2002

Each year in Canada, over $82 billion in domestic retail and food service sales are generated by the agri-food industry.The agri-food sector is one of the most important in Canada's economy. It is the second-largest manufacturing sector, the source of one in seven Canadian jobs, and is valued at approximately $130 billion.

(Sources: Agriculture and Agri-Food Canada; Saskatchewan Food Processors Association)

Key sector trends in the food and beverage industry include:

• Baby Boom Generation - This growing group of consumers will increasingly place demands for smaller serving sizes, easy-to-use packaging, easy-to-read labels, and more nutritious product formulations. With greater interest in health and convenience, consumption patterns are starting to skew towards quick, low-fat, low calorie, and low cholesterol options.
• Ethnic foods - Sales of ethnic foods continue to grow as they become more mainstream. Ethnic foods will drive volume in the frozen foods category over the next decade. (Source:  "Accessing New Markets - Consumer Trends and Implications", Christian Laudinsky)
• Gourmet products - Specialty food stores will thrive, as unique, upscale and expensive products will be small indulgences for consumers who seek gourmet products. (Source:  "Accessing New Markets - Consumer Trends and Implications", Christian Laudinsky)
• Innovation - Convenience foods will remain popular with continuing innovation (i.e. Baby milk sold in pre-packaged disposable bottles, and tea and coffee that heat themselves). (Source:  "Accessing New Markets - Consumer Trends and Implications", Christian Laudinsky)
• Commuting - "Dashboard dining" is on the rise - if processors can make their product fit into a cup holder, consumers will eat it in the car. Eating in the car has increased 30 per cent since 1997. (Source:  Food In Canada, March 2002)
• Organics - The demand for organics is growing. An Alberta Ministry of Agriculture survey reported 64 per cent of consumers believe organics are better, and 68 per cent said they would pay a 10 per cent premium for them.  (Food In Canada, March 2002)  Natural food sales are growing at 14 per cent per year, while organic food sales are growing at 24 per cent  per year. (FoodTechnology - Volume 55, Number 2, February 2001) 
• One-dish meals - Growth in quick meal kits and comfort food in stores is expected. The side dish is vanishing, as consumers incorporate vegetables into one-dish meals such as stir-fries, stews and casseroles. (Food Institute Report, January 7, 2002)
• Food safety concerns - Increasing concern for food safety is leading consumers to feel more reassured by familiar brand names, best-before dates, and pre-packaged products. (Food In Canada, March 2002)
• Dual incomes - The increase of dual income households also is impacting the marketplace, as increased purchasing power contribute to the demand for food that is convenient to prepare, serve and store. (Food Institute Report, November 12, 2001)
• Refrigeration - Supermarket sales of prepared refrigerated foods reached $7.1 billion in 2000 and are expected to top $9 billion by 2005 in the United States. (Food Institute Report, November 12, 2001)

Saskatchewan's food and beverage industry is the largest processing and manufacturing sector in the province, accounting for about one third of all manufacturing shipments.

The value of food and beverage shipments from Saskatchewan manufacturers is currently estimated at about $2 billion annually by the Saskatchewan Food Processors Association.  The industry employs about 7,000 people, with an annual payroll of about $227 million.

Most of the estimated 300 food and beverage processing establishments in Saskatchewan are small-to-medium in size with about 75 per cent having less than 20 employees.

The largest food categories in Saskatchewan by number of firms are:

• meat products (30 per cent),
• flour milling and bakery products (20 per cent); and
• fruit and vegetable products (10 per cent). 

Other processed products include spices/condiments, dairy products, beverages and nutraceuticals.

The largest food companies in Saskatchewan are established companies that are primarily engaged in meat processing, dairy, flour milling/bakery products and beverage manufacturing. These companies are not located in any one geographic area but rather located in various cities and towns across the province. Sixty per cent of these companies are located outside of the two major centers of Regina and Saskatoon. The largest companies produce about 90 per cent of the volume of shipments in the food processing industry.

Saskatchewan Food and Beverage Processors (2002)

Since 1995, the value of food shipments has increased by more than 54 per cent while beverage shipments have increased at a slightly slower rate of 41 per cent. The following table shows the value of shipments from 1995 to 2000:

Saskatchewan Food and Beverage Industry: 

Value of Shipments (millions)

 Source: Statistics Canada

Exports are important to the food processing sector, but currently only to a limited number of Saskatchewan food processors. There are about 50 food processors actively exporting product from Saskatchewan. Total exports in the sector were $32.9 million in 2001, compared to $14.6 million in 1995, an increase of 125 per cent. For the past three years, Saskatchewan food and beverage exports have trended upwards significantly, almost doubling in value between 2000 and 2001. Key export markets include the U.S. Japan, the Pacific Rim and Mexico.