RuRal Development InstItute

GDP in Agriculture & Food Processing

1

July 2014

www.brandonu.ca/rdi/

HigHligHts• In2012,theGDPofManitoba’sprimaryagriculturesectorwas$1.6billion($2007)whichrepresented3%ofManitoba’seconomy.

• PrimaryagriculturehasvariedconsiderablyanditsshareoftheManitobaeconomyhasdecreasedslightlysince1997.

• In2012,theGDPofManitoba’sfoodprocessingsectorwas$1.1billion($2007)andthisrepresented2%ofManitoba’seconomy.

• Since1997,thissharehasincreased,buttherewasadeclinein2012.

• Manitoba’sagriculturalGDPranks5thamongCanadianprovincesandManitoba’ssharehasbeendecliningslightlywhichmeansotherprovincesaregrowingslightlyfaster.

• Manitoba’sfoodprocessingGDPalsoranks5thamongCanadianprovincesandManitoba’ssharehasbeenincreasingwhichindicatesManitobahasbeengrowingfasterthanotherprovinces.

Bollman, Ray D., & Ashton, W. Rural Development institute, Brandon University, Brandon, Manitoba, July, 2014.

WHy gDP in AgRicUltURe AnD fooD PRocessing?TheGrossDomesticProduct(GDP)isthevalueaddedtopurchasedinputsbythelabourandthecapital(i.e.,land,buildingsandmachines)toproduceoutputs.Thus,GDPisalsocalled“value-added.”

Farmerspurchaseinputssuchasseed,fertilizerandchemicalsanduselabour,land,buildingsandmachinestoproducewheatorotheroutputs.TheGDPisthevalueoftheoutputcontributedbylabourandcapital.

TheobjectiveofthisFactsheetistoshowthecontributionofagriculture(i.e.on-farmproduction)andfoodprocessingtotheGDPofManitoba.AlsoshownaretheimportanceofManitoba’sGDPin

agriculturerelativetoCanada’sGDPinagricultureandtheimportanceofManitoba’sfoodprocessingGDPrelativetoCanada’sfoodprocessingGDP.

finDingsManitoba’sagriculture(on-farm)GDPhasrangedbetween$1.2billionand$1.9billion(inconstant2007dollars)overthe16yearperiodfrom1997to2012(Figure1).In2012,theagricultureGDPwas$1.6billion,downfromthehighof$1.9billionin2008.

In2012,about2/3oftheagricultureGDPwasgeneratedfromcropproductionandabout1/3fromtheproductionoflivestockandanimalproducts(Figure2)1.ThelivestockGDPdoubledfrom$0.28billionin1997to$0.58billionin2008beforedecliningto$0.53billionin2012.

CropGDPvariedconsiderablyovertheperiod.In2012,thecropGDPof$1billionwasinthemid-pointoftherangeofvaluesfrom1997to2012.

figure 1. AgricultureGDP:rangeof$1.2to$1.9billionover16yearsFoodProcessingGDP:doubledfrom$0.6to$1.2billion

1.Datafor2002to2006aresuppressedbyStatisticsCanada“tomeettheconfidentialityrequirementsoftheStatisticsAct”.

RuRal Development InstItute

Bollman, Ray D., & Ashton, W. Rural Development institute, Brandon University, Brandon, Manitoba, July, 2014. 2

figure 2. InManitoba,theGDPfromcropproductionisaboutdoubletheGDPfromlivestockproduction

TheGDPofManitoba’sfoodprocessingsectorhasgrownfrom$0.6billioninthelate1990sto$1.2billionin2011,beforeadeclineto$1.1billionin2012(Figure1).

ThefoodprocessingGDPhasgrownmainlyduetothegrowthofmeatprocessing(Figure3).InManitoba,thisisthegrowthofporkprocessing.

Thegrainandoilseedmillingsectorremainedrelativelysmall(aGDPof$0.09billionintheearly2010s)butdidshowanincreasefromabout$0.05billioninthelate1990s.

Howeverthesectorthatprocessesanimalfeedshowedlittlegrowthand“allother”foodprocessingsectorsshowedlittlegrowthoverthisperiod.

figure 3. ThegrowthinfoodprocessingGDPinManitobahasbeenduetothegrowthinmeatproductprocessing

RelAtive size of PRiMARy AgRicUltURe AnD fooD PRocessingWhenwecomparetherelativesizeoftheGDPofprimaryagricultureandtheGDPofthefoodprocessingsector,wefindthatgrowthofthefoodprocessingsectorupto2011reachedaGDPof$1.2billionwhichwasjustunderthe$1.3billionrecording

intheprimaryagriculturesectorin2011(Figure1).

AcomparisonofeachsectortotheoverallGDPinManitobashowsthat,in2012,primaryagriculturewas3%ofManitoba’seconomyandfoodprocessingwas2%ofManitoba’seconomy(Figure4).RelativetoManitoba’soverallGDP,primaryagriculturehasshownaslightdeclineovertimeandfoodprocessinghasshownaslightincreaseovertime.

figure 4. In2012,agriculturecontributed3%andfoodprocessingcontributed2%ofManitoba’sGDP

coMPARison to cAnADAAsanalternativecomparison,whenwecompareManitoba’sprimaryagricultureGDPtoCanada,Manitobahascontributed8%to11%ofCanada’sagricultureGDPoverthe1997to2012period(Figure5).In2011,thefigurewasslightlybelow8%andthereappearstoaslightdecliningtrendsuggestingthatotherprovincesaregrowingtheiragriculturalGDPslightlyfasterthanManitoba.

Manitoba’sagriculturalGDPranked5thamongCanadianprovincesin2012(Table1).ThetoprankingprovinceswereOntario,Alberta,QuebecandSaskatchewan.

figure 5. AgricultureGDPinManitobahasrepresented8%to11%ofCanada’sAgricultureGDPoverthelast15years

Source:StatisticsCanada.GrossDomesticProduct(GDP)byIndustrySectorbyProvince,CANSIMTable379-0030

Source:StatisticsCanada.GrossDomesticProduct(GDP)byIndustrySectorbyProvince,CANSIMTable379-0030

Source:StatisticsCanada.GrossDomesticProduct(GDP)byIndustrySectorbyProvince,CANSIMTable379-0030

Source:StatisticsCanada.GrossDomesticProduct(GDP)byIndustrySectorbyProvince,CANSIMTable379-0030

table 1.

Ranking of Provinces by size of Agriculture gDP as a percent of canadian Agriculture gDP, 2012OntarioAlbertaQuebecSaskatchewanManitobaBritishColumbiaNewBrunswickNovaScotiaPrinceEdwardIslandNewfoundlandandLabradorCanada

22.520.620.217.78.86.21.41.21.00.4

100.0Source: Statistics Canada. Gross Domestic Product (GDP) by Industry, CANSIM Table 379-0031.

Inthefoodprocessingsector,Manitoba’sfoodprocessingGDPcontributed5%ofCanada’sfoodprocessingGDPin2012whichwasupfrom4%inthelate1990s(Figure6).Thus,foodprocessinginManitobaappearstobegrowingfasterthanfoodprocessingintheotherprovinces.

In2012,Manitoba’sfoodprocessingGDPranked5thamongCanadianprovinces(Table2).ComparedtotherankingofprovincesintermsoftheirprimaryagricultureGDP,therankingbyfoodprocessingGDPhasBritishColumbiareplacingSaskatchewanasthe4thrankedprovinceintermsoffoodprocessingGDP.

figure 6. In2012,Manitoba’sfoodprocessingGDPrepresented5%ofCanada’sfoodprocessingGDP

table 2.

Ranking of Provinces by size of food Processing gDP as a percent of canadian food Processing gDP, 2012OntarioAlbertaQuebecSaskatchewanManitobaBritishColumbiaNewBrunswickNovaScotiaPrinceEdwardIslandNewfoundlandandLabradorCanada

41.623.310.68.35.04.12.72.01.40.9

100.0Source: Statistics Canada. Gross Domestic Product (GDP) by Industry, CANSIM 379-0031

sUMMARyIn2012,theGDPofManitoba’sprimaryagriculturesectorwas$1.6billion($2007)whichrepresented3%ofManitoba’seconomy.PrimaryagriculturehasvariedconsiderablyoverthisperiodanditsshareoftheManitobaeconomyhasdecreasedslightlysince1997.

In2012,theGDPofManitoba’sfoodprocessingsectorwas$1.1billion($2007)andthisrepresented2%ofManitoba’seconomy.Since1997,thissharehasincreased,butwithasignificantdeclinein2012.

Manitoba’sagriculturalGDPranks5thamongCanadianprovincesanditssharehasbeendecliningslightlywhichmeanstheprimaryagriculturesectorinotherprovincesisgrowingslightlyfaster.

Manitoba’sfoodprocessingGDPalsoranks5thamongCanadianprovincesanditssharehasbeenincreasingwhichindicatesManitobahasbeengrowingfasterthanotherprovinces.

fURtHeR ReseARcH QUestions• Howmuchfoodprocessingiscomingfromthemetroarea?

• HowdoesweatherfactorintotheGDPfigures?

this series of fact sheets are available for download at http://www.brandonu.ca/rdi/25th/ 3

RuRal Development InstItute

funding for this project was provided by the Manitoba government.