Overview of the agriculture and agri-food sector: deputy minister transition book 2024, AAFC

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Canadian agriculture and agri-food system

The agriculture and agri-food system touches all Canadians and communities in Canada.

Key players in this system include:

Producers/primary agriculture
Processors
Food retailers and wholesalers
Foodservice providers

In 2023, gross domestic product (GDP) and employment for key players in the agriculture and agri-food system was broken down as follows:

	GDP ($ billions)	Percentage of total GDP (%)	Employment
Primary agriculture	31.7	1.4	247,200
Food and beverage processing	35.2	1.6	322,600
Food retail and wholesale	36.9	1.7	659,800
Foodservice	30.5	1.4	971,100
Total	134.3	6.1	2,200,700

These players are part of a broader supply chain, which includes:

Input and service suppliers
Transportation providers
Consumers, at home and abroad

Primary agriculture

Canada has over 62 million hectares (154 million acres) of agricultural land concentrated primarily across the Prairies, Quebec and Southern Ontario.

Between 2019 and 2023, the three prairie provinces accounted for an average of 55.3% of total cash receipts, including 60.8% of crop receipts and 44.5% livestock receipts.

Some provinces are more diversified than others. Primary agriculture's contribution to provincial GDP varies across Canada.

Top 10 commodities by average farm cash receipts (2019 to 2023)

Contribution of primary agriculture to provincial gross domestic product, 2023

Most Canadian producers have seen solid growth over the past decade

Farm market receipts grew 5.8% annually (between 2013 and 2023) and reached a record high of $93.0 billion in 2023.
The largest value growth came from grains and oilseeds, which at $36.2 billion accounted for 39% of total farm market receipts in 2023.

Farm market receipts ($ billion), 2023

For primary agriculture, despite the challenges of COVID-19, rising input prices and climate variability such as drought conditions in the West, net cash income (NCI) has increased since 2018, reaching $24.9 billion in 2023, as growth in receipts has generally exceeded that of expenses.

Net cash income, Canada, 2004 to 2023

Food and beverage processing

The food and beverage processing sector is the largest manufacturing sector in Canada in terms of both GDP and employment. Over 8,000 food processing and beverage businesses provide direct jobs for over 322,600 Canadians, employing more Canadians than the entire transportation equipment manufacturing sector.

The processing sector uses 42% of Canada's primary production and supplies 75% of all processed food and beverage products in Canada.

In 2022, 95% of food and beverage processing establishments were small operations (0 to 99 employees) with little variation across sub-industries. Processing plants are located across the country but primarily located in Ontario, Quebec and British Columbia, which account for 77% of total food and beverage processing establishments.

Canadian food, beverage and tobacco (FBT) processing sales and processing exports, 2012-2023

Distribution of food and beverage processing shipments by sub-industry in 2023

Sub-industry	Distribution (%)
Meat	25.5
Grain and oilseed milling	12.7
Dairy	10.9
Other food	10.7
Bakeries and tortilla	10.6
Beverage	9.4
Animal food	6.6
Fruit, vegetable and specialty	6.5
Seafood product preparation and packaging	3.6
Sugar and confectionery processing	3.4

Wholesalers, food retail and foodservice

Wholesale is divided into farm products and food, beverage and tobacco products

In 2023, sales of farm products at wholesale reached over $37 billion, while food, beverage and tobacco products at wholesale dropped slightly to $127 billion in sales, a year-over-year decrease of 1%.

The Canadian food retail sector is highly concentrated

Large chains dominate in each region of Canada.
The top three traditional food retailers (Loblaws, Sobeys and Metro) and the top two general merchandise retailers (Walmart and Costco) accounted for about 74% of total grocery sales in 2021.
Independents (for example, cooperatives and single stores) are most common in Western Canada and Ontario but are still outnumbered by the large chains.
Smaller retailers tend to serve remote and northern communities (for example, co-ops).

Foodservice sales have been impacted by COVID-19 in recent years

In 2023, total foodservice sales reached $93 billion, up $10 billion from 2022, returning the sector to the long-term growth trends prior to the COVID-19 pandemic.
Limited-service or quick-serve (for example, take-out) eating places, represented $42 billion in sales, up 11% from 2022. Limited-service sales were least affected by the pandemic and recovered fastest.
Sales at full-service restaurants ($40 billion) and special food services ($7 billion), which includes caterers and mobile food services, were up 12% and 21%, respectively, from 2022.

Distribution of foodservice sales by industry, 2023

Industry	Distribution (%)
Full-service	44
Limited-service	46
Special food services	8
Drinking places	3
Source: Statistics Canada, Table 21-10-0019-01

Food price inflation outpaced overall inflation in 2023

The Consumer Price Index (CPI) rose 3.9% on an annual average basis in 2023, following gains of 6.8% in 2022 and of 3.4% in 2021. The increase in 2022 was a 40-year high, the largest increase since 1982 (+10.9%).

The cost of food purchased from stores (groceries) increased 22% between 2021 and 2023. In 2022, grocery prices rose at the fastest pace (9.8%) since 1981 (+12.0%).

Canada wide grocery price increases are slowing, increasing slower than headline inflation in April for the third month in a row. Grocery prices increased 1.4% and economy wide prices increased 2.7% respectively between April 2023 and April 2024, compared to 1.9% and 2.9% increase in March 2024.

Consumer price inflation, year-over-year percentage change, 1962 to 2023

Year-over-year food price inflation, select categories

Category	Average year-over-year percentage change 2000 to 2019 (pre-COVID)	2021 (%)	2022 (%)	2023 (%)
Edible fats and oils	2	10	25	17
Condiments, spices and vinegars	1	5	15	9
Cereal products	2	0	14	10
Coffee and tea	1	1	12	7
Bakery products	3	1	11	11
Eggs	3	6	11	7
Fresh fruit	2	3	10	6
Dairy products	2	3	9	7
Fresh vegetables	3	-3	8	8
Preserved vegetables and vegetable preparations	2	1	12	12
Fresh or frozen poultry	3	6	7	9
Food purchased from stores	2	2	10	8

The sector has remained resilient in the face of climate instability, increasing expenses and geopolitical instability

The pandemic brought many challenges, both to the economy in generally and the agriculture sector as supply chains were disrupted, but economic performance for primary agriculture was nonetheless strong, with NCI in 2020 reaching a new record (at the time), as well as record grain production which has not since been exceeded.

In 2021, with a significant drought in Western Canada, and the drought situation in July/August 2021, this represented the largest and most severe drought conditions in the last 70 years. Expenses also saw a large increase of 9.5% due to supply chain disruption and increased demand from increased economic activity. Despite these challenges, sharply higher grains prices more than offset the production declines, which combined with higher program payments lead to a new record in NCI.

New challenges were seen in 2022, as Russia began its war against Ukraine which caused a significant shock to commodity markets, driving an even more significant increase in overall expenses of 19.4%, on top of what was already seen. General inflation in Canada also peaked in 2022. At the same time, grain prices saw a significant increase. This, in conjunction with higher cattle prices and strong program payments, led to a further increase in NCI to a new record.

Some stability returned in 2023 as key expenses, including fuel and fertilizer saw declines, although others, such as interest expenses, saw further increases. Grain prices fell and drought also impacted production in Western Canada, but not to the same extent as was seen in 2021, while cattle prices continued to increase. While both overall receipts and expenses saw much more modest growth compared to 2021 and 2022, NCI still increased 11% to reach a significant new record of $24.9 billion.

Positioning the system for sustainable economic growth

Canada has some key advantages that can help make it a leader in food production and processing:

Abundant land and water resources
Access to international markets
Strong research and development capacity
Strong global reputation as a trusted supplier of safe, top-quality food
Strong stewards of the land

Targeted action moving forward can help the system continue to capitalize on opportunities well into the next decade and beyond.

There is an opportunity to draw on lessons learned from the pandemic and capitalize on the strengths of the Canadian agriculture and agri-food system that were recognized before and still remain:
- Canada's Economic Strategy Tables and the Royal Bank of Canada's Farmer 4.0: agriculture could add as much as $11 billion to Canada's GDP by 2030.
Over $1.5 billion in recent funding to environmental and climate change programming will boost Canada's capacity for sustainable production.
- Agricultural Climate Solutions, Agricultural Clean Technology, the Resilient Agricultural Landscapes Program and cost-shared agri-environmental programming.

Canada remains a competitive global force – strong and growing

From 2013 to 2023, exports of Canadian agriculture, agri-food and seafood products increased by 97.0%, reaching a record high of $99 billion in 2023.

In 2023, Canada was ranked the eighth-largest exporter of agriculture, agri-food and seafood products in the world, after the U.S., Brazil, the Netherlands, Germany, China, France and Spain.

Exports of agricultural and agri-food commodities are projected to drop slightly over the short term as commodity prices are expected to decline from their current historical peaks. But steady growth is expected to resume over the medium term.

The total value of agriculture and agri-food exports, including fish and seafood, is projected to reach $117 billion by 2033.

Canadian exports of agricultural and agri-food commodities

Continued growth will require overcoming challenges and seizing opportunities

Challenges include

Effects of climate change with severe weather events (for example, drought, floods, fires) impacting production.
Volatility in global trade
Challenges securing labour
Taking greater efforts towards sustainability, including climate change mitigation and adaptation
Need for sustained investment in agricultural research, combined with adoption of emerging technology
Strained retailer-supplier relationship
Potential negative impact of animal disease outbreaks (such as African swine fever and avian influenza) on domestic production and trade
Impact of rapid food price inflation on food affordability for Canadians

Opportunities include

Taking advantage of free trade agreements and expanding into new markets
Regulatory agility to help the sector realize its growth potential
Development of safe new products and sustainable production systems can lead to competitive advantages (for example, seed varieties, plant-based proteins, vertical farming systems, biomaterials)
Increased demand for Canadian products by meeting consumer expectations for sustainability
Extracting more value from our primary agriculture production and support food processing in pursuing new or emerging opportunities to diversify their operations
A Grocery Code of Conduct is expected to improve transparency, predictability and fair dealing in supplier-retailer relationships, which will have positive effects across the supply chain and ultimately benefit consumers as well.

The agriculture and agri-food system holds great promise and potential

According to some analysts, agriculture and agri-food is one of the sectors with the highest economic growth potential in Canada.
Canada's key advantages can make us a leader in sustainable food production and processing.
Demand is growing for the kinds of food that Canadian producers and processors can deliver.
Canada's reputation for environmental stewardship can lead to increased demand/price for its products.
Opportunity for Canadian agriculture to make a significant contribution to meeting Canada's climate goals and contribute to more globally sustainable agriculture.

Taking advantage of these key opportunities will ensure the system is competitive, sustainable, resilient and prosperous well into the future.

Snapshot of the sector

Agriculture and agri-food is a major contributor to the Canadian economy.

Agriculture and Agri-Food Canada (AAFC) is mandated to support primary agriculture and food and beverage processing, but the sector reaches into the broader agri-food system, which influences other service sectors across the food supply-chain.

The agriculture and agri-food system (2023 data, current as of May 31, 2024)

Primary agriculture

Gross domestic product (GDP): $31.7 billion (1.4%)
Employment: 247,200

Food and beverage processing

GDP: $35.2 billion (1.6%)
Employment: 322,600

Food retail and wholesale

GDP: $36.9 billion (1.7%)
Employment: 659,800

Foodservice

GDP: $30.5 billion (1.4%)
Employment: 971,100

Inputs and service suppliers

GDP: $15.7 billion (0.7%)
Employment: 93,700

In 2023, the primary agriculture and food and beverage processing sectors

Employed 569,800 people
Accounted for 3.0% of Canada's GDP
Provided 1 in 35 jobs in Canada

Primary agriculture

An economic driver that is highly diversified across the country

189,874 farms
Farms cover 62.2 million hectares or 6.3% of Canada's land area
Concentrated across the Prairies, Quebec and Southern Ontario
Average farm size doubled over the last 50 years due to increased consolidation and technological advances

Farm market receipts ($ billion)

A record high of $93.0 billion in 2023
5.8% average annual growth rate from 2013-2023
Largest 10% of farms generate over two-thirds of all revenues

Food and beverage processing

Largest manufacturing industry in Canada

16.5% of all manufacturing GDP
17.8% of manufacturing employment (agri-food)

Facilities across the country, but most are in Ontario and Quebec

Food and beverage processing sales totalled $166.6 billion in 2023

Main industries^{Note 1}

Meat product manufacturing: (25.6%) $42.7 billion
Dairy product manufacturing: (10.9%) $18.2 billion
Grain and oilseed milling: (12.8%) $21.3 billion
Bakeries and tortilla processing: (10.7%) $17.8 billion

Snapshot of sector commodity breakdown

Crop production

2023 Gross domestic product (GDP): $24.5 billion

Employment: 114,800

Principal field crops (wheat, canola, soybean, barley, oats, peas, lentils, corn, etc.)

Farm market receipts: $40.0 billion
Export: $29.1 billion
Number of reporting farms: 65,135^{Note 2}
Top exports: Wheat (41%), oilseeds except soybean (23%), dry peas and beans (16%)
Top export markets: China (25%), United States (12%), Japan (8%)

Key crop production stakeholders

Canada Grains Council
Cereals Canada
Grain Growers of Canada

Horticulture

Farm market receipts: $8.6 billion
Export: $4.9 billion
Number of reporting farms: 17,433^{Note 2}
Top exports: Greenhouse products (43%), vegetables and melons (27%), nursery and floriculture (21%)
Top export markets: United States (97%), Netherlands (1.4%), Japan (0.3%)

Key horticulture stakeholders

Canadian Horticulture Council
Canadian Produce Marketing Association
Canadian Horticulture Alliance

Animal production (including aquaculture)

2023 GDP: $7.2 billion

Employment: 106,700

Farm market receipts: $37.3 billion
Export: $3.8 billion
Number of reporting farms: 76,796^{Note 2}
Top exports: Beef cattle (47%), animal aquaculture (23%), hogs and pigs (17%)
Top export markets: United States (94%), Hong Kong (2%), Japan (1%)

Key animal production stakeholders

Supply-managed farmers associations (for example, dairy and chicken)
Canadian Pork Council
Canadian Cattle Association

Food processing and beverage production

2023 GDP: $35.2 billion

Employment: 322,600

Estimated sales: $175.2 billion^{Note 3}
Export: $56.4 billion
Establishments with employees: 8,093
Top exports: Grain and oilseed milling (25%), meat processing (20%), bakeries (13%)
Top export markets: United States (80%), China (6%), Japan (3%)

Key food and beverage stakeholders

Food and Health Consumer Products of Canada
Food and Beverage Canada
Wine Growers of Canada
Canadian Meat Council

Top three crop and livestock commodities by average 2019-2023 farm cash receipts

British Columbia: Dairy ($731 million), vegetables ($656 million), floriculture, nursery and sod ($579 million)
Alberta: Cattle and calves ($6.3 billion), canola ($3.4 billion), wheat ($2.8 billion)
Saskatchewan: Canola ($6.3 billion), wheat ($4.5 billion), cattle and calves ($1.7 billion)
Manitoba: Canola ($1.9 billion), wheat ($1.5 billion), hogs ($1.3 billion)
Ontario: Dairy ($2.5 billion), vegetables ($2.4 billion), soybeans ($2.1 billion)
Quebec: Dairy ($2.8 billion), hogs ($1.7 billion), chickens ($876 million)
New Brunswick: Cannabis^{Note 4} ($272 million)^{Note 5}, potatoes ($197 million), dairy ($131 million)
Nova Scotia: Dairy ($164 million), fruit ($79 million), eggs ($49 million)
Prince Edward Island: Potatoes ($293 million), dairy ($98 million), cattle and calves ($37 million)
Newfoundland and Labrador: Dairy ($49 million), eggs ($21 million), floriculture, nursery and sod ($9 million)

Data current as of May 31, 2024.

Snapshot of agricultural trade and market access

Trade at a glance

Agriculture and Agri-Food Canada (AAFC) works to open new markets, capitalize on trade opportunities and promote science-based trade rules.

Canadian agri-food and seafood exports reached $99.1 billion in 2023, representing a 6.6% increase from $92.9 billion in 2022. Top five exported agricultural, agri-food and seafood products (2023):

Wheat and meslin ($11.9 billion)
Canola oil ($7.1 billion)
Various breads/pastry ($7.0 billion)
Canola seed ($6.0 billion)
Pulses ($4.7 billion)

Canada's position in the world

In 2023, the top five export destinations made up 83% of Canada's international trade, with 60.1% of exports destined to the United States. Top five export markets and their share of Canada's agricultural, agri-food and seafood exports (2023):

United States, 60.1%
China, 11.6%
Japan, 4.4%
European Union, 4.2%
Mexico, 2.7%

The sector is currently facing challenges pertaining to strong competition, non-tariff barriers, protectionist policies, as well as food safety and animal health risks. Furthermore, technological advancements, consumer demands (including those related to sustainability), labour, inflation, geopolitics, and upcoming elections create uncertainty for the trade and market access landscape.

Supporting trade

Maintaining, regaining and expanding market access while engaging in concerted market development efforts abroad remain priorities for Canada. AAFC, the Canadian Food Inspection Agency (CFIA) and Global Affairs Canada (GAC) work collaboratively with industry to advocate for science and risk-based measures that enable trade, address market access issues, and advance free trade agreement (FTA) negotiations.

AAFC is active at the World Trade Organization and other multilateral fora to advance and defend Canada's agricultural trade policy interests, including advocating for science-based regulations, negotiating new trade rules, and monitoring the implementation of commitments by Canada's trading partners to maintain open and predictable trade.

The AAFC Trade Commissioner Service augments GAC's Canadian presence abroad with dedicated agriculture and agri-food sector experts. AAFC Trade Commissioners provide direct support to Canadian agriculture and agri-food exporters and work collaboratively with GAC and the CFIA to resolve market access issues and contribute to advancements in trade policy; influence international technical trade-related discussions, policies and safeguards; and support Canadian agriculture and agri-food exporters to take advantage of opportunities in international markets.

International trade missions, trade shows, e-commerce, and the Canada Brand Program facilitate new business connections for exporters in key markets. AAFC provides Canadian exporters access to important international trade shows and market intelligence on how to get their products to global markets.

AgriMarketing is a 5-year ($129.97 million) AAFC program supporting industry-led promotional activities to expand and diversify Canadian exports in international markets where Canada has FTAs in place. The program is aligned with initiatives such as the Indo-Pacific Strategy.

The establishment of an Agriculture and Agri-Food Office in the Indo-Pacific region amplifies Canada's presence, fosters new partnerships and enables Canadian farmers, food processors and distributors to diversify their exports and maximize their business opportunities.

Market access and trade policy priorities

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Free trade agreements

Canada has 15 FTAs covering 51 countries, giving Canadian producers a competitive edge in two-thirds of the global economy. In 2023, more than three quarters (78.2% or $76 billion) of Canada's agricultural, agri-food and seafood exports were destined for countries where Canada has a trade agreement in place. Examples of regional FTAs include:

CUSMA
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP (between Canada and 10 other countries in the Indo-Pacific: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam)
The Canada-European Union Comprehensive Economic and Trade Agreement

Examples of bilateral FTAs include agreements with these markets:

Colombia
Costa Rica
Honduras
Israel
Jordan
Korea
Panama
United Kingdom

Canada has an active FTA agenda including three ongoing negotiations with Indonesia, the Association of South East Asian Nations (ASEAN), and Ecuador.

As of May 2024, Canada's negotiations that are paused or inactive include the: Canada-United Kingdom bilateral FTA, Canada-India Comprehensive Economic Partnership Agreement (CEPA), and the Canada-MERCOSUR FTA.

Agriculture and Agri-Food Canada's farm income forecast

Background

Agriculture and Agri-Food Canada (AAFC) conducts a forecast of farm income twice a year, in the summer (June-July – shared internally only) and winter (December-January – published on the AAFC website) to understand the key short-term economic trends in primary agriculture and how it impacts the farm income situation in Canada. The farm income forecast is a federal-provincial-territorial process, and AAFC works in collaboration with the provincial ministries of agriculture and Statistics Canada to develop estimates, which are then shared with these partners to support their own work.

The farm income forecast supports the forecast of business risk management program expenditures, and discussions between AAFC and the provincial ministries of agriculture by having an agreed upon economic outlook for the sector.

AAFC's most recent forecast was completed in January 2024, with estimates for 2023 (for which not all firm data had yet been compiled) and 2024. Since then, Statistics Canada has released final data 2023; therefore this note focuses on the Statistics Canada results for 2023 and AAFC's forecast for 2024.

Highlights of key results

2023 (Statistics Canada data)

National net cash income (NCI) increased 11.3% in 2023 to reach a new record of $24.9 billion, as growth in farm cash receipts, due to higher North American cattle prices and crop marketings, offset a modest gain in farm expenses. NCI is the main measure used by AAFC to look at farm income and is the difference between farm cash receipts (the sales of agricultural products as well as program payments), estimated to be $99.6 billion and cash expenses, estimated to be $74.6 billion.

Despite challenges in the agriculture sector in recent years, NCI has set consecutive records for every year from 2020 onward, and average NCI from 2018-2022 was $16.7 billion.

Generally speaking, most grain prices declined in 2023 as increased global production and competition from other parts of the world pushed prices down, while at the same time, the improved 2022 crop harvest pushed up 2023 grain marketings (quantities sold). The impact of higher marketings outweighed that of lower prices for 2023. Higher potato prices in 2023 supported potato receipts, despite flat potato marketings. Cattle prices increased significantly due to reductions in the North American cattle herd, and were also supported by strong demand.

Operating expenses in 2023 increased only 2.3%, a much less aggressive growth rate than what was seen in 2021 (+9.5%) and 2022 (+19.4%). Both fuel and fertilizer expenses saw notable declines in 2023, while interest expenses increased.

2024 (Agriculture and Agri-Food Canada forecast)

Based on information available as of December 2023, NCI in 2024 is forecast to fall to $21.3 billion in 2024. Declining crop receipts and only slight growth in livestock receipts are expected to result in lower overall receipts which, combined with a modest increase in expenses, is expected to result in lower NCI. This is due to the fact that prices for major grains are expected to continue falling and cattle prices are expected to grow much more slowly that in 2023. Despite this forecasted decline in NCI, 2024 would still be the fourth best year on record and well above the 2018-22 average.

Considerations

These results focus on the national picture, but there can be significant year-to-year variation by regions and farm types which is not captured by a single national statistic. For example, while 2023 was a record year nationally, most of the increase was driven by gains in the prairie provinces, in particular in Saskatchewan, while Quebec saw the largest decline. Several factors can influence the results, but they are often driven by regional differences in the production mix (commodity production is not uniform across the country) and growing conditions.

For example, in 2023, cattle and calves saw strong receipts growth of 26%, while hog receipts were down more than 10%, with both of these impacts being driven largely by price changes. Maple, which is a smaller but regionally important commodity in Quebec, saw a significant decline in production in 2023 due to poor harvest conditions, leading to a 39% decline in receipts.
Variation in inputs also matters, as 2023 saw a decline in fertilizer expenses of 19% after two years of sharp growth, benefiting crop producers. At the same time livestock purchase expenses increased by 37%, creating challenges for some livestock producers. Interest expenses increased 39%, and while higher rates can impact all farms the significance of those impacts would vary.

These factors combine in various ways to produce different outcomes by province and farm type, and also vary from one year to the next.

The forecast for 2024 is subject to many unknowns at this point, with two of the main uncertainties being growing conditions and the geopolitical situation:

Much of Western Canada was in drought throughout the winter, although recent precipitation has improved the situation in many areas. Nevertheless, there is still much uncertainty as to how the growing season will unfold and to the size and quality of the crop come harvest time.
Geopolitical uncertainty is another factor which has had a significant impact on commodity markets in recent years, in particular the Russia-Ukraine war as well as the conflict in the Middle East. While markets are more stable now than compared to 2022, unexpected developments could increase price volatility and impact the farm income situation in Canada.

AAFC is currently working on developing its summer farm income forecast, which will provide an updated outlook for 2024 and a first look at 2025, based on current market conditions. The forecast is expected to be completed in July and the results will be shared internally shortly after that. Given that market conditions have changed since December, differences between these reported figures for 2024 and those to come are expected, although it is too early to say to what extent.

Overview of the agriculture and agri-food sector: deputy minister transition book 2024, AAFC

Canadian agriculture and agri-food system

Primary agriculture

Top 10 commodities by average farm cash receipts (2019 to 2023)

Contribution of primary agriculture to provincial gross domestic product, 2023

Most Canadian producers have seen solid growth over the past decade

Farm market receipts ($ billion), 2023

Net cash income, Canada, 2004 to 2023

Food and beverage processing

Canadian food, beverage and tobacco (FBT) processing sales and processing exports, 2012-2023

Distribution of food and beverage processing shipments by sub-industry in 2023

Wholesalers, food retail and foodservice

Wholesale is divided into farm products and food, beverage and tobacco products

The Canadian food retail sector is highly concentrated

Foodservice sales have been impacted by COVID-19 in recent years

Distribution of foodservice sales by industry, 2023

Food price inflation outpaced overall inflation in 2023

Consumer price inflation, year-over-year percentage change, 1962 to 2023

Year-over-year food price inflation, select categories

The sector has remained resilient in the face of climate instability, increasing expenses and geopolitical instability

Positioning the system for sustainable economic growth

Canada remains a competitive global force – strong and growing

Canadian exports of agricultural and agri-food commodities

Continued growth will require overcoming challenges and seizing opportunities

The agriculture and agri-food system holds great promise and potential

Snapshot of the sector

The agriculture and agri-food system (2023 data, current as of May 31, 2024)

Primary agriculture

Food and beverage processing

Food retail and wholesale

Foodservice

Inputs and service suppliers

Primary agriculture

Farm market receipts ($ billion)

Food and beverage processing

Main industriesNote 1

Snapshot of sector commodity breakdown

Crop production

Key crop production stakeholders

Horticulture

Key horticulture stakeholders

Animal production (including aquaculture)

Key animal production stakeholders

Food processing and beverage production

Key food and beverage stakeholders

Top three crop and livestock commodities by average 2019-2023 farm cash receipts

Snapshot of agricultural trade and market access

Trade at a glance

Canada's position in the world

Supporting trade

Market access and trade policy priorities

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Free trade agreements

Agriculture and Agri-Food Canada's farm income forecast

Background

Highlights of key results

2023 (Statistics Canada data)

2024 (Agriculture and Agri-Food Canada forecast)

Considerations

Main industries^{Note 1}