Overview of Canada's agriculture and agri-food sector

Primary agriculture

Primary agriculture is defined as work that is performed within the boundaries of a farm, nursery or greenhouse. Canadian primary agriculture is an economic driver highly diversified across the country:

• 189,874 farms
• farms cover 62.2 million hectares or 6.2% of Canada's land area
• concentrated across the Prairies, Quebec and Southern Ontario
• average farm size almost doubled over the last 50 years due to consolidation and technological advances

Farm market receipts

Farm market receipts represent the farmer's revenues from the sale of agricultural commodities. Farm market receipts are diversified across commodities, led by grains and oilseeds, red meat and dairy. In 2022:

• a record high $87.7 billion
• 5.6% average annual growth (2012-2022) – grain and oilseed receipts leading the way
• largest 10% of farms generate more than two thirds of all revenues

Canadian agriculture is evolving over time in response to challenges, opportunities and market developments. The adoption of innovation contributes to increases in output and productivity.

Sector commodity breakdown

Crop production

• GDP: $30.6 billion
• Jobs: 118,300

Principal field crops

• Receipts: $32.7 billion
• Number of reporting farms: 65,135^{Endnote 1}
• Export: $24.5 billion
• Top export markets:
  • China: 20.4%
  • Japan: 10.8%
  • United States: 9.6%
• Key stakeholders:
  • Canada Grain Council
  • Cereals Canada
  • Grain Growers of Canada

Horticulture

• Receipts: $7.5 billion
• Number of reporting farms: 17,433^{Endnote 1}
• Export: $3.8 billion
• Top export markets:
  • United States: 96.6%
  • Netherlands: 0.7%
  • China: 0.5%
• Key stakeholders:
  • Canadian Horticultural Council
  • Canadian Produce Marketing Association
  • Canadian Ornamental Horticulture Alliance

Animal production

• GDP: $5.7 billion
• Jobs: 109,300

Animal production details

• Receipts: $29.9 billion
• Number of reporting farms: 76,796^{Endnote 1}
• Export: $2.2 billion
• Top export markets:
  • United States: 95.3%
  • Japan: 1.1%
  • Russia: 1%
• Key stakeholders:
  • Supply-managed farmers associations (chicken, turkey, egg, broiler hatching egg, dairy)
  • Canadian Pork Council
  • Canadian Cattlemen's Association

Food and beverage

• GDP: $33.7 billion
• Jobs: 323,200

Processing

• Sales: $141.3 billion
• Establishments with employees: 8,093
• Export: $47.5 billion
• Top export markets:
  • United States: 73.6%
  • China: 8%
  • Japan: 4.9%
• Key stakeholders:
  • Dairy Processors Association of Canada
  • Canadian Poultry and Egg Processors Council
  • Food and Beverage Canada

Top 3 crop and livestock commodities by average 2018-2022 farm cash receipts

• British Columbia
  • Dairy: $701 million
  • Vegetables: $633 million
  • Floriculture, nursery and sod: $543 million
• Alberta
  • Cattle and calves: $5.5 billion
  • Canola: $3.1 billion
  • Wheat: $2.5 billion
• Saskatchewan
  • Canola: $5.8 billion
  • Wheat: $4.0 billion
  • Cattle and calves: $1.5 billion
• Manitoba
  • Canola: $1.7 billion
  • Wheat: $1.3 billion
  • Hogs: $1.2 billion
• Ontario
  • Dairy: $2.3 billion
  • Vegetables: $2.2 billion
  • Soybeans: $2.0 billion
• Quebec
  • Dairy: $2.6 billion
  • Hogs: $1.6 billion
  • Poultry: $898 million
• New Brunswick
  • Cannabis: $239 million^{Endnote 2}
  • Potatoes: $178 million
  • Dairy: $124 million
• Newfoundland and Labrador
  • Dairy: $48 million
  • Eggs: $20 million
  • Floriculture, nursery and sod: $9 million
• Prince Edward Island
  • Potatoes: $253 million
  • Dairy: $94 million
  • Cattle and calves: $34 million
• Nova Scotia
  • Dairy: $156 million
  • Fruit: $73 million
  • Eggs: $46 million

Food and beverage processing

Food and beverage processors transform raw food materials or substances into new products, which may be finished, so that they are ready to be used or consumed, or semi-finished, so that they become raw material to be used in further manufacturing.

The food and beverage processing sector is the largest manufacturing sector in Canada in terms of both GDP and employment:

• 17.3% of manufacturing GDP
• 18.1% of manufacturing jobs

Food processing sales totaled $141.6 billion in 2022. There are facilities across the country, but most are in Ontario and Quebec.

Main industries (share of food processing sales* and total sales):

• Meat product manufacturing (27.2%) – $38.5 billion
• Grain and oilseed milling (14.3%) – $20.3 billion
• Dairy product manufacturing (12.3%) – $17.4 billion
• Bakeries and tortilla processing (11.3%) – $16.0 billion

*Note: Typically AAFC reports on food and beverage processing sales together, however, beverage processing data is excluded due to Statistics Canada Confidentiality Act.

International trade and domestic market

The success of the Canadian agriculture sector depends heavily on our ability to export to other countries and Canada is one of the world's largest food exporters. In 2022, Canada exported nearly $92.8 billion in agriculture and food products (including raw agricultural materials, fish and seafood, and processed foods). Canada is the fifth-largest exporter of agri-food and seafood in the world, behind the EU-27 block of countries, U.S., Brazil, and China, and exported to nearly 200 countries in 2022^{Endnote 3}.

The United States is Canada's top trading partner, accounting for about 60% of all our agri-food and seafood exports and more than half our imports. China has been Canada's second leading agri-food and seafood export market since 2012 – our exports have increased by 75.8% since then.

The domestic market is critical for the performance of the sector. Canadians spent $189.7 billon on food, beverage, tobacco and cannabis products in 2022, representing the third-largest household expenditure category after transportation and shelter.

Sustainable economic growth

Canada has some key advantages that can help make us 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

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 farmers and processors can deliver. Canada's reputation for environmental stewardship can lead to increased demand and price for our products.

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