Economists from Farm Credit Canada have listed the five trends that producers, processors and retailers should have in mind.
Those are; adding value to Canadian farm products, a strong balance sheet, a global economy, keeping up with consumer habits and fuelling opportunities on the farm.
J.P. Gervas is the chief agricultural economist for FCC.
“Agriculture is a dynamic sector that is interconnected with so many local and global economic trends,” said Gervais. “Making sense of those top trends allows the agriculture and agri-food sectors to identify possible challenges and opportunities in 2018.”
As to the trends, the investment climate for Canadian agriculture infrastructure is heating up as more food handling and processing facilities are expected to be built across the country to meet increasingly complex consumer preferences at home and abroad.
The theory that a strong balance sheet is a farmer’s best defense against changing economic and market conditions. Farmland values will continue to increase in 2018, but lose a bit of steam due to moderate projections for income growth.
Trade negotiations and protectionism abroad can be cause for anxiety among Canadian producers, food processors and exporters, but the global economy is a source for optimism and expanding markets.
Technology, combined with growing consumer desire for convenience and choice, are causing ripples throughout Canada’s food processing and retail sectors and speciality foods are growing in popularity.
And ever since plow horses overtook combustion engines, Canadian farmers have mainly relied on fossil fuels to power their equipment and heat their barns. What might change is a growing demand for biofuels.
