According to the most recent trade report issued by Farm Credit Canada, the country has room to expand and diversify beyond its largest traditional markets for its top four agriculture exports.
The report says there are opportunities to increase exports in soy, canola, wheat and pulse crops, but says hurdles do exist, including growing protectionism and price sensitivity.
Canada was the world's fifth-largest exporter of agricultural commodities in 2018, behind the United States, Brazil, the Netherlands and China. That same year, the U-S accounted for just over 35% of Canada's total agricultural exports, while China accounted for almost 23%.
The report indicates Canada’s diversification of its export markets can help reduce financial risks for Canadian producers by lessening our dependence on dominant importers.
And when borders close for any number of reasons, the report adds having a broader range of export markets allows Canadian exports to be re-allocated, rather than simply reduced.
