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Agriculture

Canadian agriculture’s $30 billion opportunity

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4 minute read

From Farm Credit Canada

Farm Credit Canada’s (FCC) economics team says rekindling productivity growth in Canadian agriculture is a $30 billion opportunity over 10 years according to a new report.

“If the agriculture industry can return productivity growth to where it was two decades ago, FCC estimates it would add as much as $30 billion in net cash income over 10 years,” says J.P. Gervais, FCC’s chief economist. “Developing innovative solutions, adopting new technology and leveraging data and insights can boost productivity growth and pay off in a big way for Canadian farms.”

Canada’s agricultural productivity growth has slowed since 2011 which is consistent with global agricultural productivity trends.

Agricultural productivity evaluates how inputs such as labour, capital, land, fertilizer and feed are efficiently transformed into outputs such as crops, livestock and aquaculture products. Productivity growth happens when producers increase their output using the same or smaller quantities of inputs.

Total factor productivity measures the combined effects of new technologies, efficiency improvements and economies of scale. It is a key metric for assessing trends in agricultural productivity.

“Between 1971 and 2000 there was steady productivity growth on Canadian farms before hitting a plateau,” explains Gervais. “We are now seeing declining growth with a further decline projected for the next 10 years. While that is the current projection, the entire agrifood supply chain can rally around the innovation spirit of farm input manufacturers and suppliers, farm operators, researchers and food processors to restore growth in agricultural productivity towards its peak.”

Average annual total factor productivity growth in Canadian agriculture by decade

Figure 1 showing average annual TFP growth in Canadian agriculture by decade

Sources: USDA database on agricultural productivity and FCC calculations

As a global leader in growing, processing and exporting safe and reliable food, Canadian producers have a long history of adopting new technology and production practices that feed the world and protect the environment.

“The world’s population is expected to reach nearly 10 billion people by 2050. The Canadian agriculture industry is well positioned to be a leader in the technology and innovation that will meet that demand for food,” says Justine Hendricks, FCC president and CEO. “At FCC we offer a full complement of financing services and resources to support the industry in sustainably increasing its productivity and maximizing the resulting economic gains.”

The $30 billion opportunity that exists for the industry by restoring productivity growth to its historical peak is calculated using a framework that takes into account the relationship between total factor productivity,  farm product prices and farm input prices.

“I have confidence in the agriculture industry’s ability to enhance productivity growth,” said Hendricks. “FCC is dedicated to supporting our customers as they meet these new demands and pursue productivity improvements through a variety of operational shifts designed to reduce input costs and maximize efficiencies.”

FCC is Canada’s leading agriculture and food lender, dedicated to the industry that feeds the world. FCC employees are committed to the long-standing success of those who produce and process Canadian food by providing flexible financing, AgExpert business management software, information and knowledge. FCC provides a complement of expertise and services designed to support the complex and evolving needs of food businesses. As a financial Crown corporation, FCC is a stable partner that reinvests profits back into the industry and communities it serves. For more information, visit fcc.ca.

Agriculture

Canada’s air quality among the best in the world

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From the Fraser Institute

By Annika Segelhorst and Elmira Aliakbari

Canadians care about the environment and breathing clean air. In 2023, the share of Canadians concerned about the state of outdoor air quality was 7 in 10, according to survey results from Abacus Data. Yet Canada outperforms most comparable high-income countries on air quality, suggesting a gap between public perception and empirical reality. Overall, Canada ranks 8th for air quality among 31 high-income countries, according to our recent study published by the Fraser Institute.

A key determinant of air quality is the presence of tiny solid particles and liquid droplets floating in the air, known as particulates. The smallest of these particles, known as fine particulate matter, are especially hazardous, as they can penetrate deep into a person’s lungs, enter the blood stream and harm our health.

Exposure to fine particulate matter stems from both natural and human sources. Natural events such as wildfires, dust storms and volcanic eruptions can release particles into the air that can travel thousands of kilometres. Other sources of particulate pollution originate from human activities such as the combustion of fossil fuels in automobiles and during industrial processes.

The World Health Organization (WHO) and the Canadian Council of Ministers of the Environment (CCME) publish air quality guidelines related to health, which we used to measure and rank 31 high-income countries on air quality.

Using data from 2022 (the latest year of consistently available data), our study assessed air quality based on three measures related to particulate pollution: (1) average exposure, (2) share of the population at risk, and (3) estimated health impacts.

The first measure, average exposure, reflects the average level of outdoor particle pollution people are exposed to over a year. Among 31 high-income countries, Canadians had the 5th-lowest average exposure to particulate pollution.

Next, the study considered the proportion of each country’s population that experienced an annual average level of fine particle pollution greater than the WHO’s air quality guideline. Only 2 per cent of Canadians were exposed to fine particle pollution levels exceeding the WHO guideline for annual exposure, ranking 9th of 31 countries. In other words, 98 per cent of Canadians were not exposed to fine particulate pollution levels exceeding health guidelines.

Finally, the study reviewed estimates of illness and mortality associated with fine particle pollution in each country. Canada had the fifth-lowest estimated death and illness burden due to fine particle pollution.

Taken together, the results show that Canada stands out as a global leader on clean air, ranking 8th overall for air quality among high-income countries.

Air Quality infographic

Canada’s record underscores both the progress made in achieving cleaner air and the quality of life our clean air supports.

Annika Segelhorst

Junior Economist

Elmira Aliakbari

Director, Natural Resource Studies, Fraser Institute
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Agriculture

Health Canada indefinitely pauses plan to sell unlabeled cloned meat after massive public backlash

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From LifeSiteNews

By Clare Marie Merkowsky

Health Canada has indefinitely paused its plan to allow unlabeled cloned meat in grocery stores after thousands of Canadians, prominent figures, and industry leaders condemned the move.

Health Canada is pausing its plan to put unlabeled cloned meat in Canadian grocery stores, following public outcry.

In a November 19 update on its website, Health Canada announced an indefinite suspension of the decision to remove labels from cloned meat products after thousands of Canadians condemned the plan online.

“The Government of Canada has received significant input from both consumers and industry about the implications of this potential policy update,” the publication read. “The Department has therefore indefinitely paused the policy update to provide time for further discussions and consideration,” it continued, adding, “Until the policy is updated, foods made from cloned cattle and swine will remain subject to the novel food assessment.”

In late October, Health Canada quietly approved removing labels from foods derived from somatic cell nuclear transfer (SCNT) clones and their offspring. As a result, Canadians buying meat from the grocery store would have had no way of knowing if the product was cloned meat.

Many researchers have documented high rates of cloning failure, large offspring syndrome (LOS), placental abnormalities, early death, and organ defects in cloned animals. The animals are also administered heavy doses of antibiotics due to infections and immune issues.

Typically, the offspring of cloned animals, rather than the cloned animals themselves, are processed for human consumption. As a result, researchers allege that the health defects and high drug use does not affect the final product.

However, there are no comprehensive human studies on the effects of eating cloned meat, meaning that the side-effects for humans are unknown.

News of the plan spread quickly on social media, with thousands of Canadians condemning the plan and promising to switch to local meat providers.

“By authorizing the sale of meat from cloned animals without mandatory labeling or a formal public announcement, Health Canada risks repeating a familiar and costly failure in risk communication. Deeply disappointing,” food policy expert and professor at Dalhousie University Sylvain Charlebois wrote on X.

Likewise, Conservative MP Leslyn Lewis warned, “Health Canada recently decided that meat from cloned animals and their offspring no longer needs a special review or any form of disclosure.”

“That means, soon you could buy beef or pork and have no idea how it was bred,” she continued. “Other countries debate this openly: the EU has considered strict labelling, and even the U.S. has admitted that cloned-offspring meat is circulating.”

“But here in Canada, the public wasn’t even told. This is about informed choice,” Lewis declared. “If government and industry don’t have to tell us when meat comes from cloned animals, then Canadians need to ask a simple, honest question: What else are we not being told?”

Likewise, duBreton, a leading North American supplier of organic pork based out of Quebec, denounced the move, saying, “Canadians expect clarity, transparency, and meaningful consultation on issues that directly touch their food supply. As producers, we consider it our responsibility and believe our governing food authorities should too.”

According to a survey conducted by duBreton, 74 percent of Canadians believe that “cloned meat and genetic editing practices have no place in farm and food systems.”

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