AM BAS C IATA D ’I TALIA OTTAWA The Agricultural and AgriFood Sector in Canada The Italian Experience Overview • 8.2% of total Canadian GDP or 98bnCAD; • Growing at an average rate of 2.3% • Employing over 2M people (12.5% of total work force) Fonte: Elaborazioni Ambasciata su dati STATISTICS Canada 22/05/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 2 Overview/Contribution of Provinces Agriculture and Food Processing's Contribution to Provincial GDP (2009) 14 Food Processing 12 Total Provincial GDP (%) Primary Agriculture 10 8 Canadian Average 6 4 2 0 Source: Statistics Canada Note: Excludes beverage and tobacco processing 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 3 Overview: Employment Ontario and Quebec account for the largest share of employment in agriculture and food processing. In 2009, Ontario, Quebec and Alberta accounted for almost 70% of total Canadian agriculture and food processing employment. Fonte: Elaborazioni Ambasciata su dati STATISTICS Canada 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 4 Main Sectors Fonte: Elaborazioni Ambasciata su dati STATISTICS Canada 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 5 Industry sectors (30 main categories) Industry Mainstay Grains and Oilseeds and Grain-based products Wheat, Barley and Oats+Canola, Soybean and Flaxseed Dairy and Dairy genetics Third largest industry. Industrial Agriculture (animals) Factory Farming, Integrated aquaculture Egg Industry and Poultry Industry Including production of enzymes and eggbreakers Fish and Seafood 5bnCAD/Year. Canada is the 4th largest exporter of fish Organic Industry w/ Research Branch of AAFC Red Meat Industry 4th largest manufacturing industry Pulse Industry Canada is the world largest pulse exporter (beans, fava beans, chickpeas and lentils) Vegetable Industry & Fruit Industry Fresh, canned, frozen and preserved f&v Wine Industry Niagara and Okanagan 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 6 Policy • Growing Forward is the National Agriculture Policy Framework for Canada. – Prepared by AAFC, 1.3bnCAD in 5 years (on a 60:40 federal/provincial) – inputs from the sector – Development of a series of programmes (both on National and Provincial level) for Academia, Business and Institutions – Programmes on investment, R&D, marketing, branding, infrastructures etc. • The Canadian Federation of Agriculture developed a Food Strategy in 2010, called “Towards a National Food Strategy: a Framework for Securing the future of Food” 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 7 Trade in the Agri-Food Sector/Exports 2010 Fonte: Elaborazioni Ambasciata su dati STATISTICS Canada Embassy of Italy in Ottawa - Economic and 6/28/2012 Commercial Office 8 Trade in AAF/Composition of Export Fonte: Elaborazioni Ambasciata su dati STATISTICS Canada, (dati 2010) 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 9 Trade in AAF/Imports 2010 Fonte: Elaborazioni Ambasciata su dati STATISTICS Canada 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 10 Trade in AAF/Composition of Imports Fonte: Elaborazioni Ambasciata su dati STATISTICS Canada, (dati 2010) 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 11 Recent results in Can/EU Co-operation • Canadian Access to EU for Hormone-free beef and lift of Canadian Retaliatory measures • Agreement on Ochratoxin pre-testing on exports • Agreement on Organics Equivalency 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 12 Canadian Imports of Extra Virgin Olive Oil 2010 Spain 6% Tunisia 4% United States 1% Chile Turkey Lebanon 2% 1% 1% Morocco 1% Argentina 1% Others 1% Greece 10% Italy 72% Fonte: Elaborazioni Ambasciata su dati STATISTICS Canada 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 13 Italian Market Share/Food: Cheese Canadian Imports of Cheese by country of origin 2010 United Kingdom 3% Greece Others Germany 3% 4% 2% United States 22% Netherlands 5% Norway 5% Denmark 6% France 21% Switzerland 9% Italy 20% Fonte: Elaborazioni Ambasciata su dati STATISTICS Canada 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 14 Italian Market Share in AAF/Prosciutto Canadian Imports of Dry-cured Prosciutto Others 2010 13% Austria 0% Spain 8% Italy 12% United States 67% Fonte: Elaborazioni Ambasciata su dati STATISTICS Canada 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 15 Wine: Market Access and Distribution Private Import Restaurants and Wine Clubs MONOPOLY Points of Retail CONSUMER PRODUCER AGENT Personal Import 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 16 Monopolies Societe’ des Alcools du Quebec Liquor Control Board of Ontario Alberta Gaming and Liquor Commission BC Liquor Distribution Branch 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 2.4 bn CAD in 2009 +5.5% Wines are 74% of sales 4.3 bn CAD in 2009 +4.8% Wines are 37% of sales Partially privatised 2.3bn CAD in 2009 (of which only 400 M from wine) “Quota” on the sale price 2.8 bn CAD in 2009 +4.3 % Wines are 29% of Sales 17 The Market of Alcoholic Beverages Canadian consumption of alcoholic beverages Volume 2010 Canadian consumption of alcoholic beverages Value 2010 Spirits 7% Wines 15% Spirits 25% Beer 46% Wines 29% Beer 78% Fonte: Elaborazioni Ambasciata su dati STATISTICS Canada 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 18 Canadian Wine Consumption Canadian Per Capita Wine Consumption by Province 25 CANADA 20 Quebec British Columbia Alberta 15 Litres Ontario Nova Scotia New Brunswick 10 Manitoba Prince Edward Island 5 Saskatchewan Newfoundland & Labrador 0 2005 2006 2007 2008 2009 Fonte: Elaborazioni Ambasciata su dati STATISTICS Canada 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 19 Wine: Canadian Imports by Country of Origin Canadian Wine Imports by Country 800 700 Thousands of hectolitres 600 Italy 500 France Australia 400 United States Chile 300 Argentina 200 100 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Fonte: Elaborazioni Ambasciata su dati STATISTICS Canada 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 20 Wine: Canadian Imports by Country of Origin/2 Canadian Imports of Wine Volume 2010 Canadian Imports of Wine Value 2010 New Zealand 3% New Zealand 2% Spain 6% Portugal 2% South Africa 4% Others 3% South Africa 3% Italy 18% Argentina 6% Argentina 8% France 17% Chile 10% Spain 4% Others 3% Portugal 3% Italy 19% Chile 6% France 22% United States 15% United States 14% Australia 16% Australia 16% Fonte: Elaborazioni Ambasciata su dati STATISTICS Canada 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 21 Wine: Canadian Imports of Italian wine by Province Canadian Imports of Italian Wine Volume 2010 Canadian Imports of Italian Wine Value 2010 Newfoundland 1% New Brunswick 1% Nova Scotia Alberta 2% British 5% Columbia 8% Manitoba 1% Newfoundland 1% New Brunswick 1% Saskatchewan 0% Manitoba 1% Nova Scotia Alberta 2% 11% PEI 0% Quebec 45% Ontario 37% Saskatchewan 0% PEI 0% British Columbia 6% Quebec 43% Ontario 35% Fonte: Elaborazioni Ambasciata su dati STATISTICS Canada 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 22 Main bilateral issues • Geographical Indications and Registered Marks • Different regulations and hygienic/phytosanitary standards – Protocols concerning trichinosis – Incompatibility of the carcasses-washing systems and standards – Lack of harmonization for Maximum Residues Level of unintended GMOs 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 23 Main bilateral issues/ Italian Sounding • Fight against “Italian Sounding” domestic production – Concurrent factors: • Non adequate protection of Intellectual Property Rights • Lack of “food education” – Strategy: • Joint S&T projects on Health and Food Safety and Quality • Media and communication campaign 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 24 • Agriculture & Agrifood Canada www.agr.gc.ca • Canadian Food Inspection Agency (CFIA) is the institution responsible for the sanitary and phytosanitary certificates for the Canadian importations of dairy and pork and beef processed products. www.inspection.gc.ca Associations • Canadian Federation of Agriculture • Canadian Agri-Food Trade Alliance • Provincial Associations 6/28/2012 Embassy of Italy in Ottawa - Economic and Commercial Office 26