Miller Magazine Issue: 135 March 2021

canada 82 MILLER / march 2021 Canada is the largest country in the western hemi- sphere and one of the largest in the world. Located in the northern part of North America, Canada extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean. Canada has a population of 37.9 million, with a population density of 4 people/km2, among the lowest in the world. North American country serves as a global model for stability, sustainable prosperity, and economic inclusion. It is one of the world's wealthiest nations, due to its wealth of natural resources; forests, minerals and fos- sil fuels. The Canadian economy is large and diversified, with a national GDP of more than $1.6 trillion. Cana- da has a thriving free-market economy, with businesses ranging from small owner-managed enterprises to mul- tinational corporations. Canada's economic development was historically based on the export of agricultural sta- ples, especially grain, and on the production and export of natural resource products, such as minerals, oil and gas, and forest products. Although natural resource-based industries, such as mining, agriculture, forestry and fishing make up only a small percentage of GDP at the national scale, they remain a key component of Canada's economy. These in- dustries are still major contributors to foreign trade and the basis of Canadian wealth. According to the Conference Board of Canada’s two- year economic outlook released in January, real gross do- mestic product (GDP) will grow 5.3 percent in 2021 and 3.5 percent in 2022 respectively. The growth forecasts for the next two years follow an estimated economic contraction of 5.3 percent in 2020, one of the deepest recessions in modern times. The strength of Canada’s economic recovery will largely depend on the successful distribution of vaccines against COVID-19. Agriculture and food processing are key components of the economy. Agriculture and food account for 11% of Canada’s goods GDP and almost 10% of Canada’s total merchandise trade. Food processing is by far the largest manufacturing employer in Canada supporting over 250,000 jobs across the country. Canada is the fifth largest exporter of agricultural and agri-food products in the world after the EU, U.S., Brazil, and China. It exports $56 billion a year in agriculture and agri-food products. It exports half of its beef/cattle, 70% of its soybeans, 75% of its wheat, 90% of its canola and 95% of its pulses. Canada is one of the largest producers of high-quality grain and oilseed crops in the world. Canada’s main crops are wheat, barley, corn, potatoes, soybeans, rice, canola and sugar beets. Canada is world’s top producer and ex- porter of canola. Canada’s largest crop export is wheat. North American country produces on average about 30 million tonnes of wheat each year. It is also a world lead- er in the production and export of pulse crops – peas, lentils, beans and chickpeas. It exports its pulses to over 120 countries. Canada is investing in important infrastructure and supply chain improvements to meet global customer needs in a reliable and future-oriented way. Ten years ago, Canada exported approximately 33-million tonnes of grain. Advancing to the 2019/20 crop year, over 44-million tonnes was delivered to export markets. Canada’s effective national pandemic response has helped its food and agriculture industries settle into a relatively stable ‘new normal’ operating environment, despite acute disruptions early in the COVID-19 era. Ca- nadian food and agricultural industries appear to have avoided many of the dire predictions made in the spring of 2020. Increased demand for flour and pasta during the pandemic has sustained prices for Canadian hard red spring wheat varieties as well as durum, while lower demand for and production of ethanol has limited corn deliveries and created cash flow challenges for Canadi- an corn producers. Barley producers’ have faced similar challenges as beer consumption has fallen further due to disruptions across the foodservice sector during COVID. According to Agriculture and Agri-Food Canada’s (AAFC) latest report released on 17 February, the total field crop supply in the country for the 2020-2021 sea- son is forecast to increase to 115.9 million tonnes (mt) based on record crop production. Total carry-out stocks are forecast to decrease to 11.8 mt, as exports are ex- pected to remain strong and increase by 11%. For 2021-2022 season, the area seeded to field crops is forecast to increase marginally, with the area seeded to coarse grains, oilseeds and pulses expected to increase, while the wheat (excluding durum) area is expected to decrease. Production of grains, oilseeds and pulse and