Will Digital tech transform Canadian agri-food sector

Jul 31, 2024
By Jean-Paul McDonald
Assistant Editor, North American Content, Farms.com

Automation reshapes Canadian agri-food jobs

The Canadian agri-food sector is undergoing a significant transformation driven by automation and digital technologies.

A new study by The Conference Board of Canada reveals that up to one-third of jobs in agriculture and one-fifth in food and beverage manufacturing could be automated within the next decade. Key findings of the research include:

Nearly one-third of jobs in the agriculture industry and one-fifth of jobs in the food and beverage manufacturing industry are at risk of automation within the next decade.
The skills most in demand for the future agriculture workforce are product design, digital production, and digital literacy, while the food and beverage manufacturing industry will be looking for skills such as digital literacy, problem-solving, evaluation, systems analysis, and monitoring.
Although information technology occupations account for a very small share of sectoral employment, those projected to grow the fastest over the next decade include data scientists and software engineers.
In the food and beverage manufacturing industry, robotics, automation, artificial intelligence, and advanced analytics hold the greatest potential to increase efficiency and consistency.

While this technological advancement promises increased efficiency and productivity, it also presents significant challenges for the workforce.

Routine tasks are increasingly being replaced by automated systems, necessitating a shift in skill requirements. Roles demanding data analysis, software engineers, and technological expertise are on the rise.

“Automation and digital technologies are revolutionizing Canada’s agri-food sector, offering unprecedented opportunities for growth and innovation,” said Alain Francq, Director, Innovation & Technology at The Conference Board of Canada. “However, this transformation also brings significant implications for the future of work in the industry.”

The report highlights a more gradual transition for agriculture compared to food and beverage manufacturing. Workers in agriculture may require minor upskilling to adapt to new roles, while those in food and beverage manufacturing face a more substantial skills gap.

“Canada must ensure that its agri-food workforce is well-equipped to navigate this period of transformation,” said Noel Baldwin, Executive Director at the Future Skills Centre. “This will require a strategic approach to workforce development that supports at-risk workers in reskilling to remain relevant in the sector and capitalize on emerging opportunities.”

To successfully navigate this transition, investing in education and training, as well as implementing comprehensive support programs for workers, will be crucial. By equipping the workforce with the necessary skills and knowledge, Canada can harness the potential of automation while mitigating its impact on employment.

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.