Canada’s agri-food sector is a significant contributor to its GDP, generating over $150 billion annually (and with over $100 billion exported). A wide variety of commodity crops, oilseeds, livestock, fish and seafood, orchards, and greenhouse-grown crops comprise the highly diverse Canadian agricultural sector. Food and beverage processors, distributors, and retailers also contribute significantly to the economy as value chain partners.
The U.S. market – where over 60% of Canada’s agricultural exports go annually – is now a significant risk for Canadian farmers and processors. This reliance, along with the growth of other agricultural nations such as Brazil and Australia, has reduced Canadian market share and made the industry less competitive globally. Extreme weather-related events, labour shortages (compounded by an aging workforce and a lack of succession planning), rising input costs, land-use conflicts, and regulatory barriers to growth also pose significant risks for the Canadian agri-food sector.
Although challenging, these risks do represent significant opportunities for international companies offering agricultural technology solutions, as well as training and adoption services. Emerging technologies (such as controlled environment systems, data aggregation platforms, sensors, robotics and autonomous farming, and cellular agriculture) are now driving tremendous sector growth. Integrating innovative technologies can help producers reduce inputs (including fertilizer, water, and herbicides) and, with automation, decrease the need for labour. However, technological adoption varies significantly between large operators (who have greater financial resources and access to skilled labour), and smaller ones that struggle with adoption. Other major opportunities lies in technologies and solutions that improve soil health, enhance carbon sequestration, support climate-resilient crop development, and eliminate food waste.
The need for more sustainable agricultural systems has been identified by the Canadian federal government. In 2023 it introduced the Sustainable Canadian Agricultural Partnership (Sustainable CAP), a $3.5-billion, 5-year agreement running until March 31, 2028. This cost-shared program between the federal and provincial governments looks to address key challenges in the agriculture industry.
While the agri-food system is a key contributor to the Canadian economy and GDP, continued innovation and international collaboration are required to keep Canadian food producers, processors, and distributors globally competitive.
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