Canada gaining ground in agri-food ranking, opportunity to improve on access and recovery: Report
Canada has jumped from 11th place last year to seventh place in global agri-food rankings among G20 nations and is gaining ground in innovation, trade and global presence, concludes a report produced by Dalhousie University’s Agri-Food Analytics Lab.
This advancement “reflects a stronger trade profile, improved knowledge infrastructure and the benefits of long-standing political and economic stability,” finds the second edition of the Global Agri-Food Most Influential Nations Ranking, which was commissioned by MNP.
However, the report notes there are several areas for improvement, including food service recovery, market commercialization barriers, concentration and uneven access to opportunities.
The report evaluates G20 nations and the EU across several interconnected pillars, including innovation, trade performance, sustainability, environmental impact, food security and retail and fiscal regimes.
Canada is ranked behind the EU, Germany, Italy, US, UK and France and is considered a tier 2 country, demonstrating moderate but strengthening performance. Continued investment in research, technology and sustainability, among other things, will be required for Canada to reach tier 1 status, the report says.
The report says Canada’s rise in the rankings owes much to an improved trade position. Canada has a $60 billion agri-food trade surplus, and a reputation for political stability and reliability.
Canada’s trade agreements now reach 1.27 billion people, almost 30% more than in 2024, and it is ranked third in beef and pork exports, while being one of the world’s top producers of canola and pulses.
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The country has an opportunity to capitalize on emerging high-growth industries like health and wellness, the report says. But the market for many of the Canada’s exports is concentrated and interprovincial trade barriers, ongoing tariff uncertainty and increased protectionism challenge the country’s economic potential.
“Broader partnerships and a more resilient response to tariff-related pressures will be key to matching global performers and bolstering long-term competitiveness,” it notes.
The report says Canada has among the best access to food but needs to improve affordability. On the one hand, more than 97% of Canadians can afford a nutritious diet. On the other hand, nearly one in five households still experience some form of food insecurity.
That’s “a sign that income instability, high living costs, and regional disparities make consistent nutrition harder to sustain.”
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Canada’s early-stage innovation pipeline is growing with more than $3 billion raised in recent years by more than 320 agri-food tech startups. However, commercialization remains a key constraint, particularly for smaller players with limited access to capital.
Investment has slowed, and agri-food innovation funding dropped to $359.6 million in 2024, a 37% decline from the previous year and part of a larger decline since 2022.
Canada ranks 10th globally in the number of ag-tech companies but faces commercialization challenges, particularly for small and medium-sized businesses.
The country’s food service industry has not fully recovered from the pandemic and food retail spending is falling behind inflation. In addition, industry consolidation is deepening, with the top four grocers now controlling 72% of national sales, up from 65% in 2024.
That represents “one of the highest levels of concentration in the G20, limiting competition, pressuring producers and slowing innovation.”
Canada’s retail and and fiscal regime “is best described as robust but imbalanced and therefore vulnerable. While prices have mostly held steady, the country continues to struggle with inefficient supply chains and high concentration across retail, input supply and processing sectors.”
On the plus side, Canada has one of the highest numbers of small processors in the G20. However, the top five companies control more than 40% of key categories like meat, fruits and vegetables and baked goods, the report finds.
“Perhaps the lowest hanging fruit for Canada to improve in the coming years are its supply chain efficiency and approach to digital adoption,” the report says.
Nearly 78% of food loss occurs before it reaches households, “highlighting upstream waste that hinders value and stability.” In addition, e-commerce represents only 2.5% of food retail, far behind countries like the U.S., China and South Korea.
It recommends adoption of a direct-to-consumer strategy that could help alleviate both cost pressures and waste.
The report concludes that Canada has “the tools, talent and foundation to thrive in a rapidly evolving food economy. The challenge now is to move from steady improvement to bold leadership.”
