AGRIFOOD. A GROWING OPPORTUNITY.
Canada is one of the most cost-competitive countries in the G7 with a 4 percentage point cost advantage over the U.S. – making a huge difference to your bottom line. These are findings from the Competitive Alternatives: KPMG’s Guide to International Business Costs, 2006 edition, which provides a comprehensive analysis of agri-food production costs in nine countries and 128 cities in North America, Europe and Asia-Pacific. In 2005, Canada’s agri-food sector generated Cdn$26.2 billion in exports, with 63 percent destined for the U.S. market.
KPMG’s agri-food model analyzed a small independent food processor, producing medium-value, non-perishable products, which include packed, dried, or canned foods and confectionary products.
THE BOTTOM LINE:
- Canada ranks third in the G7 as a low-cost investment location in the agri-food sector.
- Canadian labour and benefit costs are the lowest in the G7 with a 13.5 percentage point advantage over the U.S.
- Three Canadian cities rank among the top 10 most cost-competitive G7 locations with Sherbrooke occupying the No. 1 position.
- In the North American context, Sherbrooke, Edmonton and Waterloo Region are first, third and fourth respectively as low-cost agri-food processing locations.
LOW-COST HOT SPOTS
- Sherbrooke
- Edmonton
- Waterloo Region
- Calgary
- Quebec City
- Ottawa
- Saskatoon
- Montreal
