Farm Credit Canada report highlights $40B growth opportunity in Canada’s F&B manufacturing sector

Achieving three per cent annual GDP growth in the Canadian food and beverage manufacturing sector over the next decade could add up to $40 billion to the national economy, create 217,000 new jobs, generate $1.3 billion in tax revenue and add $16 billion in wages and benefits for Canadians, according to Farm Credit Canada’s (FCC’s) latest report, Prospects for future productivity growth in Canadian food and beverage manufacturing.

Reaching that potential will require increasing productivity growth through continued investment, trade diversification and innovation to strengthen the sector’s long-term competitiveness.

“Productivity growth is essential to ensuring that the Canadian food and beverage manufacturing sector remains competitive globally,” said Craig Klemmer, manager of thought leadership at FCC. “But it doesn’t operate in isolation. Success depends on a broader ecosystem of investment, skilled labour and strong global market access.”

The report notes that while Canada’s food and beverage sector has remained resilient over the past two decades, labour productivity declined by an average of 0.5 per cent annually from 2015 to 2022. Productivity growth remains important for the sector’s future prosperity, sustainability, food security, and affordability.

The report identifies four key pathways for food and beverage manufacturers to boost productivity growth:

• capital investment to support upgrades and expansion of plants and equipment;
• skills training to meet rising demand as technology evolves;
• streamlined regulations that protect public interest while reducing burden on businesses; and
• trade openness and global integration that expand markets and encourage innovation.

“Canada has a strong foundation to build on,” said Klemmer. “With the right attention and support, the food and beverage manufacturing sector can continue to be an economic powerhouse and a leader in the global food system. The task ahead is to translate those strengths into sustained productivity gains that benefit both Canadian businesses and consumers.”

Canada’s food and beverage manufacturing sector includes more than 8,800 businesses and employs roughly 318,000 people, making it the country’s largest manufacturing employer.