FCC lays out strategies to diversify Canadian food exports

REGINA, SK, Sept. 22, 2025 /CNW/ – Canada has an opportunity to diversify $12 billion of food and beverage exports to non-U.S. markets to protect against trade disruption, enhance global competitiveness and build a more resilient agriculture and food system. That’s according to a report by Farm Credit Canada (FCC) titled ‘The $12-billion trade shift: Canada’s opportunity to diversify food exports beyond the U.S.‘ 

Canada’s food and beverage sector is heavily reliant on the U.S. as over three-quarters of its exports were destined to the southern neighbour, compared with 31 per cent of primary agricultural products in 2023. In terms of imports, 65 per cent of food and beverage products came from the U.S., compared to 78 per cent for primary agriculture. This reliance leaves Canadian ag and food producers vulnerable to unpredictable trade dynamics. The U.S. economy will always remain a key market for Canadian exports, but the evolving trade landscape underscores the need to diversify to non-U.S. markets.

“Canadian agriculture and food producers rely on international trade to thrive, but ongoing trade disruptions have created uncertainty and barriers to growth. Diversifying food and beverage exports beyond the U.S. will not only strengthen producers’ resilience but also benefit Canadian consumers and the broader economy,” said Justine Hendricks, FCC president and CEO. “This report is FCC’s effort to focus Canadian dialogue on how diversification is important, viable and an opportunity we can’t miss out on.”

FCC’s recommended $12-billion diversification strategy focuses on three key areas:

• Strengthening inter-provincial trade, redirecting $2.6 billion in exports from the U.S. to meet domestic demand. This approach reduces import reliance, supports Canadian producers and helps stabilize the food system nationally;
• Maximizing benefits from Canada’s 15 existing free trade agreements, which collectively cover 51 countries and 66 per cent of global GDP, to expand Canadian food and beverage exports globally; and
• Forging new international partnerships to capture emerging opportunities in high-value markets in Europe, Asia and Latin America, targeting $9.4 billion in growth beyond the U.S.

The report identifies trade diversification opportunities across commodity groups, including prepared foods, vegetable oils and animal feed. Prepared foods represent the largest category, making up 19 per cent of Canadian food and beverage exports, which totaled $8.6 billion in 2023, with 90 per cent currently destined for the U.S. Boosting inter-provincial trade can replace approximately 10 per cent of these exports domestically, while the remaining 90 per cent must be redirected to high-value markets in Europe and rapidly expanding markets in Asia.

“Investing in infrastructure, innovation and expanding product offerings will be critical to supporting this transition. Shifting $12 billion in exports will reduce risk and secure stability for the Canadian agriculture and food sector,” said J.P. Gervais, FCC’s chief economist. “A balanced trade portfolio will make the ag and food industry more competitive, adaptable and prepared to succeed in a changing global economy.”

Additional strategies highlighted in the report include promoting the “Buy Canadian” movement to stimulate domestic demand and enhancing Canada’s global brand to signal quality, safety, and versatility of Canadian food products. Expanding domestic value-added processing will allow Canada to capture a larger share of the food dollar; while exploring a variety of protein sources and sustainably processed items will open new opportunities both at home and abroad.

About FCC

FCC is proud to be 100 per cent invested in Canadian agriculture and food. The organization’s employees are committed to the long-standing success of those who produce and process Canadian food. FCC provides flexible financing and capital solutions, while creating value through data, knowledge, relationships and expertise. FCC offers a complement of financial and non-financial products and services designed to support the complex and evolving needs of the industry. As a commercial Crown corporation, FCC is a stable partner that reinvests profits back into the industry and communities it serves. For more information, visit fcc.ca.

SOURCE Farm Credit Canada