< Previous10 Food & Drink International www.fdiforum.net IMPORT AND EXPORTFood & Drink International 11 www.fdiforum.net IMPORT AND EXPORT © stock.adobe.com/Vongvilay C anada’s role in global food trade continues to evolve amid shifting geopolitical and economic currents. In 2023, the country shipped approximately CAD 69.2 billion worth of agricultural goods worldwide and imported CAD 48.2 billion. More narrowly, in 2022, Canada ranked tenth globally for value-added packaged agri-food and seafood exports, reaching CAD 48 billion, surpassing imports by CAD 14 billion. These numbers highlight Canada’s position as a major net exporter, driven by sophisticated processing infrastructure and strong ties to the US market. Nearly 60% of Canada’s agri-food exports are destined for the United States. That dominance has served producers well, with US-bound export volumes quadrupling since 2000. Key Canadian exports include canola oil and meal, fresh meat, ready products, bakery items and frozen potato goods. However, growth in this relationship now carries new risks. In early 2025, both sides began escalating a tariff duel. Washington imposed 25% tariffs on most Canadian goods (10% on energy) in February, to which Ottawa responded with reciprocal 25% tariffs on US imports worth CAD 30 billion. In April, China retaliated with steep duties (100% on canola oil and peas, and 25% on pork and some seafood) rattling sectors reliant on Asian markets. The trade turmoil is already exerting pressure. Canada’s merchandise exports fell 10.8% in April 2025, with imports down 3.5%, widening the trade deficit to a record US $7.1 billion. Agri-food is among the With tariff battles escalating and traditional markets under pressure, Canada’s food and drink exporters are rethinking routes, diversifying demand, and adapting supply lines. The country’s strength in processing and net export advantage may not be enough without strategic agility. 12 Á12 Food & Drink International www.fdiforum.net IMPORT AND EXPORT hardest hit, with exports of bread, chocolate and frozen foods declining 15.7%. These trends follow a bumper first quarter trade surge, propelled by tariff forewarnings that led businesses to front-load shipments. That spike suggests businesses anticipated the tariff conflict, fast-forwarding shipments before levies took hold. But the April downturn signals a pullback in Q2 as tariffs bite. Canadian exporters must now contend with reduced US demand, and with China’s actions threatening commodity-end markets, pressing firms to reassess routing and destination strategies. In parallel, Canadian retailers report emerging “buy local” sentiment. Influential grocers are shifting shelf space away from US products, responding to both patriotic consumers and trade uncertainty. This emotional deviation risks denting US agri- food exports midstream—while bolstering homegrown brands. One mitigating force is the Import for Re-Export program (IREP), a trade policy allowing Canadian processors to import supply-managed goods, like dairy, eggs and poultry, for re-export. This scheme helps support Canada’s domestic supply system while maintaining access to global processing contracts and preserving value-added export capacity. Dairy illustrates the country’s polarised trade profile. While domestic policy shields the farm sector, Canada exported CAD 554.7 million worth of dairy products in 2024, up from CAD 493.6 million in 2023. Imports exceeded CAD 1.66 billion, widening the deficit. These imports are partially tied to IREP’s processing model, while exports reflect growing overseas demand, though threatened by China’s retaliatory tariffs on pulses, oilseed and dairy. Canadian trade strategy is being shaped by cautious diversification. Though US markets remain dominant, Canadian exporters are exploring alternative destinations. Global demand for processed cereals, canola by-products and meat offers Food & Drink International 13 www.fdiforum.net IMPORT AND EXPORT some offset to reduced US volumes. Still, uncertainty remains. With over two- thirds of Canada’s imports and 70% of exports bound for the US, and China acting in retaliation, Canada is vulnerable. Provincial unemployment and inflation pressures are growing; job losses in agri-food provinces threaten domestic production resilience. The era of shipping fixed volumes across a single corridor is over. Diversify export channels beyond North America, safeguard processing supply lines (via IREP or similar mechanisms) and engage retailers on local- versus-import programming. Use timely data tools to sense-shift shipments pre-tariffs, and manage inventory near-term. Canada’s depth in food processing and its status as a net exporter are strengths. But geopolitical shocks can undo gains if product flows are not actively managed. This is a moment to reassess route-to-market strategies, logistics pipelines and policy levers. In short, to re-engineer Canada’s food trade for a more turbulent world. © stock.adobe.com/Julia D Davies Turner14 Food & Drink International www.fdiforum.net HEALTH, SAFETY & HYGIENE SPOTLIGHT F or food and drink manufacturers, health and safety is no longer just a regulatory requirement, it is a foundation of operational integrity and public trust. A single failure in hygiene or risk control can trigger legal action, recalls, reputational damage, and lost market access. With consumer confidence, regulatory scrutiny, and brand value all on the line, risk management is no longer optional. It is essential. Safe food is now recognised as a pillar of national food security. According to the UK Food Security Report, food that poses a risk to health (or that consumers don’t trust) is effectively removed from supply, regardless of availability. Confidence in food safety and labelling is critical not only for domestic consumption but also for international trade. Food businesses that Why food safety is now business critical In an era of rising regulation and consumer scrutiny, food and drink manufacturers face growing pressure to prove their products are safe, traceable, and honestly labelled. The cost of falling short has never been higher. Why food safety is now business critical Food & Drink International 15 www.fdiforum.net HEALTH, SAFETY & HYGIENE SPOTLIGHT © stock.adobe.com/eakgrungenerd cannot demonstrate compliance and transparency may find themselves excluded from both. The good news is that consumer trust remains high. In England, Wales, and Northern Ireland, 93% of consumers say they are confident the food they buy is safe to eat, and 89% trust the accuracy of food labels. However, this trust is fragile. It depends heavily on the strength of the regulatory system, the vigilance of food producers, and the reliability of the supply chain. Any breach, whether through contamination, mislabelling, or food crime, can cause lasting damage. The regulatory pressure has intensified in recent years. Government agencies, led by the Food Standards Agency (FSA) and Food Standards Scotland (FSS), are adopting more sophisticated surveillance and response systems. At the same time, food businesses are expected to take more responsibility. They must ensure that every product on the market is safe, properly labelled, and honestly presented. This obligation extends through their entire supply chain, from raw ingredients to final packaging. Compliance levels across the UK remain high. Between 2015 and 2020, over 90% of 16 Á16 Food & Drink International www.fdiforum.net HEALTH, SAFETY & HYGIENE SPOTLIGHT food establishments in England, Wales, and Northern Ireland were rated ‘broadly compliant’ or better with hygiene law. In Scotland, food hygiene compliance rose from 88% to 93% in the same period, and compliance with food standards has held steady at 99%. These rates are encouraging, but they represent a baseline. In a rapidly evolving risk landscape, high compliance today does not guarantee protection tomorrow. Risk assessment remains the primary tool for identifying and mitigating threats. Effective manufacturers take a proactive approach, embedding systems such as HACCP and ISO 22000 into every process. They continuously audit, monitor, and adapt. This includes evaluating supply chain integrity, validating cleaning procedures, updating allergen controls, and ensuring accurate labelling at every step. Data is increasingly central to these systems, with real-time monitoring enabling earlier detection of anomalies and faster responses. While foodborne illness trends were relatively stable from 2015 to 2019, the threat remains. Campylobacter is still the most common bacterial contaminant, followed by salmonella. Listeria and Shiga toxin-producing E. coli are less frequent but far more severe. Public health agencies have begun using whole genome sequencing to track outbreaks more precisely, raising the bar for what’s considered an acceptable response time. Businesses must be prepared to act quickly and decisively when risks are detected. Incident reporting has increased over the past decade, but this reflects improved detection and greater transparency. Most food alerts and recalls are now issued before harm occurs. This shift demonstrates how a strong regulatory framework, combined with industry cooperation, can prevent small issues from becoming large-scale failures. However, it also means that tolerance for oversight is shrinking. Businesses can no longer claim ignorance; they are expected to know, act, and prove it. © stock.adobe.com/JKIUFood & Drink International 17 www.fdiforum.net HEALTH, SAFETY & HYGIENE SPOTLIGHT Allergen management is one area under particular scrutiny. After the death of Natasha Ednan-Laperouse in 2016, new legislation was introduced to tighten labelling requirements for food pre-packed for direct sale (PPDS). Businesses must now provide clear, accurate allergen information on PPDS labels, with the 14 major allergens highlighted. Failure to comply is not only a legal risk, it is a moral and reputational one. Food crime is another growing concern. Misrepresentation, adulteration, and fraudulent labelling undermine both safety and authenticity. The National Food Crime Unit (NFCU) and Scottish Food Crime and Incidents Unit (SFCIU) have stepped up enforcement, with hundreds of disruptions recorded. These agencies rely on intelligence- sharing and industry cooperation to stop offences before they reach consumers. Businesses that can demonstrate transparency and robust internal controls will be better positioned to avoid entanglement, and to assure their clients. The role of culture cannot be overstated. The FSA is now integrating food safety culture into its assessment frameworks, recognising that compliance is also behavioural. Facilities with a strong culture of safety tend to perform better, respond faster, and reduce incident frequency. Leadership commitment, staff engagement, and continuous training are critical components of this culture. Businesses must treat food safety as a strategic issue, not just a technical one. Technology is helping. Digital traceability systems, automated alerts, remote auditing tools, and predictive analytics are being adopted across the sector. These tools improve visibility and reduce human error. They also provide the kind of documentation regulators and retail partners increasingly demand. The ability to demonstrate control is becoming a commercial differentiator. Yet technology alone is not enough. A well- designed system is only as strong as its weakest link. The foundation is still attention to detail, routine verification, and accountability at every level. From small manufacturers to global processors, the businesses that thrive will be those that put safety first. The cost of failure is steep. A single incident can lead to fines, prosecutions, product withdrawals, and, most damaging of all, loss of trust. Recovery is slow, and in some cases, impossible. By contrast, the cost of prevention offers a clear return. Strong food safety systems reduce downtime, protect workers, support exports, and build brand equity. 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Compared to traditional packaging, it cuts CO 2 emissions by 70%. - Versatile applications - From coffee machines and smoothie stations to soft serve dispensers, the cap supports a wide range of uses and milk processing types – including fresh, ESL, hot fill, and aseptic. The Liquibox ® Universal Self-Sealing Cap isn’t just a product - it’s a step toward a more sustainable and hygienic future in foodservice. By extending milk’s shelf life and reducing waste, it empowers businesses to meet modern demands without compromising on quality. Discover more at www.liquibox.com UPGRADE TO THE LIQUIBOX ® UNIVERSAL SELF-SEALING CAP. HYGIENIC, FAST, AND SUSTAINABLEE NO SPILLS. NO FUSS. JUST FRESH MILK.18 Food & Drink International www.fdiforum.net PACKAGING © stock.adobe.com/Anoo Packaging steps into the spotlightFood & Drink International 19 www.fdiforum.net PACKAGING I nnovation in packaging is central to survival in today’s market. Consumers insist on sustainability, regulators enforce tougher labelling, and retailers demand eye-catching formats that also deliver integrity. As a result, firms are investing heavily in materials, machinery and design that meet these overlapping requirements. The global sustainable packaging market stood at around USD 273 billion in 2023, and is projected to reach approximately USD 449 billion by 2030, growing at a CAGR of nearly 7.6%. By 2034, estimates suggest it could exceed USD 558 billion, a doubling of size in just over a decade. This exponential growth is being fuelled by environmental regulations, corporate net-zero targets, and consumer demand: over half of consumers reported choosing products with sustainable packaging in the past six months, and a significant majority say they’re willing to pay more for it. Paper and board currently hold the largest share (around 40% of the market) with bio- based plastics also growing strongly. Innovative materials like seaweed films, mycelium composites and plant-derived bioplastics are gaining traction. Start-ups are pioneering seaweed-derived packaging, while mushroom-based mycelium foams offer insulating, shock-absorbent alternatives to polystyrene. Meanwhile, R&D labs across With sustainability, flexibility, and compliance driving the agenda, packaging is now a strategic priority. From smart materials to adaptable machinery, food and drink producers are rethinking how products are protected, presented, and processed. 20 ÁNext >