Template-Type: ReDIF-Article 1.0

Author-Name: Jared Carlberg
Author-Workplace-Name: University of Manitoba


Title: Sustainable Innovation in the Canadian Agrifood Sector: Past, Present & Future

Abstract: In order to remain globally competitive with sustainable innovations in agri-food, both the public
and private sectors in Canada must increase investment in the industry.
Studies reveal that both sectors’ support for agri-food innovation has declined in recent years.
To spur innovation and growth public funding should revert to previous levels, ideally reaching
0.10 per cent of GDP. Incentives such as tax relief, matching funds and enhanced protection of
intellectual property rights could spur increased levels of private sector investment in innovation.
In the past 50 years, innovation in agriculture has brought tremendous benefits to producers,
processors and consumers. Successful innovations include genetically modified crops, large-scale
cattle feeding operations and the adoption of no-till farming, which has reduced the traditional
practice of summerfallowing fields. Still, with the demand for a secure global food supply
and growing concerns about the environmental impacts of large-scale farming, the need for
sustainable innovation in the agri-food sector is pressing.
This paper offers three recommendations for policy-makers. First, public funding for agricultural
research and development should be increased to prior levels. Next, the private sector needs
more favourable conditions to foster investment in the agri-food industry. Last, if intellectual
property rights are strengthened, innovating firms will be reassured that they can capture the
economic benefits innovation creates.
Recent reports by the Agriculture Institute of Canada and the Organization for Economic
Cooperation and Development have found that Canada’s support for agricultural innovation ranks
seventh globally at 0.046 per cent of GDP, but that figure is still considerably below historical
averages. Private-sector investment has also declined, with Canada ranking 25th globally in 2014,
down from 18th place in 2008.
Research and development requires more sources for venture capital, while smaller firms would
stand to benefit from tax incentives just as their larger counterparts do. Digital infrastructure
must be upgraded so that rural broadband service is expanded and reliable, as the uptake of
new digital technologies by farmers is critical to the agri-food sector’s success. Regulations
should be simplified and updated, the addition of skilled labour to the agri-food workforce
facilitated and more use must be made of information technology.
Canada’s record in agri-food innovation speaks for itself. Thanks to genetic modification,
crop damage has been reduced with a corresponding increase in pest control. Yields are up by
21 per cent, cost savings on pesticide use have risen to 39 per cent and the resultant profitability
for farmers who grow GM crops has gone up 69 per cent. With global crop demand predicted
to double by 2050, innovation can provide huge benefits for all stakeholders in the agri-food
industry, and more food can be grown to feed the world’s expanding population. 


Journal: The School of Public Policy SPP Briefing Papers

Volume: 17
Issue: 1
Year: 2024
Month: January
File-URL: https://www.policyschool.ca/wp-content/uploads/2024/01/JSC23-SustInnov-CdnAgriFood.Carlsberg.Final_.pdf
File-Format: Application/pdf
Handle: RePEc:clh:briefi:v:17:y:2024:i:1