Business & Policy
Cereals Canada report highlights industry’s importance to economy
March 14, 2023 By Top Crop Manager
The Canadian cereal grains value chain plays a critical role in Canada’s economy by creating jobs, supporting families and driving economic growth. According to a recent report commissioned by Cereals Canada, Canadian-grown wheat, barley, durum, and oats had an estimated total economic impact of $68.8 billion, including more than 370,000 Canadian jobs, and $27 billion in wages.
The report, entitled “The economic impact of wheat, durum, barley and oats on the Canadian economy: 2022,” highlights the significant contribution from these four crops. Cereals Canada engaged LMC International, an independent economic consulting firm focused on the agriculture and agribusiness sector, for the study.
“The cereals value chain is a major contributor to Canada’s success,” said Dean Dias, chief executive officer at Cereals Canada, in a statement. “The report reinforces the vital role that the Canadian cereals industry plays in Canada’s economy.”
The report outlines the impact of wheat, barley, durum and oats on the Canadian economy through crop production, transportation and processing, and provides both the direct and total revenue, full-time equivalent jobs, and total wages generated by each crop. Averaged over the past three years, the direct economic impact on the Canadian economy was $25.9 billion per year.
- The direct economic impact on the Canadian economy from the four cereals averaged $25.9 billion per year.
- 141,000 paid full-time-equivalent jobs are generated directly by the four crops, in addition to an estimated 28,000 family members who support and are supported by farming operations.
- The direct wage impact of the four crops averaged $9.1 billion.
Factoring in the revenue, jobs and wages generated both through take-home spending by those whose jobs are tied to the four cereal crops and through outsourced work undertaken by industries that support the cereal supply chain, the estimated total economic impact was $68.8 billion over the same time period.
- The estimated total impact on the Canadian economy from the four cereals averaged $68.8 billion per year.
- More than 370,000 paid full-time-equivalent jobs are supported by the four crops, with supported family members bringing the total closer to 400,000.
- The total wage impact of the four crops averaged $27.0 billion.
The report further breaks down the cereals industry’s economic impact regionally, to demonstrate how the geographical spread of the impacts is closely tied to the location of the major industries in the supply chain. The bulk of cereal grain production takes place in Western Canada, for example, while much of the later-stage processing, such as brewing and pasta production, takes place in Eastern Canada.
For more information and to read the full report, visit cerealscanada.ca/economic-impact/