Farm Credit Canada has identified $12 billion in food and beverage exports that could be shifted away from the U.S. market as cross-border trade comes under continued strain.
The Crown corporation, which provides financing and other services to the agriculture industry, says U.S. tariffs have introduced uncertainty to a relationship that has historically been of benefit to Canada’s agriculture and food sector.
The proposed strategy outlined in a new report aims to reduce Canada’s U.S. market dependence for food and beverage exports to half of 2023 levels.
FCC says it can be done by strengthening interprovincial trade, leveraging existing trade agreements and establishing new international trading partnerships.
The agency estimates $2.6 billion in current food and beverage exports to the U.S. could be redirected to meet Canadian demand, and $9.4 billion to European and Asian markets.
One of the biggest opportunities for diversification FCC sees is in the prepared foods category, which had exports worth $8.6 billion in 2023, 90 per cent of which went to the United States.
“This commodity category presents a strong opportunity for furthering Canada’s export market diversification, as prepared foods can travel longer distances without the same risk of spoilage compared with other food items,” the report said.
It highlighted China, France, Germany, the Netherlands and the United Kingdom as the best markets with which to boost trade in the prepared foods category.
The report recommends promoting the buy Canadian movement to boost domestic demand, enhancing Canada’s global brand and expanding domestic processing to increase the value of its food products.
This report by The Canadian Press was first published Sept. 22, 2025.
