This report examines the short-and medium-term economic and profitability outlook for Canada’s Food Manufacturing Industry.
Canadian Industrial Outlook: Food Manufacturing—Winter 2017
Canadian Industrial Outlook: Food Manufacturing—Winter 2017
Industry Economic Analysis
$925.00
- Softening Profit Margins—While weak agriculture commodity prices have kept industry cost increases in check and given profit margins a breather, rising competition in the food retail landscape will make it increasingly difficult for food manufacturers to pass on cost increases. This is expected to keep downward pressure on profit margins going forward.
- Strong Performance—Food manufacturers have taken advantage of the tailwinds provided by a weaker exchange rate and the strengthening U.S. economy to grow their exports. Consequently, the industry is on track to enjoy its strongest output gains since 2001.
- Comprehensive Economic and Trade Agreement (CETA)—Free trade agreements such as CETA will provide opportunities for various food manufacturers, including manufacturers of grain, beef, and pet food. This could play a crucial role in the industry, given the growing uncertainty regarding the future of the trade relationship with our largest trading partner, the United States.
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