Canada’s food and beverage manufacturing sector could contribute an additional $40 billion to the economy over the next decade if it achieves annual GDP growth of three per cent, according to a new report from Farm Credit Canada (FCC).
The report, released by the federal Crown corporation, says reaching that level of growth could create 217,000 jobs, generate $1.3 billion in tax revenue and add $16 billion in wages and benefits for Canadians.
Farm Credit Canada said the sector’s ability to realize that potential will depend on improving productivity through investment, trade diversification and innovation aimed at strengthening long-term competitiveness.
The findings are outlined in FCC’s report, Prospects for future productivity growth in Canadian food and beverage manufacturing.
“Productivity growth is essential to ensuring that the Canadian food and beverage manufacturing sector remains competitive globally,” said Craig Klemmer, manager of Thought Leadership at FCC. “But it doesn’t operate in isolation. Success depends on a broader ecosystem of investment, skilled labour and strong global market access.”
Craig Klemmer
The report says Canada’s food and beverage manufacturing industry has remained resilient over the past two decades, but notes that labour productivity declined by an average of 0.5 per cent annually between 2015 and 2022.
FCC said productivity growth remains important to the sector’s future prosperity, sustainability, food security and affordability.
The report identifies four areas it says could help manufacturers improve productivity: capital investment in plant and equipment upgrades and expansion, skills training to address changing technology requirements, streamlined regulations and greater trade openness and global integration.
According to FCC, investment in facilities and equipment can support modernization efforts, while workforce training can help meet evolving labour demands as technology adoption increases. The report also points to regulatory approaches that reduce administrative burdens while maintaining public protections, and to expanded market access as factors that can support productivity gains.
Farm Credit Canada photo
“Canada has a strong foundation to build on,” said Klemmer. “With the right attention and support, the food and beverage manufacturing sector can continue to be an economic powerhouse and a leader in the global food system. The task ahead is to translate those strengths into sustained productivity gains that benefit both Canadian businesses and consumers.”
FCC also highlighted efforts it says are intended to support innovation and productivity across Canada’s agriculture and food sectors.
Earlier this year, the organization convened a coalition of more than 20 investment organizations that collectively committed to deploy up to $7 billion into Canadian agriculture and food innovation by 2030.
Farm Credit Canada photo
FCC said its investment arm, FCC Capital, is supporting companies developing technologies and other solutions designed to improve efficiency, productivity and sustainability throughout the agriculture and food value chain. The organization said those investments are intended to help producers continue expanding food production.
The food and beverage manufacturing sector includes more than 8,800 businesses and employs roughly 318,000 people, according to FCC, making it the country’s largest manufacturing employer.
Farm Credit Canada is a commercial Crown corporation and lender focused on Canada’s agriculture and food industries. In addition to financing, the organization provides capital, management software, industry knowledge and business connections to customers across the sector.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024, 2025 and 2026.
About Us
Canada’s Entrepreneur is the number one community media platform in Canada for entrepreneurs and business owners. Established in 2016, our podcast team has interviewed over 800 Canadian entrepreneurs from coast-to-coast. With hosts in each province, entrepreneurs have a local and national format to tell their stories, talk about their journey and provide inspiration for anyone starting their entrepreneurial journey and well- established founders.
The commitment to a grass roots approach has built a loyal audience on all our social channels and YouTube – 500,000+ lifetime YouTube views, 250,000 + audio downloads, 50,000 + average monthly social impressions, 15,000 + engaged social followers and 120,000 newsletter subscribers. Canada’s Entrepreneur is proud to provide a local, national and international presence for Canadian entrepreneurs to build their brand and tell their story
