The research report studies the Canadian Food Processing Sector in light of the various economic challenges that has come across and suggests an action plan for the same. The Canadian Food Processing sector account for 2% of the national GDP and holds the largest share in the manufacturing industry in terms of total shipments. In 2009 the industry reported a trade deficit for the first time in 20 years. This has compelled Agriculture and Agri-Food Canada (AAFC) to research for the probable reasons and subsequent actions. Food Processing Competitiveness Working Group (FPCWG) was formed in 2008 conducted an in – depth research with help of senior industry officials. It was then decided that regular meetings will be conducted to foresee the challenges and device the solutions to make the Canadian Food Processing Sector competitive.
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Categories
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Segmentations
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Actions Completed
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Economics
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Productivity
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FPCWG promoted the establishment of the AgriProcessing Initiative which is a $50 million initiative
FPCWG established a Finance Sub Committee- to examine various financing options
FPCWG discussed the Labour Market Opinion (LMO) with Human Resources and Skills Development Canada for offshore workers
AAFC uploaded information on the site related to various federal financial assistance
AAFC completes a survey “Benchmarking for Success 2009”
AAFC studied the impact on Canadian food processors competitiveness in relation with dairy ingredient pricing.
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Access to Capital
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Access to Competitively Priced Inputs
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Access to Labour
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Domestic Customer Concentration
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Environment
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Market Access
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Domestic Market Assistance
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AAFC completed “A Study of the Impacts of U.S. Border Security Measures on the Competitiveness of Canada’s Food Manufacturers/Exporters”
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Export Market Assistance
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Access to U.S. Market
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Off-Shore Market Access
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Research and Development and Innovation
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Innovation’s Role in Competitiveness
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AAFC completed a study on understanding current situation faced by Canadian food processors with respect to the Scientific Research and Experiment Development tax credit in March 2009.
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Regulatory
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Health Claims, Novel Foods, and Ingredients/Additives
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Discretionary Addition of Vitamins and Minerals to Foods
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Product of Canada Labelling Guidelines
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Regulatory Predictability
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Imports and Regulatory Compliance
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The report discusses in detail the productivity, access to capital for small and medium size food processors, pricing, and access to labour among other issues faced by Canadian Food Processing Sector. The study also elaborates on the required market assistance and regulatory reforms. Innovation in the machinery and equipment’s is being seen as a major factor to enhance the competitiveness of the Canadian Food Processing Sector.
