Canada is the biggest per capita food importer in the world, but Canadians shouldn’t worry about it, says a Farm Credit Canada economist.
An FCC report on agricultural trade, which was released earlier this month, determined that Canada is the fifth largest exporter and sixth largest importer of agricultural commodities and agri-food products.
When the figures are adjusted for population, Canada is the top global trader of agriculture and agri-food products.
J.P. Gervais, FCC’s chief agricultural economist, said it’s no surprise that Canada is among the world leaders when it comes to pork, beef, grains and oilseed exports, but the import ranking is also impressive.
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“If you look at all the imports coming into Canada, for commodities as well as food, we’re No. 6 in the world. That’s a big deal,” he said.
In comparison, Gervais said Japan is widely recognized as a major importer of food and agricultural commodities.
“But if you account for the size of that country, they’re way below where we are,” he said.
“If you account for the size of the country … then we jump to No. 1.”
Gervais may be upbeat, but industry groups are concerned about the scale of food imports entering Canada.
In March, the Canadian Agri-Food Policy Institute issued a report on Canada’s trade in processed food. CAPI said Canada recorded a trade deficit of $6.8 billion in secondary processed food last year, which is up significantly from a $1 billion deficit in the early 2000s.
Secondary processed food includes pizza, sausages, bread, pasta, canned vegetables, candy, beer and wine.
CAPI president David McInnes said Canada excels at primary processing such as oilseed crushing but is weak at turning ingredients into food.
The institute issued a series of reports on the topic this year to identify challenges and paths forward for Canada’s food manufacturing industry.
Gervais said Canada’s status as a major food importer is beneficial because it helps Canadian companies secure export markets.
“Sometimes when you’re trying to knock on other countries’ doors, people are not always receptive to open up. But we can show them that we are open as well,” he said.
“We’re the role models. We’re the leaders in terms of trade when it comes to agriculture and agri-food products.”
FCC said existing and future trade deals will open up foreign markets for Canadian commodities. A successful conclusion to the Trans Pacific Partnership trade negotiations would give Canada access to fast growing markets with 660 million people.
“Vietnam, Peru and Malaysia’s GDP are forecast to increase in 2015 at an annual rate of five percent or more,” the FCC said.
“The 2014-23 OECD-FAO (Organization of Economic Co-operation and Development-Food and Agriculture Organization) Agricultural Outlook projects that consumption of beef, pork and wheat in Malaysia, Peru and Chile will all increase rapidly over the next decade.
“Pork consumption is expected to increase 27 percent, with beef and wheat increasing more slowly at 19 percent and 13 percent, respectively.”
FCC projects that Canadian beef production will increase by nine percent and pork exports by six percent from 2014-19 to take advantage of those market opportunities.
