A recent study conducted by Protein Industries Canada indicates that Canada has the potential to boost its GDP significantly and generate numerous job opportunities by retaining a portion of its crop exports for processing within domestic facilities. The CEO of Protein Industries Canada, Tyler Groeneveld, highlighted the abundance of crops across the country and emphasized the opportunity for enhanced processing capabilities to cater to both domestic and international markets seeking nutrient-rich products.
The report suggests that reallocating just 10% of Canada’s raw crop exports for value-added processing domestically could lead to an additional $5.4 billion in GDP and up to $1.1 billion in government revenue, while creating around 34,000 full-time jobs. The analysis, conducted by Ernst & Young LLP on behalf of Protein Industries Canada, was unveiled during the Plant Forward trade show in Saskatoon.
The study focused on four key sectors: human food, animal feed, ingredient processing, and bio-industrial applications. It explored potential uses of Canadian crops and agricultural byproducts, including the production of biopolymers, lubricants, 3-D printing resins, biodegradable packaging, and pharmaceuticals.
Furthermore, the report highlighted various opportunities in the food processing industry, such as aquaculture feed, military rations, disaster relief operations, and ingredient manufacturing for processed foods and beverages. Groeneveld emphasized the immense economic potential in ingredient processing, projecting the food and beverage market to reach $9.8 trillion by 2040.
Michael Graydon, CEO of Food Health and Consumer Products of Canada, emphasized the need for increased capital investment in the agri-food sector to retain more food production within the country. He cited examples such as the export of commodity tomatoes and subsequent importation of processed tomato products, leading to missed opportunities for local processing and job creation.
The report identified various challenges hindering the growth of the agri-food sector, including regulatory inefficiencies, supply chain bottlenecks, policy fragmentation, and an impending workforce shortage due to retirements and skill deficiencies by 2030. It also highlighted that the food and agriculture sector accounted for about $149.2 billion in 2024, supporting 2.3 million jobs and contributing approximately 7% to the national GDP.
As Canada aims to diversify its economy and strengthen domestic supply chains, the report recommends allocating resources to expand the industry. It also proposes establishing a scientific advisory body, launching accelerator programs, encouraging private capital investment, and creating regional storage and processing hubs to ensure a stable supply chain.
In conclusion, the report underscores the vast potential for growth in the agri-food sector and the importance of investing in domestic processing capabilities to capitalize on emerging opportunities in the global market.
