The AgriPost
Agriculture Key Driver to Canada’s Economy
Changing market conditions and consumer demand have led to more variety in farm types, technological advancements, crop mix and livestock Photo by Les Kletke herd size.
By Elmer Heinrichs The Canadian agricultural sector continues to show economic growth, contributing to Canada’s strong economic performance, according to a fall economic statement released by Agriculture and Agri-Food Canada (AAFC). In its annual report AAFC pointed out that, the agriculture and agri-food sector provides one in eight jobs and accounts for more than six percent of Canada’s gross domestic product (GDP). For 2016, the AAFC provided a summary of the economic performance of the sector, including key changes in the Canadian
agricultural landscape. Trends in Canadian agriculture show agriculture evolving in response to challenges, opportunities and market developments however the contribution of agriculture to the Canadian economy has grown and is likely to continue increasing. Agricultural sales and farm incomes are currently at record highs and Canada continues to be one of the world’s largest exporters of agricultural commodities. Changing market conditions and consumer demand have led to more variety in farm types, technological advancements, crop mix and livestock herd size. Adoption of innovation by the sector has con-
tributed to increases in output and productivity. In primary agriculture farm market receipts remained at a record high of $57.6 billion in 2016 growing by 5.8% per year, on average, between 1971 and 2016, driven by grain and oilseed receipts, which increased by 6.5% annually on average over the same period. In addition, for 2016, net farm operating expenses dropped to $44.2 billion, a decrease of 0.9% from the previous year. This was the first decline in six years driven by lower fertilizer, machinery fuel and cattle prices. In 2015, the average net worth per farm was $2.8 million, an all-time high.
The report concluded that in 2016 the sector maintained its position as a key driver of the Canadian economy, generating $111.9 billion of GDP, employing 2.3 million people and achieving values of $62.6 billion for agriculture, agri-food and seafood exports. Canada has the best farmers and food processors in the world, said Federal Agriculture Minister Lawrence MacAulay. “We are a global leader in agricultural production, and the sector is of great importance to our economy, our trade and our jobs.” “This is why the government of Canada has targeted agri-food as key to Canada’s path to prosperity, and to helping strengthen the middle class,” added MacAulay.
November 24, 2017
New Crop Missions Set to Meet with International Wheat Buyers Each fall, after the Canadian grain harvest, international buyers are eager to receive information about the quality and end-use characteristics of Canadian grains available for export. This year, the wheat crop quality is outstanding and New Crop Missions is preparing to share this information with Canada and the world through a series of meetings and seminars. The 2017 New Crop Missions delegation is comprised of representatives of the entire value chain from farmer to exporter, including scientists and representatives from Cereals Canada, the Canadian International Grains Institute and the Canadian Grain Commission. Over the course of the next two months, delegation members will be meeting with customers from around the world to answer their questions about the 2017 Canadian wheat crop, such as baking and milling characteristics. Feedback will also be gathered from customers to ensure that the Canadian grain industry will continue to meet and exceed customers’ expectations for years to come. “Listening, as well as providing information and support to Canadian customers around the world, is the main focus of the New Crop Missions,” explained Cam Dahl President, Cereals Canada. “During a year that is marked by high quality, it is still important to be there for our customers. The seminars provide a window of opportunity for customers to talk directly with the entire Canadian value chain, which then in turn has an impact on areas like research and innovation.” By engaging directly with international buyers, New Crop Missions contribute to ensuring the continued marketability of Canadian grains and maintaining Canada’s international reputation for being a safe and consistent source of grain. “The new crop seminars provide a unique opportunity for face-to-face engagement with customers from many countries worldwide within a short period of time. Conveying technical information on crop quality and end-use functionality in an open forum not only helps build trust with customers but ultimately facilitates ongoing two-way communication and a close working relationship with them on behalf of the Canadian industry,” said JoAnne Buth CEO, Canadian International Grains Institute.