Lots of potential in food value-added sectors, advisory council says first report from federal strategy group

Products need to meet changing consumer food expectations around the world, it says.The Agri-Food Economic Strategy Table, set up as part of the federal government's innovation agenda, has set a hefty agenda for governments and the sector to work on to ensure Canada expands its role as a global food supplier.The table is headed by Murad Al-Katib, President and CEO of AGT Food and Ingredients who presented the report to the meeting of federal and provincial agriculture ministers in Vancouver.“Canada needs to seize value-added opportunities, including more domestic processing, innovative end-uses for our agrifood products, co-product manufacturing and turning waste products into revenue streams,” he told the ministers.Much like the Barton Report on growing the agrifood sector, the Strategy Table the ministers that for the huge potential of the sector to become an even bigger success story, “Canada must focus on areas where it has strategic advantage. Achieving this will require a whole-of-government approach to market access and business development, seizing new trade agreements with high-growth that support both exports and domestic growth opportunities, and a greater opportunity for small-and mid-sized companies to seize new market opportunities.”In other words, the issue needs to be at the center of government planning and not left to Agriculture Canada alone to implement.The report says the view of the members of strategy table are backed by its Producer Advisory Council, which was established to provide a farmer perspective to its work.The priority items for the private and public sectors to collaborate on are increasing innovation and seizing value-added opportunities; adopting technology and advancing digitization; modernizing infrastructure and regulations; increasing market access and growing exports; dealing with labour shortages and being prepared for the future.There's enough detail in the sections of the report under each topic to the keep federal and provincial governments busy and to provide the whole sector with plenty of objectives to aim for.The Strategy Table will continue its work with follow-up reports expected.The report says Canada needs to scale up capacity and boost productivity and not expect to compete on price alone. “Growing middle classes around the world are demanding higher-quality products, while socially conscious consumers want foods with specific qualities, such as being locally sourced and sustainable. Canadian leadership in agri-food demands companies embrace innovation to maximize the value derived from their products and to position Canada as a preferred supplier to high-value markets.”Canada also has to focus on adopting technology and advancing digitization if it doesn't want to be left behind, the report said. Agrifood needs to see “itself as a technology industry, not a resource industry.”Canada needs “a forward-looking, synchronized regulatory system that supports the development and commercialization of innovative products,” it said. “This involves an interconnected, coordinated approach that removes impediments to the movement of goods and services as well as the development of state-of-the-art supply chains that are lean and adaptive to shifting opportunities. Canada's overall business environment needs to be competitive and enable growth.”The federal government needs to deal with the current and future labour shortages plaguing the sector “that impact production levels and tomorrow's growth opportunities. These shortages will intensify as markets for Canadian products expand. Reliance on foreign workers has lessened the impact of the labour shortage. In order to compete, the sector will need a workforce with the right skills to succeed in an automated, digitalized future.”The report described the agrifood as a complex and interdependent mix of agriculture, fisheries and aquaculture and food and beverage processing. “While Canadian agrifood products have high profile and a strong reputation around the world, competition is intensifying. Changing preferences will boost demand for dairy products, alternative proteins, lean meats and processed foods with enhanced health benefits.”Among its specific challenges are “a downward trend in food processing sector investment in machinery and buildings as a percentage of sales is trending downward—from 3 per cent in 2002 to 2 per cent in 2015. Labour markets are tight and the skill set for the sector is evolving.”Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.