August 6, 2024 (OTTAWA) – With over 8,700 food and beverage manufacturers spread across Canada, predominately small and mid-sized enterprises (SMEs), this industry holds a pivotal role in our nation’s economic landscape. As the largest manufacturing industry in Canada in terms of both GDP and employment, food and beverage manufacturers are crucial to our food supply chain.
From coast to coast, food and beverage manufacturers transform raw farm products – such as wheat, canola, milk, and pork – into everyday essentials like bread, oil, yogurt, and bacon, and are the largest purchaser of primary agriculture products. This underscores the industry’s significance in ensuring Canada’s food sovereignty, supporting primary agriculture, and fortifying local food supply.
Our Budget 2025 submission to the House of Commons Standing Committee on Finance emphasizes the need for strategic investments and policy changes to ensure the long-term sustainability and competitiveness of Canada’s food and beverage manufacturing industry.
We look forward to releasing updated recommendations following work on our 2025-2027 Strategic Plan.
RECOMMENDATIONS:
LABOUR
RECOMMENDATION 1: The federal government collaborate with industry on the development of a new foreign labour program for the food and beverage manufacturing industry. This program should address the unique challenges faced by the industry and provide a more sustainable and long-term solution to ongoing labour shortages.
RECOMMENDATION 2: The federal government provide food and beverage manufacturers with the flexibility that is essential for companies navigating changing nature workforce needs by maintaining the Temporary Foreign Worker Program cap at 20%.
RECOMMENDATION 3: The federal government continue to improve the Temporary Foreign Worker Program by simplifying the application process, increasing transparency for applicants through publicly available consolidated information on processing times, identifying measures to address processing delays, and creating pathways to permanent residency in critical sectors such as food and beverage manufacturing.
RECOMMENDATION 4: The federal government work with the provinces and territories to facilitate the recognition of skills and designations of new Canadians, including asylum seekers and collaborate with industry to facilitate their entry into the workforce. This should include expedited and streamlined processes for credential recognition and targeted supports for skills development.
CRITICAL INFRASTRUCTURE AND SUPPLY CHAINS
RECOMMENDATION 5: The federal government ensure a consistent and coordinated approach to support supply chain resilience for Canada’s food system, including:
- Timely implementation of all the recommendations laid out by the National Supply Chain Task Force.
- Investing in measures to buffer Canada’s food system from external shocks and support food supply chain resilience, starting with a critical assessment of key risk factors and vulnerabilities along the food supply chain.
- Collaborating with provinces and territories to establish a coherent emergency management approach, prioritizing communication for Critical Infrastructure sectors.
- Ensuring that the National Supply Chain Office is equipped and empowered to respond to disruptions to Canada’s food supply chain and has a plan to communicate the federal government’s efforts to mitigate disruptions.
RECOMMENDATION 6: The federal government collaborate with the food and beverage manufacturing industry to identify measures to mitigate the detrimental effects of labour disruptions on food supply, including exemptions for perishable products.
RECOMMENDATION 7: The federal government work with the food and beverage manufacturing industry to identify gaps in local infrastructure to support a domestic and foreign workforce, providing support and partnering with industry to implement viable solutions. This should include investments in affordable housing, public transportation, and childcare facilities to enhance the attractiveness of rural areas for workers.
PRODUCTIVITY AND COMPETITIVENESS
RECOMMENDATION 8: The federal government establish a national food and beverage manufacturing innovation programs to provide grants, low-interest loans and tax incentives for companies investing in new technologies, equipment upgrades, and research and development. This fund should address the unique needs of these companies, fostering broader adoption of innovative practices and ensuring the sector’s preparedness for future challenges and opportunities.
SUSTAINABILITY
RECOMMENDATION 9: The federal government work with provincial, territorial and municipal counterparts to coordinate the harmonization of a regulatory regime on packaging and recycling. This includes identifying existing recycling standards and capabilities across jurisdictions, and seeking harmonization on standards, definitions, and elements of Extended Producer Responsibility (EPR) programs.
RECOMMENDATION 10: In developing a regulatory framework for primary food packaging, the government ensure collaboration among relevant departments (Agriculture and Agri-Food Canada, Health Canada, Environment and Climate Change Canada, Innovation, Science and Economic Development Canada) and work with industry to ensure that any proposed timelines and outcomes are achievable and realistic and reduce the potential for unintended consequences on the food system.
RECOMMENDATION 11: Before advancing the pollution prevention (P2) notice for primary food packaging, that the federal government conduct an in-depth study of the current packaging materials available on the market, and their recyclability across provinces, territories and municipalities, as well as the packaging industry’s ability to meet an increased demand for sustainable packaging materials.
Contact:
Kristina Farrell, Chief Executive Officer
Food and Beverage Canada – Aliments et boissons Canada
kristina.farrell@fbc-abc.com