December 5, 2024 (OTTAWA) – Food and Beverage Canada (FBC-ABC), in partnership with Farm Credit Canada (FCC), is pleased to release the results of a new survey, shining a spotlight on the needs of Canada’s food and beverage manufacturing industry. The survey, conducted between June and September 2024 with the help of the six provincial and regional food and beverage manufacturing associations, collected insights from businesses across the country. It provides a snapshot of the current state of the industry and highlights the key challenges and opportunities shaping its future. You can access the full report here.
Among the findings are four key focus areas:
- Labour shortages:
Labour shortages undermine productivity, forcing businesses to operate below capacity and limit their ability to expand.
- 59% of businesses identified skilled labour as their primary workforce challenge.
- 22% of respondents have already downsized their operations due to staffing difficulties.
- Rising costs and inflation:
Rising costs eat into profit margins, reduce competitiveness, and constrain the ability of businesses to reinvest in innovation or growth initiatives.
- 87% of respondents report inflation has driven costs up by as much as 30%, with transportation and distribution costs being the most significant contributors.
- Innovation and Technology Adoption:
Reluctance to adopt new technology hinders the industry’s ability to modernize and remain competitive on a global scale.
- Only 42% of respondents see innovation and technology as critical to their operations despite it being essential for addressing labour shortages and increasing efficiency. Financial barriers, high costs, and implementation challenges were cited as the main reasons for hesitancy.
- Regulatory Complexity:
Market access, labelling, and reporting requirements remain significant burdens for businesses.
- 45% identified labelling and packaging as their most pressing regulatory concern. Cumbersome regulations slow down operations, divert resources, and can disadvantage companies in a fiercely competitive global market.
These findings closely align with FBC-ABC’s strategic priorities, which were identified through its recent strategic planning process: Productivity and Competitiveness, Labour, Sustainability, and Regulatory Effectiveness.
“The data we’ve gathered highlights both the challenges that weigh on day-to-day operations and the opportunities for innovation and growth. This survey also reflects the focus areas for our association, ensuring that we’re advocating for policies and programs that will make the biggest difference for our industry,” said Kristina Farrell, CEO of FBC-ABC.
“Focusing on increasing productivity is the single most important step to navigate the current economic landscape,” said Jean-Philippe Gervais, FCC Executive Vice-President, Strategy and Impact. “Two important drivers of productivity gains are introducing product innovations and finding process efficiencies within the business. They can lift competitiveness, resulting in sustainable growth in food and beverage production.”
“Partnering with industry leaders like Food and Beverage Canada on surveys like this, allows us to hear directly from those at the forefront of the sector,” said Darlene McBain, Director, Industry Relations, FCC. “These collaborations are invaluable for gaining insights, understanding challenges, and fostering innovation to build a more productive and competitive food and beverage manufacturing sector in Canada.
Join the Conversation in February
FBC-ABC is pleased to continue the discussion on the survey’s findings at its annual policy breakfast, Boosting Competitiveness and Productivity in Food and Beverage Manufacturing. This event coincides with The Future of Food Conference.
We thank FCC for their partnership in conducting this survey, and members of FBC-ABC’s six provincial and regional associations for their assistance in collecting responses.
About Food and Beverage Canada (FBC-ABC):
Food and Beverage Canada (FBC-ABC) is the national voice for Canada’s domestic food and beverage manufacturing sector. Representing over 1,850 businesses nationwide, FBC-ABC’s membership includes six provincial and regional food and beverage manufacturing associations, alongside many of the country’s leading food and beverage companies. Committed to collaboration and leadership, FBC-ABC drives policy and advocacy efforts on critical industry priorities: Productivity and Competitiveness, Labour, Sustainability, and Regulatory Effectiveness.
For media inquiries, please contact:
Kristina Farrell
CEO, Food and Beverage Canada
kristina.farrell@fbc-abc.com