Growing Trade & Expanding Markets...Exports In the 2015–2016 crop year, total exports of Canadian...

Growing Trade & Expanding MarketsPresentation to the Canadian Horticultural Council Trade and Marketing Committee

Fred Gorrell

March 14, 2018

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Outline

Sector SnapshotExport Trends & Opportunities Trade priorities Initiatives for the Future

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SectorSnapshot

Canadian horticulture generated farm cash receipts of $8.4 billion in 2016 (15% increase over 5 years).

Above average growth for: potatoes (+22%) vegetables (+36%) tree fruits (+25%)

Strong growth in greenhouse sector and some fruits and vegetables (blueberries, cranberries, sweet cherries, lettuce, carrots and “ethnic” or “world” crops).

Horticulture sectors by share of farm cash receipts (2016)

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Ornamental

Field Vegetables

Greenhouse Vegetables

Potatoes

Fruits

Maple

Mushrooms

Ginseng

Honey

Sector

22

19

16

14

12

6

6

3

2

Sheet1

Sector

Ornamental22

Field Vegetables19

Greenhouse Vegetables16

Potatoes14

Fruits12

Maple6

Mushrooms6

Ginseng3

Honey2

To resize chart data range, drag lower right corner of range.

Exports

Overall horticulture exports totaled approximately $5 billion in 2016, a 48% increase over 2012.

Fruit28%

Greenhouse Vegetables

34%

Field Vegetables

26%

Potatoes12%

• Specifically, Canadian produce exports totaled $2.5 billion in 2016.

• Export growth has been particularly strong for frozen commodities (such as wild blueberries and potatoes).

Canadian Produce Exports (2016)


Exports

Fruit

Blueberries58%Cranberries

12%

Cherries12%

Apples7%

Raspberries2%

Others9%

Value of fruit exports have grown by nearly 20% over the last 5 years, reaching $727 million in 2016. Blueberries are Canada’s top fruit export, valued at

$422M in 2016 (around 70% frozen).

Followed by: cranberries ($88M) cherries ($83M) apples ($51M)

The United States is Canada’s top fruit export destination, valued at over $508M in 2016. Followed by Japan

($38M), Germany ($30M), and China ($29M).

Percentage of fresh fruit export value by commodity


Exports

Vegetables

Canadian vegetable exports totaled $1.7 billion in 2016, an increase of 7% over 2015. Top vegetable exports include tomatoes ($373M),

peppers ($360M), cucumbers & gherkins ($240M), and mushrooms ($220M). Greenhouse vegetables accounted for 51% of total

vegetable exports in 2016, field vegetables accounted for 36%, and mushrooms accounted for 13%. The United States is Canada’s top vegetable export

destination, valued at over $1.6B in 2016. Followed by Japan ($22M), Netherlands ($14M), China($4.7M), and France ($2.1M).


Exports

In the 2015–2016 crop year, total exports of Canadian potatoes and potato products were $1.6 billion, an increase of over 14% from the previous crop year and 40.9% over the last five years. Canada exported $274 million in fresh potatoes (table

stock and seed potatoes) and $1.32 billion in processed potatoes (frozen and other). The United States is Canada’s largest export

destination for potatoes and potato products, valued at $1.4B in 2016 (86% of exports). Followed by Japan ($29M) and Mexico ($28M).

Potatoes


Trade Focus

FTAs in ForceFTA Negotiations ConcludedOngoing FTA NegotiationsExploratory Discussions


North America

United States

The United States continues to be Canada’s top export destination for all horticulture products

2012-2016 Trends

Fresh mushrooms (up 16%)

Table Potatoes (up 21%) & french fries (up 9.3%)

Cucumbers (up 17%)


North America

NAFTA

Seven rounds of NAFTA renegotiations have taken place since talks began in August 2017.

Canada’s trade negotiators continue to work with industry to advocate for a fair outcome for Canada’s agricultural producers.

The outcome of the renegotiations will be far reaching and have a large impact on Canadians, but we have the opportunity to align the agreement to new realities.


Asia

Increased market access in high-growth South East Asian countries will increase exports of certain crops such as sweet cherries and high-bush blueberries. Efforts currently underway to obtain market access for

B.C. sweet cherries to South Korea, Japan and India.

Comprehensive & Progressive Agreement for Trans-Pacific Partnership(CPTPP) Preferential market access to all CPTPP countries. Significant for exports to Japan, Malaysia and Vietnam. New market access opportunities including for fruits and

vegetables such as blueberries, cherries, cranberries, apples, and potato products.


Asia

South Korea

Canada-Korea Free Trade Agreement (CKFTA) will continue to provide new opportunities for Canadian agricultural products, including fruits and vegetables.

Tariff elimination on over 97% of Canadian agricultural and agri-food exports

Preferential access will create a level playing field with EU & US


Asia

China

Market access to China for fresh sweet cherries (2014) and high-bush blueberries (2015) from B.C. Opportunity for differentiated, high-value,

niche products, leverage the “Canada” brand (cranberries, and blueberries).

2012-2016 Trends

Fresh Cherries (up 37%)


Europe

European Union Provisional application of CETA came into

effect as of September 21, 2017.

With CETA now implemented, EU tariffs on all fresh, frozen and processed fruits and vegetables have been eliminated (with few exceptions). Canada will continue to encourage the EU to base

measures on scientific risk assessments, including for setting import tolerances for plant protection products of importance to Canadian horticultural exporters.

2012-2016 Trends

Berries (up 24%)


Challenges

Protectionism Support for Rules-based Trading System Harmonization of Regulations Time Required to Resolve Market Access / Trade

Barriers Competitiveness Geo-politics Labour


Initiatives

Export Growth is a Priority

The Government of Canada has set an ambitious target to grow Canada's agri-food exports to at least $75 billion annually by 2025.

Agri-Food Economic Strategy Table

Canadian Agricultural Partnership


CFIA-AAFC Alignment

International Affairs Branch

A new partnership for Agriculture and Agri-food Canada (AAFC) and the Canadian Food Inspection Agency (CFIA) The new branch is composed of:

AAFC's Market Access Secretariat, and CFIA's International Affairs and Market Access

Directorate and the Food Import/Export Directorate in Policy and Programs Branch

Ensure better synergies to better support trade and market access agenda and industry in advancing new markets Positions abroad reporting

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Questions

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Growing Trade & Expanding MarketsOutlineSector�SnapshotExportsExportsExportsExportsTrade FocusNorth AmericaNorth AmericaAsiaAsiaAsiaEurope�Challenges�Initiatives�CFIA-AAFC Alignment�Questions

Growing Trade & Expanding Markets...Exports In the 2015–2016 crop year, total exports of Canadian...

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