Issues in Contemporary Agriculture:
Economics and Innovation

Canadian Agriculture in 2008: An Overview of Key Events

Report by Bishnu Saha and Verna Mitura, Statistics Canada, November 2009

The year 2008 was a good year for Canada's grain and oilseed producers. However, livestock producers, particularly hog farmers, felt a cost-price squeeze due to rising feed costs and virtually flat market prices. Production and inventory of both hogs and cattle fell significantly.

Large production of grains and oilseeds and higher prices contributed to an increase in farm cash receipts in 2008. Total farm cash receipts in constant dollars, which consisted of receipts from sales of crops and livestock plus program payments, increased 10.9%. Virtually all of the increase (96.2%) was attributable to crops receipts.

Internationally, exports of Canadian agricultural and fish products in 2008 increased 18.7% from 2007, while imports rose 11.7%. As a result, the nation's trade surplus in agricultural and fish products increased from $8.9 billion to $12.3 billion. The agricultural trade surplus accounted for 26.3% of Canada's total trade surplus, its highest share in 10 years.

The article "Canadian agriculture in 2008: An overview of key events" is now available in the November 2009 online edition of VISTA on the Agri-food Industry and the Farm Community (21-004-X, free), from the Publications module of the Statistics Canada website.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Bishnu Saha (613-951-6051, bishnu.saha@statcan.gc.ca), Agriculture Division.

Note from Myles Frosst, AIC CEO:

The report Canadian Agriculture in 2008: An Overview of Key Events, by Bishnu Saha and Verna Mitura of Statistics Canada, points to the importance of the more "traditional" parts of the agro-economy (primary production and food manufacturing).

I would like to single out two facts derived from the 2008 report. While a good part of the Canadian manufacturing sector as a whole is suffering, the 2008 report reveals that food manufacturing continues to be stable and thus an increasingly important part of Canada's ability to generate jobs in the manufacturing sector. If Canadians seek to have jobs in the manufacturing sector - and the research and development required by the entire agro-economy to enhance the scientific capacity of Canada to meet 21st century challenges - then governments, companies in both primary production and other parts of the agro-economy, and the science communities engaged in the agro-economy must continue to find ways together to meet consumer and societal demands.

The report also highlights the importance of primary production and food manufacturing to Canada's balance of payments. In 2008, the net trade balance from Canada's agricultural food trade, albeit including fish and seafood, accounted for 26.3 % of the economy wide merchandise trade balance of $46.9 billion. Without this significant contribution to our trade balance, Canadians would have difficulty affording other imported products and services.

If we were to include all parts of the agro-economy (see for example another Statistics Canada publication on bio-products excluding bio-energy (http://www.statcan.gc.ca/pub/21-004-x/21-004-x2009001-eng.pdf), the relative importance of the Canadian agro-economy to Canada would become even sharper.