The countries of Canada and Australia would not seem to have a lot in common on paper. They are separated by a lot of distance on the map, but they still have some similarities. Weeklytimesnow.com points out that both countries have neighboring countries that they like to make jokes about. For Canada, that neighbor is the United States. For Australia, the neighbor is New Zealand. Another thing they now have in common is that they are both poised to increase their market share in produce.
Both countries look like they are about to increase their consumption of produce as well. They each also look like they are going to produce more of these things as well. Canada has to consider its largest trade partner when it comes to the agriculture that they create. That trade partner being the United States.
Canada is concerned at the moment as their markets for these products are far less stable than what they used to be in the past. There are new competitors from Asia, South America, and Africa. They cannot necessarily rely even on those trading partners that they have worked with for so many years.
Three of the top ten importing countries from Canada actually cut back on how much agriculture they imported. They made strategic choices to make their purchases from other countries, or in some cases, to cut back entirely on the product that they had been buying a lot of.
Agriculture is important in Canada. It accounts for a little greater than one percent of the total GDP of the country. This might not sound like a lot, but when it comes to the GDP of a country, every extra percent point counts. Countries want to preserve industries that produce that level of GDP for them.
Canada has to be concerned with what is going to happen with their agricultural business, but there is good news for them as well. It is expected that consumption of these products domestically is going to increase as well. Given that, the excess produce that they may have on their hands can be consumed by the domestic population at least to some extent. That can help to offset some of the extra balances of agriculture that they may have.
At the end of the day, the way that global trade plays out is very difficult to predict. Still, the Canadian government is bracing itself for the possibility that it may have more produce than it had intended.