April 16, 2014 – The food manufacturing and
foodservice industries in Canada had disappointing financial results in 2013,
but expectations are brighter for 2014, according to the Canadian Industrial
Outlook: Winter 2014 forecasts for the two industries, produced by The
Conference Board of Canada.
April 16, 2014 – The food manufacturing and
foodservice industries in Canada had disappointing financial results in 2013,
but expectations are brighter for 2014, according to the Canadian Industrial
Outlook: Winter 2014 forecasts for the two industries, produced by The
Conference Board of Canada.
Profit levels in the food manufacturing
sector dropped for the third consecutive year and totalled slightly more than
$3.5 billion in 2013, down from just over $4 billion in 2010. Foodservice
industry profits fell 33 per cent between 2012 and 2013, to less than $1
billion, due in large measure to high food prices in the early part of last
year.
In the food manufacturing industry,
consumer demand for healthy choices is driving the development of products such
as gluten-free foods. Production is expected to rise by almost three per cent
in 2014, the strongest increase in several years. Production is being driven by
increased export demand. To meet production demand, industry employment is
expected to rise by about 16,000 in 2014. Pre-tax profits are coming in at
almost $3.9 billion, indicating growth of 9.5 per cent.
Foodservice operators will benefit from a
more moderate increase in food prices. As a result of lower cost growth, profit
levels will grow to almost $1.4 billion
in 2014, a gain of 46 per cent over 2013. However, the restaurant industry is
marked by low profit margins, and that will not change over the next five
years.
The Canadian Industrial Outlook publications are
produced twice yearly. The Conference Board of Canada has also just published
its Canadian Food Strategy , outlining a new vision for the food sector in
Canada.
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