Canada's fastest-growing ag sectors
Over the past five years, these sectors have made substantial gains in gross farm revenue.
If all your news came from daily newspapers and national network TV, you'd be missing some great stories in Canadian agriculture. With urban media reporting mainly on trade crises, bad crops and poor growing conditions, it's easy to think Canadian agriculture's in a slump.
Even allowing for the undoubted challenges of BSE, the facts suggest otherwise. Several sectors of Canadian agriculture are on a multi-year run of solid growth, with producers across the country participating in some good times.
Agriculture Business Review asked Statistics Canada's Agriculture Division to crunch some numbers, namely: which farm sectors have shown significant growth over the past five years?
StatsCan agriculture analyst Rita Athwal compiled data for farm cash receipts (gross farm revenue), by sector, between 1998 and 2003, the last year for which complete stats are available. Here's what she found.
Potatoes: up 40%. Between 1998 and 2003, revenue from potato production jumped 40%, for a top-line increase of $240 million. "There was growth in the processing market and in both exports and domestic production," says Athwal. "Both acreage and yield increased, leading to more marketing." This is especially good for the provinces that produce most of Canada's potatoes: P.E.I. (20%), Manitoba (16%) and Alberta (16%).
Hogs: up 54%. While livestock revenue grew by 12% overall, hog producers fared better. The 54% figure is somewhat exaggerated by the poor 1998 year that's used as a base. But it's significant, in Athwal's view, that 2003 hog revenue was more than 10% higher than the average of the previous five years.
Greenhouse vegetables: up 63%. During the five-year run, greenhouse vegetable production (mainly cucumbers, tomatoes, peppers and lettuce) added $245 million in revenue. Way to go, Ontario and B.C., producers of 50% and 35%, respectively, of Canada's farm cash receipts from greenhouse vegetables.
Lamb: up 40%. From 1998 to 2003, lamb producers grew their revenue from $570 million to $855 million. How? "It wasn't price," says Athwal, noting stagnant lamb prices during most of this period. "For marketings to go up like this, there has to be strong demand." Lamb revenue in Quebec doubled, and grew 64% in Ontario.
Eggs: up 20%. This growth was aided by a small increase in 1998-2003 prices, but is mainly due to more consumption and therefore higher marketings.
Honey: up 80%. How sweet it is. Honey-loving consumers and stronger prices allowed honey producers to grow revenue by $70 million.
Dairy: up 17%. Here, increases in marketing and price reflect an increase in domestic consumption. Producers cashed cheques totalling $250 million more in 2003 than in 1998. Quebec and Ontario, which together account for 70% of Canadian dairy, grew the most.
Nursery and floriculture: up 55%. This sector tacked on $617 million in new revenue between 1998 and 2003. "A high rate of home construction, in part because of low interest rates, creates demand for landscaping products," says Athwal. Canada's producers of ornamental trees, shrubs, fruit trees and perennials took full advantage.
Sunflowers and canaryseed: up 100%. While not exactly a sector, these two prairie crops have shone in recent years. Sunflower growers added $36 million in revenue, and canaryseed moved the top line higher by $30 million.
Are there challenges in Canadian agriculture? No doubt. But an objective look at the numbers also finds plenty of reason for optimism.
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