Consistent demand for industry products is expected to boost revenue.
New York, NY (PRWEB) June 24, 2014
Operators in the Fruit and Nut Farming industry grow crops in Canada meant for human consumption. The majority of these crops consist of fruit like apples, blueberries, cranberries and grapes; a small portion consists of farm tree nuts, including walnuts, hazelnuts and chestnuts. Fruit is a standard part of the average Canadian consumer's diet; therefore, demand for the industry's products tends to be stable. Shifting consumer preferences based on health, dietary and taste trends have caused some product groups to grow (e.g. blueberries and grapes) and others to recede (e.g. apples and strawberries). Nevertheless, consistent demand is expected to boost industry revenue at an annualized rate of 2.2% to $841.2 million over the five years to 2014, including a slight 1.1% dip in 2014.
According to IBISWorld Industry Analyst Antal Neville, “International trade has been both a blessing and a curse for the industry in recent years.” Export markets provide a considerable source of demand, and about 32.4% of industry revenue is generated from export sales. Further, this figure has grown in the past five years, up from 28.3% in 2009. The United States is the largest destination for exports due to its sizeable consumer market and its proximity to Canada; these factors ensure Canadian fruit farmers will have a market among US consumers in the near future. However, Canadian operators are often threatened by farmers in the United States who can grow comparable crops year-round and who can provide tropical and citrus fruit not suitable for cultivation in Canada. Indeed, the value of imports far exceeds industry revenue, and increasing imports could threaten the livelihood of fruit farmers if competition stiffens.
Aside from trade, other competitive factors will come into play in the next five years. “New technological developments, like automatic harvesting equipment, will make an appearance on the market, decreasing reliance on human labour,” says Neville. These advances will boost efficiency, though they will also be costly; therefore, larger operators will be more suited to purchase them and smaller, less efficient operators will likely realize profit losses and leave the industry. Overall, however, consumer demand for fruit will remain ripe enough for the industry to grow; revenue is forecast to increase in the five years to 2019.
For more information, visit IBISWorld’s Fruit & Nut Farming in Canada industry report page.
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IBISWorld industry Report Key Topics
The Fruit & Nut Farming in Canada industry grows fruits such as apples, pears, berries and grapes, as well as nuts like walnuts, chestnuts and hazelnuts. Operators sell their crops to downstream processors and fresh produce wholesalers and retailers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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