This report examines the capitalization of Canada’s food industry. Efficient capital markets give Canadians access to a wide variety of relatively inexpensive, high quality food. The food sector is among Canada’s most capital-intensive. Hence, the way that food industry assets are funded is of key strategic importance to the sector’s performance.
Funding Food: Food and Capital Markets in Canada
Funding Food: Food and Capital Markets in Canada
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Canadian food companies invest almost $15 billion in capital every year. And, although farming is often viewed as a small stakeholder enterprise in relationship to its value added, it is actually the most heavily capitalized subsector.
Funding Food: Food and Capital Markets in Canada explores the different capitalization challenges faced by the primary, processing, and retailing sectors of the industry based on their existing organization, markets, and competitive threats.
The report reveals that the way that food industry assets are funded is of key strategic importance to the sector’s performance, and that capital is part of the solution to addressing the range of competitiveness issues in food. Efficient management attracts capital and the new capital helps to ensure that operations are modern and efficient, and the business model is optimal. This enables the firm to generate better returns and be less risky, thereby attracting more capital.
Based on the premise that one way that Canada’s food companies can improve their capitalization is through better management, conclusions are offered for the Canadian Food Strategy.
