Canada’s food export business was booming last year, setting a new
record for the value of exports after just 11 months.
Agriculture Canada announced Feb. 4 that to the end of November, the
value of food exports was $24.4 billion, more than four percent higher
than full year figures for 2000.
The food trade surplus of $6.7 billion was 21 percent higher than the
previous year.
Agriculture Canada trade specialist Jim de Graaf said in an interview
he expects Canada’s share of world food trade also grew last year,
Read Also
Land crash warning rejected
A technical analyst believes that Saskatchewan land values could be due for a correction, but land owners and FCC say supply/demand fundamentals drive land prices – not mathematical models
moving toward the Canadian goal of claiming four percent of world
trade. The last calculation was 3.52 percent.
“It is really incredible how the numbers have grown,” de Graaf said.
“Canada is claiming its place in world markets.”
Liam McCreery, Ontario soybean farmer and chair of the Canadian
Agrifood Trade Alliance, said the numbers are great news for Canada’s
farmers. He acknowledged there is a debate about whether higher export
sales are actually reflected in higher incomes back on the farm.
“I know people question whether this trickles down to farmers, but I
prefer to turn the question around,” he said Feb. 4.
“Imagine what would happen to farmers if we didn’t have markets for our
products. Now that would be an impact back on the farm.”
He said if exports increased that much in the existing trade climate,
the future is bright if World Trade Organization talks succeed in
removing some existing trade hurdles.
“Just imagine what we can do when the barriers are knocked down,” he
said.
According to the preliminary 11-month export numbers compiled by
Statistics Canada and Agriculture Canada, the value of food exports to
the United States increased more than 17 percent to $15.3 billion, even
though the U.S. economy slowed down last year. Increased exports of
meat and live animals led the way.
Exports of meat, canola and wheat helped boost sales to Japan by 15
percent to $2.2 billion.
Chinese purchases of canola and barley drove the value of exports to
the world’s most populous country to $773 million.
Prairie lentil producers benefited from a doubling of sales to India,
primarily dried peas, chickpeas and other lentils.
McCreery said the banner export year is a tribute to the efficiency of
Canadian food producers and processors.
But de Graaf suggested Canada’s devalued dollar also has been a huge
boost.
In many markets, Canadian exports are paid in American dollars.
“It means that as our dollar falls vis-ˆ-vis the American dollar,
exporters actually receive higher prices and more income, even if the
volumes do not increase.”
He said the final totals for 2001 likely will exceed $25 billion, once
December sales are added.
Federal agriculture minister Lyle Vanclief said it proves “Canada is a
global supplier of choice for international customers looking for high
quality and safe products.”
