Economic Impact Study
NEWS RELEASE For immediate release: November 2, 2016
BC Food Processors Association announces release of BC Food & Beverage Processing Industry Economic Impact Study.
Langley, BC - The BC Food Processors Association (BCFPA) has released a report highlighting the significant financial impact that food and beverage processors provide to BC’s economy. The report - carried out by MNP - provides an economic impact assessment as well as an analysis of the strengths, weaknesses, opportunities and threats to the BC food and beverage processing industry. This study was funded by the National Research Council, the BC Investment Agriculture Foundation, and the BCFPA.
“We are excited to share this study with the food & beverage processing industry and its stakeholders,” says James Donaldson, CEO of the BC Food Processors Association. “It’s important to have the data and industry survey feedback to better understand not only the financial importance of our industry to BC’s economy, but also to have fact-based data and analysis on the issues and opportunities that exist for our processors.” The analysis was derived through an online survey of BCFPA members, a roundtable panel of industry CEOs, and secondary reports published by the public and private sector.
“The study findings demonstrate not only the major economic contribution that the food and beverage processing industry makes to the BC economy but also highlights the wide diversity of processors, products produced and markets served.“ says Maria Gonzalez, Manager in MNP’s Economics and Research Practice in Vancouver.
Processing revenues total over $8.5 billion - over 70% of the entire Agrifoods sector, including the Agriculture and Seafood sectors.
“$8.5 billion is only the direct output of the industry,” says Donaldson, “indirect revenues from suppliers and service providers total another $6.6 billion – meaning food companies in BC put more than $15 billion into the economy every year. This study shows food manufacturing is BC’s second largest manufacturing industry.
Approximately $1.4 billion in total federal, provincial and municipal tax revenue, consisting of direct tax revenue of $618 million, and indirect and induced tax revenue of $762 million are paid each year.
Employment created by the BC food and beverage processors (65,271 FTEs) was on par with the new home building industry. In 2014, new housing starts in BC created 68,700 on-site and off-site jobs.
The top three industry strengths identified are access to markets (domestic, US, Asia and others), access to transportation infrastructure (road, rail, marine and air) and access to a wealth of agriculture commodities and suppliers. BC has one of the most diverse Agrifood industries in Canada, producing more than 200 agricultural commodities and 100 seafood species. This serves to provide diversity for BC’s processing industry.
Almost all metropolitan areas within Western Canada, as well as 65 million US consumers are within a 24-hour drive from Vancouver. BC also has some of North America’s shortest shipping routes to China, Japan, and India.
For more information: James Donaldson, TEL: 604-371-4245 email@example.com
The BCFPA is a not-for-profit organization dedicated to represent all segments of the food, beverage and nutraceutical processing industry, and to coordinate common industry activities and resources under one umbrella. The Association represents micro, small, medium, and large processing companies.