World Grain - May 2018 - 50

FEATURE

CANADA'S
FUTURE IN FOOD PROCESSING

AGT's Al-Katib says industry lacks
investment in processing
infrastructure but has system to
move food products.
by Susan Reidy

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alue-added will be key to the success of the
Canadian agriculture industry in the future, including more food processing, said Murad Al.DWLE SUHVLGHQW DQG FKLHI H[HFXWLYH RI¿FHU RI $*7
Food and Ingredients, Inc.
Al-Katib addressed the issue of building Canada's
reputation and what is needed to grow the nation's agriculture industry during his keynote address at the CaQDGLDQ*OREDO&URSV6\PSRVLXPDWWKHHQGRI0DUFK
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"In 10 years, we will be serving a different consumer
base than Canadian agriculture is serving today," he
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value added."
Canada has the opportunity to play in the new markets and growth drivers, Al-Katib said, including
health, nutrition, sustainability and middle-class consumer spending. It won't just be about meeting the demand but meeting the right demand.
³7KHLQVWDQWJUDWL¿FDWLRQRIGDWDDQGWKHDELOLW\ZLWK
\RXU VPDUWSKRQH WR KDYH HYHU\WKLQJ DW \RXU ¿QJHUprints is what the agriculture sector's challenge is going to be as we move forward," he said. "How do we
position our sector using digitization and technology
to serve that consumer base that is different than the
consumer base we serve today?"
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processes 50% of its agriculture inputs.
"We lack investment in processing infrastructure,"
50

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investing where there is market failure and not investing where we are attempting to boost our productivity
and enhance technology."
CANADA'S ADVANTAGES, CHALLENGES
Canada already has many of the components needed
for a successful food processing industry, including
transportation.
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Canada have changed favorably as a result of the fact
imports are coming in from Asia and we are part of the
backhaul back into the world market," Al-Katib said.
"Containers, as we move more into the case for food
processing, are going to be a very important mode."
It costs about $85 a tonne, the same to haul a hopSHU FDU IURP 5HJLQD WR7RURQWR DV LW ZRXOG WR PRYH
food product by intermodal to anywhere in the United
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joining of research, innovation and then the building of
domestic crush capacity has transformed Canada from being a canola seed exporter to an exporter of meal and oil.
"We think the same thing can happen in wheat and
we think the same thing can happen in pulses," AlKatib said.
Food processing is the second largest industry in
terms of the value of production and it represents 2%
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global exports, he said. If that can double by 2027, the
industry could see a $19 billion gain.
Canada's other advantages in growing its agriculture
industry include natural resources, a strong network of
research and development facilities and a diverse consumer base that stimulates product development, AlKatib said.
7KHQDWLRQDOVRKDVDKLVWRU\RIEHLQJDQHDUO\DGRSWer of technology.
May 2018 / World Grain / www.World-Grain.com
http://www.World-Grain.com
World Grain - May 2018

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