Emerging Markets / December 2, 2016

Canadian Fruit Production and Markets

Canadian agriculture is highly dependent on seasonal changes given the extremely harsh winter conditions that the country experiences. Therefore, Canadian food markets are dependent on imports for a significant part of their yearly supply. Nevertheless, through the use of greenhouses and other technologies, Canada remains a major agricultural producer, particularly within certain sectors, such as fruit and cattle. Similarly, it is important to mention that the Canadian economy has experienced sustained growth above 1.0% throughout the last several years. This article explores the status of organic fruit markets in Canada.

Canadian Fruit Production and Markets

During 2016, the average Canadian consumed 11.3 kilograms worth of fresh apples. Simultaneously, fresh apple production in Canada is expected to reach 375.000 metric tons for the 2016/17 season, which represents a substantial increase from 338.000 metric tons during 2015/16. This increase in output is mainly due to favorable yields and weather conditions in the provinces of Ontario and British Columbia. Because of the increase in domestic yields, Canada is expected to import 225.000 metric tons of apples during 2016/17, which represents a 5.000 metric ton decrease from the previous year.

Interestingly, the aggregate demand for fresh apples in Canada has decreased slightly throughout the last decade. Nevertheless, the largest international provider to the Canadian fresh apple market remains the United States with more than 75% of all imported apples. Within Canada, it is estimated that more than half of all apples are consumed fresh, while about a third are processed to prepare food items such as apple juice and pies.

When it comes to pear production, Canadian yields for 2016/17 are expected to increase slightly totaling 8.100 metric tons. Likewise, fresh pear imports are expected to increase in comparison to previous years because of a higher domestic demand. Accounting for approximately 70.000 metric tons annually, pear imports into Canada originate mainly in the US, which accounts for more than 50% of all fresh pears brought to Canada. Meanwhile, during 2016, the average per capita consumption of fresh pears in Canada has been of 2.1 kilograms.

In terms of fresh table grapes, Canada has produced approximately 2.300 metric tons annually throughout the last several years. At the same time, Canada imports some 175.000 metric tons of table grapes annually. On average, the per capita consumption of table grapes in Canada for 2016 will amount to 4.7 kilograms. After the US, the other main exporters of table grapes destined for Canadian markets are Latin American; these include Chile with more than 20%, Mexico with approximately 10%, and Peru accounting for little over 6%.

It is important to mention that Canada’s large grape imports relate to the fact that the country employs most of its grape output towards the confection of wine. Between 80.000 and 100.000 metric tons of domestically grown grapes are used yearly in the production of Canadian wine and grape juice. The provinces of Ontario and British Columbia dominate domestic grape production within Canada.

(Read more about Agriculture and Free Trade in the Canadian Economy)