In Sales and Employment, Food Manufacturing is #1

Today the Globe and Mail reported that the food sector is the largest manufacturing industry by sales. According to the Globe, sales set a record last year, topping $800 billion – more than textiles, paper, machinery and aerospace combined. Food manufacturing also surpassed transportation equipment to become the industry’s top employer.  Even during the recession, as most other sectors slumped, food sales kept growing.

The paper goes on to report that the sector is not without its challenges. These include the strong Canadian dollar which has an inverse effect on exports, as well as high commodity prices and, what some consider, an outdated regulatory system when it comes to approving new foods and food claims. 

While Canada currently relies heavily on the US market, many companies are knocking on other country’s doors, including the UK, Japan, and China. Canada’s reputation as a provider of clean, healthy and high quality products often helps open doors according to manufacturers looking to expand their export reach.

The growth of the value added sector is only good news for many of Canada’s agriculture and fisheries producers, as  Canadian processors are the single largest buyer, taking nearly half of their outputs. So, how does the industry keep this position? What is needed from processors, producers and government to maintain this growth? Several organizations, such as CAPI and the Conference Board, are exploring ways to better collaborate and innovate, with new models for working together. FOODTECH Canada believes more coordinated activity between  ‘service’ providers, such as universities, colleges, and our own food and bio-technology centres, will help industry supply the products globe-trotting and health-focused consumers are looking for.

Being a significant sector, calls for robust oversight that is supportive and strategic. FOODTECH puts out a call for government and organizations that work with the food sector from start to finish, to ensure that we continue to collectively enhance the industry’s position in Canada and around the globe.