New study shows soybeans add $5.6 billion to Canadian GDP
The tremendous economic impact of Canada’s thriving soybean sector has been quantified in a first-of-its-kind national study, commissioned and released today by Soy Canada.
The analysis by MNP LLP concludes soybeans now contribute $5.6 billion to Canada’s Gross Domestic Product, as well as 54,000 full-time jobs across the nation. These benefits are generated by the significant growth in Canadian soybean production, which now generates more than $2.3 billion in farm cash receipts – a 200 percent increase in the last decade.
Between 2005 and 2015, soybean production and seeded acreage doubled in Canada, and soybean exports more than tripled. Canada now produces 6 million metric tonnes of soybeans annually, making this country the seventh largest producer of soybeans in the world and the fifth largest exporter.
“We commissioned MNP to do the study so we could capture the full impact of this surge in production – not just on the farm, but in industries and communities all across Canada,” said Soy Canada Executive Director Jim Everson. “The analysis confirms that soybeans have become a major economic force in Canada, creating jobs, wealth and opportunities for tens of thousands of people not directly involved in farming.”
MNP found that the direct, indirect and induced benefits of this growth are being felt in a wide range of industries and sectors, from on-farm production to processing, transport, manufacturing, real estate and financial services. Soybeans also generate nearly $1.3 billion in tax revenue for federal, provincial and municipal governments.
The provinces benefiting the most from this economic impact are Ontario, Quebec, Manitoba the Atlantic provinces, where soybeans have traditionally been grown. The economic importance of soybeans is also steadily increasing in newer production regions like Saskatchewan.
Soy Canada will use the report’s findings as it continues to build on the growing importance of soybeans in Canada’s agriculture production and export sectors. The organization was formed in 2014 by soybean growers, seed companies, commodity exporters, processors and other industry participants to establish one strong, clear voice for the Canadian soybean value chain, with the means to work together efficiently and effectively.
“This analysis will help us demonstrate to our trading partners that Canada is a thriving and reliable supplier of soybeans,” Everson said. “It also communicates to our own federal and provincial governments that this sector is important to our economy, across the country and in their regions.”
The report can be viewed on the Soy Canada website.
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