But producers must adapt quickly to a
global industry powered by cognitive machines and a skills-savvy
workforce
SASKATOON, Aug. 28, 2019 /CNW/ - Canada must embrace a
skills agenda and boost innovation to capitalize on the rising
demand for agricultural products around the world according to a
new report from RBC (www.rbc.com/farmer4). The report estimates the
sector's GDP could reach $51 billion
in output by 2030 - up from $32
billion today -- if the right investments in people and
technology are made.
"Within the coming decade, there will be about nine billion
people to feed around the world -- over one billion more than
today," said John Stackhouse, Senior
Vice-President, RBC. "Our sector is well-positioned to supply the
rising demand. Canada is
consistently ranked one of the world's top five exporters, and we
anticipate trade agreements with Europe, the United
States and the Pacific Rim
region will enable our producers to tap into large and fast growing
markets."
Yet the report cites a number of challenges that may undermine
the sector's prospects. The current shortage of Canadian
agriculture workers is expected to grow to an estimated 123,000
positions by 2030. Moreover, new skills are required to manage the
farm of the future, as automation and new and emerging technologies
become as essential to farming as water or fertilizer.
These challenges are exacerbated by a number of structural
issues. Canada's rural population
growth has remained flat for the past thirty years, which makes it
harder to address labour shortages. Additionally, the bulk of the
sector's capital is held in large, illiquid assets such as farmland
and barns. And high operating costs hamper a producer's ability to
invest in new technologies. These and other factors have resulted
in uneven adoption and usage of advanced technologies across the
country.
A number of the report's recommendations stem from RBC's
consultations with a wide range of stakeholders, including
producers, industry groups, and academia on the sustainability of
the agriculture workforce and the opportunities presented by new
technologies. Additionally, the report urges:
- The federal government to convene a national skills strategy
for agriculture, together with employers, workers, educators and
industry groups, to plan for future labour needs
- Industry groups to coordinate efforts on a bold campaign to
attract and retain more youth, women, Indigenous people and new
Canadians in agriculture
- Canada's work-integrated
learning strategy to incorporate agriculture as a key sector, to
increase exposure for non-agriculture students across the agri-food
industry
- Ensure all major research and development initiatives, such as
the Protein Supercluster, are linked to education and skills
development
- The federal government should reduce barriers to high skilled
immigration to agriculture, and consider a dedicated service
channel under the Global Skills Strategy
- Accelerate the development of industry-wide data governance
standards, in accordance with Canada's Digital Charter, to increase access
to the best data and insights on food production
- Fulfill the federal commitment to provide high-speed Internet
to the remaining 1.5 million rural and remote households within 10
years, giving them access to online learning and cloud
computing
- Learn and apply lessons from countries like the Netherlands, Australia and Israel on approaches to agricultural human
capital
- Recognize agriculture's centrality to Canada's future health and prosperity
"Feeding a hungry world presents a historic opportunity for
Canada if we can figure out how to
better match people, capital and innovation in the agriculture
space," said Stackhouse. "We believe Canada can once again be an agriculture
superpower, and do it in a way that cuts greenhouse gas emissions,
and supports thousands of communities that still help to define our
country."
About RBC
Royal Bank of Canada is a global financial institution with
a purpose-driven, principles-led approach to delivering leading
performance. Our success comes from the 86,000+ employees who bring
our vision, values and strategy to life so we can help our clients
thrive and communities prosper. As Canada's biggest bank, and one of the largest
in the world based on market capitalization, we have a diversified
business model with a focus on innovation and providing exceptional
experiences to more than 16 million clients in Canada, the U.S. and 34 other countries. Learn
more at rbc.com.
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SOURCE RBC