NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
NAFTA Trade Flows General Agriculture
and theFood Industry
NAFTA Trade Flows General Agriculture
and theFood Industry
NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
Objectives - Food IndustryObjectives - Food Industry
Eliminate barriers to trade and Eliminate barriers to trade and facilitate cross-border movement of facilitate cross-border movement of
goods and services.goods and services.
andand
Increase substantially investment Increase substantially investment opportunities in their territories.opportunities in their territories.
NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
Commentary - ObjectivesCommentary - Objectives
As a result of the NAFTA, the food As a result of the NAFTA, the food industry in all 3 countries has had no industry in all 3 countries has had no choice but to find ways to be choice but to find ways to be competitive, now that trade is competitive, now that trade is essentially unrestricted and industry essentially unrestricted and industry investments can be made on a North investments can be made on a North American or global basis.American or global basis.
NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
Commentary - ObjectivesCommentary - Objectives
The agri-food industry continues to The agri-food industry continues to have difficulties adjusting to NAFTA in have difficulties adjusting to NAFTA in those sectors where:those sectors where:
government has guaranteed something government has guaranteed something to one or more industry stakeholders;to one or more industry stakeholders; or or government continues to regulate a government continues to regulate a sector.sector.
NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
Trade Flows - HVPPTrade Flows - HVPP
US high value processed product (HVPP) US high value processed product (HVPP) export shares to both Canada and export shares to both Canada and Mexico increased significantly.Mexico increased significantly.
Mexican HVPP export shares to both Mexican HVPP export shares to both Canada and the US increased Canada and the US increased significantly.significantly.
Canadian HVPP export shares to the US Canadian HVPP export shares to the US remained constant; to Mexico declined.remained constant; to Mexico declined.
NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
Bulk CommoditiesBulk Commodities
GrainsGrains
OilseedsOilseeds
Cotton & JuteCotton & Jute
Coffee BeansCoffee Beans
NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
High-Value Processed ProductsHigh-Value Processed Products
Red meat and poultry meat.Red meat and poultry meat.
Dairy products, milk and eggs.Dairy products, milk and eggs.
Processed fruit and vegetables.Processed fruit and vegetables.
Sugar products.Sugar products.
Imitation dairy products.Imitation dairy products.
NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
High-Value Processed ProductsHigh-Value Processed Products
Packaged and branded food Packaged and branded food products.products.
Juices.Juices.
Water.Water.
Beer.Beer.
Wine.Wine.
NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
Processed IntermediatesProcessed Intermediates
Live animals and birds.Live animals and birds.
Flour and starch.Flour and starch.
Feeds of all types.Feeds of all types.
Oils and fats.Oils and fats.
Hides and fur.Hides and fur.
NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
Processed IntermediatesProcessed Intermediates
Soya products - vegetarian products.Soya products - vegetarian products.
Ginseng root - functional foods.Ginseng root - functional foods.
Enzymes - biotechnologies.Enzymes - biotechnologies.
Extracts/oils - nutraceuticals.Extracts/oils - nutraceuticals.
Wool and hair.Wool and hair.
NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
Produce and HorticultureProduce and Horticulture
Fruits Fruits
Vegetables and potatoes.Vegetables and potatoes.
Flowers and plants.Flowers and plants.
Nuts and spices.Nuts and spices.
Mushrooms.Mushrooms.
NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
Related AgricultureRelated Agriculture
Fish and shellfish.Fish and shellfish.
Lumber and wood products.Lumber and wood products.
Spirits.Spirits.
Cigarettes and cigars.Cigarettes and cigars.
Wool and cotton yarns.Wool and cotton yarns.
NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
Food Industry AdjustmentsFood Industry Adjustments
Consumer FocusConsumer Focus
Value or Supply Chain Value or Supply Chain RelationshipsRelationships
Marketing Strategies Marketing Strategies
Globally Competitive OperationsGlobally Competitive Operations
NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
Consumer-Driven MarketplaceConsumer-Driven Marketplace
PricePrice
QualityQuality
Variety Variety
Safety and HealthSafety and Health
NutritionNutrition
NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
Price: Food Expenditure SharesPrice: Food Expenditure Shares
Canada - 9.8%Canada - 9.8%
USA - 10.9%USA - 10.9%
Mexico - 33.2%Mexico - 33.2%
Japan - 17.8%Japan - 17.8%
Australia - 14.6%Australia - 14.6%
NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
Variety and AvailabilityVariety and Availability
Consumer wants apples, bananas, mango, Consumer wants apples, bananas, mango, corn-on-the-cob, available every day.corn-on-the-cob, available every day.
Consumer wants access to any product Consumer wants access to any product discovered in travel or from a home country.discovered in travel or from a home country.
Consumers want products as inputs to Consumers want products as inputs to recipes available on demand - shellfish; recipes available on demand - shellfish; lemon grass. lemon grass.
NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
Food SafetyFood Safety
Most agri-food products historically grown, Most agri-food products historically grown, raised, processed/manufactured and consumed raised, processed/manufactured and consumed locally. locally.
Processors, retailers, restaurants, and food Processors, retailers, restaurants, and food service largely purchased local.service largely purchased local.
Consumers did not question the food chain re: Consumers did not question the food chain re: safetysafety
Food safety issues/problems were “localized” or, Food safety issues/problems were “localized” or, in the case of imports, isolated at the border.in the case of imports, isolated at the border.
No longer true today.No longer true today.
NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
Food Value ChainFood Value Chain
ConsumerConsumer
Retailer or Food ServiceRetailer or Food Service
Wholesale/DistributionWholesale/Distribution
ProcessorProcessor
ProducerProducer
NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
Marketing StrategiesMarketing Strategies
Adding value to commodities.Adding value to commodities.
New food products (e.g., nutraceuticals)New food products (e.g., nutraceuticals)
Certified Products:Certified Products:
OrganicsOrganics
Angus BeefAngus Beef
Specialty EggsSpecialty Eggs
NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
Marketing StrategiesMarketing Strategies
Quality Assurance - VQA for wine.Quality Assurance - VQA for wine.
Farm Processing/Direct Farm SalesFarm Processing/Direct Farm Sales
Complementary Marketing of Products Complementary Marketing of Products
Regional Marketing Regional Marketing
Local identification programsLocal identification programs
Psychographic profilingPsychographic profiling
NAFTA Report Card - Food Industry NAFTA Report Card - Food Industry
Globally Competitive OperationsGlobally Competitive Operations
Source product/inputs globally.Source product/inputs globally.
Provide quantity and quality based upon Provide quantity and quality based upon a national or continental market.a national or continental market.
Invest in other North American markets.Invest in other North American markets.
Protect domestic market through Protect domestic market through marketing strategies, not protectionism.marketing strategies, not protectionism.