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Canada's Processed Food Industry Trade Balance Deteriorating

Why are these findings important? Food processing is one of Canada's largest manufacturing sectors and is also the recipient of a significant share of Canada's agricultural output, particularly in certain provinces. In addition, many retailers and food service providers are interested in making Canadian agri-food products available to Canadian consumers.

CAPI commissioned the report to foster a constructive dialogue on the state and prospects of the processed food sector and the actions needed to go forward.

The report concludes that more work is required to explain the causes of the change in trade performance. For example, the report:

  • acknowledges that the Canada-US exchange-rate pattern mirrors to some degree the timing of changes in the processed food trade balance but questions whether this is the underlying cause of the changes;
  • underscores the importance of foreign market access but questions whether erosion of their benefits is affecting the Canadian processed food sector;
  • notes that more analysis is required to better understand investment trends and regulatory impacts.

Figure 1: Canada's Trade Balance in Processed Food

http://files.newswire.ca/1153/Fig_1_Eng.pdf

A high-resolution copy of the graph is available for download at: http://capi-icpa.ca/highlights2012/process-food-study_111412.html

The Canadian Agri-Food Policy Institute (CAPI) is an independent, unbiased policy forum that is dedicated to the success of Canada's agriculture and agri-food sector. CAPI is a catalyst. It identifies emerging issues, promotes dialogue and advances alternative solutions to issues with stakeholders across diverse agri-food supply chains and among other food stakeholders. Based in Ottawa, CAPI was established as a not-for-profit corporation in 2004 by the federal government and is guided by a diverse Board of Directors and an Advisory Committee.

SOURCE Canadian Agri-Food Policy Institute

PDF available at: http://stream1.newswire.ca/media/2012/11/14/20121114_C8104_DOC_EN_20676.pdf

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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