Canada’s relationship with the United States has long been the bedrock of international trade for our food manufacturing sector.
asserted
relationship → manufacture → sector
In 2023, three-quarters of our food and beverage exports went south of the border, generating about $35 billion.
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quarters → go → billion
The current trade dispute is not just a wake-up call about relying too heavily on one market; it’s an unprecedented opportunity for Canadian food processors to lead our country toward a more balanced trade model.
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processors → wake → model
To that end, a recent report by Farm Credit Canada (FCC) proposes a bold goal: Maximize opportunities already present in our existing trade agreements by dramatically expanding exports to other nations by roughly $10 billion.
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report → propose → billion
This is an achievable goal for our food processors — the hard-working, unsung Canadians who turn our raw agricultural products into packaged goods for our grocery store shelves as well as our export channels.
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who → work → shelves
They are in a prime position to lead a pivot for Canada’s entire food and agriculture value chain by making three key changes.
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They → lead → changes
• It starts with retooling for new markets.
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It → start → markets
That means adjusting formulations, packaging and certifications to meet the specifications required by buyers in Europe, Asia and beyond, rather than automatically defaulting to American requirements.
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That → mean → requirements
• It also means aggressively addressing the sector’s productivity growth, which has been declining for the past two decades.
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which → mean → decades
Adoption of artificial intelligence and automation will help boost a sector plagued by persistent labour shortages.
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Adoption → help → shortages
So will recruitment of workers highly skilled in technology.
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recruitment → skille → technology
This productivity boost could mean better prices for Canadian customers as well as a more adaptable supply chain for export.
uncertain
boost → mean → export
• The final step is devoting more attention to the 15 free trade agreements Canada already has in place, giving us access to 51 countries and over 1.5 billion consumers.
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Canada → devote → countries
Canada has built much of the policy foundation needed to support export diversification.
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Canada → build → diversification
Our current network of free trade agreements gives our exporters preferred access to key markets around the world.
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network → give → world
Europe has the largest potential for Canadian food manufacturers, an opportunity estimated at nearly $5 billion.
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Europe → have → billion
Canada already has a strong foundation there through the Canada-European Union Comprehensive Economic and Trade Agreement, as well as trade agreements with the United Kingdom and European Free Trade Association countries.
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Canada → have → Kingdom
Asia represents an estimated $4.3-billion opportunity for value-added meat products, seafood, prepared foods, and vegetable oils, such as canola.
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Asia → represent → canola
Realizing this potential will require targeted market development, stronger buyer relationships, and continued investment in Canada’s reputation for safe, high-quality food.
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Realizing → realize → food
Redirecting exports isn’t just about finding an overseas buyer.
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Redirecting → redirect → buyer
It means building relationships, infrastructure, logistics, and brand recognition to successfully compete overseas.
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It → mean → relationships
Food processors who do this are creating a template others can follow as new trade agreements are reached with more countries.
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agreements → do → countries
Not every manufacturer will move at the same speed.
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manufacturer → move → speed
Animal feed, for instance, has real potential to be redirected toward new buyers relatively quickly.
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feed → have → buyers
Vegetable oils are a tougher sell and will need a more aggressive, longer-term push into new markets.
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oils → need → markets
Realistic, sector-by-sector targets matter more than a single blanket goal.
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targets → matter → goal
Investment and collaboration
None of this will happen in isolation.
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None → happen → isolation
While the food processors can lead the charge, it will take investment and collaboration across the entire food system.
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it → lead → system
Farmers, manufacturers, lenders, innovators, grocers, transportation companies, researchers, educators, governments, and crown corporations like FCC each hold a piece of the puzzle.
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Farmers → hold → puzzle
The tariff fight isn’t going away soon.
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fight → go → ?
But it also marks a beginning.
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it → mark → beginning
The next decade of Canada’s food system will be shaped by the choices made today.
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decade → shape → choices
Canadian food processors who invest now in new markets, new capacity and new relationships won’t just be riding out the storm, they will build a blueprint for others to follow.
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others → invest → blueprint
The Aporia
