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Canada Not Fully Using its Agriculture Potential and Not Competitive

Canada Not Fully Using its Agriculture Potential and Not Competitive
Jun 09, 2025
By Denise Faguy
Assistant Editor, North American Content, Farms.com

Agriculture Sector Holds Huge Export Potential

Canada is known for its natural wealth — including minerals, energy, forestry, and agriculture. Among these, the agriculture and agri-food sector stands out with enormous global export potential.

This according to Senator Mary Robinson on her Senate of Canada weppage. Senator Robinson grew up in farming on Prince Edward Island and was appointed to the Senate in January 2024. Her family has farmed on the island since 1810.

In 2017, the Advisory Council on Economic Growth released a report calling Canada a “trusted global leader” in sustainable food and targeting $75 billion in agri-food exports by 2027. To meet this goal, the report stressed allowing the private sector to shape strategy, investing in trade infrastructure, addressing labour shortages, and supporting agri-tech through incentives.

At that time, the sector made up 6.7% of the national GDP and employed over two million Canadians. By 2023, it accounted for 7% of GDP and supported 2.3 million jobs — nearly one in every nine. However, despite this growth, Canada dropped in global agri-food export rankings from fifth to seventh and may fall to ninth by 2035.

According to RBC’s 2025 report, although export value has quadrupled since 2000, Canada’s global market share has shrunk by 12%. This means that the country is not fully using its agriculture potential and is losing competitiveness.

Reports recommend increasing investments in food processing technologies and closing digital gaps. If Canada adopts such strategies, it could add up to $44 billion in agri-food export value by 2035 and return to its previous top-five ranking.

Farm Credit Canada also notes that returning to past productivity levels in primary agriculture could add $30 billion in net income over the next decade.

Canada has rich agriculture resources, global trade access through 15 free trade agreements, and a reputation for food safety. However, it must solve the “innovation paradox”: it ranks eighth in innovation inputs but 20th in outputs.

With the right moves, Canada can once again become a world leader in agriculture and agri-food exports says Senator Robinson.


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