Food processing is the largest manufacturing sector in Canada.   Ottawa—While last month's federal budget promised welcome financial support for food processor innovation, the sector remains concerned about the impact of other government initiatives, says Carla Ventin, Senior Vice-President of Food & Consumer Products Canada. Once the budget is passed by Parliament, processors will be able to apply for support from $100 million program through the Strategic Innovation Fund. Innovation in their operations is crucial to remaining competitive internationally as well as gaining a larger slice of the domestic food market with new products, she said. But the sector still stings from statements by Health Canada officials that the agrifood sector was excluded from the final round of consultations on the new Food Guide so the policy wouldn't be compromised by industry interests. “We have big concerns about being told our input isn't welcome,” she said. FCPC hopes the National Food Policy promised again in the March budget won't turn out the same way. “We have the safest, high quality food in the world,” she said told the recent annual general meeting of the Canadian Federation of Agriculture. Food companies employ more than 300,000 workers at more than 6,000 facilities, making it larger than aerospace and automobile production combined. It's also an important rural employer and a key market for Canadian farmers. “We want to keep jobs in Canada and that's why the innovation fund is important for us.” New free trade agreements have opened promising markets for the sector, she said. Canada is the only G7 country to have free trade agreements with all other G7 nations and it has free trade agreements with countries representing two-thirds of the world's total GDP. Canadian food companies sell more than 60 per cent of their output to Canadian grocery stores and food service outlets, she said. While the companies process about 40 per cent of the food grown in Canada, they would like to increase that number. However they face higher operating costs in Canada than the U.S. and the cost of getting a product on a store shelf is greater here than south of the border. “A growing and cumulative regulatory burden is a barrier to growth, innovation and competitiveness,” she said. Add to those drawbacks, processors suffer from a lack of skilled labour, as does the rest of the agrifood sector, infrastructure challenges and market access problems, she said. Another headache is proposed front of package labeling rules, which would add more cost to the industry without telling consumers what they can't already find out on the package. “It's another way to demonize our products.” If they go ahead, the new labeling requirements will also add to the sector's cost as it tries to break into new markets, she said. Legislation to restrict marketing to kids ignores the need for public education about physical activity as a key part of a healthy lifestyle. FCPC also wants to see if the government will act on the agrifood strategy table report recommendations to boost the sector, she said. The question farmers and processors should ask politicians and Canadians is “Where do you want your food to come from?” Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.