The Canadian agriculture and agri-food sector plays a vital role in the country’s economy, encompassing primary agriculture, food and beverage processing, and the broader agri-food system, which impacts various sectors across the food supply chain. This comprehensive guide delves into the intricacies of Canadian agriculture, exploring its diverse components, economic contributions, and future prospects.
Contents
The Canadian Agri-Food System
Canada’s agri-food system is a testament to resilience, innovation, environmental sustainability, and economic strength. In 2023, this integrated system demonstrated significant impact:
- Employment: 2.3 million people, representing 1 in 9 Canadian jobs.
- Economic Contribution: $150 billion, approximately 7% of Canada’s Gross Domestic Product (GDP).
This system encompasses a complex supply chain with distinct components:
- Primary Agriculture: Activities within farms, nurseries, and greenhouses, contributing $31.7 billion (1.4% of GDP) and employing 247,200 people.
- Food and Beverage Processing: Transforming raw materials into consumable products, generating $35.2 billion (1.6% of GDP) and employing 322,600 people.
- Food Retailers and Wholesalers: Contributing $36.9 billion (1.7% of GDP) and employing 659,800 people.
- Foodservice Providers: Connecting food production with consumers, generating $30.5 billion (1.4% of GDP) and employing 971,100 people.
Collectively, primary agriculture and food and beverage processing employed 569,800 people, accounted for 3% of Canada’s GDP, and provided 1 in 35 jobs in 2023.
Primary Agriculture in Canada
Primary agriculture, encompassing activities within farm boundaries, is a diversified economic driver in Canada:
- Number of Farms: 189,874
- Land Area: 62.2 million hectares (6.2% of Canada’s land area)
- Concentration: Primarily across the Prairies, Quebec, and Southern Ontario
- Farm Size: Average farm size has nearly doubled in the last 50 years due to consolidation and technological advancements.
Farm Market Receipts and Trends
Farm market receipts, representing farmers’ revenues from agricultural commodity sales, reached a record high of $93 billion in 2023, with an average annual growth of 5.8% between 2013 and 2023, primarily driven by grains and oilseeds. Notably, the largest 10% of farms generate over two-thirds of total revenues. Canadian agriculture continuously evolves, adapting to challenges, leveraging opportunities, and responding to market dynamics. Innovation adoption contributes significantly to increased output and productivity.
Commodity Breakdown: Crops and Animal Production
Crop Production
- GDP Contribution: $24.5 billion
- Employment: 114,800 jobs
Principal Field Crops
- Receipts: $40.0 billion
- Number of Reporting Farms: 65,135
- Exports: $29.1 billion (Top markets: China (25%), United States (12%), Japan (8%))
- Key Stakeholders: Canada Grain Council, Cereals Canada, Grain Growers of Canada
Horticulture
- Farm Market Receipts: $8.6 billion
- Number of Reporting Farms: 17,433
- Exports: $4.9 billion (Top markets: United States (97%), Netherlands (1.4%), Japan (0.3%))
- Key Stakeholders: Canadian Horticultural Council, Canadian Produce Marketing Association, Canadian Ornamental Horticulture Alliance
Animal Production
- GDP Contribution: $7.2 billion
- Employment: 106,700 jobs
Animal Production Details
- Receipts: $37.3 billion
- Number of Reporting Farms: 76,796
- Exports: $3.8 billion (Top markets: United States (94%), Hong Kong (2%), Japan (1%))
- Key Stakeholders: Supply-managed farmers associations (chicken, turkey, egg, broiler hatching egg, dairy), Canadian Pork Council, Canadian Cattlemen’s Association
Food and Beverage Processing
- GDP Contribution: $35.2 billion
- Employment: 322,600 jobs
Processing Details
- Sales: $167.5 billion
- Establishments with Employees: 8,730
- Exports: $56.4 billion (Top markets: United States (80%), China (6%), Japan (3%))
- Key Stakeholders: Dairy Processors Association of Canada, Canadian Poultry and Egg Processors Council, Food and Beverage Canada
Top Agricultural Commodities by Province (2019-2023 Average Farm Cash Receipts)
Detailed information on the top three crop and livestock commodities by average farm cash receipts from 2019-2023 for each province is available through government resources and industry publications. This data provides valuable insights into regional agricultural strengths and specializations across Canada. For brevity, this detailed breakdown is not included here but is readily available online.
Food and Beverage Processing in Canada
The food and beverage processing sector, transforming raw materials into finished products, holds significant economic weight:
- Manufacturing GDP: 16.5%
- Manufacturing Jobs: 17.8%
- Total Sales (2023): $167.5 billion
While facilities are distributed across the country, Ontario and Quebec house the majority. Key industries include meat product manufacturing (25.5%), grain and oilseed milling (12.7%), dairy product manufacturing (10.9%), and bakeries and tortilla processing (10.6%).
International Trade and the Domestic Market
Canada’s agricultural success relies heavily on international trade. As a leading global food exporter, Canada exported nearly $99.1 billion in agricultural and food products in 2023. The United States is Canada’s primary trading partner, representing approximately 60% of agri-food exports and over half of imports. China holds the second position, with exports increasing by 112% since 2012.
The domestic market is equally crucial. In 2023, Canadians spent $198 billion on food, beverage, tobacco, and cannabis products, making it the third-largest household expenditure category after shelter and transportation.
Sustainable Economic Growth in Canadian Agriculture
Canada possesses several advantages positioning it for leadership in food production and processing:
- Abundant Resources: Ample land and water resources.
- Market Access: Strong connections to international markets.
- Research and Development: Robust research and development capabilities.
- Global Reputation: Recognized as a trusted supplier of safe, high-quality food.
- Environmental Stewardship: Strong commitment to sustainable land management practices.
Canadian agriculture and agri-food hold immense economic growth potential. Capitalizing on these key advantages and addressing emerging opportunities will ensure the sector’s competitiveness, sustainability, resilience, and prosperity for the future. Growing global demand for the types of food Canada produces, coupled with a reputation for environmental responsibility, creates a promising outlook for the sector’s continued growth.