November 29th, 2024

“Civilization as it is known today could not have evolved, nor can it survive, without an adequate food supply.”

Norman Borlaug, American agronomist and recipient of Nobel Peace Prize

There has been a shift.

What was once gridlocked by indecision and a tough business environment has suddenly opened up.

Sentiment has taken a turn upwards, while interest rates have gone in the opposite direction. Businesses are finally giving a green-light to growth plans and begun gearing up to hit the ground running in 2025 with key end-of-year moves.

A couple months ago, we explored how converging trends have led to the on-shoring and re-shoring of manufacturing. While we had looked at various industries such as automotive, chemical and pharmaceutical, metal fabrication, plastics and textiles, data centers and AI, and electronics and high-tech manufacturing, there is one other key vertical making a big comeback.

It’s no secret that the cost to buy these goods at your local store have increased dramatically since the pandemic.

Whether due to increased input costs of labour and energy, supply chain shortages, and the general inelastic and difficulty of substitution towards other goods…

The fact is that the food and beverage industry is not only in need of suppliers to meet the demands of a growing populous, but also to adapt to changing consumer preferences, as well as to help bring pricing down as much as is reasonably possible.

As part of this, the Province of Ontario’s food industry relies on a complex network of industrial facilities alongside agricultural land from farm to processing and from packaging to storage and distribution… and everything in between.

From traditional farming to cutting-edge vertical farms, food processing plants, and cold storage warehouses, the industrial real estate sector plays a vital role in keeping our food supply chain running smoothly.

That is why, for this week’s newsletter, we will continue our series and our look into how industrial real estate serves the food and beverage industry, showcasing the complexities involved in bringing your favourite dishes to your dining room table.

Essential Features of Food Industry Facilities

The food industry requires facilities designed to meet highly specific operational needs.

From processing raw ingredients to storing perishable goods, these spaces must incorporate specialized features to ensure efficiency, compliance, and safety.

In this issue, we’ll explore the essential elements that make food-specific facilities effective and how they drive the success of operations in the GTA.

Key Facility Features:

Clear Heights:

High ceilings are crucial for accommodating modern food processing and storage requirements. Facilities with clear heights of 28 to 36 feet or more allow businesses to:

Install automated racking and storage systems, maximizing vertical space.
Use large-scale processing machinery, such as conveyors or mixers, without spatial constraints.
Handle logistics operations, including forklifts and other material-handling equipment, with ease.

Source: Food Logistics.

Power Supply:

Food production facilities are power-intensive. These facilities require heavy electrical capacity and redundancy to support:

Refrigeration Units: Industrial refrigerators and freezers must operate 24/7 to maintain cold chain integrity.
Automated Processing Lines: Equipment such as mixers, grinders, and packaging systems demand consistent, high power.
Sterilization Systems: Ovens, steam generators, and UV sanitization equipment depend on uninterrupted power to meet stringent hygiene standards.
Facilities often include backup generators or alternate power sources to prevent downtime.

Food Manufacturing & Processing Facilities. Source: ARCO National Construction.

Sloped Floors and Drains:

Sanitation is a cornerstone of food production. Properly designed floors and drainage systems offer:

Hygienic Cleaning: Sloped floors enable water runoff, ensuring thorough cleaning and reducing the risk of standing water.
Regulatory Compliance: Features like stainless-steel drains and grates meet health and safety standards.
Durability: Floors are often constructed from reinforced, food-grade materials to withstand heavy machinery and harsh cleaning chemicals.

Hygienic drainage system. Source: ACO Food.

Insulated Walls and Ceilings:

Temperature control is vital in food production and storage environments. Insulated walls and ceilings:

Maintain precise temperature ranges in cold storage and production areas.
Minimize energy loss, reducing operating costs for heating and cooling systems.
Provide noise insulation, especially important in urban areas or facilities with sensitive equipment.

Cold Storage Warehouse. Source: AMSC.

Gas Pressure Systems:

Many food production processes require reliable high-pressure gas systems. These systems are used in:

Commercial Kitchens: For high-capacity ovens, stoves, and other cooking equipment.
Baking Facilities: Ensuring consistent heat for large-scale production.
Food Processing: High-pressure systems are also used for sterilization and food packaging applications that rely on modified atmosphere techniques.

Commercial Kitchen. Source: Food & Beverage Innovations.

Coolers and Freezers:

Cold storage solutions must cater to the diverse needs of food manufacturers and distributors. Essential features include:

Multiple Temperature Zones: To store various types of products (e.g., fresh, frozen, and ambient goods).
Advanced Insulation: To minimize energy usage while maintaining consistent temperatures.
Blast Freezers: High-speed freezing systems for preserving perishable items quickly and efficiently.
Real-Time Monitoring: Systems to track temperature and humidity levels, ensuring product quality and safety.

Cold Storage & Warehousing. Source: Agritech Haven International.

Shipping Capabilities:

Effective logistics depend on facilities with well-designed shipping and receiving areas, including:

Temperature-Controlled Loading Docks: To ensure goods remain within the required temperature range during transfer.
Multiple Dock Bays: To accommodate simultaneous loading and unloading operations.
Yard Space and Access: Sufficient room for truck maneuverability and staging areas for incoming and outgoing shipments.
Integrated Technology: Dock scheduling and inventory management systems to optimize efficiency and minimize delays.

Goya Foods Distribution Center. Source: Biamp.

Key Food-Grade Properties in Action: A Closer Look at Select Facilities

The GTA is home to dozens of facilities that showcase the integration of these essential features, serving as benchmarks for the food industry. Below are a few examples: