Overview of the Canadian agriculture and agri-food sector 2018
From farm to plate
Large in scope, the agriculture and agri-food system is an integrated supply chain making a significant contribution to the Canadian economy.
Key players in this system:
- producers (primary agriculture)
- input and service suppliers
- food and beverage processors
- food retailers and wholesalers
- food service providers
- Agriculture and Agri-Food Canada

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Agriculture and agri-food is a major contributor to the Canadian economy
Primary agriculture
An economic driver highly diversified across the country
- 193,492 farms
- farms cover 64.2 million hectares or 7% of Canada's land area
- concentrated across the Prairies and Southern Ontario
- average farm size doubled over the last 50 years due to increased consolidation and technological advances
Farm market receipts ($ billions)
A record high $60 billion
- 4.2% average annual growth – grain and oilseed receipts leading the way
- largest 8% of farms accounted for over half of farm cash receipts
AAFC is mandated to support primary agriculture and food and beverage processing, but the sector reaches into the broader agri-food system
Input and service suppliers serve primary agriculture.
Primary agriculture (GDP, $32.3 billion, 1.7%, employment 265,700) serves food and beverage processing (GDP, $33.9 billion, 1.8%, employment 298,200) and Food Retail and Wholesale
Primary agriculture and food and beverage processing also serve foodservice
In 2018, the whole agriculture and agri-food system employed
- 2.3 million people
- accounted for 7.4% of Canada's GDP
- provided 1 in 8 jobs in Canada
Food and beverage processing
Largest manufacturing industry in Canada
- 17% of all manufacturing GDP
- 18% of manufacturing employment
Facilities across the country but most in Ontario and Quebec
Food and beverage processing sales totalled $114.9 billion in 2018
Main industries:
- meat, 25%;
- dairy, 13%;
- beverage, 10%;
- grain and oilseed milling, 10%

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Input and service suppliers serve primary agriculture.
Primary agriculture (GDP, $32.3 billion, 1.7%, employment 265,700) serves food and beverage processing (GDP, $33.9 billion, 1.8%, employment 298,200)
AAFC works within this system to support several key components — primary agriculture, food and beverage processing, and the growing field of bioproducts — through our programs and services.
The department also maintains relationships with suppliers, retailers and others in the value chain. Related industries contribute to the sector as well, such as agricultural technology and equipment).
Putting agriculture on the map
While all major farm types (such as grain, dairy, horticulture) are present across the country, the mix of farm types varies considerably across regions.

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- Yukon
- hay
- poultry
- Northwest Territories
- eggs
- greenhouse products
- Nunavut
- caribou
- wild berries
- British Columbia
- horticulture
- dairy
- poultry
- eggs
- Alberta
- cattle
- grains
- oilseeds
- Saskatchewan
- grains
- oilseeds
- cattle
- Manitoba
- grains
- oilseeds
- hogs
- Ontario
- grains
- oilseeds
- horticulture
- dairy
- Quebec
- hogs
- dairy
- poultry
- eggs
- Atlantic Provinces (New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador)
- horticulture
- dairy
Economic driver here at home
The Canadian agriculture and agri-food system is a key driver of Canada's economy.
In 2018, the system generated $143 billion, accounted for 7.4% of GDP, and provided one in eight jobs in Canada.
The agriculture sector is healthy and profitable, experiencing strong growth in the past decade. Farm market receipts grew by 4.2% annually, on average, between 2009 and 2018, with the largest growth coming from grains and oilseeds.
Net Cash Income reached a record high of $14.7 billion in 2017 but decreased in 2018 to $11.6 billion.
In 2016, the average farm family had an estimated income of $127,172, compared to $108,600 for the average Canadian family.

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(% of total GDP) | |
---|---|
Input and service suppliers | 0.7 |
Primary agriculture | 1.7 |
Food and beverage processing | 1.8 |
Food retail and wholesale | 1.6 |
Foodservice | 1.6 |
Total | 7.4 |
Notes: |
Food and beverage processing – Number one in Canada
Largest manufacturing sector in Canada in terms of both GDP and employment -- with plants across the country.
The number 1 market for Canadian primary agriculture products, using 42% of primary production.

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(%) | |
---|---|
Meat | 25.4 |
Dairy | 12.8 |
Beverage | 10.0 |
Grains and oilseeds | 9.6 |
Bakeries and tortilla | 9.5 |
Animal food | 7.0 |
Fruit and vegetable[1] | 6.8 |
Seafood | 4.5 |
Sugar and confectionary | 3.2 |
Other food[2] | 11.1 |
Source: Statistics Canada and AAFC calculations. Notes: Data are preliminary and subject to revisions. [1] Fruit and vegetable preserving and specialty food manufacturing. |
Charting a path to continued growth in food and beverage processing
Domestic and international food and beverage processing sales have increased steadily over the past 10 years.
However, processing is viewed as an area of untapped potential because of underinvestment.
Processors experience labour productivity challenges and lower profit margins compared to the overall manufacturing sector.
Other major agri-food exporting countries have been more successful in developing their value-added industries.

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Total sales (billion dollars) |
Exports (billion dollars) |
Domestic sales (billion dollars) |
|
---|---|---|---|
2009 | 90.11249 | 18.97797 | 71.13452 |
2010 | 91.60969 | 20.42079 | 71.1889 |
2011 | 93.95511 | 22.99743 | 70.95768 |
2012 | 94.57115 | 24.21764 | 70.35351 |
2013 | 96.63287 | 24.93002 | 71.70286 |
2014 | 100.243 | 27.45195 | 72.79104 |
2015 | 102.7402 | 30.70539 | 72.03482 |
2016 | 107.2171 | 32.89021 | 74.32685 |
2017 | 111.5798 | 34.44788 | 77.13188 |
2018 | 114.9245 | 35.80791 | 79.1166 |
Average growth (%) | 2.7 | 7.3 | 1.2 |
Source: Statistics Canada and AAFC calculations. |
A global force – strong and growing
The performance of the sector depends on its ability to compete in international markets. We're the fifth-largest exporter and importer of agriculture and agri-food products in the world.
The U.S. remains our largest trading partner, accounting for over half of our agricultural imports and exports.
Over the past 10 years, our exports to China have grown by 16% annually.

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2009 ($) | 2018 ($) | |
---|---|---|
Other | 8,848,193,123 | 10,057,712,332 |
EU | 2,055,234,703 | 2,635,479,754 |
Mexico | 1,206,648,094 | 1,913,903,713 |
Japan | 2,937,356,649 | 4,285,125,217 |
China | 2,494,389,203 | 9,379,350,568 |
U.S. | 17,633,457,214 | 31,089,572,016 |
Total | 35,175,278,986 | 59,361,143,600 |
Source: Statistics Canada and AAFC calculations |

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2009 (in Can $) | 2018 (in Can $) | |
---|---|---|
EU-28 | 485,199,542,945 | 760,776,536,774 |
U.S. | 113,295,378,928 | 185,237,729,540 |
Brazil | 61,953,419,837 | 109,489,599,266 |
China | 32,588,402,740 | 74,575,756,670 |
Canada | 35,176,793,657 | 59,378,238,687 |
World Total | 1,047,396,192,596 | 1,821,427,088,394 |
Source: Global Trade Tracker and AAFC calculations. |
In 2018:
- 72% of our agricultural exports were destined for countries where Canada has a free trade agreement
- our export sales grew by 2.7% over the previous year to reach $59.4 billion
Global demand drives a decade of strong growth
Most Canadian producers have seen good growth over the past decade, with farm market receipts reaching a record high of $60 billion in 2018.

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Other | 4.8 |
---|---|
Special crops | 2 |
Poultry and eggs | 4.3 |
Fruits and vegetables | 5.7 |
Dairy | 6.6 |
Red meat | 13.4 |
Grains and oilseeds | 23.2 |
Notes: [2] Numbers may not add to total due to rounding. Source: Statistics Canada. |

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Can$ billion | US$ billion | |
---|---|---|
2009 | 8.48 | 74.41 |
2010 | 9.00 | 96.34 |
2011 | 11.33 | 123.22 |
2012 | 12.36 | 135.28 |
2013 | 12.54 | 136.09 |
2014 | 13.78 | 131.30 |
2015 | 14.34 | 106.78 |
2016 | 14.56 | 95.57 |
2017 | 14.65 | 102.52 |
2018 | 11.61 | 104.99 |
Source: Statistics Canada, USDA Economic Research Service. |
Net cash income for producers reached a new record high in 2017, but fell in 2018. Even with this decline, the average net worth of farms continued to increase in 2018.
The long-term outlook for agriculture remains favourable.
The new realities of farming
Canadian agriculture has evolved over time in response to challenges, opportunities and market developments.
Over the past 50 years, the number of farms in Canada has decreased by half, average farm size has doubled, and farm value per acre has almost quadrupled.
Today's farm can produce roughly twice as much output as 50 years ago, with the same amount of total input.
Consolidation has led to a small number of very large farms earning the majority of revenues, with the largest 8% of farms accounting for over half of farm cash receipts.

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% of farms | % of revenues | |
---|---|---|
Under $100,000 | 56 | 5 |
$100,000 to $249,999 | 16 | 7 |
$250,000 to $499,999 | 11 | 11 |
$500,000 to $999,999 | 9 | 17 |
$1,000,000 and over | 8 | 60 |
Source: Statistics Canada, Census of Agriculture, 2016, AAFC custom tables. |
Attracting the next generation of farmers
A quarter of farm operators are 65 and over, a steady increase in age over the past 25 years.
In 2016, only 7% of farms were operated by women only, and 33% by both men and women.
The proportion of new Canadians operating farms has decreased to 8.7% in 2016.
Over the past 20 years, operators who self-identified as Indigenous increased only slightly to 1.9%.

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Under 35 years (%) | 35 to 64 years (%) | 65 years and over (%) | |
---|---|---|---|
1991 | 13 | 67 | 20 |
1996 | 14 | 70 | 16 |
2001 | 15 | 73 | 12 |
2006 | 18 | 73 | 9 |
2011 | 22 | 70 | 8 |
2016 | 24 | 67 | 9 |
Source: Statistics Canada, 2016 Census of Agriculture, AAFC calculations. |
Agriculture's environmental footprint
Agriculture greenhouse gas (GHG) emissions (8.4% of Canada's total emissions) have been relatively stable for 20 years.
In that time, production has increased significantly, resulting in a decrease of GHG emission intensity by half.
In addition, soil conservation practices have allowed our agricultural soils to sequester carbon for 20 years, offsetting nearly 10% of the sector's emissions.
The agricultural sector also has environmental impacts in other areas including water, soil quality and biodiversity.
Agriculture GHG Emission Trends (million tonnes)

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1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Animal production | 32 | 32 | 34 | 34 | 36 | 38 | 38 | 38 | 39 | 39 | 40 | 41 | 41 | 42 |
Crop production | 15 | 14 | 14 | 15 | 16 | 16 | 17 | 17 | 17 | 17 | 17 | 15 | 15 | 16 |
On farm fuel use | 11 | 11 | 11 | 12 | 13 | 14 | 14 | 15 | 14 | 13 | 13 | 11 | 11 | 12 |
Soil carbon | 8.3 | 7.1 | 5.6 | 4.4 | 3 | 1.5 | 0.6 | −0.9 | −2.1 | −3.3 | −4.7 | −5.9 | −7.3 | −8.6 |
Total emissions | 58 | 57 | 59 | 61 | 65 | 68 | 69 | 70 | 70 | 69 | 70 | 67 | 67 | 70 |
Net emissions | 66.3 | 64.1 | 64.6 | 65.4 | 68 | 69.5 | 69.6 | 69.1 | 67.9 | 65.7 | 65.3 | 61.1 | 59.7 | 61.4 |
2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Animal production | 43 | 44 | 43 | 41 | 40 | 38 | 37 | 36 | 36 | 36 | 36 | 35 | 36 | 36 |
Crop production | 17 | 16 | 16 | 17 | 18 | 18 | 18 | 19 | 21 | 23 | 22 | 23 | 23 | 24 |
On farm fuel use | 12 | 12 | 12 | 12 | 12 | 12 | 13 | 14 | 13 | 13 | 13 | 13 | 13 | 12 |
Soil carbon | −9.8 | −11 | −12 | −12 | −12 | −12 | −12 | −12 | −11 | −10 | −9.5 | −8.6 | −7.8 | −6.8 |
Total emissions | 72 | 72 | 71 | 70 | 70 | 68 | 68 | 69 | 70 | 72 | 71 | 71 | 72 | 72 |
Net emissions | 62.2 | 61 | 59 | 58 | 58 | 56 | 56 | 57 | 59 | 62 | 61.5 | 62.4 | 64.2 | 65.2 |
Labour is a key factor affecting the sector's growth
The majority of jobs are considered low-skilled and pay lower wages than in other sectors.
The national agriculture job vacancy rate is 7% and continues to grow: for example, meat packers have a 12% vacancy rate —7,300 positions.

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Primary agriculture employs 277,200 people. Sector employment declined by 16% between 2008 and 2018.
Food and beverage manufacturing employs 298,200 people. Sector employment increased by 1.46% between 2008 and 2018.
Source: Statistics Canada, Labour Force Survey, 2008 and 2018
Opportunity for tech to shift skillsets in the sector
Agri-food processing is becoming more automated and farm management is increasingly connected, integrating data and new technologies into operations.
Artificial intelligence provides better decision-making models to improve efficiency, productivity and sustainability.
As the emphasis shifts away from manual labour and machine operation, there may be displacement of agricultural workers.
However, there will be a continued need for low and intermediate skilled labour in the sector for the foreseeable future.

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Primary agriculture | Food and beverage processing | Total, all industries | |
---|---|---|---|
Share of high skill position (%) | 17 | 33 | 60 |
Other (%) | 83 | 67 | 40 |
Source: Labor Force Survey, Statistics Canada Note: High skill positions include Skill level A (Management and Professional) and Skill level B (technical), “Other” includes Skill level C (Intermediate positions) and D (Elementary positions). |
Promise and potential
Agriculture is one of the sectors with the highest economic growth potential in Canada.
Demand is growing for the kinds of food that Canadian farmers and processors can deliver – meats, grains, oilseeds, fruits, vegetables and processed foods.
Canada has some key advantages that will make us a leader in sustainable food production:
- abundant land and water resources
- access to international markets
- strong R&D capacity
- strong global reputation as a trusted supplier of safe, top-quality food
Together, these advantages create a powerful brand for Canadian food.
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