BC Budget Falls Short on Food Economy Despite Targeted Manufacturing Incentive

Vancouver, BC – February 18, 2026 – While the provincial government’s latest budget includes a new manufacturing and manufacturing tax incentive and an investment in skilled trades and training, the overall fiscal plan raises serious concerns for B.C.’s food and beverage manufacturing sector.

The Temporary Manufacturing and Process Tax Credit for buildings, machinery and equipment used in manufacturing is a positive step and signals recognition of the importance of value-added manufacturing. The 15% tax credit on the first $2 million invested, for a maximum credit of $300,000, will help incentivize businesses who are investing in their operations and make them more competitive. However, this progress is undermined by rising taxes, rapidly growing provincial debt, and most concerning, a projected decline in funding for the Ministry of Agriculture and Food over the next three years. In addition, over the next three years, the Province will double trades-training funding to $241 million to permanently strengthen B.C.’s trades-training system.

At a time when government created the Premier’s Task Force on Agriculture & the Food Economy and repeatedly emphasized food security and domestic production, the budget sends conflicting signals about the province’s true priorities to support agriculture and food manufacturing, who are apparently an’ Essential Service’ in name only.

Stronger Alignment Needed

“B.C.’s food and beverage manufacturers welcome measures that support investment and productivity,” said James Donaldson, CEO of BC Food & Beverage. “But the broader fiscal direction is troubling. You cannot champion food security and sector growth while simultaneously reducing resources to execute the important recommendations of the Premier’s Task Force recommendations.”

Food and beverage manufacturing is one of B.C.’s largest manufacturing employers and relies directly on a strong domestic agricultural base. Without sustained and coordinated investment across the value chain, the province risks falling further behind competing jurisdictions that are aggressively supporting their food economies.

Key Industry Concerns

Industry leaders are urging government to address several pressure points:

• Rising tax burden that continues to erode B.C.’s cost competitiveness
• Escalating provincial debt creating long-term economic uncertainty
• Lack of funding support specific to food and beverage manufacturing and agriculture at a time of stated sector priority
• Policy misalignment between the Task Force mandate and near-term budget decisions

James Donaldson,

CEO