Canadian Processing Expansion to Continue

VANCOUVER - Jan 28/05 - SNS -- Canadian specialty crop production and primary processing capacity is expected to continue to trend upward over the coming decade, believes Stan Skrypetz of Agriculture Canada's Market Analysis Branch in Winnipeg.

However, expansion in primary processing capacity will be nothing like the late 1990s and early 2000s. More importantly, Agriculture Canada argues, "The primary processing sector is undergoing consolidation in Saskatchewan due to the rapid growth and lower crop production during 2001-2002 to 2003-2004 caused by unfavorable weather.

"The secondary processing sector for pulse and special crops is expected to grow faster than the primary processing sector, as it is not as well developed as the primary sector."

Agriculture Canada expects increased secondary processing is expected in all areas: food, feed, bird seed and industrial. "The secondary processing sector is expected to become more diversified, with a larger range of products produced. Increased secondary processing is expected to increase domestic consumption and increase exports of semi-processed and consumer ready products.

"In the production and primary processing sectors, identity preservation and traceability for shipments is expected to increase in response to consumer demand."

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