Canada's role as the world's food producer is in danger of being jeopardized by an aging population and labor shortages. Canada is therefore looking across the border for new farmers.
About 24.000 professionals in agriculture and horticulture will retire in the next ten years. To maintain the food supply, the country is therefore looking for 30.000 farmers. They are recruited, among other things, through advertisements in Dutch newspapers. Interested farmers can check which Canadian farms they can take over via the website of the Ontario government.
It is expected that two out of every five farmers in Canada will retire in the next ten years, two-thirds of whom have no plans for succession yet. This is evident from a report by the Royal Bank of Canada (RBC). In that report, the impending labor shortage is not only seen as a threat, but also as an opportunity.
Migrant workers
Much of the work on Canadian farms is done by migrant workers. And the RBC recommends focusing on permanent residence permits for these migrant workers. The flow of migrant workers could come to a halt if they return to their country of birth or if countries' own agricultural sectors could also use some help.
Others see robots and automation as the solution to the labor shortage threatening Canada's agricultural sector. According to Taric Greenan, owner of Nexus Robotics, which makes agricultural robots, Canada is too dependent on migrant workers. If that flow stops, Canadian food production could stall and food prices could rise.
Mohamed Yaghi, responsible for agricultural and climate policy at RBC, sees opportunities for Canada as the world's food supplier after Russia's invasion of Ukraine. However, to maintain that position, the country must look to the future.
Food prices
Higher food prices are a cause for concern for 47% of Canadians. A concern that they give a grade of 9 to 10 on a scale of 10. That is considerably higher than the past two years. 28% of residents are even very concerned. However, there is confidence in the ability of agriculture to grow and innovate. The percentage of Canadians who believe the agricultural system is moving in the right direction is stable. This is evident from research by the Canadian Center for Food Integrity.
Rising food prices are reason for the Canadian Dairy Commission to postpone the milk price increase by three months. The Canadian food industry is under pressure to stabilize food prices and the federation of independent supermarkets previously sent a letter to the party that sets prices, calling for a price freeze.
The price increase of 1,77% that was initially due to take effect on February 1 will now only take effect on May 1. As a result, Canadian farmers will only receive more money for their milk later. The committee, which falls under the Canadian government, reviews the prices farmers receive for their milk every fall and increases or decreases those prices in February.
Following the call from the Federation of Independent Supermarket Owners, the price has been determined through discussions with the parties involved, where this is normally done through a formula. Canadian dairy processors are also in favor of a postponed price increase.
Independent Supermarkets vice-chairman Gary Sands warned that a freeze in the price paid to farmers does not mean the price in supermarkets will also freeze - there are too many other factors for that. He also says he cannot rule out further pressure on the committee if a price increase in May is not opportune.
Finally, freezing prices could also put pressure on other sectors such as poultry and eggs to freeze prices, Sands says.