Alberta’s agriculture and food sectors can look forward to a period of steady growth and
region-leading results, Agriculture Canada analysts say.
With its increasing reliance on value-added exports, Alberta has become a model for
economists and politicians who say value-adding is the way to go if Canada is to achieve its
goal of occupying four percent of the value of world food trade by 2005.
In an analysis of the provincial agricultural sector, Winnipeg-based economists in
Agriculture Canada’s marketing policy directorate said Alberta has “one of the most
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balanced (agricultural) economies in Canada” and is poised for more growth because of its
land base, investment and access to markets.
“Alberta has a dominant position in the growing western Canadian market of nine million
people,” they wrote. “The province is also relatively close to the enormous markets of the
Pacific Northwest, California and central Canada.” Easy access to the Pacific Rim markets
exists through west coast ports.
“The immense size of Alberta’s agricultural land base will ensure continued growth for the
food and beverage industry,” said the federal report.
The strongest growth will be in the livestock and related sectors.
“Continued livestock expansion is expected and the increase in production will continue to
be matched by an increase in processing,” said the analysis.
It noted that last year, exports of meat products from the province for the first time exceeded
the value of bulk grain exports – $1.39 billion compared to $1.02 billion.
Livestock production dominates provincial agriculture, with 1999 livestock-based farm cash
receipts of $3.95 billion accounting for 61 percent of the provincial total. With 40 percent
of the national herd, Alberta also remains Canada’s largest cattle-producing province.
The province boasts other signs of farm prosperity as well, according to the federal analysis:
- The area of the province considered farmland has increased slightly during the past
decade to 52 million acres.The portion of that seeded to grains, oilseeds and special crops
also has increased slightly in recent years.
- Average farmland values increased 2.8 percent during the first six months of 2000, more
than double the national rate. It was the strongest growth in Western Canada and recorded
the seventh consecutive year of growth. A strong provincial economy, booming beef prices
and off-farm incomes are credited with the pressure on land values.
- Shipments of meat and meat products in 1999 were valued at $3.86 billion, half of the
province’s food and beverage sales. Up to 91 percent of the western Canadian cattle
slaughter occurred in Alberta last year.
- The province’s $4.32 billion in agri-food exports last year accounted for 20 percent of the
national total.
- Alberta remains Canada’s largest barley producer with 5.4 million acres seeded in 2000
and production of 5.44 million tonnes.
