A new EY analysis suggests expanding domestic crop processing could generate $5.4 billion in GDP growth, create 34,000 jobs and strengthen Canada’s food manufacturing sector.
Canada could add as much as $5.4 billion to its economy and create roughly 34,000 full-time-equivalent jobs by shifting only 10 per cent of its raw crop exports towards domestic value-added processing, according to a new analysis by EY released by Protein Industries Canada.
The findings arrive as the federal government places greater emphasis on strengthening Canada’s food-processing capacity through its National Food Security Strategy. The strategy encourages more crops grown in Canada to be processed domestically, with the goal of reducing reliance on international suppliers while creating additional economic opportunities.
Canada has a strong agricultural base to support this expansion. In 2024, the country’s agriculture and food sector contributed $149.2 billion to GDP and supported approximately 2.3 million jobs.
Canada is also a major producer of crops such as wheat, canola and corn. However, a significant portion of these commodities is exported before processing, and manufacturing can capture additional value.
“Canada is already an agricultural powerhouse. We grow some of the best crops in the world and supply global markets. The next opportunity is to capture more of the value those crops create here at home,” said Tyler Groeneveld, Chief Executive Officer of Protein Industries Canada.
“This is also the kind of opportunity that can bring regions of the country together. The agricultural strengths of the Prairies, combined with capital, technology, manufacturing and expertise from across Canada, can help build something of national importance,” Groeneveld added.
EY’s modelling estimates that moving 10 per cent of raw crop exports into Canadian processing could generate $7.9 billion in additional food manufacturing output, alongside the projected GDP increase.
The shift could also support about 34,000 jobs throughout processing, manufacturing, logistics, and supply chains and generate up to $1.1 billion in government revenue.
The study also identifies significant potential in the global ingredient-processing market. EY projects the sector could expand from US$436 billion in 2025 to US$801.9 billion by 2040, with Canada potentially accounting for about US$42.1 billion.
Protein Industries Canada says the findings reinforce its Make It Here campaign, which advocates for investment, infrastructure, regulatory modernization, improved programme coordination and stronger market access to expand domestic food and ingredient manufacturing.
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