Three quarters of Canadian food exports go to just four markets.Ottawa—The agrifood sector recorded strong growth in exports during the last decade but more strategic investment at home and abroad could boost that performance even more, says Export Development Canada (EDC) says in a new report.The sector accounts for about 7 per cent of Canadian economic output, 11 per cent of exports, 8 per cent of imports and 2.3 million jobs, which is 12 per cent of the national total, the report said.“Agricultural exports grew at three times the rate of overall Canadian exports between 2008 and 2017,” EDC said. That performance makes agrifood significant to the national economy.“From 2008 to 2017, Canada's agricultural exports grew at a compound average annual rate of 5 per cent, peaking at $65 billion in 2017—three times faster than overall Canadian exports,” the report said. Agrifood exports were worth $22-billion more in 2017 as compared with 2008.EDC highlighted the concentration of agrifood exports in four markets led by the U.S. at 54 per cent, China 12 per cent, Japan 7 per cent and Mexico 3 per cent. At the same time, “a smaller share of exports went to markets outside the top 10 countries, falling from 22 per cent in 2008 to 17 per cent in 2017.”They accounted for 76 per cent of Canadian agrifood exports in 2017 compared with 70 per cent in 2008, the report said. “However, the dollar value of trade to all other markets increased $1.5 billion from 2008, suggesting some success at trade diversification.”Boosting export diversification could come from increased outward investment by the sector to help “Canadian businesses sell directly into international markets through joint ventures, foreign affiliates and closer direct relations with global wholesalers,” the report said.“Canada's agricultural trade is closely integrated with North American supply chains, as reflected in trade flows of live animals and animal products.”The European and Pacific trade deals “should encourage new market entry and increase trade volumes despite periodic incidence of tariff and non-tariff barriers, EDC said.The current trade spats with China are “a reminder of how non-tariff barriers can be utilized for political and other purposes.”Organic products, grains and pulses, seafood, and horticultural products are all key to expanded markets. Canada is already a major player in wheat, pulses, canola and lobster.Vegetable exports followed by food products, beverages and tobacco, live animals and animal products followed by fats and oils are the top export categories.EDC said agrifood exports should be in the $66 billion range in 2019 but there are many factors that could derail that prediction.Total agricultural exports less agricultural imports were $17 billion in 2017, as compared with a low of $9 billion in 2009, EDC said. “The net was nearly $14 billion in 2008 before the global financial crisis affected these markets. Since then, Canadian exporters have clawed their way back to increase net positions, and net exports have exceeded 2008 levels since 2014.”Low levels of investment in domestic food processing has “limited Canadian food manufacturers' ability to capture a greater share of the cross-border and international market for higher value processed foods and beverages.” The trade deficit in this segment was nearly $7 billion in 2017.Much of the agrifood sector isn't investing abroad “where their presence would bring them closer to customers and position them to leverage supply chains and wholesalers in targeted markets,” EDC said. It remains to be seen whether Canadian investors will increase their presence in places, like Japan, Korea, and other CPTPP markets.The report offers a great deal of detail on market conditions and trends for various products and is available at https://www.edc.ca/en/premium/guide/canada-agriculture-report.htmlAlex 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.