CANADA’S
AGRICULTURE, FOOD AND BEVERAGE
INDUSTRY
Canadian agriculture: A Growing Sector
As the second largest country in the world, Canada has the crucial ingredients for leading the world’s agriculture trade: a clean environment, temperate climate, plentiful natural resources, a strong economy, and high standards for food inspection and regulation.
Canada’s agriculture and agri-food sector is a robust industry that contributes to the economy and quality of life of all Canadians. The third largest employer, it is one of the country’s top five industries and accounts for about 8.3 % of the Canadian Gross Domestic Product. And while it is one of the oldest sectors of the economy, deeply rooted in Canadian history and culture, it has also become one of the most dynamic and innovative industries in Canada.
Canada’s Commitment: Food Safety and Innovation
Canada’s agriculture, food and beverage sector has a reliable, cost-effective and flexible business environment, one that adapts product formulations quickly to meet the needs of buyers, and provides access to abundant supplies of the highest-quality ingredients in the world. All these factors have created an environment that is a catalyst for rapid growth resulting in unequalled value.
But what really makes Canada’s agriculture, food and beverage sector excel internationally is its ability to meet the changing demands of food consumers.
In Canada, government is working with industry to build a new architecture for agricultural policy to ensure the sector success into 21 century. The objective is to make Canada the world leader in food safety, innovation and environmentally responsible production.
Fool Speed Ahead
The Canadian agriculture and food industry shows no sign of slowing down. In fact, Canada is now considered the investors’ gateway to the vast North American Free Trade Agreement market, featuring a skilled and educated workforce, the lowest business costs in North America and a world-renowned network of R&D clusters. The Government of Canada has helped to improve access to markets as diverse as the United States, Mexico, Europe, Puerto Rico, Korea and South Africa.
All this is supported by Canada’s transportation infrastructure – one of the most efficient in the world – that takes advantage of Atlantic, Pacific and Arctic ports, nine major international airports and more than 150 Canada – US border crossings.
With so many advantages, Canada is well positioned to capitalize on further trade liberalization through its active participation in multilateral trade and investment negotiations, including the World Trade Organization, the Free Trade Area of the Americas, the Asia Pacific Economic Cooperation, and the European Free Trade Association.
Planting Seeds Around the World
The sector is continuously growing. In the past decade alone, total export have doubled and exports of processed food products have more than tripled, now exceeding those of primary food products. Canada exports a wide range of products to more than 200 trading partners around the world.
In 2000, the total value of Canada’s agri-food exports was a record $23.4 billion, amounting to 6.1% of total merchandise exports.
Value added and processed goods, together with prime-quality meats, live animals, bulk grains, oilseeds and vegetables are Canada’s top agricultural exports. Other important export foods are milk products; fish and seafood; maple syrup and honey; organic, natural and health foods; confectionaries and beverages.
Turning Innovative Science into Innovative Products
For all sector stakeholders – from primary producers to value – added processors – operating in an increasingly global marketplace requires advanced technology and the latest scientific Knowledge that addresses increasingly sophisticated consumer demands.
Canada has internationally recognized expertise in a wide range of scientific and technical areas, including processing and packaging technologies, biotechnology and genomics, and environmental impact. Researchers from federal, provincial and university organizations provide the agriculture and food industry with the Knowledge, active and technology it needs to achieve a balance among economic, social and environmental interests.
Agricultural research has also helped develop farm practices that reduce erosion, use fertilizers and pesticides more efficiently, and provide better ways to manage manure. All this has resulted in cleaner air, water and soil.
Investors’ Gateway
The Canadian agriculture and agri-food sector is known as one of the most dynamic and innovative agriculture industries in the world, featuring top-notch management, cutting-edge research, and well-established, predictable regulatory systems.
Canada is increasingly becoming the number one choice for foreign partners and investors. Trade liberalization has resulted in an unprecedented capacity for expansion and innovation, and has made Canada the investors’ gateway to the vast NAFTA market and beyond. In addition to access to cost effective, cutting-edge agri-food research, international investors have access to the most favorable tax treatment in the world and highly developed food products and packaging.
Fresh Approach to Food Quality and Safety
Canada’s food inspection system is internationally recognized as being among the best in the world – both in terms of ensuring food safety and quality, and in providing a trade – friendly environment. Consumers are more aware of food security, safety and quality, and are demanding more information about how their food is produced. More than ever, consumers want to know that their food is safe and that it has been produced in an environmentally responsible manner.
In Canada, government and industry are working together to establish national food safety systems that will track food from its origins on the farm all the way to the grocery shelf. These will include on-farm food safety systems that protect consumers against food – borne pathogens, and food documentation that gives consumers greater confidence in what they buy and eat. Moreover, widespread adoption of environmentally sensitive production practices, measurable targets, indicators and timetables will provide consumers with the transparency and information they need to feel even more confident in Canadian agricultural products.
Canada’s Red Meat Industry
Canada’s red meat and meat products industry includes beef, pork and lamb, but also venison and bison. With annual shipments worth $11.3 billion in 2000, it is the largest sector of the Canadian food manufacturing industry.
Canada’s meat processing companies make a wide variety of meat products, ranging from fresh or frozen meat to processed, smoked, canned and cooked meats, as well as sausage and deli meats. About 70% of processed meats in Canada, such as sausages or cold cuts, are made with pork.
The high quality and consistent safety of Canadian red meat and meat products is well established in many countries. The Canadian food Inspection Agency works with the industry to maintain and enhance this reputation. The CFIA inspects imports and federally registered establishments that produce processed meats and ready - to - eat products to verify compliance with food safety regulations.
In 2005, Canada exported 446,288 tonnes of beef and beef products valued at $1.9 billion, mainly to the United States and Japan but also to Mexico, South Korea, Taiwan and Hong Kong.
19.4 million pigs went to market. Almost one quarter of these went to the United States as live pigs, while the rest were sent to 100 slaughtering plants in Canada.
Pork exports increased to 635.116 tonnes. Sales to the United States increased 21% to 348.423 tonns while sales to Japan rose 37% to 114.962 tonnes. Processed pork sales totaled an estimated 76.473 tonnes, with the United States being the dominant purchaser, followed by Japan, Cuba and Russia.
The cattle sector is concentrated in Alberta (40% of total inventory), while sheep production is located mostly in Alberta, Ontario and Quebec (70%).
The bison sector has experienced continued growth since 1994; this growth is expected to continue.
Canada’s Poultry Industry
Canada’s poultry industry is diverse, efficient and competitive. It includes chicken and turkey meat and edible by-products, as well as ducks and geese. Increasingly, the industry has been turning to less traditional birds. For example, ostriches, emus and rheas are raised for their red colored meat, their hide and feathers, and their oils (used in the cosmetics industry).
Game birds such as pheasant, partridge, guinea fowl, quail and squab are also raised commercially in Canada. This sector is well established and growing, and exports of these birds are small but consistent.
In addition to the almost 5,000 commercial poultry and egg producers in Canada, there are a large number of businesses associated with these production activities: 109 hatcheries, 119 feed manufacturers, 82 feed supplement suppliers and 44 drug suppliers.
Poultry production and processing are among the most highly mechanized sectors in agriculture. One person can operate a unit of 50,000 broiler chickens, which, with seven lots per year, will provide 640 tonnes of meat annually. Poultry processing plants in Canada are effectively mechanized, which allows them to slaughter and prepare 25,000 broiler chickens for market per hour.
Getting the birds from the producer to the grocery store requires coordination and cooperation among producers, provincial and federal governments, inspectors, processors and distributors. A well organized supply management system helps in this regard. Three poultry producers’ organizations – the Chicken Farmers of Canada, the Canadian Turkey Marketing Agency, and the Canadian Broiler Hatching Egg Marketing Agency – enable producers to receive their cost of production plus a reasonable rate of return on their investment while ensuring that consumers have a constant supply at stable prices.
Canada’s Egg Industry
Each year in Canada, more than 24 million hens lay over 6.5 billion eggs. About 5.3 billion of these are sold as table eggs, while the rest are processed into liquid, frozen or dried form.
Over the years, a combination of research, innovation, regulation, equipment and technology have guided the development of the egg processing industry in Canada. Canadian egg products are now recognized internationally for their superior quality.
The most popular breed of chicken for egg production in Canada is the White Leghorn. The average Canadian flock size is 16,000 hens, but five farms in Canada have flocks larger than 100,000 hens. The average laying hen produces about 285 eggs per year.
As demand for easy-to-use ingredients has increased, the processed egg industry has expanded steadily. Exports of processed eggs and the number of countries they are shipped to have more than doubled. Only a few preserved shell eggs are exported.
Egg processing includes the production of whole egg, albumen and egg yolks in frozen, dried or liquid form. Processed eggs are used in the manufacturing of many foods, including mayonnaise, noodles and baked goods. They are also used to make other items such as shampoo, pet foods and adhesives.
Important biochemical are also derived from eggs, including avidin and ovomucoid, two highly purified proteins used in various tests for drugs such as cocaine and marijuana in blood and urine. In addition, ovalbumin are used in geriatric feeding formulas.
Canada’s Dairy Industry
Canadian milk and dairy products are recognized internationally for their superior quality. Strict quality standards at both the farm and processing levels contribute to this reputation.
Next to grains and livestock, dairy is Canada’s most important agriculture sector, with net farm cash receipts of $4.1 billion in 2000. Nearly 26,000 people work on dairy farms and more than 20,000 others work at the primary processing level.
Canada exports higher-value dairy products such as aged cheddar cheese, some of the finest specialty cheeses, ice-cream and dairy beverages to traditional and new markets. Canada also exports easily stored products such as butter. Milk powders, and condensed and evaporated milk to developing countries.
The Canadian dairy sector has developed a cattle population of the highest genetic level in the world. This is based on strong milk recording and genetic evaluation programs, which have been in place in Canada since 1905. Canadian dairy cattle, recognized for their ability to produce high quantities of milk over much lactations, are exported to more than 50 countries. Exports of Canadian dairy genetic material are valued at more than $128 million annually. Canada is free of all major cattle diseases, mostly due to its strict standards for disease control, which is the responsibility of the Canadian Food Inspection Agency.
The industry has excellent research and development capabilities, both at the production and processing levels. Impressive research facilities contribute to the long-term competitiveness of the sector – as well as the safety and quality of dairy products – through the development and transfer of innovative technologies.
Canada’s dairy sector functions under a supply management policy framework. This orderly marketing system is designed to encourage the production of sufficient volumes of industrial milk and cream to meet domestic demand for dairy products as well as certain planned exports.
Canada’s Fish and Seafood Industry
Canada is one of the foremost maritime nations in the world. Surrounded by the Arctic, Atlantic and Pacific Oceans and home to the Great Lakes, Canada boasts the world’s longest coastline. With more than 755,000 km of freshwater, Canada has 16 % of the world’s area of freshwater and 4 of the 14 largest lakes in the world.
Canada has one of the world’s most valuable commercial fishing industries, worth almost $5billion a year. The safety and high quality of Canadian fish and seafood products are recognized in more than 80 countries. Canada exports over 75% of its fish and seafood production.
Canada exported 495,976 tonnes of seafood and seafood products valued at more than $4billion in 2000. Most of this went to the United States, followed by Japan and the European Union. Canada imported $2.08 billion worth of fish and seafood products, resulting in a trade surplus of nearly $2billion. Almost 32% of the volume of imports were products not for human consumption, mostly meal used in the manufacture of livestock and fish feed.
Both segments of this industry – the capture fishing industry and aquaculture – operate in three broad regions (Atlantic, Pacific and freshwater). In 2000, the capture fishing industry had total landings of more than $2 billion. By volume, the Atlantic fishery accounted for 82% of total landings, the Pacific fishery for 14%, and the freshwater fishery for 4%.
Aquaculture production is becoming increasingly important in Canada. In 2000, aquaculture industries produced 124,000 tonnes of fish and shellfish worth a record $611.6 million, and accounted for 10% of the total Canadian production of fish and shellfish.
In addition, Fisheries and Oceans Canada has worked to secure the future of Canada’s wild fisheries by initiating conservative management practices that focus on sustainable development and responsible fishing.
Canada’s Vegetable Industry
Canada’s varied climate has created unique opportunities for innovation and technological advances that are helping to ensure a ready of fresh vegetables year-round.
Those innovations include a thriving greenhouse subsector and some of the most advanced storage technologies in the world. Canadian researchers are also looking at ways to improve packaging that will help extend shelf life and expand markets. Plastics that allow air to circulate while retaining moisture are already in use, and the development of environmentally friendly plastic is a key component of current research.
There are about 16,500 vegetable growers in Canada producing close to 7 million tones of vegetables worth almost $2 billion each year. Twenty per cent of these growers supply an estimated 80 per cent of Canada’s production. Indoor production facilities across Canada ensured a regular supply of fresh mushrooms, producing 73,000 tonnes.
Canadian producers continue to improve production, product quality and marketing efforts to remain competitive in world markets and to continue export growth. Canadian scientists are studying the potential for introducing new vegetable varieties to Canada with characteristics that address risks to production, enhance freshness, facilitate economic diversification and that are adapted to specific regional growing conditions.
During the past five years, the volume of exports of fresh vegetables has grown at a rate of 31 per cent per year to reach 347,000 tonnes, mostly in greenhouse vegetables and mushrooms.
Pesticide use in Canada is significantly lower than in many other countries, due in part to cooler northern climate, and Canadian producers are using integrated pest management programs under which pest populations are monitored and the use of pesticides is precisely timed to maximize effect and minimize use.
Canada’s Fruit Industry
Canada is world leader in producing, storing and processing a wide variety of fruits in innovative and environmentally responsible ways. Increased consumer awareness of the health benefits of eating fruits and vegetables has contributed to an increase in consumption in recent years.
Fruit have a variety of end uses. They can be enjoyed fresh or processed for use as juice, sauces, wines, ciders, dried fruit or jams and jellies. Fruits can be dried, canned or frozen for preservation. Many are used by the bakery trade and by ice cream and yogurt manufacturers.
Many fruits are also used in flavorings, oils, dyes and cosmetics.
There are about 16,300 fruit growers in Canada about 20% of these growers account for 80% of Canada’s production. Apples by far account for the largest production, followed by blueberries, grapes, cranberries, peaches, strawberries and raspberries.
The Canadian fruit industry has adapted to Canada’s cool northern climate and short growing season. It has become a world leader in improving farm management and storage techniques. Canadian apples, for example, can be supplied virtually year-round using controlled atmosphere storage.
As well, Canadian scientists continually develop and enhance technology such as plant breeding to maximize production. In the last decade, a number of new fruit varieties and production techniques have been adapted to the Canadian climate. For example, Viniferous grapes, used in wine making, are doing very well and, as a result, have created a boom in the Canadian wine industry. New varieties of peaches, cherries, blueberries, raspberries, strawberries, Kiwis, blackberries have also been developed through breeding programs.
Most fresh fruit is handpicked to reduce bruising. However, sour cherries, blueberries, grapes and cranberries are harvested mechanically.
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