Canada’s food and beverage sector has the foundation – but where’s the private investment?
“There’s a lot that Canada does really well when it comes to food, but those advantages are not sustaining small- and mid-sized businesses,” said Matt MacDonald, National Leader, Food & Beverage Processing at MNP, based in Calgary, Alberta. “Manufacturers are trying to stay nimble while costs are rising, trade is unpredictable and consumers are changing what they buy.”
Tariff uncertainty is reshaping trade flows
Canada recorded a $24.3 billion agri-food trade surplus, according to the MNP report – a figure that underscores the sector’s export importance but also its exposure.
With Canada’s trade relationships under strain, the outlook found that 65 per cent of food and beverage exporters are planning market expansion, while exports to the United States declined 3.8 per cent and non-U.S. exports grew 11.2 per cent.
Those shifts carry direct implications for advisors working with clients in the food production, manufacturing, and agriculture supply chain. As Canadian businesses face mounting tariff pressure across sectors food and beverage operators are contending with rising costs across ingredients, labour, transportation, and packaging – pressures that ripple through margins and, ultimately, consumer prices.
The Canada Food Price Report – referenced in the MNP Outlook – predicted a four-to-six per cent increase in food prices in 2026. MacDonald noted that the impacts extend beyond the shelf price: product sizes, mix, and margins are all being adjusted as manufacturers absorb input cost increases.
