Canadian Agricultural Exports

Canadian Agricultural Exports, 5 Reasons Why

5 Reasons Why Canadian Agricultural Exports Are Booming

Canada is a global leader in producing and exporting agricultural products, such as canola, wheat, pork, beef, and maple syrup. In 2020, Canada exported $61 billion worth of agri-food and seafood products, an increase of 10% from 2019. What are the factors behind this impressive growth? Here are five reasons why Canadian agricultural exports are booming.

1. Diversified markets and products

Canada exports its agricultural products to more than 190 countries around the world, with the US, China, Japan, and the EU being the top destinations. Canada also has a diversified portfolio of commodities and processed foods, ranging from grains and oilseeds to meat and dairy products. This diversity helps Canada to meet the changing demands and preferences of different markets and consumers.


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2. High-quality standards and reputation

Canadian agricultural products are known for their high quality, safety, and sustainability. Canada has strict regulations and standards for food production, processing, and inspection, ensuring that its products meet the expectations of domestic and international customers. Canada also has a strong reputation for innovation and research in the agricultural sector, developing new varieties, technologies, and practices that enhance productivity and quality.

3. Trade agreements and partnerships

Canada is a strong advocate of free trade and has signed several trade agreements that open up new opportunities for its agricultural exporters. For example, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) gives Canada preferential access to 11 countries in the Asia-Pacific region, including Japan, Vietnam, and Malaysia. The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) eliminates tariffs on almost all Canadian agri-food products entering the EU market. Canada also works closely with its trading partners to resolve any trade barriers or disputes that may affect its agricultural exports.

4. Competitive advantages and opportunities

Canada has many competitive advantages that make it an attractive supplier of agricultural products. For instance, Canada has a vast land area with diverse climatic zones and soil types, allowing it to grow a variety of crops. Canada also has abundant water resources and a skilled workforce that contribute to its agricultural productivity. Moreover, Canada has identified several opportunities to increase its agricultural exports in the future, such as expanding its value-added processing sector, tapping into emerging markets like India and Africa, and promoting its environmental and social responsibility.

5. Resilience and adaptability

Canada’s agricultural sector has shown remarkable resilience and adaptability in the face of challenges such as COVID-19, climate change, and market volatility. Despite the disruptions caused by the pandemic, Canada maintained its food supply chain and continued to export its products to the world. Canada also implemented various measures to support its farmers, processors, exporters, and workers during the crisis. Furthermore, Canada is taking action to mitigate the impacts of climate change on its agriculture, such as investing in clean technologies, adopting best management practices, and enhancing risk management programs.

Canadian Agricultural Exports: Trends and Prospects

Canada is one of the world’s leading exporters of agricultural and agri-food products, with a diversified portfolio of commodities, processed foods and beverages. In this blog post, we will examine some of the recent trends and prospects for Canada’s agricultural exports, based on the latest statistics and market developments.


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Grains and Oilseeds: Record Highs in 2020

Grains and oilseeds are the largest category of Canada’s agricultural exports, accounting for about 30% of the total value in 2020. According to Trading Economics, Canada exported $28.9 billion worth of grains and oilseeds in 2020, a record high and a 14.6% increase from 2019. The main drivers of this growth were canola seed, wheat and soybeans, which saw significant increases in both volume and price.

Canola seed exports increased by 49.5% in the first ten months of 2020 compared to the same period in 2019, reaching $5.1 billion. Substantial increases were observed in China, France, the United Arab Emirates, Japan, Mexico, the Netherlands and Germany. China was the largest destination for Canada’s canola seed, accounting for 23% of the total value.

Wheat exports increased by 25.9% in the first ten months of 2020, reaching $1.6 billion. Leading destinations that account for the increase include Italy, Morocco, Japan, Nigeria and Spain. Italy was the largest market for Canada’s durum wheat, importing $359.4 million worth of the commodity in the first ten months of 2020, a 75.7% increase from the same period in 2019.

Soybean exports increased by 36.4% in the first ten months of 2020, reaching $2.3 billion. The main markets for Canada’s soybeans were China, Japan, Iran, Turkey and Indonesia. China was the dominant buyer of Canada’s soybeans, importing $1.2 billion worth of the crop in the first ten months of 2020, a 66.7% increase from the same period in 2019.

Meat Products: Resilience Amid Challenges

Meat products are another important category of Canada’s agricultural exports, representing about 18% of the total value in 2020. According to Agriculture and Agri-Food Canada, Canada exported $14.8 billion worth of meat products in 2020, a slight decrease of 0.7% from 2019. The main components of this category are pork, beef and poultry products.

Pork and pork product exports increased by 21.9% in the first ten months of 2020 compared to the same period in 2019, reaching $4.2 billion. The main markets for Canada’s pork were China, Japan, the United States, Mexico and Australia. China was the largest destination for Canada’s pork, importing $1.6 billion worth of the product in the first ten months of 2020, a 113.3% increase from the same period in 2019.

Beef and beef product exports decreased by 1.1% in the first ten months of 2020 compared to the same period in 2019, reaching $3 billion. The main markets for Canada’s beef were the United States, Japan, China, Mexico and South Korea. The United States was the largest buyer of Canada’s beef, importing $1.8 billion worth of the product in the first ten months of 2020, a slight decrease of 0.4% from the same period in 2019.

Poultry product exports decreased by 12.4% in the first ten months of 2020 compared to the same period in 2019, reaching $527 million. The main markets for Canada’s poultry products were Taiwan, Hong Kong, South Africa, Philippines and Vietnam. Taiwan was the largest destination for Canada’s poultry products, importing $125 million worth of the product in the first ten months of 2020, a decrease of 8% from the same period in 2019.

The meat sector faced several challenges in 2020 due to the COVID-19 pandemic, such as plant closures or reduced capacity, supply chain disruptions and changing consumer demand patterns. However, it also demonstrated resilience and adaptability by implementing safety measures, diversifying markets and increasing online sales.

Future Outlook: Opportunities and Risks

Canada’s agricultural exports are expected to continue growing in the future as global demand for food increases along with population growth, income growth and urbanization. According to Reviewlution, Canada is projected to export $95.4 billion worth of agricultural and agri-food products in 2025, a 16% increase from 2020.

Canada has several advantages that can help it achieve this growth, such as:

  • a large and diverse land base with favourable climatic conditions
  • a reputation for high-quality and safe products
  • a skilled and innovative workforce
  • a strong research and development capacity
  • a network of trade agreements that provide preferential access to key markets

However, Canada also faces several risks and challenges that could hamper its export performance, such as:

  • increasing competition from other exporters, especially in emerging markets
  • rising protectionism and trade barriers, especially in light of the COVID-19 pandemic
  • environmental and social pressures, such as climate change, biodiversity loss and animal welfare
  • changing consumer preferences and expectations, such as health, sustainability and traceability

Canada will need to address these risks and challenges by investing in innovation, diversification, market development and promotion, as well as enhancing its competitiveness, resilience and sustainability.

References:

http://www5.agr.gc.ca/resources/prod/doc/env/naharp-pnarsa/pdf/chap12_e.pdf

http://dsp-psd.pwgsc.gc.ca/Collection/A27-18-14-7E.pdf

http://www4.agr.gc.ca/resources/prod/doc/pdf/factsheet06.pdf

https://web.archive.org/web/20080227125418/http://www.seedquest.com/hosting/germination/sharingthemessage/seed_industry.pdf

https://web.archive.org/web/20080227125418/http://atn-riae.agr.ca/supply/factsheets/3320_e.pdf

https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3210002001

https://www150.statcan.gc.ca/t1/tbl1/en/cv.action?pid=3210015501

https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3210011701

https://tradingeconomics.com/canada/exports-by-category
https://reviewlution.ca/resources/canada-agriculture-statistics/



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