Opportunities

Opportunities exist for Alberta companies considering exporting their products abroad, for companies from around the world interested in investing in Alberta, and for all agrifood companies looking at taking advantage of current and future industry trends.

Exporting

In terms of agricultural trade, Alberta is the third largest exporter of primary and processed agricultural and food products in Canada. In 2009, Alberta’s agrifood exports totaled $7.6 billion. Of the total, nearly 36% was exported to the United States ($2.7 billion), followed by 14% to China (1 billion), 13% to Japan ($954 million) and 6% to Mexico ($455 million)

For Alberta companies, the benefits of exporting are many, including increased profits and sales, increased size and scope of their business and increased security as a result of spreading risks over a variety of markets. 

Key drivers of growth for the agrifood sector include:

  • Increased access to international markets through liberalization of trade agreements.
  • Growth in demand for consumer-oriented, value-added agrifood products.
  • Changes to the domestic regulatory framework in response to international market demands, such as age verification and traceability changes in the livestock sector, organic certification, etc.
  • Research and investment into the functional properties of foods that can fight or prevent disease.
  • Research and investment in the industrial sector, such as bio-lubricants, composite materials, and bio-fuels.

Global trends that will impact food exports include:

  • Rapid economic growth in populous countries such as China and India is leading to increased demand for meat and dairy products and driving up overall grain prices.
  • It is estimated that by 2050 there will be billions more mouths to feed, exacerbating the demand for food (from 6.1 billion people in 2000 to an estimated 9.2 billion in 2050).
  • Extreme weather, such as drought, floods, and cold snaps, are affecting harvests and food availability. Global demand for water has tripled in the last 50 years, and high rates of soil loss to erosion and desertification could diminish the capacity to produce enough food.
  • Food supply decreases as crops are shifted to the fuel market. Currently 20% of the United States corn crop goes into ethanol production – a figure likely to rise to 32% by 2016. 

For more information, visit Agriculture and Food – Export Basics

Investing in Alberta

Investors in Alberta's agrifood processing industry enjoy favourable conditions unique to our province. The province’s strategic location allows for quick and inexpensive goods delivery. With effective road, rail, and air links to markets, Alberta has become a major distribution centre. Goods are shipped to Western Canada and the rapidly expanding markets in the Pacific and Northwestern United States, as well as Pacific Asia and the Russian Far East.

At the same time, Alberta's extensive network of research and development facilities help develop and commercialize products and processes. Agricultural research has resulted in better production methods, new crop varieties, and a large and varied genetic pool of breeding livestock. 

Services for investors:

The ministry of Agriculture and Rural Development provides information and assistance to companies and investors considering capital investment or expansion in Alberta's agrifood processing industry. This includes:

  • information on investment opportunities and the advantages of doing business in Alberta
  • assistance if you are seeking alliance partners, joint ventures, or sources of capital
  • coordination of your Alberta visit to meet with government and private company representatives
  • information and analysis for emerging investment projects at various stages of planning and development

If you are interested in exploring some of the many potential processing opportunities in Alberta, please contact Norm Janssen, Development Officer, Investment Attraction and Business Retention.

Agriculture into the future

The rapidly changing global economy is creating many new opportunities for Alberta's agrifood industry. Trade agreements, modern technology, transportation, and sophisticated communications systems are resulting in greater international access to goods and services. The demand for food and other agricultural products will increase as populations rise.

World trade in agricultural products is continuing to grow. Demand is shifting dramatically from bulk commodities to consumer ready foods. Value-added products and niche markets are anticipated to grow rapidly. Markets for new products including functional foods, food ingredients, and industrial and other non-food uses are also expected to grow. Environmental issues are becoming increasingly important and there is a market differentiation for clean, wholesome, and safe products

Date Updated:
RDP-1967