Farm Credit Canada urges diversification of food exports beyond U.S.

A new Farm Credit Canada report says Canada has an opportunity to diversify $12 billion worth of food and beverage exports to non-U.S. markets to guard against trade disruption and strengthen the agriculture sector.

The report, The $12-billion trade shift: Canada’s opportunity to diversify food exports beyond the U.S., says more than three-quarters of Canadian food and beverage exports went to the U.S. in 2023, leaving producers vulnerable to shifting trade dynamics.

“Canadian agriculture and food producers rely on international trade to thrive, but ongoing trade disruptions have created uncertainty and barriers to growth,” said Justine Hendricks, FCC president and CEO. “Diversifying food and beverage exports beyond the U.S. will not only strengthen producers’ resilience but also benefit Canadian consumers and the broader economy.”

The report outlines a three-part strategy: strengthen inter-provincial trade, maximize existing free trade agreements with 51 countries and pursue new international partnerships in Europe, Asia and Latin America.

J.P. Gervais, FCC’s chief economist, said shifting $12 billion in exports will reduce risk and stabilize the industry. “A balanced trade portfolio will make the ag and food industry more competitive, adaptable and prepared to succeed in a changing global economy,” he said.

The report also points to promoting the “Buy Canadian” movement, investing in infrastructure and innovation and expanding domestic value-added processing as ways to capture more market share at home and abroad.