Reports offers ideas for ways to improve
Ottawa-Canada’s move into 7th from 11th place among G20 food suppling countries is a good signal but there is no time for complacency as it faces stiff competition from other countries aiming to be major food providers, says an MNP report.
While the Canadian agri-food sector is gaining international recognition, the next chapter will depend on how Canada turns momentum into measurable progress, MNP said.
“From emerging tech to trusted trade, Canada’s path forward offers opportunities for stronger partnerships, smarter infrastructure and better coordination across the public and private sectors.”
“That includes removing barriers, enabling innovation and empowering businesses of all sizes - from farms to exports - to lead the way. It also means staying resilient against shifting tariffs and other global trade pressures that could shape market access in the years ahead.”
The higher ranking “reflects stronger alignment across innovation, trade, and sector performance and signals growing international recognition of Canada’s leadership potential.”
However, gaps remain in commercialization, consolidation and food retail competition. “Nurturing the people and businesses driving innovation, from emerging startups to established producers, will be just as important. Progress will depend on removing barriers, improving coordination and empowering those shaping Canada’s future in food.”
While Canada is home to a thriving agri-food tech scene, growth is not evenly distributed and smaller producers often miss out on tech adoption. Turning innovation into market value across the entire sector is needed, MNP said.
Although Canada places 10th globally in agri-food tech startups and scores a top tier 1 for patent output and IP support, there has been a 37 per cent decline in R&D investment since 2023. “Canada’s score of No. 1 in tech adoption reflects strength, but most uptake is limited to large-scale operations.”
Brazil and China are outpacing Canada in scaling startups and boosting R&D intensity, while accelerating the path from innovation to commercialization.
Canada outperforms G20 peers like South Korea and the U.S. in basic food affordability, but trails countries like Brazil in coordinated national strategies and public engagement.
Canada’s food retail landscape is becoming increasingly concentrated, with the top four grocery chains now commanding 72 per cent of sales - up from 65 per cent just last year. Meanwhile, the top five food processors dominate more than 40 per cent of key market categories, tightening their hold on the industry.
“This level of consolidation places Canada among the most concentrated food markets globally, limiting price competition and reducing supply chain flexibility.”
While Canada’s grocery code of conduct works to improve collaboration between retailers and suppliers, the country has yet to match benchmark nations like Germany and Japan, where stronger policies and infrastructure have streamlined supply chains and promoted fairness.
Canada’s agri-food sector continues to benefit from a trade surplus of more than US$60 billion supported by a reputation for reliability and political stability. Recent agreements now give Canadian producers access to 1.27 billion consumers, nearly one third more than a year ago. “Yet our export mix remains narrow, leaving the sector exposed to tariff shifts and broader economic pressures. Expanding into new and fast-growing markets could help Canada translate trade strength into lasting competitiveness.”
Canada is one of the world’s top producers of wheat, oats, canola and pulses and it also ranks third globally in pork and beef exports. But domestic value generation paints a contrasting picture. Sub-sectors like dairy, wine, and produce remain underdeveloped, limiting economic return and food system resilience.
The U.S. ranks ahead of Canada in sectoral competitiveness and economic impact. To keep up, Canada needs to broaden sector support beyond its strongest exports and explore growing opportunities with emerging new sectors.
This news report prepared for National Newswatch