Browse Data and Analysis

Canada, which imported more than $18.2 billion of U.S. high-value, consumer-oriented goods in 2021, continues to be a top market for U.S. exporters.

As an economic sector, agriculture contributes to just over 10 percent to Canada’s overall greenhouse gas emissions. Canada’s vision for agriculture to fight climate change is based on creating opportunities to improve carbon sequestration in agricultural lands, to stimulate the adoption of clean technologies on farms, and to support farmers in adopting greener on-farm practices to reduce GHG emissions.

The volume of U.S. fresh, dried, and processed fruit exports between 2012/13 and 2021/22 dropped 29 percent to 2.9 million metric tons[1]. However, a 25-percent gain in unit value during this period softened the decrease in value to just 11 percent lower as trade dropped $700 million to $6.0 billion.

In July 2022, the government of Canada published guidelines that reinforce Canada’s product-based approach and provides guidance on how Canada’s Novel Food Regulations are applied to products of plant breeding. The government is now revising regulations for animal feed and environmental release. Publication of revisions is expected in spring 2023.

On December 12, 2022, Canada's federal government launched consultations on its first Sustainable Agriculture Strategy. The Strategy is meant to be a comprehensive tool to provide an integrated and coordinated approach for addressing environmental issues in the agricultural sector.

Canada is the United States’ largest export market for pet food, specifically dog and cat food, and the third-largest export destination for all U.S. agricultural products. Canada is also the largest U.S. export market for high-value consumer-oriented products due to proximity, refined transportation logistics, a free trade agreement, and a science-based regulatory environment.

Canadian apple production is forecast to grow four percent for market year (MY) 2022/23, as production rebounds in Ontario and Quebec following adverse growing conditions in MY 2021/22. Pear production is forecast to grow on a bumper crop in Ontario, especially of the Bartlett variety.

The federal government announced that dairy, poultry and egg farmers and processors will receive CAD $1.7 billion dollars in compensation for impacts of the United States-Canada-Mexico Agreement (USMCA). This funding will be disbursed over six years, as direct payments and various investment programs, with the largest share going to the dairy sector.

In July 2022, Canada published final regulations on supplemented foods. The new regulatory requirements are complex, and the food industry has until January 1, 2026 to become compliant. Stakeholders are strongly encouraged to consult the variety of resources and information made available by Health Canada to assist with the implementation of the supplemented foods regulatory framework.

FY2022 agricultural exports reach record levels.

In marketing year 2022/23, wheat production is forecast up more than 50 percent from the previous year on increased acreage and higher yields due to improved soil moisture. Wheat exports are forecast to increase year-over-year on larger domestic supplies. Crop 2022 will be the first sizable crop in four years to compete for rail services with other sectors throughout an entire marketing year. Non-durum and durum wheat are expected to be of high quality, resulting in lower feed-grade wheat supplies.

Canada continues to be the largest export market for U.S. consumer-oriented products. In 2021, U.S. consumer-oriented exports to Canada reached $18 billion, doubling the amount exported to the second largest market, Mexico.