Canola's value to Canadian economy skyrockets
Over the last decade, the value of canola to the Canadian economy has increased C$19.3 billion, or 250%, according to a report released March 2 by the Canola Council of Canada.
In addition, the total wage impact doubled and the number of jobs increased by 41%.
The total value averaged C$26.7 billion per year over the three years from 2012-13 to 2014-15. The industry generated 250,000 jobs and C$11.2 billion in wages for Canadians in that time period.
“There’s been a substantial increase in the benefits from canola that are rippling through the Canadian economy,” said Brian Innes, vice-president of government relations for the Canola Council. “Compared to the previous three-year period of 2009-11, the total impact of canola has increased by nearly C$6 billion.”
LMC International, an agri-business research firm, completed the report by using best practices to estimate the total benefits, jobs and wages that are generated as Canadian-grown canola is developed, grown, processed and marketed.
LMC’s analysis also showed that jobs linked to canola have higher-than-average wages. The average salary for jobs generated by canola for the three-year period was C$62,000, compared to the average Canadian salary of C$50,000.
Innes notes that the influence of canola on Canadian jobs and wages was much steadier over this three-year period, compared to previous years. This stability reflects how canola has matured into a reliable mainstay of the Canadian economy.
Several factors contributed to the growth of the industry’s impact, the analysis showed. Canola production has increased due to record yields. As more work is done to research, grow, handle, process and distribute to customers around the world, more jobs are created.
“The canola value chain is working hard to grow these economic benefits by continuing to increase yields, expand into new markets and build on the advantages of our exceptional products,” Innes said. “Canola’s benefits reach across Canada – it’s a source of great pride for our industry.”
The greatest economic benefit from canola is seen in the prairies, the report showed, but it also has significant impact on the economies of Ontario (C$1.48 billion), Quebec (C$1.06 billion), British Columbia (C$554 million) and the Maritime provinces (C$120 million).
LMC studied 11 distinct links in the canola value chain, and found that most of the resulting economic benefits come from growing canola. In addition to farm family income, canola production leads to investment in things such as research, variety development, equipment, fertilizer, crop protection products and a wide range of business management services. Every year these activities generate about C$16.4 billion in Canadian economic impact.