WINNIPEG, MANITOBA, CANADA — The cereals value chain plays a vital role in Canada’s success, creating jobs, supporting families and driving economic growth. In fact, averaged over the past three years, Canadian-grown wheat, barley, durum and oats have generated an estimated total economic impact of C$68.8 billion, according to a new report commissioned by Cereals Canada and conducted by LMC International, an independent economic consulting firm.
The report, “The economic impact of wheat, durum, barley, and oats on the Canadian economy: 2022,” also found the four crops had an impact of 370,000 Canadian jobs and C$27 billion in wages.
“The cereals value chain is a major contributor to Canada’s success,” said Dean Dias, chief executive officer at Cereals Canada. “The report reinforces the vital role that the Canadian cereals industry plays in Canada’s economy.”
According to Cereals Canada, the estimated total economic impact takes into account the revenues, jobs and wages generated both through take-home spending by those whose jobs are tied to the four cereal crops, and through outsourced work undertaken by industries that support the cereal supply chain.
Meanwhile, the direct economic impact on the Canadian economy from the four cereal crops averaged C$25.9 billion over the past three years, Cereals Canada said, while the direct wage impact averaged C$9.1 billion.
Digging deeper into the total revenues generated by each crop, Cereals Canada said wheat accounted for C$42.7 billion, barley C$14.4 billion, durum C$7.5 billion and oats C$4.2 billion. Wheat also accounted for the most total jobs supported by the crops, at 215,000, followed by barley at 102,000, durum at 33,000 and oats at 22,000.
Flour milling, as a component of the wheat category, contributed a revenue impact of C$7.25 billion and 19,100 jobs, while flour processing had a revenue impact of $13.53 billion and 91,000 jobs, the report noted.
“Wheat and barley account for a large share of production and acreage, and are the foundations of two major agri-food industries: baking and brewing, respectively,” Cereals Canada said. “And, given the large number of small breweries and bakeries across Canada, these two crops generate substantial economic impact later in the supply chain.”For the full report,click here.