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The Agri-Food Analytics Lab at Dalhousie University and professional services firm MNP recently released the second edition of the Global Agri-Food Most Influential Nations Ranking report, which evaluates the competitiveness of G20 nations in the global food and beverage sector. Canada, which was placed 13th last year, has moved up to seventh position.

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Canada remains in tier two behind the E.U. (which wasn’t part of last year’s report), the U.S., and the U.K., but above Japan, China, and India. At the report release event in Mississauga, Ont., yesterday, Sylvain Charlebois, director of the Agri-Food Analytics Lab, explained Canada’s position improved due to advancements in trade, infrastructure and innovation. However, food insecurity (one in four Canadians experience some form of food insecurity), commercialization, and sustainability (specifically lack of performance data) are ongoing concerns.

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During a panel discussion at the event, Chris Neal, co-owner, Neal Brothers Foods and CEO, Jonluca Neal, mentioned the Buy Canadian movement “allowed a lot of smaller brands to prosper,” both from a consumer perspective as well as uptick in retail. However, companies can’t rely on Canadian patriotism to grow in the long term.

As Matt MacDonald, national leader, Food & Beverage Processing, MNP, said, “We are underfunded as a country. We need more investment in infrastructure. We want to see more private capital going into the market.”

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According to the report, more than 300 agri-food tech start-ups have raised over US$3 billion to date. However, commercialization is a persistent bottleneck for Canadian companies.

The report found, “A 37 per cent drop in R&D investment since 2023, a lack of scale-up support, and limited access to innovation hubs have stalled the trajectory for early stage ventures and rural innovators alike. Technology adoption is strong overall but largely limited to large-scale operations.”

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Charlebois stressed that innovation and increased private capital investments is key to growing the Canadian economy. He also highlighted the need to build market currency and gain public trust.

“Canada is its worst enemy,” he said. “We need to learn to sell stuff. We need to be better at marketing ourselves.”

Additionally, he stressed on the need for Canada to make the food processing sector a strategic pillar of growth by increasing automation and helping companies scale up.

“We have a lot of GDP leakage when it relates to finished goods. We are a world-class primary producer, and we are, I would just say nicely, not a world-class food manufacturer,” explained MacDonald. “We sell our primary production to other countries for them to process it, and then they sell it back, right? I want to see more processing done in Canada.” Amen to that!

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In Canada, four companies control 72 per cent of national retail sales, which according to the report, is one of the highest levels of concentration in the G20. This level of consolidation limits competition, adds undue pressure on producers, and slows innovation. F&B manufacturing companies are often at the mercy of grocers. Neal highlighted the disappearance of independent stores, which has made it harder for young companies to break into the retail sector.

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The report suggests governments and industry can spark growth by “expanding support for independent retailers, encouraging innovation in restaurants, and addressing the digital gap in food retail, where the country trails behind global peers.”

Charlebois hopes the Grocery Code of Conduct will help create an equitable ecosystem that’s beneficial for all stakeholders.

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