The top economist with Export Development Canada paints a bight picture of the future of Saskatchewan’s agri-food sector.
EDC vice-president and chief economist Peter Hall told members of the Saskatchewan Trade Export Partnership May 29 that key economic indicators are pointing to strong economic growth, increasing consumer confidence and generally good times ahead for the global economy.
It bodes well for agricultural producers in Western Canada and related sectors such as potash and manufacturing, he added.
The demand for food, particularly meat, will continue to grow as the global economy gains steam, especially in emerging economies.
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“The emerging market middle class is not going to be kinder to any other province than Saskatchewan,” Hall said.
“When emerging market citizens get into the middle class, studies show … that they consume more and they consume higher quality. And you know where they start? They start with food, and they start eating more meat.”
Hall said demand for meat-based protein will grow significantly, adding further support to markets for forages, feed grains, fertilizer and fuel. It will also support prices for other agricultural crops grown in Western Canada.
He said increased meat production will require more grain and increased productivity on marginal land.
“This new meat consumption will put exponential pressure on the world’s crops … and that’s a great news story for the long-term future of this province, not only for foodstuffs but for fertilizer and also for agricultural machinery,” Hall said.
