancouver, Minutes of the Regular Meeting of the Metro Vancouver Regional District Board of Directors held on Friday, July 27th. 36 Lawrence, Dania, Marijuana Industry Searches for Large Spaces to Grow Crops, The Globe and Mail, January 30, 2017. 37 Duggan, Evan, Canada’s booming cannabis sector gobbles up CRE, Real Estate News Exchange, renx.ca, August 7, 2018. 38 Ibid.



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However, it was suggested during consultation that a lot of more transformative food processing of local agricultural products would not be constrained by all types of services. Three-phase (industrial grade) electrical connection is readily available throughout the region, so constraints come from potable water access and sewerage. Often, high-water use activities only need potable water at the end of a process (e.g., once grit has been removed, potable water is used as a final rinse). In additional to the domestic potable water supply, water may be available through well-water with investments in on-site treatment (even if connection to municipal supplies might be preferred). Wastewater can also be dealt with on-site through settling ponds and recycling of water. As such, it is only the more intensive and larger scale processing that is not included under 1st order processing. Size and trends As described in Section 3 as part of the agrifood profile, food processing (also including 2nd Order Processing) represents approximately 1.3% of the regional labour force and has grown at a slower rate than the broader economy. It can be difficult to separate out data for 1st order versus 2nd order, though consultation suggests that much of this category is comprised of the grading, sorting and freezing of fruit. Berries, primarily blueberries and cranberries, make up 29% of the cultivated land in Metro Vancouver.39 An explosion in cultivation of blueberries paired with development of freezing technology known as IQF (individually quick frozen), has resulted in an expansion of on-farm value-add activities. It was suggested during consultation that existing processors are unable to accommodate the surge of produce that ripen during peak cultivation season. In the case of blueberries, the “blue wave” was cited: each July, when so much product is cultivated at the same time, they overwhelm IQF facilities and large quantities of blueberries are ploughed back into the soil. Events like this indicate there may be an inability to scale up processing in a way that supports the economic growth of the sector. Generally, this is still a relatively modest sector. In frozen food manufacturing (31141), Statistics Canada identifies 28 businesses with employees in the Metro Vancouver region, 23 of which employ fewer than 50 people.40 Through consultation, it was suggested that much of this activity takes place on agricultural land. Using blueberry packing as an example, of the 11 operations in Metro Vancouver, all are on ALR. Location considerations As 1st Order processing is defined by scale and a minimal need for servicing, its location constraints are less to do with infrastructure. However, there is a tendency for this category to be directly related to local agriculture as it usually involves minimal intervention to raw products. As such, it is often located on agricultural land as part of a value-add for local producers, and thus permitted as a farm use in the ALR. The only locational consideration, like with greenhouses, is the issue of traffic conflicts should such an operation grow large enough. In these situations, it may be in a situation where it has exceeded the ALR’s 50/50 rule. However, this does not necessarily result in a relocation to

39 Metro Vancouver, Farming in Metro Vancouver: Policy Background, 2014. 40 Statistics Canada, Canada’s Business Register, prepared by BC Stats, Vancouver CMA Business Location Counts by Industry and Employee Class Size, December 2017.



13

industrial sites. Continuing with the example of blueberry packers, it was suggested during consultation that 10 of 11 blueberry packing operations in the lower mainland no longer conform to the 50/50 rule. Other concerns The main concern around the growth and expansion of processing facilities is the threat they pose to ALR land, not industrial. One stakeholder interviewed presented the following: when an industrial style development gains approval to expand on ALR land to support value-add of local produce, there is a good chance the business will either be successful and eventually outgrow the facility, or fail and close down processing. In both cases, the development is vacated and available for a new tenant. Given the relatively small size of the food processing sector compared to the general economy, there is a good chance the new tenant will not be from the agri-industrial sector or interested in farming the land. The lot in the ALR then ceases to support local farming and is effectively alienated from agriculture.

5. 2nd Order Processing Description Activities that add value to primary agricultural products or make them ready for access to the market and require significant access to infrastructure. This can include many of the same activities as 1st order processing, but at a scale that requires large quantities of potable water and municipal sewerage. It can also involve more intensive processing (i.e., transformation of the primary product) such as dairy-product manufacturing, baking, or abattoirs. Size and trends 2nd Order Processing involves most other categories of processing beyond the packing, freezing and basic processing of local fruit and vegetables. While it can be difficult to separate 1st and 2nd order processing in employment and business statistics, guesses can be made based on the type of food manufacturing, and whether they are related to local crops (i.e., anything that is likely an input is probably not a raw product, and probably involves more intensive processing). For example, some of the food manufacturing employing the most people in the region are either not based on local agricultural products (e.g., bakeries, beverages, seafood manufacturing) or likely involve major infrastructure (meat processing). B.C.’s economy has historically been a primary resource and export economy, not a manufacturing hub. While the economy has restructured over the decades and has a growing service and tourism sector, manufacturing is still not a major economic activity.41 It is within this context that many stakeholders indicated that the food processing industry is dominated by non-local food products and that the local agricultural industry makes up a relatively small portion of that sub-sector.

41 Hutton, Tom and Trevor Barnes, Dynamics of Economic Change in Metro Vancouver: Networked Economies and Globalizing Urban Regions, 2016.



14

Figure 2: Metro Vancouver employment in Food and Beverage Manufacturing by subsector - 2001 and 2016

Location considerations 2nd order processing, requiring more significant infrastructure, tends to locate on industrial land, especially when it involves non-local agricultural products. When this is the case, there is also a tendency to cluster together in areas where there is easy access to import/export terminals or seafood catch. One example is Richmond, where there are 149 businesses involved in food manufacturing (NAICS 311), representing 29% of the 516 such businesses across the region. Of these, 32 are seafood manufacturing businesses accounting for more than one-quarter of food manufacturing related employment in Richmond.42 For local agriculture, 2nd order processing activities are primarily a few, large operations, such as abattoirs or dairy processors (e.g., both supported by being supply managed commodities). Once example is Saputo (formerly Dairyland) which manufactures milk products utilizing dairy from the B.C. Milk Marketing Board43. Aside from infrastructure, these larger operations usually need a relatively urban location to give better access to a large enough labour pool.

6. Wholesale Description The selling of large quantities of food products that are then processed or repackaged and sold by others. This activity can involve the wholesale of local agricultural products, local seafood, or imported food products.

42 City of Richmond, Online Business License Directory, accessed December 2018. 43 However, it should be noted that Saputo is an international corporation and its purchase of milk is legally required since dairy is a supply managed commodity.

0 1000 2000 3000 4000 5000 6000

3112 Grain and oilseed milling

3111 Animal food manufacturing

3114 Fruit and vegetable preserving and…

3115 Dairy product manufacturing

3113 Sugar and confectionery product…

3117 Seafood product preparation and packaging

3121 Beverage manufacturing

3119 Other food manufacturing

3116 Meat product manufacturing

3118 Bakeries and tortilla manufacturing

Employment

2016 2001



15

Size and trends Food and beverage merchant wholesale (NAICS 4131 and 4132) is a sizeable subsector, making up approximately 42% of the total agrifood and seafood labour force in Metro Vancouver. Though they handle local food products, wholesalers are dominated by food imports. Business registries show that the three largest sub-categories (speciality-line food, fish and seafood, and general-line, or grocery merchants) are in areas that likely have less of a relationship with local agriculture. These make up more than 70% of wholesale businesses (Table 2). Table 2: Metro Vancouver Food and beverage wholesale businesses, 2017

Businesses with employees

% of total

Other specialty-line food merchant wholesalers 349 40%

Fish and seafood product merchant wholesalers 142 16%

General-line food merchant wholesalers 133 15%

Fresh fruit and vegetable merchant wholesalers 78 9%

Alcoholic beverage merchant wholesalers 55 6%

Red meat and meat product merchant wholesalers 49 6%

Non-alcoholic beverage merchant wholesalers 40 5%

Dairy and milk products merchant wholesalers 24 3%

Poultry and egg merchant wholesalers 6 1%

TOTAL 876 100%

Location considerations In addition to industrial servicing, food wholesalers typically need good access to transportation routes and the port. This includes locations like ‘Produce Row’, the cluster of food wholesalers located near Terminal Avenue in Vancouver which benefit from proximity to the port’s Centerm terminal. The Vancouver location also provides better access to a local client base (e.g., restaurants, grocery stores, cruise ships). Upwards of 700 trucks per day access the six wholesalers on Produce Row, including 175 heavy trucks (semis with at least three axles).44 Notably, with discussions of the viaduct removal and route realignment in the City of Vancouver, there is a concern among some of these producers that the increased traffic would erode locational efficiencies and they may be unable to operate.

7. Warehousing & Distribution Description This category includes activities related to the operation of the regional food supply chain and for connecting local agri-industry to larger markets. This includes warehouses, cold-storage facilities, logistics centres, and major import/export infrastructure specifically related to food and agricultural products (e.g., granaries).

44 British Columbia Produce Marketing Association (BCPMA), Produce Row Backgrounder.



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Size and trends According to input from consultation, this category is the largest industrial land user from the agri-industrial sector. International grocery chains such as TNT, Sobey’s and Walmart have large-scale logistics centres for managing the import and distribution of products to stores across the continent. There is some indication of growth in this area with some of the largest industrial lease transactions in 2017 involving food and beverage distributors (i.e., a BC Liquor Distribution Branch and Loblaws Cos. Ltd).45 Overall, the regional labour force involved in warehousing and storage (NAICS 493) was 6340 in 201646, or 278 businesses with employees47. Of these businesses, it is uncertain how many are related to food and beverage, but only 11 (4%) are exclusively related to farm products. Table 3: Metro Vancouver Businesses in Warehousing and Storage, 2017

NAICS Industry Description

Number of Business with Employees % of total

493110 General warehousing and storage 190 68%

493120 Refrigerated warehousing and storage 26 9%

493130 Farm product warehousing and storage 11 4%

493190 Other warehousing and storage 51 18%

TOTAL 278 100%

Location considerations and concerns Given the integration of these businesses within a continental and global food system, the efficient movement of goods, along with their large building footprints, are the dominant considerations for selecting locations. Their large footprints also require large lot size and relatively affordable land. Given these factors, Campbell Heights Business Park in Surrey, which has attracted large scale distribution centres for companies like TNT, Sobey’s and Walmart, offers favourable conditions with its large footprint opportunities and access to several highways, ports in Surrey, and proximity to the US Border.

8. Organic Waste Description The large-scale processing of organic waste (e.g., composting) is considered distinct from the composting included in Farm Input Industries due to scale and the limited association with farm production. Activities in the Organic Waste category are presumed to be much larger, involve a broader set of organic inputs such as municipal organic waste, and are not necessarily used for nutrient management on farms. Examples include facilities for processing municipal organic waste or rendering plants.

45 Mithram, Peter, Food Companies Gobbling up Industrial Space, Business in Vancouver, May 29th 2018. 46 Statistics Canada, 2016 Census 47 Statistics Canada, Canada’s Business Register, prepared by BC Stats, Vancouver CMA Business Location Counts by Industry and Employee Class Size, December 2017



17

Size and trends This category is very small and has limited statistics that can provide a clear picture. There are 19 recorded rendering businesses with employees in Metro Vancouver. Rendering businesses make up 58% of all businesses categorized under meat product manufacturing (NAICS 3116), which employs approximately 3275 people in Metro Vancouver. There are few large-scale composting facilities throughout the region that are dedicated to handling the region’s organic waste. The Business Registry identifies approximately 60 businesses with employees listed under waste treatment and disposal (NAICS 56221), which includes landfills and recycling in addition to compost. Metro Vancouver only lists ten facilities licensed to handle food, yard or other organic waste.48 Location considerations Composting or rendering facilities are usually located on industrial or agricultural land. Those on industrial land, often need nearby fields (e.g., farmland) to dispose of what are called “overs”, the compost considered unsuitable for use in gardens or agriculture. Otherwise, these facilities generally do not need major infrastructure (i.e. sewerage).49 Rendering facilities, on the other hand need access to municipal sewerage. Large scale rendering and composting facilities produce smells that make them difficult to locate, especially in a highly urbanized environment like Metro Vancouver. Rendering plants in east Vancouver near the port are the object of regular complaint from local residents, and a recent application to expand a composting facility located in Delta ALR land prompted strong reaction from local residents. In both these cases, investments are being made to reduce or eliminate smells.50,51

Other concerns Given the ban on organics entering landfills in Metro Vancouver, composting facilities are critical to the successful disposal of municipal solid waste. If locations cannot be found for future sites or the expansion of current sites, waste will have to be exported from the region.

5. Summary of Factors Driving the Location of Agri-Industry From the information collected in section 4, three main factors were identified that determine where each category of agri-industrial activity locates: the regulatory context, infrastructure and servicing, and the economic context. This section explores each factor and the locational tendencies they produce.

48 Metro Vancouver, Solid Waste Regulatory Program List of Active Licensed Solid Waste Facilities, metrovancouver.org. 49 Forgie, David J.L.; Larry W. Sasser, Manjit K. Neger, Composting Facility Requirements Guideline: How to Comply with Part 5 of the Organic Matter Recycling Regulation, March 2004. 50 Gyarmati, Sandor, Council OKs permit in effort to stop stink; Civic politicians contend new enclosed buildings are best way to address composting odours, Delta Optimist, November 22nd 2018. 51 CBC News, Smelly East Vancouver processing plant to reduce odours by 2018, cbc.ca, July 11 2017.



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5.1 Regulatory Context Just over 60,000 hectares of land in Metro Vancouver, or approximately 22% of the total land base, is within the Agricultural Land Reserve (ALR)52, the a provincially legislated area, which preserves land for farming in B.C. The Agricultural Land Reserve Use, Subdivision and Procedure Regulation ALR (the Regulation) is the provincial law that specifies land use permitted in the ALR and their accompanying constraints. Within this regulation, the most relevant policy to this study is that related to farm uses. Farm uses include primary agriculture (i.e. growing crops and livestock), which is permitted outright, various processing activities, storage, and retail related to agricultural products, as well as the production of feed and compost. In one form or another Categories 2 through 7 of the typology in section 2.2 can be considered a permitted farm use. However, many of these come with an important constraint:

The Regulation designates as farm use the storing, packing, preparing or processing of farm products and related activities on a farm in the ALR provided at least 50% of the farm product is produced (i.e. grown or raised) on the farm on which the storing, packing, preparing or processing of farm products or related activity takes place…53

As part of this “50/50 rule”, a farm “may be comprised of one or several parcels of land owned or operated as a farm business by a farmer or by the co-op members of the association to which the member belongs”.54 That is to say, the farm where the processing takes place may use product from locations across B.C., so long as these are all owned as part of the same ‘farm business’. ALC policy clarifies that under section 2(3) of the Regulation, other uses necessary to farm uses, such as the buildings, structures, driveways, ancillary services or utilities are also protected by provincial legislation.55 The 50/50 rule also applies to the on-farm production of raw inputs into the farming process, such as the production of feed for livestock or composting. In the case of storing, packing, preparing or processing feed, it is a farm use so long as at least 50% of the feed is required as an input on the farm where it is being produced. In some locations, such as the Township of Langley, larger livestock operators have small grain silos and infrastructure for receiving grain from the prairies

52 B.C. Ministry of Agriculture, Metro Vancouver Agricultural Land Use Inventory – 2010/2011, 2014. 53 Agricultural Land Commission, Policy L-01 Activities designated as farm use: Farm product processing in the ALR, February 2016. 54 Ibid. 55 Ibid.

The ALR “50/50 Rule”

ALR regulations permit storing, packing,

preparing and processing activities on

agricultural land so long as at least 50% of

the product involved in these activities is

grown or raised on the farm. Similarly, in

production of composting or feed for

livestock, at least 50% of the product must

be used on the farm where it is produced.

This policy, often referred to as the “50/50

rule”, plays a critical role in determining

what types of agri-industrial activity are

permitted to locate on ALR land.



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via nearby rail lines. Production and storage of compost for use off the farm is permitted as a non-farm use so long as at least 50% is still used on the farm where it is produced. A variation of the 50/50 rule applies to alcohol production facilities wherein 50% of products can come from the farm where the facility is located, or from another farm in B.C. that provides product as part of a 3-year contract with the facility. This applies to wineries and cideries and, as of 2017, to breweries, distilleries, and meaderies.56 Local governments are not allowed to prohibit any farm use within the ALR, though they may regulate the supporting uses listed under section 2(3), such as through setting maximum buildable area or site coverage. But should a local government set built form constraints at a level so onerous as to effectively prohibit a farm use (e.g., by setting a setback so large as to make building nearly impossible), that would not be permitted by provincial regulations. Given these requirements, local government agricultural zoning tends to mirror ALR regulations and policies. While there are criticisms over how well the “50/50 rule” can be enforced (or whether as a policy it effectively supports agriculture in the province), it is vital for understanding the location of agri-industrial activities in the region. In addition to the 50/50 rule, the Ministry of Agriculture has other regulations that bear on farm uses, like maximum lot coverage for greenhouses, and the recent restrictions placed on cannabis growing which require any structures used for the lawful production of cannabis to have a “base consisting entirely of soil”.57

5.2 Infrastructure and Servicing The agri-industrial categories have significantly different servicing needs. Categories 2, 3 and 4 (Farm Input industries, Primary Agricultural Production, and 1st Order processing) typically have minimal requirements for electrical power, sewerage, and potable water, – levels which are often available in rural areas and adequately supported domestic potable water, well water or septic fields. Indeed, 1st Order and 2nd Order processing are distinguished primarily by their different servicing requirements. Larger scale processing (including washing and freezing produce) or more transformative processes (e.g., meat processing) require sewerage and potable water at service levels only available in more urbanized areas. In the Metro Vancouver legislative context, this implies locating these service-intensive activities within the sanitary Sewerage Areas whose boundaries are typically, but not always, contiguous with the Urban Containment Boundary, whose prime function is to encourage efficient transportation and utility services by limiting urban sprawl while promoting more sustainable, compact, and complete communities. In addition to industrial servicing, Wholesale and Warehousing & Distribution typically need good access to transportation and the port. This includes locations like ‘produce row’, the cluster of food wholesalers located near Terminal Avenue in Vancouver which benefits from proximity to the port’s Centerm terminal, or Campbell Heights Business Park in Surrey, which has attracted large scale distribution centres for companies like TNT, Sobey’s and Walmart due to the Park’s large footprint opportunities and access to several highways, ports in Surrey, and proximity to the US Border.

56 Agricultural Land Commission, Policy L-03 Activities Designated as Farm Use: Wineries and Cideries in the ALR, February 2016. 57 Agricultural Land Commission, Information Bulletin 04 Cannabis Production in the ALR, August 15, 2018.



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A secondary aspect of transportation is access to an employment base. For uses that tend to locate in agricultural land but are large trip generators, parking and mode conflict can be an issue. An example provided by a member of the AAC was the amount of parking required by a cannabis greenhouse resulted in many employees parking along the street. This can produce conflicts with other vehicles and farm equipment that share these roads.

5.3 Economic Context A number of economic factors also affect where certain agri-industrial activities tend to locate. First among them is land prices. With consistently low industrial vacancy rates, the price of industrial land continues to rise. In fall of 2018, the regional average for the industrial asking net rental rate reached a new record of $11.43 per square foot. Notable sales of industrial land in Metro Vancouver range from $0.9 to 4.7 million per acre.58 Agricultural land in Metro Vancouver is comparatively cheap at approximately $50,000 to $80,000 per acre for larger parcels and $150,000 to $350,000 per acre for smaller parcels.59 Given the difference in agricultural land prices and tax rates, any producer that can qualify as a farm use on agricultural land is highly incentivized to do so. Another important factor is the composition of the local economy and its role in the global economy. BC’s economy has historically been a primary resource and export economy, not a manufacturing hub. While the economy has restructured over the decades and has a growing service and tourism sector, manufacturing is still not a major economic activity.60 It is within this context that many stakeholders indicated that the food processing industry is dominated by non-local food products and that the local agricultural industry makes up a relatively small portion of that sub-sector.

5.4 Location Tendencies The factors described above are the principal drivers that distribute the different categories of agri-industrial activity on either agricultural land or industrial land. Additionally, the above factors result in a tendency for agriculturally-located activities to be more associated with local agriculture, and industrially-located activities to be more associated with a larger food system. In general, the factors result in the following:

ALR regulation limits industrial/commercial uses from locating on agricultural land: ALR regulations permit storing, packing, preparing and processing activities on agricultural land so long as at least 50% of the product involved in these activities is grown/raised on the farm. Similarly, the production of composting or feed for livestock requires at least 50% of the product be used on the farm where it is produced. This policy, often referred to as the “50/50 rule”, plays a critical role in determining what agri-industrial activities are permitted to locate on ALR land. Any variance to this rule requires approval from the Agricultural Land Commission (ALC).

58 Avison Young – Metro Vancouver, Industrial Overview, Fall 2018. 59 Vancity Credit Union, “Home one the Range: Cost pressures and the price of farmland in Metro Vancouver”, 2016. 60 Hutton, Tom and Trevor Barnes, Dynamics of Economic Change in Metro Vancouver: Networked Economies and Globalizing Urban Regions, 2016.



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Infrastructure, servicing, and transportation requirements reinforce ALR regulations: Agri-industrial activities that have significant transportation or servicing requirements (such as water and sewer) can only access this infrastructure in more developed areas. These requirements are more commonly associated with agri-industry activities that have less of a relationship with local agriculture (i.e., 2nd Order Processing, Wholesale, and Warehousing & Distribution). As a result, the limited availability of infrastructure tends to prevent more industrialized processes from locating on agricultural land.

High industrial land prices incentivize operations to locate on ALR land where possible: Agri-industrial activities that qualify as a farm use or successfully apply to the ALC for an exemption (e.g., a non-farm use permit) will usually locate on agricultural land instead of industrial land because of the relatively lower land prices and tax rates. So anywhere that the other factors do not constrain the choice, agricultural land is the preferred location for an agri-industrial business.

Locational tendencies generally align with an agri-industrial activity’s place in the larger food system: Since the ALR requires farm uses to be associated with local agricultural production (through the 50/50 rule), activities located on agricultural land are directly linked to the local food system; activities that are associated with the national or global food system tend to locate on industrial land.

The following diagram summarizes where each agri-industry category tends to locate (agricultural, industrial, or other lands) as well as the association of each agri-industry with local agriculture, a larger food system (green or blue), and other important factors. Figure 3: Factors determining where agri-industrial activities locate



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Figure 3 provides a summary of general tendencies and typical situations, but there are exceptions to these cases. Here are some examples of the exceptions:

2. Farm input Industries: While these activities typically adhere to the 50/50 rule, there are instances of industrial uses associated with this category that appear in agricultural contexts, such as granaries associated with feedlot operators in the Township of Langley that have been located along rail lines for decades.

3. Primary Agricultural production: As mentioned, Cannabis operations not utilizing a soil base are not permitted within the ALR. Also, it was suggested during stakeholder consultation that small hydroponic operations (e.g. herb growers) may be locating on industrial land to take advantage of the high level of servicing.

5. 2nd Order Processing: While this more intensive category of processing with higher service requirements is less commonly associated with local agriculture, there are a few large-scale processors in the region, such as dairy processors Saputo (formerly Dairyland) which manufactures milk products utilizing dairy from the B.C. Milk Marketing Board. However, it should be noted that Saputo is an international corporation and its purchase of milk is legally required since dairy is a supply managed commodity.

6 and 7. Wholesale and Warehousing & Distribution: Though dominated by import from a larger food system, these categories are also integral to the health of the local agriculture sector. The many produce councils in B.C., such as B.C Fresh, provide warehousing for growers on industrial land.

8. Organic Waste: While large-scale organic waste processing that exceeds the 50/50 rule are not a permitted farm use, there are several examples of exceptions that have them located on the ALR (and zoned industrial).

Generally, these exceptions are minor in terms of land usage and the pressure they exert on the industrial land supply.

6. Conclusion In Metro Vancouver, there are concerns over the supply and integrity of the industrial and agricultural land bases, which are under pressure for conversion from a variety of sources, such as residential development. These pressures can lead to an increase in speculation and in rezoning of parcels within these land bases, thereby increasing land prices and affecting the viability of associated businesses. There are also potential pressures between the two land bases as some proponents identify the conversion of agricultural land to be a possible solution to the region’s industrial land shortage.61

61 Mithram, Peter, Supply squeeze driving Metro’s hot industrial land market, Business in Vancouver, August 1st 2018.



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An overall conclusion of this study is that agri-industrial businesses do not comprise a significant component of the threat to either land base. Of the typologies explored in this study, several of them are firmly separated into agricultural or non-agricultural land by provincial legislation, or where there is some overlap or policy ambiguity, it is usually of a very small scale (i.e., small subsectors within an agri-industrial category that take up minimal amounts of land). However, within this conclusion, the study did identify some areas where policy clarification or further study may be warranted. Below are detailed comments on the conclusions ffor the different categories of agri-industrial activities. The comments are divided into three sub-sections:

No Additional Study,

Further Investigation, and

The Relative Impact on Agricultural/Industrial Land Base

6.1 No Additional Study For four of the categories, ALR regulation leaves little ambiguity about the most suitable location. They are the following:

Farm Support Services This diverse mix of uses is currently located on industrial and other lands (commercial, office, even retail). Except where they are a “home-based business”, they are not permitted on ALR land without application to the ALC. Given the economic incentives (low land cost, low taxes), where this category has the option of locating on ALR (e.g. as a home-based business), they likely do. Primary Agricultural Production Primary agricultural production on ALR land cannot be regulated by local government and generally it does not locate on industrial land. However, it has been suggested that some hydroponics (e.g. herb growing) may do so, though with under 40 such businesses in all of Metro Vancouver, the subset that locates on industrial land, rather than agricultural land, must be very small. Commercial Cannabis production presents the largest challenge given the nature of its facilities (concrete buildings), its high rate of growth, and potential for displacement of local food production. However, it is also a permitted farm use on ALR, and is protected by provincial legislation. Recently, the Provincial Government introduced regulations limiting the use of concrete floors in new facilities. In other jurisdictions across Canada, cannabis operations also locate on industrial land, but in Metro Vancouver it was suggested that industrial land prices are too high to warrant similar location. The Metro Vancouver Board has passed a resolution to encourage relevant authorities (provincial, federal, and municipal) to protect agricultural land for food production by prohibiting cannabis production on agricultural land and directing commercial cannabis production facilities to industrial lands.62

62 Metro Vancouver, Minutes of the Regular Meeting of the Metro Vancouver Regional District Board of Directors held on Friday, July 27th.



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Wholesale and Warehousing & Distribution Categories 6 and 7 are generally part of a larger food system, and responsible for supplying groceries and food to the region as well as leveraging the economic advantage of Metro Vancouver’s ports. It was suggested during consultation that the largest industrial land users from the agri-industrial typology are logistics hubs for international grocery retailers like Loblaws, TNT, and Sobeys. These businesses have minimal relationship with local agriculture and thus are not permitted on ALR land. They have typically located in business parks south of the Fraser River where large floor plate opportunities exist and there is good access to transportation routes, the port, and the U.S. Border.

6.2 Categories Warranting Further Investigation For the following categories in the typology, investigation of the potential overlap in the use of agricultural and industrial land may be warranted:

Farm Input Industries and Organic Waste Where adhering to the ALR 50/50 rule (e.g., farm-based composting or feed production), farm input industries are permitted on ALR. Where not adhering to the legislative requirements (e.g., industrial fertilizer production), they must locate on industrial land. However, as a farm-based composting operation grows, incorporating waste from other farms or other sources, it may grow to a point that it no longer conforms with ALR regulations. In these cases, the distinction between this category and Organic Waste (processing facilities) becomes unclear. For both situations (a farm-based composting operation that has outgrown its location, or a large-scale organic waste processing facility), there is a struggle to find a suitable location in a highly urbanized region such as Metro Vancouver. The nature of the operations results in these uses locating on both agricultural and heavy industrial land and they are generally incompatible with most other uses primarily due to odours. They are generally not permitted on ALR, though some have received special permission. Rendering plants in particular have few location options as they need significant infrastructure and are best located near processors or transportation lines, but that raises the likelihood of conflict with neighbouring uses.

1st Order Processing and 2nd Order Processing 1st and 2nd Order Processing activities are the most commonly identified activities that exemplify the overlap between agriculture and industry, and where there are more diverse viewpoints regarding what is the most suitable location for these activities. They are permitted on ALR land so long as they adhere to the 50/50 rule. Even where they do not adhere to the 50/50 rule, but are still related to local agriculture (e.g., fruit packers that grow in response to demand, an abattoir that supports the broader sector), successful applications have regularly been made to remain on ALR land. In this regard, they are a farm use, and a legitimate user of agricultural land. They are seen as an important way to improve the feasibility of local agriculture through the introduction of value-add opportunities to farmers, and the efficiency of locating near to primary production. Further, since the cost of industrial land is so high, it was suggested that agricultural land is the only viable option and that the ALR regulations may be restricting expansion of much needed processing facilities.



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On the other hand, given the more industrial character of the building infrastructure associated with 1st and 2nd Order Processing activities (e.g., large enclosed buildings with concrete bases), they represent one of the more direct threats to the integrity of agricultural land from agri-industrial activities. One stakeholder commented that when these sorts of facilities are established, they either are successful and outgrow their facility, or are unsuccessful and close operations. In both cases, a vacant industrial structure is left on agricultural land. These vacant structures are then open to a new industrial user which, given the relatively small agricultural sector in Metro Vancouver, will likely have no relationship to local agriculture. As a large employer, they may also generate more traffic (and trips) to areas not well serviced by appropriate roads or other forms of transportation. The challenge around these categories usually comes when they are of a size (either by growth or design) that requires a variance from the ALC to operate on ALR. At this point, they are both a greater threat to agricultural land and an uncertain business opportunity for farmers. On the one hand, with a larger building structure, they alienate more farm land and become more attractive to conversion to non-agricultural industry. On the other, it has been suggested that it is not always clear what kinds of projects will receive approval for variance to operate on the ALR and which ones will not. Agri-industrial zoning has been studied and attempted in places like Surrey, Maple Ridge, Abbotsford, and Chilliwack to address the challenges associated with these activities. While there are some variation in the details, these are envisaged as zones that would support the economic viability of local agriculture by allocating land to farm supporting services or value-add processing. The idea is that these zones would permit uses that are more industrial than those generally permitted on ALR, but restricted to activities related to local agriculture so as to control land prices through dampening demand from other industrial sectors. According to studies, there are few contexts where this would be viable. Even in Abbotsford, with one of the most intensive agricultural sectors in the country, a study suggested that an original proposal for such a zone along Fraser highway would be unfeasible. According to planners from Abbotsford, a smaller agri-industrial zone may still be explored as a pilot. According to other stakeholders, where there have been experiments, they have resulted in rapid conversion of properties to general industrial use.

6.3 Relative Impact on The Agricultural/Industrial Land Base Another important finding of this study is that the uses that the categories where there is some ambiguity are relatively small in terms of impact on land. Comments from consultation indicate that agricultural land and industrial land are both much more threatened by conversion to other uses (such as residential and commercial,) than by each other. The data supports these comments. For example, while the agrifood and seafood sector (roughly including farm input industries, primary agriculture, and both levels of food processing) is an important source of provincial imports and provides nearly 30,000 jobs in Metro Vancouver, it represents just over 2% of regional employment and has been growing at a slower rate than the broader economy. Food and Beverage manufacturing (1st and 2nd Order processing from the typology), accounting for roughly 70% of the agrifood and seafood sector’s GDP contribution, makes up approximately 1.2% of the regional labour force.



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Within this larger picture, the sub-sectors associated with the typology are even smaller. For example, one of the largest activities in 1st Order food processing is the fast freezing and packaging of berries (a crop that is nearly 30% of cultivated land in Metro Vancouver). Business Registry statistics only identify 28 such businesses with employees in the whole region, much of which it has been suggested takes place on agricultural land. Within the sub-sectors for each typology, the activities that have transgressed the line demarcating suitable agricultural or industrial land uses is only a subset, and is thus a very small category. Ultimately, the regulations protecting the ALR and the policies limiting regional servicing expansion are effectively protecting agricultural lands from the larger, more intensive forms of agri-industrial activity. Land prices prevent more agricultural uses from locating on industrial land, but questions remain as to what extent the existing regulatory framework is limiting expansion of local food production due to constraints on value-added or aggregated facilities and how to introduce these facilities in a way that does not risk future alienation of agricultural land.


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