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Canadian dollar which has an inverse effect on exports, as well as high commodity prices and, what some consider, an outdated regulatory system when it comes to approving new foods and food claims.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.

Food is getting it’s own political identity

According to a recent Globe & Mail article, for the first time in Canadian election history, food becomes a political priority. Each of the country’s federal parties have included strategies that highlight food as a distinct priority separate from agriculture. This extent of this varies by party. The Globe offers a summary of party platforms by category, that gives highlights of each party’s “food” focus.

This is positive recognition of the mutually supporting nature of “agriculture” and “food”. In Canada, the food industry is the single largest buyer of Canada’s agriculture outputs. We’d like to see this continue to grow. In order to do this, we need a healthy production system and a vibrant food processing industry.  It’s not beneficial to focus on only one part of this increasingly interdependant value chain.

However, one apparent omission in the political platforms is the word ”food industry” (with the exception of the Liberal party which promotes export support for food and beverage processors).  We propose that supporting research and innovation for the value-added processing industry, in addition to agriculture, will have a significant effect on the economy. This sector is already a major force in Canada as the second largest manufacturing industry. More importantly though, a stronger Canadian processing industry will have a profound impact on the agriculture sector as it generates market pull for producer outputs. Let’s truly recognize Canada’s “agri” and “food” industries as significant sectors that work very well together and with support, can continue to grow their national and global positions.

Funding for Innovation in Dairy and Food Products

The Canadian Dairy Commission (CDC) has dedicated $6 million over a 3-year period to support product development initiatives that help grow the business for Canadian dairy products and ingredients.

Launched in June 2009, the new Matching Investment Fund (MIF) is open to dairy processors, food manufacturers and food technology centres and institutes to access up to $50,000 per project for consultations and $250,000 per project for product development. Projects which emphasize the use of solids non-fat ingredients such as skim milk powder, milk protein concentrate or liquid skim milk will be given priority attention.

Applications will be accepted up to July 31, 2012, subject to available funds. Information on the application process and the necessary forms are available at www.MILKingredients.ca.

The Canadian Dairy Commission encourages growth and innovation in the manufacture and use of Canadian dairy products and ingredients.

New blog for Canada’s Food Technology Centres

FOODTECH Canada is a network of food technology centres from across Canada. Everyday, centres work with the food and bio-processing industry to help them stay competitive by introducing new products, streamline processing or access much needed resources to support their companies. We will use this blog to share information from our centres that we think may be useful to the food sector and the other organizations that also support them. We’ll also post queries about what’s most important and interesting for companies on hot topics, such as “sodium reduction”.
We’re happy to hear from you if you have ideas or questions about any of our centres and ways to get connected.