This report examines the short-and medium-term economic and profitability outlook for Canada’s food manufacturing industry.
Canadian Industrial Outlook: Food Manufacturing—Winter 2018
Canadian Industrial Outlook: Food Manufacturing—Winter 2018
Industry Economic Analysis
$945.00
- Surging Exports Underpinning Production Growth—The food manufacturing industry is projected to close out 2017 on a high note, thanks to another strong export performance. Price-adjusted exports are estimated to have risen by 6.0 per cent last year—the strongest showing for the industry since 2010, when it managed a 7.6 per cent bounce back in volume exports following the recession.
- New Trade Agreements Providing Welcome Relief in Light of NAFTA Uncertainty—Amid growing uncertainty regarding the future of the trade relationship with our largest trading partner, the United States, free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will continue to pave the way for Canadian food exporters to explore new market opportunities and diversify their customer base.
- Looming Capacity Constraints—One key outcome from the surge in foreign demand is that the industry now finds itself operating close to full capacity. Thus, future production growth will require a pickup in industry investment. Unfortunately for the industry, the current investment climate is far from positive, given the uncertainty surrounding Canada’s market access in the United States.
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