Теги: експорт до канади
Five reasons why Ukrainian IT companies should start their business with Canada

Business Insider, a US media resource, writes about a new popular trend in the North American IT market: more and more programmers move from Silicon Valley to Canada. More and more companies, including Facebook, Google, Lever, Postmates and Tile, have opened offices in Toronto.

The publication cites several reasons including high real estate prices in the United States and a tight migration policy that force global IT players to look for alternatives to attract foreign professionals.

Ukrainian companies should not stand aside global trends and actively seek opportunities for cooperation with the Canadian IT sector. Olga Shtepa, CUTIS Project Coordinator, highlights five key reasons why Ukrainian companies should start business with Canada.

  1. Growing demand for IT professionals in Canada

About 300,000 jobs have been created in Canada’s IT industry over the past 15 years.

The Information and Communication Technology Council of Canada (ICTC) estimates that Canada’s IT sector will need 216,000 skilled employees by 2021. At the same time, Canada will not be able to meet this demand on its own with its university graduates and migrants involved. Consequently, the role of IT services exports and outsourcing is growing.

  1. Market stability

With growing protectionism in the United States and significant restrictions on immigration policy, many employers there have faced problems hiring staff. Instead, Canada, known worldwide for its loyal immigration policy, is implementing the Global Talent Stream Program, which allows IT professionals from all countries to obtain visas under a simplified procedure. Relatively cheaper costs of housing in Canada and the high social standards guaranteed by the government can be added to that.

  1. High wages

Employees of IT companies in Canada earn about 80,000 Canadian dollars a year, which is 61% more than the economic average. During 2011-2016, the average salary in the IT sector grew faster than in other sectors of the economy – by 13% compared to 8.7%.

  1. The Corona effect: growing need for IT services

The world has faced an unprecedented situation where all economies, without exception, have been put on hold due to the pandemic. As they say, however, it was a blessing in disguise. Most services are provided online, and a new format of work from home is practiced around the world. For example, Facebook allowed employees to work from home until the end of the year, and Twitter does not plan to resume work in the office. This, in turn, has led to a significant increase in demand for services such as telehealth, distance learning, logistics, financial settlements and more – all this against the backdrop of the skyrocketing demand for cybersecurity services. In combination with the above advantages, the Canadian market creates unique opportunities for the development of IT companies, including those from Ukraine.

  1. Entering the North American market through Canada

Canada is perhaps the best country to fulfill the dream of many companies – to enter the global market. All of the above, however, does not mean that the road to the Canadian market is scattered with flowers.

As Canada is a global market, it will be necessary to compete not only with Canadian companies, but also with foreign players trying to get their piece of pie in the Canadian market.

High competition automatically means a high “bar” of market entry – it is necessary to comply with international standards, classifications and, finally, language requirements.

So we wish you not to miss the chance and use the existing opportunities wisely.

Source: Liga.net

Canadian footwear market. What Ukrainian producers should take into account

The Canada-Ukraine Free Trade Agreement (CUFTA) has been in force between Ukraine and Canada for over two years. Under this agreement, most Ukrainian goods are not subject to import duties when imported into Canada. Benefits apply to shoes as well, averaging 18% of the customs value, which is our competitive advantage over such powerful global footwear suppliers as China or Vietnam.

Let’s try to understand how easy it is for Ukrainian footwear manufacturers to enter the Canadian market and take advantage of its competitive advantages.

Helicopter view

Canada’s shoe industry volume is expected to reach CAD 7.7 billion in 2019. In Ontario alone, one of Canada’s 10 provinces, there are 1,260 shoe stores.

During a year, an average Canadian family spends approximately CAD 624 on shoes, of which CAD 347 for women and girls, and CAD 277 for men and boys.

Canada is among the top five shoe consuming countries, with the lion’s share being imported. Last year, Canada imported 161 million pairs of shoes from China and Vietnam only (69% of total footwear imports).

The next group of major shoe-supplying countries for Canada are Italy – 8%, Cambodia and Indonesia – 4% each. The remaining footwear imports (15%) come from other countries including Ukraine.

Ukrainian company Belsta participated at Toronto Shoe Show

 

At the same time, Canada also successfully exports shoes. In 2018, shoe production in Canada reached CAD 458 million. Canada ranked 12th in the world of footwear exporters. About 90% of Canadian shoes were exported to the United States.

There are more than 120 footwear industries in Canada, mainly in Ontario (24), Quebec (22) and British Columbia (10). These are mostly small (up to one hundred workers) factories with modern equipment. In total, shoe manufacturing across the country employs about 1.4 thousand people.

Footwear preferences of Canadians

The Canadian footwear market is fairly conservative, especially with regard to winter models. Canadians have special requirements for winter footwear. As they joke, the Canadian year has only two seasons – winter and construction season, and both require good-quality footwear.

The frost-and-snow season in Canada lasts for five months. Therefore, winter footwear should, first and foremost, provide warmth, be waterproof and stability on slippery surfaces. In other words, consumer comfort determines the style of winter footwear.

Some winter footwear models in Canada have been consistently sold for decades. According to Andy Orchard, Cougar Shoes Inc.’s Sales Manager, red-tab winter boots have been in demand in the Canadian men’s, women’s and children’s footwear market for over forty years. “When I was 15 or 16 years old (40 years ago), everyone, absolutely everyone in Canada, wore those boots. The red tabs had to be outside in order to be visible. It was something like a uniform. This model of Cougar winter boots is in demand among Canadians to this day”, – he says.

Ukrainian footwear companies visited Cougar Shoes Inc. in August 2019

 

Ethnic diversity has some influence on Canadian consumer preferences. Especially in such numerous diasporas as Hindu or Chinese. Today, one of five Canadians is born outside Canada. By immigrating to Canada, people bring with them national habits or preferences from their countries of origin. First of all, it concerns traditional food, clothing, and footwear.

External influence on the market

The footwear market in Canada is significantly influenced by the US footwear market trends, which is almost 10 times bigger than the Canadian market. This is natural because about 90% of Canada’s population resides in the 100-mile strip along the US border, and the economies of both countries are closely related.

FN PLATRFORM Show in Las Vegas is one of the most important American footwear shows that determine shoe fashion in Canada. According to Tamara Szames, a Canadian shoe market analyst, the footwear shown at FN PLATRFORM in August will hit store sales next spring. She also emphasizes the increasing influence of fast fashion on the footwear market, especially for summer and sports shoes. This means that the “must-have shoes” that were just shown on the catwalk should be manufactured very quickly because “… if you missed the season shoes you may have missed the whole season”.

Canadians pay little attention whether the materials used to make shoes are natural or not. What is important is water resistance. This is one of the qualities of shoes in Canada that influences the buying decision. And this is not only for winter shoes. Don’t be surprised to read “waterproof” on sandals. The Canadian logic is: if you get caught in the rain in the sandals or stepped into a puddle, they should not get wet through or absorb water. Water should simply trickle down the sandals without creating discomfort.

Ukrainian waterproof shoes at Toronto Shoe Show

 

Recently the so-called “consumer fatigue” from Chinese imports has been increasing in North America. Many consumers are ready to refocus on other manufacturers if they offer comfortable and modern models at attractive prices. Quite often, a lower price is a determining factor for Canadians deciding to buy shoes.

This is what Ukrainian shoe manufacturers should take advantage of. Taking into account all the specifics of the Canadian market and offering an attractive price due to the absence of import duties, the Ukrainian shoe business has every chance to win its place under the changing Canadian sun.

Author – Valeriy Kokot

Exports of organic products to Canada: what has changed over the past year

The demand for organic products is increasing worldwide. Canada is no exception. It is precisely this conclusion that can be made after reading the World of Organic Agriculture 2019 Report, which was recently published by the leading organizations FIBL and IFOAM.

Global trends

Thus, according to the 2017 results, sales of organic food and beverages reached a record high of 90 billion euros. Since 2000, this figure has grown 5.5 times, and compared with the year 2016 – by 8%.

North America and Europe remain leaders in the consumption of organic products – they account for 90% of total global sales. The United States occupies the first place with the rest of the world considerably lagging behind; about half of the world organic produce market is in the United States. Germany and France follow.

Canada with 3 billion euros of its organic market volume is no more within the world’s top five organic markets. Now it ranks sixth in the global ranking.

Australia, Argentina and China have become leaders with the largest areas of organic farming.

Sales of organic products in supermarket chains in 2017

Specifics of the Canadian organic market

Major Canadian organic producers are located mainly in the provinces of Ontario, Quebec and British Columbia. The reason is simple. It is these regions that are characterized by the bigger size of the market (population density) and its maturity, that is, willingness to pay more for organics.

Understanding the prospects of the organic market, Canadian government officials are taking steps to support it. For example, the province of Quebec set a goal to double the area of land under organic farming by 2025 compared to 2015.

Canada produces organic products mostly in such segments as dairy, ready-made food and bakery products. Of course, a lot of organic maple syrup is produced.

Food and drinks account for 93.5% of Canada’s organic market. Due to the strong consumer demand, the Canadian organic market is growing faster than the average food industry. In the period of 2012-2017, the sector’s average annual growth rate was 8.4%.

According to statistics, two thirds of Canadians bought organic products weekly in 2017. In 2016, only 56% of them did.

Millennials are fans of organic goods. More than 83% of people born in 1981-1999 buy organic products every week.

Canada imports a lot of organic goods, which is a great opportunity for Ukrainian companies. In particular, Canada imported organic goods for 637 million Canadian dollars in 2016.

At the moment, Ukraine primarily exports organic raw materials to Canada, although it would be more profitable to export processed products. The best prospects on the Canadian market are for such groups of goods as dried and frozen vegetables, vegetable oils, juices and drinks, jams, pastilles, honey, and the like.

According to the Open Register of the Organic Standard Certification Company nine Ukrainian producers have successfully passed certification under Canadian COR organic standards as of May 2019.

Some Ukrainian organic producers already have successful cases selling their own products to this market. For example, PE “Agroecology”, one of the largest Ukrainian organic producers (more information can be found from the video https://youtu.be/zsVQUao58Dc).

If your company is also interested in obtaining a Canadian organic standard, please, be informed that the CUTIS Project co-finances such certification (for more information, follow the link https://cutisproject.org/news/new-opportunities-from-cutis-project/).

Changes in Canadian legislation

On January 15, 2019, the Safe Food for Canadians Regulations (SFFC) entered into force, which in fact prescribe a policy for the production and sale of foodstuffs. This is a new document that combines food sector regulations.

The issues of producing, importing and exporting organic products are regulated by Section 13 of the SFFC. Thereunder, any food products, seeds or animal feed claimed as organic are subject to control by the Canada Food Inspection Agency (CFIA) regulatory authority.

However, CFIA does not control the flow of organic cannabis, cosmetics, food for pets and biologically active additives. The mention of cannabis in this list is an attempt to clarify the situation with its legalization in Canada since the fall of 2018.

Starting from January 15, 2021 organic products from the organic aquaculture sector will be subject to the SFFC provisions as well.

Regulatory changes in the field of organic production will come into force not immediately but gradually over the next 12-30 months (by January 2020 – July 2021). Obviously, this is due to the smooth transition of Canada’s organic sector to the new regulatory regime.

Attention of Ukrainian exporters of organic products to Canada: production of organic products eligible for sale in Canada is governed by the following Canadian organic standards (CAN/CGSB 32.310 – Organic Production Systems – General Principles and Management Standards; CAN/CGSB 32.311 – Organic Production Systems – Permitted Substances Lists). It is important to keep in mind, however, that there are plans to revise them in 2020.

In addition, organic products will be separated within the Automated Import Reference System (AIRS). What is this system? This is a resource for obtaining information on the terms of import of certain categories of agricultural products into Canada. By entering the product category name, you will receive detailed information about the terms of import. In 2019, organic fresh fruits and vegetables will be the first categories to apply this approach. This will make life easier for importers to Canada: they will have access to detailed regulatory instructions for certain categories of organic products.

This is to remind that the Canada-Ukraine Trade and Investment Support Project (CUTIS Project) is a 5-year (2016-2021) initiative of the Canadian government aimed at increasing exports from Ukraine to Canada and investments from Canada to Ukraine. The Project is funded by the Canadian Government through Global Affairs Canada. The Project is being implemented by the Conference Board of Canada in cooperation with the Canada-Ukraine Chamber of Commerce.

Zoya Pavlenko, Environmental Expert, Canada-Ukraine Trade and Investment Support Project (CUTIS)

Source: Agroportal.ua