The value-added sector is what will make the difference in the long term.
Ottawa—Four years ago Dominic Barton booted the Canadian agrifood sector into political and economic prominence with his report calling for $75 billion in agrifood exports by 2025.
He now admits that target “wasn't as ambitious as we could have been” and judges the sector's performance during the last few years as worth a B grade. Agrifood exports last year are expected to be in the $67 billion range making the 2018 Agri-food Industry Strategy Table report's goal of $85 billion in exports a better target, he said.
Speaking in an online chat with Mike Hoffort, President and CEO of Farm Credit Canada, as part of the Canada Agriculture Day celebrations, Barton said there is lots of innovation happening in the sector across Canada. “Where we need to rachet it up is in the value-added sector.” Canada should work at building up its reputation as a provider of top-quality food products and diversify its markets throughout Asia.
Currently Canada's ambassador to China, Barton said Canada needs six or seven large food companies working on export sales that would help small and medium sized enterprises find their way into foreign markets, especially through the use of digital marketing. “Asia has the largest middle class in the world and they know Canada has high standards for food quality and safety.
“These consumers buy online and this gives SMEs a great opportunity to connect with them,” he said. “We can leverage the technology to help the SMEs to link up with them.” Canada should look at how countries like the Netherlands does so well in the food export business.
Barton also said Canada's is far too modest about the quality of its food products. “There are a lot of people who would a premium for our products. The growing demand for protein around the world should be a welcome trend for Protein Industries Canada and other plant-based enterprises.”
Foreign investment In Canadian food companies should be welcomed, he said. “It's not about them taking over the company but having a substantial interest in it. That would help the company grow and make it more attuned to Asian and other markets. At the same time, Canadian companies should invest in Asia.”
The soaring global population makes agriculture so important to the world, he said. “We have all the ingredients to become a big agrifood exporter. Canada should be a dominant player in the agrifood industry. Agriculture will be in the cross hairs in the coming decades as food demand will double by 2050.”
Despite the political tensions between China and Canada, companies should see all the opportunity there, he said. It has more than 100 cities with populations over one million. At the same, the sector should work at diversifying its sales so it doesn't become overly dependent on one market.
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.