Regulatory Hurdles and Labour Gaps Stifle Canada's Agri-Food Ambitions

Canada is facing a decline in its global food export standing, slipping from fifth to seventh place according to a February 2025 analysis by RBC. The report notes that while Canadian food exports have quadrupled since 2000, global exports have grown five-fold, resulting in a 12 per cent decline in Canada's market share. RBC warns the country could drop to ninth place over the next decade.

As first reported by CBC News, Canada exports approximately $100 billion in agri-food products each year, but growth is lagging behind competing nations. Evan Fraser, executive director of the Arrell Food Institute at the University of Guelph, notes that Canada is producing a smaller percentage of the growing global food trade. Fraser attributes this to a slow policy and regulatory framework that delays the adoption of new agricultural products and technologies.

These regulatory delays are exemplified by pesticide-spraying drones. Dean Roberts, a farmer in Coleville, Sask., told CBC News that while the technology existed, a lack of regulatory approval prevented its use until Health Canada lifted restrictions in June. Roberts notes that the U.S., China, Brazil, Japan, and Australia have been well ahead of Canada in this area.

Beyond red tape, experts and producers cite critical systemic failures. CBC News reports that infrastructure bottlenecks—specifically the reliance on railways to move crops 1,500 kilometres to tidewater—and persistent labour shortages are undermining Canada's ability to scale exports and compete with nations that are aggressively expanding their global reach.