REGINA, SK, 28 August 2024 /CNW/ – Canadian food production plays a critical role in meeting the sustainable nutrition needs of a growing global population, according to a recent FCC economic report.
Food is the largest production sector in Canada Both in terms of employment and turnover. With abundant natural resources and a global reputation for safe and high-quality food, the sector is well on its way to becoming a global leader in sustainable food production.
“If we are to address some of our planet’s most pressing challenges, such as hunger, global health, climate change and stagnating economic growth, we need to build new and ambitious partnerships with key sectors such as food production,” said Krishen RangasamyFCC manager of economic insights. “To fully realize this opportunity, we must also encourage investment and innovation from people in our industry and beyond.”
With the world population expected to grow to over 9 billion people by 2050, the Food and Agriculture Organization (FAO) estimates that agricultural production will need to increase by 60 percent from 2005 levels. This challenge requires producing more food with the same or fewer inputs – a task that Canadian food production is well positioned to meet, leveraging the potential created by smart manufacturing and digitization.
“Just as steam, electricity and the internet helped us produce more with less input in previous industrial revolutions, automation, robotics, artificial intelligence and blockchain will do the same in food production in the fourth industrial revolution,” said Amanda Norrissenior economist at FCC. “These technologies can improve production and labor efficiency, manage inventory, prevent unplanned downtime, forecast demand, track production, and ensure quality control – all ways to improve productivity in Canadian food manufacturing.”
Productivity increases when production grows faster than working hours. This trend has been observed in Canadian food production over the past two decades. Despite challenges between 2008 and 2012, the industry has recovered, showing resilience and the ability to produce more food in less time.
“Food production in Canada has already demonstrated its resilience and adaptability. After a period of decline, the industry recovered by investing in new technologies and consolidating operations, resulting in productivity growth of 11 percent between 2013 and 2017,” explains Norris. “Now that productivity growth is relatively stagnant, it is time to refocus on innovation to fuel the next wave of growth.”
Rangasamy also stresses the importance of attracting investment from sectors other than agriculture and food. “To truly realize the potential of the fourth industrial revolution, we need more investment from those who have not traditionally seen themselves as part of the agri-food industry,” he notes. “This will help us to expand and innovate and ensure that Canada not only meets the food needs of tomorrow, but does so in a way that benefits all Canadians.”
By adopting new technologies and encouraging cross-sector investment, the industry can maintain its leadership in sustainable food production, ensure a stable food supply and contribute to the global effort to feed the world.
“Productivity growth is not a one size fits all solution; it requires a combination of efficiency, economies of scale and innovation,” Norris explained. “By leveraging new technologies and developing a skilled workforce, Canada’s The food manufacturing sector can help feed the world’s population sustainably and maintain a competitive advantage in the international market.”
About FCC
FCC is proud to be 100 percent invested in the Canadian agriculture and food industry. The company’s employees are committed to the long-term success of those who produce and process Canadian food. FCC provides flexible financing and capital solutions while creating value through data, knowledge, relationships and expertise. FCC offers a range of financial and non-financial products and services designed to support the complex and evolving needs of the industry. As a commercial government-owned enterprise, FCC is a stable partner that reinvests its profits back into the industry and the communities it serves. For more information, visit fcc.ca.
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