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International Resources: Global Market Profile: Canada

Canada

 

Canadian Flag

As part of its commitment to providing its members with market analysis and insight, PMA has compiled the following information about Canada from Agriculture and Agri-Food Canada and Attaché Reports submitted by the U.S. Department of Agriculture’s Foreign Agricultural Service, as well as the CIA World Factbook, embassy sites, and business etiquette reference guides.

Table of Contents

 

Fresh Fruit, Vegetable, and Flower Market

Fruit and Vegetable Market

The most important category of imports in 2006 was fruits and vegetables, with over a 27% value share.

Canada produced an estimated 704,000 tons of fruit in 2005.  Exports of fruits reached $399 million. The top markets for Canadian fruit are the United States, Japan and the European Union. Major fruit commodities include apples, tender fruits (peaches, pears, plums, and cherries) and blueberries. Blueberries, the most valuable crop, are mainly exported to the United States and Japan.  Nearly 80% of Canada’s tender fruit exports go to the United States, and 12% go to Taiwan.

The volume of fresh vegetable exports (not including potatoes) has grown 45% in the last five years.  The main vegetable commodities are potatoes, greenhouse vegetables and mushrooms.  In response to the growing demand for Asian vegetables, more Canadian farmers are growing crops such as pak choi, bok choi, nappa, and Chinese broccoli.

Canada is the number 1 importer of United States agricultural products. Canada is a net importer of berries (mainly from the United States, Chile, Argentina, and Mexico) because of its short growing and marketing season.  Apples are imported from about 15 countries, led by the United States, New Zealand, South Africa, Chile and Argentina. Imports of tender fruits from the United States rule the Canadian tender fruit market.

Fresh Flower Market

The main export market for floriculture products is the United States. The Netherlands is the next largest Canadian floriculture export market, purchasing about 7% of total exports, followed by Germany at 2%.  Cut flowers produced in Canada include a variety of greenhouse and field-grown annuals and perennials, as well as other kinds.  Tulips are the primary cut flower grown; the number of gerberas grown has greatly increased and is the second major crop.

The largest suppliers of flowers to Canada were the United States, the Netherlands, Columbia, Ecuador and Mexico. The United States supplies almost half of all floriculture imported into Canada, while cut flowers from South America make up nearly a fourth of the total imports.  The Netherlands is another important supplier.

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Consumer Trends

Canadian consumers enjoy variety in their diet, and there is a hearty demand for new and innovative foods in stores and in restaurants.  Imported exotic fruits and vegetables are becoming more popular.

Consumers care about the quality and freshness of food and are willing to pay more for quality. Health-conscious Canadians, particularly ageing baby boomers, are eating more vegetables, fruits, and “light” foods (low cholesterol, low sodium). Increased media attention to issues such as product recalls, food irradiation, and GMOs (Genetically Modified Organisms) has caused more consumers to make food safety a priority.  Environmental concerns, especially among young consumers, may have implications for food demand—organic foods are becoming more popular.

There is nearly double the number of senior citizens in Canada compared to 25 years ago.  Seniors constitute a significant portion of consumers and are generally financially well-off, well-educated, and willing to spend; they are also becoming preoccupied with health and product quality.   

Immigration patterns have impacted the consumer demand.  Immigrants of the 1990s were primarily of Asian origin, who currently make up about 10% of the population of the two largest cities in Canada: Toronto and Vancouver. 

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Entering the Canadian Market

Food product manufacturers seeking to enter the Canadian marketplace have vast opportunities.  The following suggestions will help you to enter the market:

  • Research the competitive marketplace.
  • Locate a broker/distributor: Canadian agents, distributors, brokers and importers are usually the best equipped to help exporters through the regulatory import process. It is advised that most new entrants into the Canadian market obtain the services of a broker and/or distributor.

3.   Understand Canadian government standards and regulations that pertain to your  product and contact one of the CFIA Import Service Centers across Canada

    for further information. However, Canadian agents, distributors, brokers, and/or importers are also well prepared to assist exporters through the import process.

For additional information, contact:

Canadian Society of Customs Brokers

111 York Street

Ottawa, Ontario

Canada K1N 5T4

Telephone: (613) 562-3543

Facsimile: (613) 562-3548

Webpage: http://www.cscb.ca

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Trade Agreements

Canada has Free Trade Agreements with the following countries:

Canada has trade agreements pending or in the negotiation stages with the following countries and organizations:

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Food Standards and Regulations

Import Service Centers

The Canadian Food Inspection Agency’s Import Service Centers (ISC) are a control point in the process and can respond to import information requests electronically or by fax.

The ISC works with the Canada Border Services Agency in determining the Customs release of food items. In addition, ISC is equipped to answer questions over the telephone regarding import requirements for all commodities regulated by the CFIA.

CFIA Import Service Centers Across Canada

Eastern ISC

7:00 a.m. to 11:00 p.m.(local time)

Telephone: 1-877-493-0468 (Canada/U.S.)

1-514-493-0468 (all other countries)

Fax: 1-514-493-4103

Central ISC

Telephone: 1-800-835-4486 (inside Canada or U.S.)

1-905-612-6285 (all other countries)

Fax: 1-905-612-6280

General Labeling Requirements

The basic packaging and labeling requirements for agricultural exports to

Canada are:

  • Labels in English and French
  • Net quantities in metric
  • List of ingredients
  • Durable life date (if shelf life 90 days or less)
  • Common name of product
  • Company name and address
  • Minimum type size specifications
  • Country of origin labeling on shipping container

Although the Universal Product Code (UPC) or bar code is not mandatory or administered by

government, almost all retailers require products to be labelled with a UPC.

The Guide to Food Labeling and Advertising in Canada

The Canadian Food Inspection Agency has created a Guide to Food Labeling and Advertising

that lists the requirements for selling packaged foods in Canada. The guide is available on the CFIA website at:

http://www.inspection.gc.ca/english/bureau/labeti/guide/guidee.shtml

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Business Protocol

  • Men should wear a dark conservative business suit with a tie, particularly in cities.  Bring a wardrobe based on classic lines (choosing suits with a traditional lapel width, and so on).  Conservative colors as navy and gray, and shirts in white and light blue, are good.
  • Women should wear a conservative business suit or dress, particularly in cities.  Choose your clothing with classic lines and colors (Navy, gray, ivory, white, etc.) in mind. 
  • New or trendy clothing should not be worn; older, classic clothing that is neat is more valued.  You should choose quality, natural fibers to get this look.
  • Rural areas are less formal, but you should still dress conservatively.
  • Plan for a very cold climate, especially during winter in Canada.
  • Shake hands firmly and make good eye contact.  Men will wait for a woman to extend her hand for a handshake.
  • Call a person by title if he or she has one; otherwise use “Mr.” or “Mrs.” or “Miss” with the surname.
  • Be on time for meetings and appointments; punctuality is valued.  In French areas, time is more relaxed, but you will be expected to arrive on time even if your French counterpart attending the meeting does not.
  • Always maintain a reserved demeanor.  Gracious manners are part of Canada’s culture.  Pay attention to local customs when traveling to different cities or areas.
  • Do not eat while you are walking in public.  Plan your time accordingly so you can stop to eat in a café or restaurant.
  • It is not customary to give gifts, but if you do give a gift when you arrive or leave, chose something modest to give.  An extravagant gift, though accepted by the receiver, would be frowned upon.
  • Gifts are given, however, to celebrate finalizing a contract or negotiation or project.  Gifts for the office such as a good bottle of wine or liquor are always appropriate.
  • It is always a nice action to take a business associate to a nice meal or an evening sporting event, symphony, or play.
  • Invitations to private homes are rare.  In the western provinces you may occasionally be invited to someone’s home; if you are invited, you may bring candy, flowers, or liquor to the host or hostess.
  • As a general rule business is not discussed during dinner; however, this may be changing.  Wait for your host to commence a business conversation during or after the meal.
  • There are differences between gestures, body movement, and rules of personal space between the English and the French provinces and cities.
  • In English areas, there is less body movement; touching other than handshakes is rare.  Personal space is about two feet.
  • In French areas, people stand closer together and frequently touch. Gestures are more expressive.
  • French Canadians will shake hands more frequently, and sometimes with a later encounter the same day.  They may also use their first name when they are speaking with you on the telephone, but in person will usually use their full name when meeting you.
  • In most of Canada English is spoken.  French is spoken in Quebec and in some areas of Nova Scotia and New Brunswick.
  • For French Canadians, print all material in French and English.
  • Do not make the “V for Victory” sign if your palm is facing yourself; it is considered an insult.  If you use the sign, face your palm outward.
  • If you normally use large sweeping arm gestures, restrain yourself when talking with Canadians (other than French Canadians).  If you are reserved in your behavior you appear credible.
  • Do not boast and don’t exaggerate your product of service’s capabilities.  You might implicate your company in a legal situation.
  • If you are from the United States, do not say “we Americans” to mean you and your Canadian hosts/guests.  Canada is a unique country with its own culture and history.

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Export Business Reminders

  • Build at least a minimum team within your company to help on the Canadian market.
  • Use metric terms.
  • Ensure that all sales documentation is correct.
  • Be patient regarding requests for documentation, ingredients lists, production process, and quality assurance and respond to such requests with diligence and in a timely fashion.
  • Use letters of credit to reduce risk.
  • Hedge export values with your bank if you are concerned about exchange rate risk.
  • Set up wire transfers for payments.

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Related Links and Government Resources

Currency - the currency ofCanada is the Canada Dollar. Use the free currency converter to compare to dollars, Great British Pounds, etc.

Weather - visit Yahoo!'s up to date weather on Canada  

News- Check out the latest google news on Canada

Intercultural Know-how - use the Intercultural Business Communication tool for tips on doing business in Chile.

Dialing Code - the international dialing code for Canada is +1.

History - read about the long and rich history of Canada .

Dialing Code - the international dialing code for Canada is +1

http://www.fas.usda.gov/gainfiles/200612/146259715.pdf

Government Resources

Agriculture and Agri-Food Canada

Agri-Food Trade Service provides access to market information

Foreign Embassies and Consulates in Canada

Canadian government Factsheets with information on which countries import Canadian products, and product quantities

Agri-Food Trade Policy

Canadian Market Information

An Overview of the Canadian Agriculture and Agri-Food System, 2007

 

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