A report released last week by The School of Public Policy refers to Alberta’s agri-food industry as a “gentle giant that’s about to awaken,” and could be a big player in the province’s post-COVID-19 rebound.
The authors of the report, Karen Spencer and Kim McConnell, found the industry is in a great place, with the potential to “serve the changing appetite of Canadians and the Western world.”
Alberta’s Minister of Agriculture and Forestry, Devin Dreeshen said he believes the industry is a key component to the province’s economic recovery.
“There’s tremendous growth potential in agriculture and we’re starting to see those types of investments land here already.
“I think with COVID(-19)… it just highlighted its importance even more — when you looked at the border staying open entirely for food products coming in and out of this province,” Dreeshen said.
While the main driver of Alberta’s economy for many years was oil and gas, agriculture is not taking the stage, experts say.
“We hope that this report brings (agriculture) back to the foreground and we can show people how important it is for all of us. It’s a need, it’s a necessity, and how much impact we have on the economy with our agriculture industry,” Spencer said.
The report points to data from Statistics Canada and the Canadian Energy Regulator, which show total sales in Alberta’s agri-food sector last year was 31 per cent higher than the province’s gross crude oil sales.
The multi-pronged report is part of the Alberta Futures Project, which Spencer said is focused on developing some specific policy recommendations on how to help kick-start the Alberta economy post pandemic.
In 2019, Alberta’s primary agriculture sector hired 49,000 people, making the agri-food industry the province’s largest employer, according to Statistics Canada.
“One of the big ones that we see… that perhaps people within our cities aren’t really aware of… is the internet,” Spencer said.
“There are statistics that show that about 50 per cent — or under 50 per cent — of rural Albertans have what would be deemed an unacceptable level of internet connectivity.”
Spencer pointed out the irony of that statistic considering how advanced technology is within farming equipment, yet rural connectivity is years behind where it should be, compared to higher populated areas.
When asked about how the province plans to address that issue, Dreeshen said the government has launched a new Canadian Agriculture Partnership (CAP) program with farmers to provide “internet boosters” and other technology advances.
The Farm Technology Program is focused on sensors that contribute to farm data systems, as well as technology-based security devices, while supporting producers protect their businesses through the adoption of best management practices in farm security.
“The Internet of Things is obviously very important to a lot of industries, but there’s so much potential for it in agriculture,” Dreeshen added.
Advanced technology has been a huge focus in the agriculture industry over the past couple of decades and Spencer believes the trend will continue to make the industry sustainable and, in turn, a leading economic driver.
“So right now, about 70 per cent of our crops in Alberta use precision agriculture and that’s a method that is sustainable, it retains more carbon in the soil, it means that farmers can use less added fertilizers and so on,” Spencer said.
However, she added “that sustainability has to be married with economic sustainability so that it can be, really, an answer to growing Alberta’s economy.”
1:44 ‘Trying to make the agriculture world a better place’: AgTech advancements improve farm efficiency, safety
‘Trying to make the agriculture world a better place’: AgTech advancements improve farm efficiency, safety – Jun 22, 2021
The School of Public Policy is hoping the new report will shine light on the success in Alberta’s agri-food industry, but also bring attention to struggles producers face and what’s causing roadblocks for future growth.
“One of the things… the school is really good at is we do not just produce papers that just sit on shelves and collect dust, we produce papers but we are very active at communicating them to both the public and to policymakers within government and, of course, elsewhere,” Spencer said.
She added this report is written in layman’s terms and hopes it’s easy enough to understand, so everyone can get something out of it. However, the biggest goal is to have the government implement policies that will help further the agriculture industry in our province, allowing it to strengthen — or at least stabilize — Alberta’s economy.
“We’d love to take the next step and work on some more specific policy discussions with stakeholders, and see what we can do,” Spencer said.
The minister of agriculture said the government appreciates these types of reports that have “a different lens than we typically would as a government.”
“These types of reports are helpful in us when we consult with industry stakeholders, when we consult with farmers and ranchers to figure out what we, as government, can do to… help, but also what we can do to not hurt that the industry so it’s helpful,” Dreeshen said.
“And like I said, there’s tremendous growth potential.”
OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.
Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.
Business, building and support services saw the largest gain in employment.
Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.
Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.
Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.
Friday’s report also shed some light on the financial health of households.
According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.
That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.
People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.
That compares with just under a quarter of those living in an owned home by a household member.
Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.
That compares with about three in 10 more established immigrants and one in four of people born in Canada.
This report by The Canadian Press was first published Nov. 8, 2024.
The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.
The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.
CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.
This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.
While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.
Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.
The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.
This report by The Canadian Press was first published Nov. 7, 2024.
Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.
As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.
Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.
A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.
More than 77 per cent of Canadian exports go to the U.S.
Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.
“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.
“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”
American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.
It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.
“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.
“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”
A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.
Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.
“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.
Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.
With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”
“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.
“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”
This report by The Canadian Press was first published Nov. 6, 2024.