Canada’s food sector already has surpassed its goal of capturing a four percent share of world food sales and now should set its sights higher, says a trade promotion official.
Myles Frosst, executive director of the Canadian Agri-food Marketing Council, told the annual convention of the Canola Council of Canada that the country’s share of world sales hit 4.2 percent in 2001 – four years ahead of schedule.
Meanwhile, the portion of Canadian exports that are processed beyond bulk commodity stage has been growing. In the mid-1990s, 60 percent of exports were bulk, but that figure is falling toward the goal of 40 percent.
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“We met our percentage target,” said Frosst. “We are making progress on our value-added target. We think it is time to set the bar a little higher.”
He said council members, including food and farm representatives from across Canada and the sector, will be advising the federal government of proposed new industry goals for exports.
The council was created in 1997 as an advisory body with members appointed by the government from the industry.
Part of the impetus was the fact that Canada’s share of world agricultural markets had fallen from more than four percent in the late 1960s to less than three percent by the mid-1990s. A goal of reclaiming four percent was set and the council was created to promote it.
Frosst told the convention a key part of increasing exports is Ottawa’s new agriculture policy framework, which emphasizes producing safe food through environmentally sustainable farm practices and promotes exports and a Canada brand.
“We do this through alliances and part of that industry alliance is with government,” he said. “The APF is a long-term strategy that will prove beneficial to achieving our goals.”
He said increased food sales abroad is good for the economy, Canada’s trade balance and the Canadian government. Each $1 billion of sales increase creates between 20,000 and 40,000 jobs, said Frosst, and pays taxes that far exceed government spending in support of the industry.
He also said farmers have benefited from the increased trade. Without a doubling of the value of exports to more than $20 billion, sector sales would be static.
“This is money in the pockets of farmers that would not be there otherwise,” said Frosst.
Some analysts and farm groups challenge that. Despite the sharp rise in the value of exports, net farm income from sales has remained static.
The National Farmers Union has given evidence to parliamentary committees that shows most financial benefits from higher sales go to farm input suppliers and buyers of farm products. More than 14 years of freer trade and increased exports produced little income benefit to farmers, while farm debt has soared and farm supports have fallen.
“The grinding farm income crisis we face in Canada is what winning looks like in free trade,” NFU executive director Darrin Qualman told an Ottawa conference late last year.
