Canada’s agri-food exports continue to expand at a good pace.
Agriculture Canada released a report last week showing export sales grew by 8.1 percent in 2012 to $43.6 billion.
“It’s a good number, a strong number and obviously one that our agricultural exporters would like to see growing,” said Lisa Skierka, president of the Canadian Agri-Food Trade Alliance (CAFTA).
She got her wish. An analysis of data that was not included in the report shows exports expanded another 5.6 percent in 2013 to reach $46 billion.
Exports have grown every year since 2007 with the exception of the global economic recession in 2009.
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Skierka said the strong sales program is due to Canada’s reputation for providing quality agriculture and agri-food products and to Ottawa’s commitment to trade.
“Certainly on the national stage we have a very active pro-trade agenda with the current government,” she said. “The work being done to promote Canadian agriculture and agri-food products is seen in numbers like this.”
However, it’s not all rosy.
Canada is developing a reputation as an unreliable supplier because of logistics issues such as this winter’s disappointing rail service.
“We won’t know for a while what the harm has been to the Canadian marketplace because of the transportation issue, but we certainly are concerned about the hit our reputation has taken internationally,” said Skierka.
CAFTA members have lost key customers and are constantly questioned by those who remain about Canada’s persistent transportation problems.
“We’re all hearing about it,” she said.
Agriculture Canada estimates that half of the value of Canada’s primary agriculture production is exported in the form of raw product or processed goods.
Exports of primary products increased in value by 10.3 percent in 2012 to a record $21.9 billion. Sales of processed products increased by six percent to $21.7 billion.
Oilseeds and oilseed products accounted for 28.6 percent of all exports, followed by grain and grain products with 24.1 percent and live animals, red meat and other animal products at 17.3 percent.
The biggest growth category in 2012 was oilseeds and oilseed products, which expanded by 18 percent to reach $12.5 billion.
Grain and grain products grew by seven percent to $10.5 billion while live animals, red meat and other animal products increased by 3.6 percent to $7.5 billion.
Canada overtook Argentina in 2012 to become the world’s fifth largest exporter behind the European Union, the United States, Brazil and China.
The United States is Canada’s top agri-food customer, accounting for 48 percent of sales in 2012 and 51 percent last year.
“It’s a simple matter of geography. They have a large population and a hungry population and we’re able to meet the needs of that marketplace,” said Skierka.
China has vaulted past Japan to become Canada’s second most valuable customer, buying $5 billion of products in 2012 and $5.17 billion in 2013. Sales to Japan tailed off slightly last year, falling to $3.89 billion from $3.97 billion in 2012.
Skierka said there are no signs Chinese demand will slow anytime soon because of its expanding population and growing middle class. She hopes the Canadian government will continue negotiating free trade agreements with key trading partners.
“We look forward to finalizing both the deal with the European Union and with Korea in the coming months.”
