Every other industry got a big blow by the Covid-19 worldwide. Be it the hospitality & tourism industry or the automobile; the pandemic was a tough time for the businesses. The situation could have gotten worse, but thanks to the vaccination, masking and testing like rapid antigen test helped curb the widespread of the Covid-19 virus.
The Covid-19 pandemic put a major impact on the Canadian agricultural industry. In the earliest stages of the pandemic, the producers and the agri-food operators faced a labour shortage, strict safety regulations, supply chain disruptions, market fluctuation and many others.
Regardless of all these problems, Canada's agriculture industry grew and outperformed Canada's economy in 2020. In the same year, the whole agriculture and agri-food of Canada agriculture industry employed over 2.1 million people and generated over $139.3 billion of Canada's gross domestic product (GDP). Moreover, Canadian agricultural exports grew nearly to $74 billion in 2020 compared to $67 billion in 2019.
Despite the promising numbers, just like any other industry, the Canadian agricultural industry suffered some drastic impacts.
Shifts in the Labor Market
The promising growth of the agricultural GDP during the pandemic masked the labour shortage in the country. Due to the outbreak, the agricultural employment rate reduced by more than 5% in 2020, including the domestic and international workforce down by 4% and 7%, respectively. Thanks to the seasonal agricultural worker program (part of the Temporary Foreign Worker Program), Canada's agriculture sector is highly dependent on foreign workers.
The decrease in the employment rate could have been more if the Canadian public didn't adhere to the Covid-19 precautionary guidelines like timely antigen testing.
The Formation of Collaborative Industry
Several Canadian farm groups collaborated to put pressure on the federal government to offer support (majorly monetary) to reduce the impacts of the pandemic and secure the food supply chain of Canada.
The Canadian Federation of Agriculture (CFA) requested the government provide a $2.6 billion Agriculture and Agri-Food emergency fund. Furthermore, to tackle the labour shortage problem and take care of the labour's health interests, the CFA recommended prioritizing personal protective equipment (PPE). It seemed like an essential step to control the spread of the Covid-19 virus, similar to taking a raat PCR test on time.
In May, the Federal government extended eligibility for the Canadian Emergency Business Account (CEBA) to those farmers who run their businesses using their personal bank accounts and allowing them to apply for interest-free loans.
The collaborative efforts made by the farm groups led to some major announcements by the government. To support farmers and food businesses, the government also announced an investment of $252 million and additional funds for PPE worth $77.5 million.
Evident Change in the Consumer Behavior
Top of everything, the pandemic changed our habits and our lifestyle. As the news reports about potential food shortages spread across the country, consumers increased their grocery spending to cook at home rather than eat out.
In March 2020, the purchase rate of groceries increased by 30%. However, the people were concerned about the fact that the virus travels through living beings and can stay alive for different periods on different types of surfaces. Hence, people preferred to cook at home than to eat out.
The restaurants were being shut due to less demand for aquaculture products, and more Canadians started home gardening, which led to a rise in demand for specific horticulture products. Thus, the supply chain needed to reset itself. Some farmers even started selling online directly to the end consumers.
Ending Note - A Promising Future
Since we are in the normal times now and are able to put a rein on the Covid-19 but it is still within us. Efficient covid 19 testing for offices, masking and vaccination is still a need of the hour. Considering the ongoing investments, Canada's agricultural industry has a bright future.
