Food and Agri-food Industry

The food and beverage processing sector is responsible for transforming raw food materials or substances into new products, which can be either finished and ready for consumption or semi-finished, serving as raw materials for further manufacturing.

The food and beverage processing sector holds a significant position in Canada’s economy, being the largest manufacturing sector in terms of both GDP contribution and employment statistics:

It contributes to 17.3% of the manufacturing GDP.
It accounts for 18.1% of manufacturing jobs.

In 2022, the sales within the food processing industry amounted to $141.6 billion. While processing facilities are located across the country, the majority can be found in Ontario and Quebec. This sector is particularly advantaged by Canada’s trade agreements, such as the Canada-United States-Mexico Agreement (CUSMA) and the United Kingdom-Canada agreement, which provide expanded export opportunities and access to markets.

Furthermore, the industry has established collaborative partnerships with the government to foster innovation clusters. These clusters bring together companies, academic institutions, and non-profit organizations, jointly accelerating the development of innovative products and processes.

Agri-food Sector

The agri-food sector’s mandate extends to supporting primary agriculture and the food and beverage processing industry. This influence stretches across the broader agri-food system, impacting various segments of the food supply chain.

Canadian primary agriculture serves as a diverse economic driver throughout the country, encompassing around 189,874 farms and covering approximately 62.2 million hectares (6.2%) of Canada’s land area. Notably, the average farm size has increased by 50% over the past five decades due to technological advancements and industry consolidation.

Canada’s food system is recognized for its resilience and innovation, contributing to both the environment and the economy. In 2022, the entire agriculture and agri-food system achieved the following:

Employed 2.3 million individuals.
Accounted for 1 in 9 jobs across Canada.
Generated $143.8 billion, equivalent to around 7.0% of Canada’s gross domestic product (GDP).

Eligible Activities

Qualifying R&D activities:

Develop test and prototype new products to be launched in the market;
Improving production processes to reduce waste of materials;
Improve streamline quantity calculations and timings to reduce food waste on shelves;
Develop/implement software to automate processes;
Reformulate products to have the same taste and feel qualities while being healthier;
Scale up production without compromising product properties;
Implement more eco-friendly packaging reducing waste generated in shipping and shelving processes;
Implement/develop software to improve supply chain processes
Developing plant-based and lab-grown protein sources to create sustainable alternatives to traditional meat products.
Enhance the nutritional profile of foods by fortifying them with essential vitamins, minerals, and nutrients.
Developing allergen-free or hypoallergenic food products.
Develop new beverage formulations that cater to health-conscious consumers.

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Food and Agri-food Industry

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