Canada Could Generate $5.4 Billion in GDP by Processing More Crops At Home

SASKATOON, SK, Sept. 22, 2026 /CourierPR/ -- Canada could significantly boost its economy by processing more of its crops domestically, according to a new analysis by EY. The report, released by Protein Industries Canada, suggests that redirecting just 10 percent of the country's raw crop exports to value-added processing could generate up to $5.4 billion in additional GDP and support approximately 34,000 full-time-equivalent jobs.

Canada's food and agriculture sector already contributes substantially to the economy, with a value of $149.2 billion in GDP in 2024 and supporting 2.3 million jobs. However, the current situation sees many crops leaving the country before they undergo higher-value processing, which could be a missed opportunity.

The findings of the analysis are particularly timely as the federal government has made domestic food processing a national priority through its National Food Security Strategy. This strategy aims to reduce Canada's dependence on other countries by processing more of the food it grows and includes an explicit objective to increase domestic processing to strengthen self-sufficiency and drive economic growth.

EY's economic modeling estimates that redirecting just 10 percent of Canada's raw crop exports to domestic value-added processing could result in: - Up to $5.4 billion in additional GDP retained in Canada - $7.9 billion in additional Canadian food manufacturing output - Approximately 34,000 full-time-equivalent jobs across processing, manufacturing, logistics, and supply chains - Up to $1.1 billion in government revenues

The report also highlights a substantial global opportunity. EY forecasts that the global ingredient-processing market could grow from $436 billion in 2025 to $801.9 billion by 2040, with Canada's potential market reaching approximately $42.1 billion. This growth underscores the potential for Canada to capitalize on its agricultural strengths and contribute more to its own economy.

Protein Industries Canada's Make It Here campaign calls for food and ingredient manufacturing and value-added agriculture to be treated as national economic priorities. The campaign focuses on practical steps to unlock more domestic processing, including capital and investment de-risking, processing infrastructure, regulatory modernization, program coordination, and market access.

These findings are expected to support the Make It Here campaign, which aims to bring together companies, capital, and partners to accelerate commercialization and scale domestic processing capacity. By capturing more of the value created by its crops, Canada could strengthen its agricultural sector and contribute more to its GDP and employment figures.