Food Manufacturing in the Prairie Region
Executive Summary
Food manufacturing activity was expected to expand in the post WGTA environment, since the relative price of inputs decreased with the end to the WGTA. Shipments, a measure of output increased by 56% from 1990 to 1999 with approximately half of this growth occurring in the post WGTA period. More specifically, the grain and oilseed milling sub-sector, a group that was expected to be the most directly impacted, experienced tremendous growth, increasing shipments from 1990 to 1995 by 92% and from 1995 to 1999 by 25%. While growth in food manufacturing activity was substantial in the WGTA environment, the activity in this sector continued to expand post WGTA.
Value added by the Prairie food manufacturing sector increased by 89% from 1990 to 1999, and value added as a proportion to the value of shipments increased from 22% in 1990 to 26% in 1999. In terms of future potential, the Prairie food manufacturing sector continually increased capital expenditures throughout the nineties. Investment in the prairie food-manufacturing sector has more than doubled since 1996 to $311 million annually bringing it in line with investments in the rest of Canada at 2.9% of annual output. The food manufacturing data is consistent with what was expected, showing a sector that is increasing output and one that is investing to continue this trend.
To receive a hard copy of this report or for additional information, please contact:
Denis Tully (tullyd@agr.gc.ca),
Chief, Policy Analysis
500-303 Main Street; Winnipeg, Manitoba; Canada R3C 3G7
Telephone: 204-983-0569; Fax: 204-983-5300