1 / 21

NAFTA Trade Flows General Agriculture and the Food Industry

NAFTA Trade Flows General Agriculture and the Food Industry. Objectives - Food Industry. Eliminate barriers to trade and facilitate cross-border movement of goods and services. and Increase substantially investment opportunities in their territories. Commentary - Objectives.

bethan
Download Presentation

NAFTA Trade Flows General Agriculture and the Food Industry

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. NAFTA Trade Flows General Agricultureand theFood Industry

  2. Objectives - Food Industry Eliminate barriers to trade and facilitate cross-border movement of goods and services. and Increase substantially investment opportunities in their territories.

  3. Commentary - Objectives • As a result of the NAFTA, the food industry in all 3 countries has had no choice but to find ways to be competitive, now that trade is essentially unrestricted and industry investments can be made on a North American or global basis.

  4. Commentary - Objectives • The agri-food industry continues to have difficulties adjusting to NAFTA in those sectors where: government has guaranteed something to one or more industry stakeholders;or government continues to regulate a sector.

  5. Trade Flows - HVPP • US high value processed product (HVPP) export shares to both Canada and Mexico increased significantly. • Mexican HVPP export shares to both Canada and the US increased significantly. • Canadian HVPP export shares to the US remained constant; to Mexico declined.

  6. Bulk Commodities • Grains • Oilseeds • Cotton & Jute • Coffee Beans

  7. High-Value Processed Products • Red meat and poultry meat. • Dairy products, milk and eggs. • Processed fruit and vegetables. • Sugar products. • Imitation dairy products.

  8. High-Value Processed Products • Packaged and branded food products. • Juices. • Water. • Beer. • Wine.

  9. Processed Intermediates • Live animals and birds. • Flour and starch. • Feeds of all types. • Oils and fats. • Hides and fur.

  10. Processed Intermediates • Soya products - vegetarian products. • Ginseng root - functional foods. • Enzymes - biotechnologies. • Extracts/oils - nutraceuticals. • Wool and hair.

  11. Produce and Horticulture • Fruits • Vegetables and potatoes. • Flowers and plants. • Nuts and spices. • Mushrooms.

  12. Related Agriculture • Fish and shellfish. • Lumber and wood products. • Spirits. • Cigarettes and cigars. • Wool and cotton yarns.

  13. Food Industry Adjustments • Consumer Focus • Value or Supply Chain Relationships • Marketing Strategies • Globally Competitive Operations

  14. Consumer-Driven Marketplace • Price • Quality • Variety • Safety and Health • Nutrition

  15. Price: Food Expenditure Shares • Canada - 9.8% • USA - 10.9% • Mexico - 33.2% • Japan - 17.8% • Australia - 14.6%

  16. Variety and Availability • Consumer wants apples, bananas, mango, corn-on-the-cob, available every day. • Consumer wants access to any product discovered in travel or from a home country. • Consumers want products as inputs to recipes available on demand - shellfish; lemon grass.

  17. Food Safety • Most agri-food products historically grown, raised, processed/manufactured and consumed locally. • Processors, retailers, restaurants, and food service largely purchased local. • Consumers did not question the food chain re: safety • Food safety issues/problems were “localized” or, in the case of imports, isolated at the border. • No longer true today.

  18. Food Value Chain • Consumer • Retailer or Food Service • Wholesale/Distribution • Processor • Producer

  19. Marketing Strategies • Adding value to commodities. • New food products (e.g., nutraceuticals) • Certified Products: Organics Angus Beef Specialty Eggs

  20. Marketing Strategies • Quality Assurance - VQA for wine. • Farm Processing/Direct Farm Sales • Complementary Marketing of Products • Regional Marketing Local identification programs Psychographic profiling

  21. Globally Competitive Operations • Source product/inputs globally. • Provide quantity and quality based upon a national or continental market. • Invest in other North American markets. • Protect domestic market through marketing strategies, not protectionism.

More Related