Meat Processing Equipment Market and Trends Report
Sun Cycle Farms Combines Solar Energy Production with Agricultural Activities
MPO Celebrates Brazil to Adopt Full Beef Traceability by 2032
Meat Institute Hires Nicole Johnson-Hoffman to Be Chief Operating Officer
Rising Crime and the Struggles of Canada's AgriBusinesses
Investing in Canadian Agriculture
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SMITHFIELD FILES FOR U.S. IPO
In early January, Smithfield Foods made public its paperwork for its New York initial public offering as the maker of Farmland bacon and Farmer John sausages prepares for its U.S. stock market return after more than a decade.
Hong Kong-based WH Group, the world’s largest pork producer that took Smithfield private in 2013 for $4.7 billion, will sell some of its shares in the Virginia-based company in the offering, alongside the company.
The company is spinning off its U.S. and Mexico businesses as it looks to unlock their value and boost Smithfield’s access to capital markets.
WH Group said in October the IPO is expected to represent up to 20% of Smithfield’s shares on a fully diluted basis and value the company at no less than $5.38 billion.
Smithfield reported a net income of $581 million in the nine months ended Sept. 29 on sales of $10.19 billion. That compares with a net loss of $2 million in the nine months ended Oct. 1, 2023 on sales of $10.64 billion.
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Pork producers in China have come under pressure from declining consumer demand as the world’s second-biggest economy has struggled in recent years, said Dennis Smith, commodity broker for Archer Financial Services.
Smithfield was founded in 1936 as a packing company in Virginia. Since then, it has grown into one of the major producers of packaged meats and fresh pork products.
The company was listed on the New York Stock Exchange from 1999 until its acquisition in 2013.
Smithfield, which separated its European operations last year, confidentially filed for the U.S. IPO on October 4.
The IPO proceeds will be used for capital investments in infrastructure, automation and capacity expansion, Smithfield said.
Morgan Stanley, B of A Securities and Goldman Sachs are the lead underwriters.
GLOBAL RED MEAT
GLOBAL RED MEAT MARKET SIZE AND TRENDS
Grand View Research provides market intelligence studies ensuring relevant and fact-based research across a range of industries. Their database features thousands of statistics and in-depth analysis on 46 industries in 25 major countries worldwide.
The company recently released a report on the size of the global red meat market indicating the market was valued at $879.97B USD in 2024 and is expected to grow at a CAGR of 5.5% from 2025 to 2030.
The rising demand and consumption of red meat are primarily fueled by economic growth, lifestyle changes, and shifting dietary preferences worldwide. As disposable incomes increase, particularly in emerging economies across Asia Pacific, Latin America, and parts of Africa, consumers can afford to include higherpriced protein sources like red meat in their diets. Urbanization has also shifted dietary patterns, with city dwellers often adopting Western eating habits, where red meat consumption is more prevalent. This trend is most notable among middle-class populations, who have greater access to diverse food options and are willing to spend on quality protein sources, boosting red meat consumption.
Health and fitness trends are another major driver, as consumers are more aware of the importance of protein in their diets. Red meat is widely valued as a nutrient-dense source of high-quality protein, iron, and essential vitamins, such as B12, making it attractive to fitness enthusiasts and those looking to enhance their protein intake. These health-conscious consumers see red meat as a beneficial addition to a balanced diet despite some concerns about saturated fat. The nutrient profile of red meat appeals especially to active individuals seeking to support muscle growth, recovery, and overall energy.
Cultural and culinary traditions also play a strong role in sustaining the demand for red meat. Many regions and cultures feature red meat prominently in traditional meals, celebrations, and family gatherings. Even as global diets diversify, red meat remains central to various cuisines, such as steaks in North America, lamb dishes in the Middle East, and beef barbecues in Latin America. Additionally, younger generations are exploring diverse culinary experiences, often choosing red meat for its rich flavors and versatility in international dishes. This cultural significance reinforces red meat as a staple food choice, bolstering consumption through various occasions and social gatherings.
The booming food service industry, particularly restaurants and food delivery, significantly contributes to rising red meat demand. Fast-food chains, steakhouses, and casual dining establishments frequently offer red meat options, making it a convenient and popular choice for dining out. This growth in the food service sector makes red meat more accessible, with consumers able to enjoy it both in premium settings and quick-service restaurants.
Moreover, innovations in the red meat market, including premium and specialty options like grass-fed, organic, and hormone-free products, attract consumers who prioritize quality and ethical sourcing. This premiumization trend is not only for health-focused individuals but also for ethically-conscious buyers who are willing to pay a higher price for what they perceive as superior, sustainable meat. Improved supply chains and distribution networks have also enhanced red meat availability in various regions, supporting a consistent supply. These factors together contribute to the steady rise in demand for red meat globally, with continued growth expected as dietary trends, economic factors, and culinary traditions sustain its popularity.
INSIGHTS
Beef accounted for a revenue share of 50.0% in 2024. The market is experiencing a steady rise in demand for beef products like steaks, ground cuts, and similar items, particularly among younger consumers who prefer burgers and rolls made from these offerings.
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The sheep & goat segment is expected to grow at a CAGR of 6.7% from 2025 to 2030. One of the primary drivers of the sheep and goat meat market is changing consumer preferences. There is a growing demand for alternative protein sources that are perceived as healthier compared to traditional red meats such as beef and pork. Goat meat, in particular, is gaining popularity due to its lean profile and lower fat content, appealing to health-conscious consumers seeking nutritious options. In addition, the environmental benefits associated with goat production-such as lower methane emissions compared to cattle-are increasingly influencing consumer choices toward more sustainable meat options.
DISTRIBUTION CHANNEL INSIGHTS
Sales through B2B accounted for a revenue share of 62.3% in 2024 in the red meat market. The growth of the meat market through B2B distribution channels is driven by several key factors. One of the primary drivers is the rising demand from the foodservice industry, which includes restaurants, hotels, catering services, and institutional buyers like hospitals and schools. As consumer preferences shift toward high-quality meat products, these businesses are increasingly relying on B2B suppliers to meet demand with a steady supply of fresh, processed, or specialty meat.
Sales of red meat through B2C channels are expected to grow with a CAGR of 6.0% from 2025 to 2030. The B2C distribution channel allows consumers to purchase red meat products directly from retailers, online platforms, or specialty stores, catering to their preferences and needs. Moreover, the growth of e-commerce platforms has revolutionized the way consumers shop for red meat products. Online retail channels offer a wide range of options, convenience, and often competitive pricing, driving more consumers toward purchasing red meat products online.
REGIONAL INSIGHTS
The North America red meat market is expected to grow at a CAGR of 6.1% from 2025 to 2030. There is a high demand for red meat in North America, particularly beef. Beef plays a significant role in the traditional American diet, with popular dishes such as meatloaf, steaks, and hamburgers often highlighting beef as the primary ingredient. Consumer preferences for specific types of red meat, cuts, and quality attributes impact production, pricing, and market trends.
U.S. RED MEAT MARKET TRENDS
The red meat market in the U.S. is expected to grow at a CAGR of 6.0% from 2025 to 2030. The U.S. red meat market is expected to grow at a significant rate from 2024 to 2030. This can be attributed to the increasing consumption of and demand for meat in the country.
According to an article by TheWorldCounts, meat consumption in the U.S. accounted for 124 kilos per person per year. Moreover, increasing trade is driving the market.
According to the U.S. Meat Export Federation, in January 2024, U.S. pork exports to South Korea surged by 53% compared to the previous year, reaching 20,727 metric tons.
KEY RED MEAT COMPANY INSIGHTS
The market is characterized by numerous wellestablished and emerging players. Manufacturers in the red meat market are engaging in a variety of strategic initiatives to keep pace with evolving consumer demands and market trends.
For instance, in July 2024, JBS Foods Canada expanded its beef processing facility in Brooks, Alberta, with aid from the province's Agri-Processing Investment Tax Credit program. This expansion involved a $90M USD investment in a new patty processing line and fulfillment center, enabling JBS Canada to produce nearly seven million additional kilograms of beef patties annually for Western Canadian restaurants. The project is expected to create up to 24 permanent jobs and 170 temporary positions, with completion anticipated by fall 2025.
For more information, visit https://www. grandviewresearch.com/industry-analysis/red-meatmarket-report
SUN CYCLE FARMS COMBINES SOLAR ENERGY PRODUCTION WITH AGRICULTURAL ACTIVITIES
By Amanda Stephenson
Jason Bradley spent 20 years of his career as ranch manager at a 50,000-acre grazing operation in westcentral Alberta, so he understands why people react with skepticism to the idea of raising a herd of cattle on a working solar farm.
"The first thing people think is, 'You can't put cattle on [a solar farm]. They're just going to rub on the panels and wreck them,"' Bradley said.
But as the CEO of Calgary-based Sun Cycle Farms, Bradley believes the doubters have already been proven
This fall, Sun Cycle conducted a pilot project that grazed cattle inside a grid-connected solar farm in southern Alberta — something Bradley said proves that livestock production and renewable energy can successfully coexist.
"It was not just to prove it to ourselves — I knew it could be done in an existing solar facility," Bradley said.
"But we had to prove to the asset owner, to the insurance company, even to investors that are looking at this and show this is a part of the solution."
Sun Cycle Farms is an agrivoltaics company, part of a rapidly expanding field that aims to combine solar energy production with agricultural activities.
Across North America, solar farm owners are increasingly deploying sheep and even pigs at their sites to keep the weeds down and reduce the need for mowing around the panels.
Researchers around the world are also looking into what types of crops can be grown in and around solar panels.
Contrary to what you might expect, many crops actually perform better when shaded by a massive solar panel than they do under direct sunlight, said Joshua Pearce, a solar energy expert at Western University.
"Most crops that we have grown outdoors normally actually get a little bit too much sun," Pearce said.
"Underneath the solar panel, or next to it, you have almost like a protected micro-environment. There's not as much wind, you don't have to worry about hail, it even helps to preserve the water in the soil a little more."
Land use issues were less pressing when solar energy was in its infancy a couple of decades ago because the fledgling industry was so small.
But the rapid rollout of renewable power in recent years means the physical footprint of solar can no longer be ignored.
According to the Canadian Renewable Energy Association, there are 206 major solar energy projects producing power across the country — some of which take up thousands of acres of land.
As a result of the industry's dramatic growth, some rural residents have become frustrated with how rapidly the landscapes around them have changed, as well as the activity that takes place on the land.
"If you're in a rural community that takes pride in farming and producing from the land, and then suddenly you have large funders that are from outside your community buying up huge tracts of land and turning it into solar parks, you can get pretty agitated and concerned about it," Pearce said.
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In Alberta, which has seen the most dramatic growth in solar energy in all of Canada in recent years, the provincial government recently introduced new regulations that bar renewable energy installations from being built on prime agricultural land unless developers can prove their projects can co-exist with livestock and crops.
"Renewable energy is a double-edged sword because we need energy generation in our province, but we also need to maintain the integrity of good agricultural land," said Jeff Shaw, chief administrative officer for the Town of Cardston, which is currently partnering with Sun Cycle Farms on an agrivoltaics demonstration project located at the edge of the southern Alberta community.
"We [the town] would love to be associated with a solution for that."
Success in agrivoltaics often requires flexible thinking. Goats, for example, have been tested on solar farms but were not particularly successful because of their tendency to chew on wires.
In its cattle demonstration project, Sun Cycle used electric fencing to train the cattle to stay away from the solar panels. The company is also exploring the use of solar-powered collars — which would give the cows a little 'ping' as a deterrent if they get too close — as well as the use of robot tractors to safely remove weeds and cut hay around the site without damaging the panels.
While more research will need to take place before the co-existence of cows and solar panels becomes commonplace, Pearce said these kinds of projects are key to ensuring the long-term sustainability of the renewable energy sector and the ongoing productivity of the agriculture sector.
"With agrivoltaics, everybody wins — the landowner, the farmers, the solar developers, the community, the electricity grid. It's just a good idea," he said, adding it's only a matter of time before the grazing of cattle among renewable energy installations becomes commonplace.
"And then we'll have solar burgers. It'll be quite nice."
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BRAZIL TO ADOPT FULL BEEF TRACEABILITY BY 2032
Brazil will soon begin tracing individual cattle from birth to slaughter, aiming to make the sector 100% traceable by 2032, Agriculture and Livestock Minister Carlos Fávaro announced in late 2024.
This initiative comes amid growing international demand for transparency, especially as the EUDR, a new European Union regulation requiring proof that certain imported commodities aren’t adding to recent deforestation, is set to come into force at the end of 2025.
Earlier this year, in a document not yet made public, the Brazilian Roundtable on Sustainable Livestock, which includes NGOs and beef industry stakeholders, proposed mandatory individual cattle tracing to the agriculture ministry, environmental nonprofit Imaflora, a member of the roundtable.
Fávaro stated that a tracing platform would be working by 2027, signaling that he’s likely adopt the proposal at least partially, although a formal plan hasn’t been announced yet.
“We are not running away from our responsibility,” he said. “It’s legitimate that people want to know the origin and how the animal was raised before reaching the consumer.”
The tracking system will help Brazil, the world's biggest beef exporter, show international buyers that its cattle aren't linked to forest clearing. This matters because forests naturally remove heat-trapping gases from the air, protecting local communities and the planet.
This change brings good news for both people and nature. Shoppers will get clearer information about their food. Farmers who protect forests will have proof they're doing the right thing and preserved forests mean cleaner air and water for everyone.
Roughly 70% of Brazil’s beef is sold domestically. Europe accounts for 5% of exports, and China 45%. “The EU regulations set a trend, and while this isn’t the only pressure facing Brazil, the clear criteria drive change,” Marina Guyot, director of public policy at Imaflora.
Between 2016 and 2020, Brazil’s beef exports increased by 60%, while cattle-led deforestation rose nearly lockstep, 61%, a recent analysis shows.
But tracing alone won’t solve the problem, Guyot said, warning that cutting small farmers out of the supply chain could leave thousands of rural poor without income and little ability to stop deforestation.
NEW SURREY SLAUGHTERHOUSE ‘WOULD OPEN DOOR’ TO NEW BEEF MARKETS
“Tracing beef will expose what’s been hidden under the rug. We’ve been concealing the problem in indirect supply chains, and everyone wants this to come to light,” she said.
“But exclusion, the most immediate and practical approach in business, doesn’t address the environmental issue. It only drives things into illegality, into parallel markets, without helping producers reach environment compliance.”
Proposed 30,000-square-foot beef abattoir in Cloverdale would be B.C.’s largest such facility
By Amy Reid, Peace Arch News
A federally licensed beef processing facility is in the works in Surrey, BC.
The relatively small volume of exports to Europe means only a handful of suppliers need to adjust to EUDR standards, making EU-compliant beef a premium product. This allows a few companies to serve the EU market without industry-wide changes.
“There’s a new building coming forward, a new abattoir, I think that’s the French pronunciation of slaughterhouse,” said Councillor Mike Starchuk. “So Surrey will have a newer facility with a better capacity so people will have the ability to not have to ship an animal to Alberta to have it processed. The applications have gone through the Agricultural and Food Sustainability Advisory Committee.”
But the push for traceability isn’t just coming from Europe. “The trade agreement between China and Brazil includes individual traceability for health monitoring. For now, the environment hasn’t been addressed. But once individual tracking is in place, it’s hard to justify excluding social and environmental monitoring.”
The facility is proposed on a 25-acre property within the Agricultural Land Reserve at 5175 184th St. The planned 30,000-square foot abattoir in Cloverdale would process up to 100 head of cattle per day.
According to a city report, that would make it larger than any other processing facility in B.C.. But it would still be small by industry standards, compared to the largest meat processing plants in Alberta that process 3,000 heads of cattle per day.
The proposed facility would be fully enclosed and designed
Informal beef markets mostly serve local consumers. But Brazil, the world’s top halal meat exporter, has also faced criticism over dubious sustainable halal certifications as it increases exports to Muslim-majority countries such as Egypt, Turkey and Saudi Arabia.
so as to not emit odours. And while there is an operational 6,000-square-foot abattoir on the property now, it’s can only process a limited number of cattle.
Chris Les is general manager of Meadow Valley Meats, the company behind the project. Meadow Valley Meats is seeking a Canadian Food Inspection Agency license for
but it’ll be a big upgrade from the site currently.”
PREMIUM BRANDS ANNOUNCES STRATEGIC TRANSACTIONS
Premium Brands Holdings Corporation, a leading producer, marketer and distributor of branded specialty food products, announced in late December that it has completed the following strategic transactions:
• The acquisition of NSP Quality Meats (NSP), a cooked protein and deli meats manufacturer with plants located in Oklahoma, Texas and Missouri
• The acquisition of Casa Di Bertacchi (Casa), a manufacturer of branded and private label cooked protein products with a plant in New Jersey
• The acquisition of Italia Salami (Italia), a manufacturer of authentic dry cured Italian salami with a plant in Ontario
• The sale and leaseback of the Company's recently expanded Hempler's deli meats production facility in Washington resulting in gross proceeds of approximately US$68.0 million
The total purchase price for the NSP, Casa and Italia businesses, which have combined annual sales of approximately $200 million USD, was $66.0USD million consisting of $50.0 USD million in cash, $10.0 million USD in the Company's common shares and contingent consideration of $6.0 million USD. All three transactions are expected to be accretive to the Company's 2025 earnings per share.
"We are very pleased to welcome NSP, Casa and Italia into our ecosystem and to be partnering with the management teams of these well-known and longestablished businesses," said George Paleologou, President and CEO of Premium Brands.
"NSP and Casa will play major roles in supporting the continued growth of our market-leading branded cooked protein initiatives in the U.S. by providing much needed capacity and improving our access to additional key U.S. markets. In addition, these businesses will significantly enhance our Specialty Foods Group's ability to largely mitigate any potential border and tariff related risks.
"Italia is a smaller acquisition but provides our Concord business with much needed local production capacity to help support their very successful Marcangelo branded Italian charcuterie offerings," added Paleologou. For more information, visit www.premiumbrandsholdings.com
MEAT PROCESSING EQUIPMENT MARKET AND TRENDS REPORT
Research and Markets, the world's leading source for international market research reports and market data, recently released a report entitled “Meat Processing Equipment Market – Meat Types, Equipment Types and Applications”.
The report stated the global Meat Processing Equipment market was valued at $10.8 billion USD in 2024, and is projected to reach $13.9 billion USD by 2030, registering a CAGR of 4.3% over the forecast period.
Despite all the negative press about the harmful effects of meat consumption, there has been a limited let up in demand for meat products, which further augurs well for the Meat Processing Equipment market. While the trend of adopting vegetarian or vegan diets has been quite noteworthy among western countries, the same has not necessarily caught up with other regions. Owing to this, the market for Meat Processing Equipment in regions, such as Asia-Pacific, South America and Middle East and Africa will register good growth over the analysis period.
While the market for processed meat, and simultaneously Meat Processing Equipment, will continue to maintain a steady growth, factors, such as growing preference for vegan and vegetarian diets, negative effects of highly salted processed meats, especially for specific sections of the population, and demand for healthier processing methods would limit demand.
Fresh Processed Meat is estimated to be the largest market for Meat Processing Equipment with a 2024 market share of 24% while Cured Meat is projected to be the fastest growing application market during 20242030. The overall market, globally, for meat processing equipment is expected to reach $11.4 billion USD in 2025.
This report reviews, analyzes and projects the market for the period 2021-2030 in terms of value in US$ and the compound annual growth rates (CAGRs) projected from 2024 through 2030.
RESEARCH FINDINGS & COVERAGE
DF: I don’t think being on the island has really impacted us negatively one way or the other. We’ve traveled a lot, met a lot of other farmers and livestock producers in other parts of Canada, and we all seem to have the same issues and same concerns.
• Meat Processing Equipment global market analyzed in this report with respect to meat types, equipment types, applications, major geographic regions and key countries.
CMB: I understand that your farm was the first in Atlantic Canada to be involved in the TESA program.
• The market share analysis covered Meat Processing Equipment based on the segmentation mentioned above; current market size estimation, revenue projections for the analysis period provided through 2030.
DF: Yes, I think we were the first farm east of Ontario as far as I understand.
I’m not sure why the eastern associations wouldn’t have previously nominated anybody because there are many farms here on PEI doing every bit as much as we are as to attain a high level of sustainability. Anyway, we were very surprised when the PEI Cattleman’s Association nominated our farm.
• The study discusses key trends, R&D, technology updates and emerging applications of Meat Processing Equipment that influence the market growth
• Key business trends focusing on product innovations/developments, capacity expansions, M&As, JVs and other recent industry developments by the major players.
CMB: And then you were attending the Canadian Beef conference in Calgary and you won.
• The report includes 285 data tables covering market numbers by segments and regions with graphical representation for each table.
• Brief business profiles of major companies covered – 13.
DF: Yeah! That was a very nice moment for us. But I don’t like to use the word win actually. However, being recognized for our commitment was a real honour. If you want to know the truth, it was a pretty humbling experience. As I said to CBC when they phoned me after the conference, I was just floored, really couldn’t believe it.
• The industry guide includes the contact details for 108 companies.
CMB: So now that you have been recognized, do you think that will draw more attention and garner more
For more information, visit https://www. researchandmarkets.com/
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MEAT INSTITUTE HIRES NICOLE JOHNSONHOFFMAN TO BE CHIEF OPERATING OFFICER
The Meat Institute has announced industry veteran Nicole Johnson-Hoffman was hired to be Chief Operating Officer.
“Nicole Johnson-Hoffman brings a wide breadth of experience in the regulatory, legal, and sustainability fields of the animal protein industry,” said Meat Institute President and CEO Julie Anna Potts. “Her various roles have prepared her well to oversee operations at the Meat Institute at a critical time for the industry and during a time of great change and innovation.”
Nicole begins transitioning into the role in January 2025 as Mark Dopp, the Meat Institute’s outgoing COO and General Counsel, prepares to retire in March of 2025.
Nicole Johnson-Hoffman began her career as an attorney at Cargill where she eventually became Vice President, Law Cargill Meat Solutions, and later, Vice President and General Manager of Cargill Beef at Fort Morgan, CO. Subsequently, she was the Vice President, Managing Director of Cargill’s Value-Added Protein/ Cargill McDonald’s Business Unit where she managed Cargill’s McDonald’s business segments in the U.S. and Canada.
After 19 years at Cargill, in 2016 Nicole joined OSI Group as Senior Vice President, Chief Sustainability Officer where she managed the company’s global McDonald’s business unit, encompassing 64 markets, and led OSI’s global sustainability strategy, creating infrastructure for successful execution.
Johnson-Hoffman served two terms as the President of the Global Roundtable for Sustainable Beef and was the founding Chairperson for the U.S. Roundtable for Sustainable Beef, both key partners in the Protein PACT.
From 2022-2023, Johnson-Hoffman served as Chief Executive Officer and Executive Board Member of the Israeli cultivated meat startup Future Meat Technologies (d/b/a Believer Meats), leading the creation of a new consumer-facing brand, building a professional leadership team, and implementing foundational systems in Finance, HR, Legal, IT, and Corporate Governance.
For more information about the Meat Institute, visit MeatInstitute.org
USDA ESTIMATES 2025 CHICKEN MEAT PRODUCTION
The United States Department of Agriculture (USDA) has released its projections for chicken meat production in 2025, presenting a positive outlook for the poultry industry.
According to the USDA’s World Agricultural Supply and Demand Estimates (WASDE) report, broiler production is expected to reach 47.5 billion pounds in 2025.
This projection reflects the resilience and steady growth of the poultry sector, which has successfully navigated challenges such as avian influenza and fluctuating feed costs.
The USDA’s forecast indicates that the poultry industry will continue to build on the momentum gained in previous years. Despite the challenges faced, the poultry industry has shown remarkable stability and adaptability. The projected increase in broiler production is a testament to the sector’s ability to overcome obstacles and maintain growth.
However, the price forecasts for poultry products present a more nuanced picture. The USDA has slightly lowered its broiler price forecast for 2025 to $1.27 per pound, down from the $1.29 per pound expected in 2024. This adjustment is attributed to strongerthan-anticipated prices through mid-2024, which led to higher-than-expected prices in the first quarter of 2025. In contrast, the outlook for turkey prices has been revised downward.
The USDA has adjusted its 2024 forecast to 94.2 cents per pound, with prices expected to remain subdued into 2025 at $1.05 per pound. This decline reflects recent market data indicating weaker-than-expected demand and reduced pricing power in the turkey sector.
Egg prices, however, are anticipated to remain relatively high in 2024, with the USDA raising its forecast to $2.71 per dozen for the latter half of the year. This increase is driven by tighter inventories and stronger market conditions. Looking ahead to 2025, the USDA expects egg prices to moderate somewhat to $1.75 per dozen, although they will remain elevated compared to historical averages.
While the U.S. poultry industry is set for another year of production growth in 2025, price trends will vary across different products. Broiler prices are expected to ease slightly, turkey prices are projected to decline further, and egg prices will likely remain relatively high before moderating as the market stabilizes. The USDA’s projections highlight the dynamic nature of the poultry industry and its capacity to adapt to changing market conditions.
Overall, the USDA’s estimates for 2025 paint a picture of a resilient and growing poultry sector, poised to continue its upward trajectory despite the challenges it faces. The industry’s ability to maintain production growth while navigating price fluctuations underscores its importance in the broader agricultural landscape.
INVESTING IN CANADIAN AGRICULTURE
ADDRESSING THE INVESTMENT PROBLEM
With a new year ahead of us, it’s a good time to look to the future and address ways to help build a more productive economy and agriculture sector.
Small businesses across the country, including agribusiness owners, use some of their revenues to invest in machinery and equipment that make their operations more efficient. Tools like tractors and trucks instantly come to mind but this also includes anything from computers to milkers. These assets help farmers do inventory, financial management and harvesting, increasing productivity. They help boost wages and lower prices by making labour more valuable, and products more plentiful. To help our farmers and the economy at large, these purchases are things the country needs to encourage.
This priority is more important than ever given discouraging declines in investment in machinery and equipment across Canada. Between 2013 and 2023, the investment allocated to each private sector worker fell 16% across all sectors, according to the Canadian Federation of Independent Business (CFIB)’s recent report, Removing Roadblocks: Unlocking small business capital investment. This decline means the average worker now has $1,178 less in tools to help them work effectively. All levels of government need to work to reverse this trend, otherwise it will likely continue to worsen Canada’s ongoing productivity emergency.
With more Canadian small businesses expecting to reduce their current level of investments rather than increase it, the problem is less likely to get better anytime soon. In the agricultural sector, this issue is especially evident with 43% of agri-businesses expecting to reduce their investment in machinery and equipment over the next two years, compared to only 21% planning to increase it, larger than the gap among all Canadian small businesses (32% vs. 18%).
This issue stems from a wide variety of factors, but one stands out as something well within our control: the current policy environment, with almost three quarters (71%) of agri-businesses agreeing that this deters their investment. In short, governments are doing the opposite of what they should be doing.
For one, the federal government’s announcement to tax capital gains at a higher inclusion rate will deter many farmers from investing in growing their business, knowing that the government will take a larger slice of the pie if the business is ever sold. Additionally, the immediate expensing and accelerated investment incentives, which allow businesses to claim the capital cost allowance tax deduction on an earlier timeframe, started to phase out in 2024. Since money now is more valuable than money later, investment decisions are more constrained. While the federal government’s Fall Economic Statement announced the extension of some components of these measures, it remains uncertain how much the agriculture sector will benefit or whether this extension will ever actually be legislated.
The cost of investment is particularly punishing in three provinces: British Columbia, Saskatchewan and Manitoba. Here, each province’s provincial sales tax (PST) raises the cost of investing in machinery and equipment, unlike in other provinces where the cost of the sales tax can be written off. For particularly expensive purchases, this additional cost can add thousands of dollars the final bill.
While these provinces provide exemptions for many types of farming equipment, not everything is covered, leaving farmers with the extra hurdle of navigating listings to determine what is and isn’t exempt.
I would be remiss if I didn’t mention corporate income taxes. While nothing new, these taxes take money that may otherwise be used to invest and improve productivity. For example, when asked what they would do with savings from a tax reduction, almost half (46%) of agri-businesses said they would invest in automation in addition to increasing employee compensation (43%) and hiring new employees altogether (18%). If the federal and provincial governments want to reverse the country’s declining investment numbers, an easy first step would be to cut taxes.
If governments are considering a New Year's resolution for 2025, a good starting point would be addressing our investment rut. This means ensuring purchases of machinery and equipment are not discouraged. Let’s support Canada’s economy and agriculture by making it easier for businesses to invest in it themselves.
Bradlee Whidden is a Senior Policy Analyst for the Canadian Federation of Independent Business (CFIB). CFIB is Canada’s largest association of small and medium-sized businesses with 100,000 members (4,900 agri-business members) across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
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