Farmscape for April 29, 2021
Farm Credit Canada reports the Canadian food and beverage sector has positioned itself to take full advantage of marketing opportunities being created as the global economy begins to recover from the effects of COVID-19.
The FCC Food and Beverage Report 2021 examines opportunities within Canada's food and beverage sector amid challenges created by the global pandemic.
Farm Credit Canada Principal Economist Craig Klemmer says, while 2020 was a roller coaster year with the pandemic disrupting supply chains and export markets and prompting the closure of food service, the sector has done a really good job of adjusting.
Clip-Craig Klemmer-Farm Credit Canada:
We're seeing economies slowly opening up, mixed results here in Canada but we're seeing quite a bit more of the opening of the U.S. economy and that's our number one trading partner when it comes to food.
When we look at these opportunities and what's happening, we did see some declines or some challenges in the food manufacturing sales last year.
We are looking to see a rebound or some strong growth here in 2021 in conjunction with this reopening of the economy.
There's some demand there where people want to get together with friends and families and, as the economy slowly opens up, that's going to increase demand and opportunity for food.
The same kind of story is what we see in our export opportunities.
We see the United States, as vaccines are rolling across the United States as well, economies are slowly trying to reopen and those are going to create more export opportunities for the Canadian food sector and that's something to be optimistic about into 2021.
We do have to put some caution on that though.
The pandemic continues to create challenges and we do see some progress and then having to take some steps back.
So, although our forecast looks to be fairly strong and that's really in line with the reopening of the Canadian economy, if we do see further setbacks or challenges there, that could restrict some of those growth opportunities and I think it's just to be a bit cautious on that reopening of the economy.
Klemmer says strategies such as increased direct marketing to consumers and changes in product packaging and distribution have helped position Canadian food manufacturing companies to take advantage of both domestic and export opportunities.
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