5 Reasons Why Canada is a Global Leader in Agri-Food Exports

Canada is one of the world’s largest food exporters, with $82.2 billion worth of agriculture and agri-food products shipped to over 200 countries in 2021. What makes Canada such a successful and competitive exporter of food and agricultural products? Here are five reasons:

1. Canada has a diverse and productive agricultural sector

Canada has a diverse and productive agricultural sector that grows a wide range of crops and livestock. Canada produces grains and oilseeds, such as canola, wheat, barley, oats, soybeans, corn and flax; horticultural products, such as fruits, vegetables, flowers and ornamental plants; animal products, such as beef, pork, poultry, dairy, eggs and honey; and specialty products, such as maple syrup, wine, beer and hemp. Canada’s agricultural sector employs 241,500 people and contributes 1.6% to the country’s gross domestic product (GDP).

2. Canada has a strong and innovative food and beverage processing industry

Canada has a strong and innovative food and beverage processing industry that transforms raw agricultural materials into value-added products. Canada’s food and beverage processors produce baked goods, beverages, confectionery, dairy products, meat products, seafood products, snack foods and more. Canada’s food and beverage processing industry employs 303,100 people and contributes 1.7% to the country’s GDP.

3. Canada has a reputation for high-quality and safe food products

Canada has a reputation for high-quality and safe food products that meet the standards and preferences of consumers around the world. Canada has a robust food safety system that ensures the health and well-being of Canadians and foreign customers. Canada also has a traceability system that allows consumers to track the origin and history of their food products. Canada’s food products are also known for their environmental sustainability, social responsibility and animal welfare practices.

4. Canada has access to preferential markets through trade agreements

Canada has access to preferential markets through trade agreements that reduce tariffs and non-tariff barriers for Canadian food exporters. Canada is a member of the World Trade Organization (WTO) and has free trade agreements with 51 countries, including the United States, Mexico, the European Union, Japan, South Korea, China and India. These agreements give Canadian food exporters an edge over their competitors and open up new opportunities for growth.

5. Canada has a supportive government

Canada has a supportive government that provides programs and services to help Canadian food exporters succeed in the global market. The Government of Canada offers funding, information, advice, advocacy and promotion to Canadian food exporters through various agencies and departments, such as Agriculture and Agri-Food Canada (AAFC), Global Affairs Canada (GAC), the Canadian Food Inspection Agency (CFIA), the Canadian Trade Commissioner Service (TCS) and Export Development Canada (EDC). These programs and services help Canadian food exporters overcome challenges, access markets, increase sales and create jobs.

Canada is a global leader in agri-food exports because of its diverse and productive agricultural sector, its strong and innovative food processing industry, its reputation for high-quality and safe food products, its access to preferential markets through trade agreements and its supportive government. By exporting food and agricultural products to the world, Canada contributes to global food security, economic development and social well-being.

Canada’s Agriculture Exports: Trends and Opportunities

Canada is one of the world’s largest exporters of agricultural and agri-food products, with exports reaching $82.2 billion in 2021. This represents an increase of 10% compared to the same period in 2019, according to Agriculture and Agri-Food Canada . Canada’s agriculture exports are diversified across commodities, destinations and regions, reflecting the strength and resilience of the sector. In this blog post, we will explore some of the trends and opportunities for Canada’s agriculture exports in the global market.

Grains and Oilseeds: Leading the Growth

Grains and oilseeds are the largest category of Canada’s agriculture exports, accounting for 36% of the total value in 2021. Canada is the fifth largest exporter of grains and oilseeds in the world, after the US, Brazil, Russia and Ukraine. Canada’s grains and oilseeds exports increased by 49.5% in the first ten months of 2020 compared to the same period in 2019, reaching $5.1 billion . The main drivers of this growth were canola seed and durum wheat, which saw substantial increases in demand from China, France, Italy, Morocco, Japan and other countries. Canola seed exports reached a record $949 million to the European Union (EU) in 2020, an increase of 183.3% from 2019 . Durum wheat exports to Italy increased by 75.7%, reaching $359.4 million, also a record high for the period of January to October .

Some of the factors that contributed to the strong performance of Canada’s grains and oilseeds exports include:

favourable weather conditions and high yields in Canada
lower production and supply disruptions in competing countries due to droughts, floods, pests and diseases
increased demand for vegetable oils and animal feed in China due to the recovery of its hog sector from African swine fever
increased demand for pasta and bread products in Europe and North Africa due to the COVID-19 pandemic
preferential market access for Canadian canola seed and durum wheat under the Comprehensive Economic and Trade Agreement (CETA) with the EU

Looking ahead, Canada’s grains and oilseeds exports are expected to remain strong in 2022 and beyond, as global demand continues to grow, especially from emerging markets such as India, Indonesia, Vietnam and Nigeria. Canada has a competitive advantage in producing high-quality grains and oilseeds that meet the diverse needs of customers around the world. Canada also has a robust transportation and logistics system that ensures timely delivery of products to overseas markets.

Horticulture: A Growing Niche

Horticulture is another important category of Canada’s agriculture exports, accounting for 12% of the total value in 2021. Horticulture includes fruits, vegetables, flowers, plants, nuts and spices. Canada is the ninth largest exporter of horticulture products in the world, after the Netherlands, Spain, Mexico, China, US, France, Italy and Germany. Canada’s horticulture exports increased by 25.9% in the first ten months of 2020 compared to the same period in 2019, reaching $1.6 billion . The main drivers of this growth were fresh blueberries, fresh cranberries, fresh potatoes, fresh apples and dried legumes.

Some of the factors that contributed to the strong performance of Canada’s horticulture exports include:

increased consumer demand for healthy and nutritious foods amid the COVID-19 pandemic
increased production and innovation in Canada’s horticulture sector
diversified export markets for Canadian horticulture products
preferential market access for Canadian horticulture products under various free trade agreements (FTAs) such as CETA, Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Canada-Korea FTA

Looking ahead, Canada’s horticulture exports are expected to grow further in 2022 and beyond, as consumers around the world seek more variety and quality in their food choices. Canada has a reputation for producing safe, high-quality and environmentally friendly horticulture products that meet the standards and preferences of customers around the world. Canada also has a network of trade commissioners that provide market intelligence and support to Canadian horticulture exporters.

Canada’s agriculture exports are a vital part of the Canadian economy and a source of pride for Canadians. They showcase the diversity, innovation and excellence of Canada’s agriculture sector on the global stage. They also create jobs, income and opportunities for Canadians across the country. As the world recovers from the COVID-19 pandemic, Canada’s agriculture exports will continue to play a key role in feeding the world and contributing to global food security.

References:

https://www.census.gov/foreign-trade/Press-Release/2020pr/ft900_2012.pdf

https://www.wsj.com/articles/u-s-trade-deficit-likely-widened-in-april-amid-coronavirus-disruptions-11591268401
https://agriculture.canada.ca/en/sector/overview
https://cafta.org/agri-food-exports/
https://reviewlution.ca/resources/canada-agriculture-statistics/
https://www.thecanadianencyclopedia.ca/en/article/agriculture-in-canada
https://agriculture.canada.ca/en/sector/overview
https://www.ic.gc.ca/eic/site/098.nsf/eng/home
https://www.agr.gc.ca/eng/agriculture-and-the-environment/agricultural-practices/agriculture-and-climate-change/?id=1329321987305
https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/index.aspx?lang=eng

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