Exploring ASEAN's growing demand for Canadian agri-food exports
The ASEAN market offers immense growth opportunities for Canadian agri-food exports. With a population of 679 million in 2023, ASEAN ranks as the world’s third-largest population block and fifth-largest economy.
According to FCC, the region’s economies are expanding rapidly, with GDP growth projected at 4.6% in 2024.
Canada’s trade with ASEAN has grown across agriculture, food, and fertilizers. However, food exports remain the smallest category despite a promising annual growth rate of 8.1% since 2018.
Trade agreements under negotiation, alongside Canada’s Indo-Pacific Strategy launched in 2022, could boost exports further.
ASEAN nations face challenges like climate change and food security, creating demand for agricultural technologies, fertilizers, and sustainable solutions.
Wheat exports, Canada’s largest ag commodity, show significant potential due to growing use as animal feed. Pork imports are also rising steadily, especially in Singapore and Vietnam, while beef imports are increasing due to limited regional production.
Canadian exporters have additional opportunities in potassium chloride and swine cuts, as ASEAN’s appetite for Western foods grows.
However, cultural factors such as religious dietary restrictions in predominantly Muslim countries like Indonesia require careful market understanding.
Canada’s agri-food exports to ASEAN have room to grow. According to the International Trade Centre, there is $1.6 billion in unrealized export potential for top products like wheat, pork, and potassium chloride.
Strengthened marketing efforts and enhanced trade partnerships could help Canadian exporters tap into this dynamic market.
In short, with ASEAN’s fast-growing economies and increasing food demand, Canada can reduce its dependence on the U.S. by focusing on this high-potential region. By addressing challenges and leveraging trade agreements, Canadian agri-food can thrive in Southeast Asia.
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