Goal 16

Domestic Markets for Agricultural Products - Deep Dive

The value of agricultural products produced for, and consumed within, the Nova Scotia domestic market will have increased by $230 million.

Updated:

Goal 16 summary graphic.

Local food products are comprised of harvested vegetables and fish caught from the ocean as well as locally processed foods, like bakery products and seafood products.  Estimating the domestic share of local food market sales requires considering both primary and processed food products.

Statistics Canada’s Supply and Use Tables are the basis for estimating local producers’ share of domestic food markets.  The total supply of each product can be divided between domestic production and imports.  This supply is then used in the economy for industry inputs, consumption by households, or exports.  The challenge with this data source is that it only shows how much of the total supply is processed or consumed locally, and not how much of that industry inputs and subsequent consumption of processed food can be attributed to domestic production.  

The value of unprocessed foods has remained relatively constant between 2013 and 2014, while the value of processed foods and restaurant meals has declined.  Note that value changes may not fully reflect changes in the volume of food consumed, as price levels and input substitution may also be factors.

yearFarm to tableWharf to tableProcessed to tableRestaurant meals
201365.835.2553.8951.4
201465.836.7491.9921.0

Farm to table

Agricultural and seafood commodities –  unprocessed harvested items such as fruits and vegetables, eggs, live animals or fishery products – are foods on their own and can be processed into other food items.  In 2014, households consumed $193 million of unprocessed foods, including $155 million of agricultural products and $38 million of fishery products.  Food manufacturers used $808 million of unprocessed agricultural and seafood products. Alcoholic beverage manufacturers used $3.4 million worth of agricultural commodities that year.  Nova Scotia’s exports of agricultural and seafood commodities are dominated by seafood, making up over 90 per cent of the $1.13 billion exported in 2014.

In the same year, Nova Scotia also imported $361 million of unprocessed food products.  The Supply and Use tables do not report how much imported food is used for domestic consumption and how much is used for further food processing.  Therefore, it is currently unknown how much of the food being produced in the province is consumed by Nova Scotian households.

 

Supply and Use of Unprocessed Agricultural and Seafood Commodities in Nova Scotia Basic prices, $,000, 2014

Supply
Total Supply 2,222,638
Domestic production 1,861,180
Imports 361,458
Uses
Total Use 2,222,638
Household consumption 193,183
Food manufacturing 807,951
Alcohol manufacturing 3,360
Education, healthcare and government 2,013
Food services and drinking places 34,151
Other industrial use 46,987
Exports

1,129,108

Note that numbers may not total due to the exclusion of inventories

Supply and Use of Unprocessed Agricultural Commodities in Nova Scotia Basic prices, $,000, 2014

Supply
Total Supply 671,335
Domestic production 433,856
Imports 237,479
Uses
Total Use 671,335
Household consumption 154,955
Food manufacturing 350,422
Alcohol manufacturing 3,360
Education, healthcare and government 2,013
Food services and drinking places 29,662
Other industrial use 32,721
Exports 101,223

Note that numbers may not total due to the exclusion of inventories

Supply and Use of Unprocessed Seafood Commodities in Nova Scotia Basic prices, $,000, 2014

Supply
Total Supply 1,551,303
Domestic production 1,427,324
Imports 123,979
Uses
Total Use 1,551,303
Household consumption 38,228
Food manufacturing 457,529
Alcohol manufacturing -   
Education, healthcare and government -   
Food services and drinking places 4,489
Other industrial use 14,266
Exports 1,027,885

Note that numbers may not total due to the exclusion of inventories

Food Processors

Processed foods make up a larger portion of household food consumption than unprocessed agricultural or seafood products. In 2014, Nova Scotian households consumed $1.02 billion of processed foods. In the same year, imports of processed foods totaled $1.14 billion and exports were $1.22 billion. As with commodities, although total imports of processed foods are known, how imports are distributed between households and industry is unknown.

Supply and Use of Processed Foods in Nova Scotia Basic prices, $,000, 2014

Supply
Total Supply 2,816,910
Domestic production 1,675,047
Imports 1,141,863
Uses
Total Use 2,816,910
Household consumption 1,021,332
Food manufacturing 238,484
Alcohol manufacturing 5,137
Education, healthcare and government 24,521
Food services and drinking places 264,750
Other industrial use 40,104
Exports 1,216,251

Note that numbers may not total due to the exclusion of inventories. Household consumption does not include consumption of non-alcoholic beverages, which totaled $38.8 million in 2014.

It is also unknown how much of local inputs into Nova Scotia food processing were subsequently consumed locally. For example, the Supply and Use accounts show how much flour is used by bakeries, but not how much of the bakery sector’s use was imported and how much was from local farmers. This could also vary on a product by product basis.

The food manufacturing sector uses significantly more unprocessed food items than are purchased by local households. The largest industry (by input size) is the seafood product preparation and packaging sector, where over half of the inputs to production are unprocessed products. A small share of the sector’s unprocessed inputs are imported to the province (8.1 per cent), compared to other industries, like fruit and vegetable preservation, where about two-thirds of the sector’s unprocessed inputs (fresh fruits and nuts) are imported.

Inputs to food manufacturing industries in Nova Scotia Basic prices, $,000 (import share of inputs, %), 2014

 

  Total inputs Unprocessed inputs Processed inputs Other inputs Wages and Salaries Gross Operating Surplus
Animal food manufacturing 218,160 25,298 (60.7) 65,304 (66.9) 127,558 13,675 -2,352
Grain and oilseed milling 50,386 0 (0.0) 508 (50.0) 49,878 3,034 1,429
Fruit and vegetable preserving and specialty food manufacturing 162,346 95,493 (65.7) 3,250 (52.5) 63,603 19,780 19,915
Dairy product manufacturing 311,065 135,801 (8.1) 74,682 (38.8) 100,582 42,724 179
Meat product manufacturing 122,773 84,040 (1.0) 13,091 (88.4) 25,642 15,347 4,928
Seafood product preparation and packaging 738,619 455,519 (8.0) 49,078 (18.9) 234,022 157,967 47,219
Bakeries and tortilla manufacturing 102,019 2,410 (64.7) 27,542 (49.7) 72,067 28,019 35,125
Other food manufacturing 33,349 9,390 (69.5) 1,646 (78.3) 22,313 6,624 90,476

Not shown: Sugar and confectionary manufacturing and soft drink and ice manufacturing

Restaurant meals and alchohol

In 2014, Nova Scotia’s households consumed $1.14 billion of prepared meals. Domestic production of prepared meals totaled $1.4 billion in 2014, with $274 million of imports. As with locally-processed foods, it is unclear how much local content (unprocessed or processed) makes up each prepared restaurant meal, on average.

In the same year, Nova Scotian households purchased $169 million in alcoholic beverages for immediate consumption (i.e. at restaurants or bars). Domestic production totaled $188 million, supplemented by $108 million of imports. From this information, it is unknown how much of domestic or imported products were purchased by Nova Scotian households. Note that alcoholic beverages are not included in the headline indicator.

Supply and Use of Prepared Meals and Beverages in Nova Scotia, Basic prices, $,000, 2014

Supply
  Prepared meals Alcohol for Immediate Consumption
Total Supply 1,677,881 296,059
Domestic production 1,403,476 188,252
Imports 274,405 107,807
Uses
  Prepared meals Alcohol for Immediate Consumption
Total Use 1,677,881 296,059
Household consumption 1,137,442 169,474
Food manufacturing 8,077 1,461
Alcohol manufacturing 1,276 241
Education, healthcare and government 94,606 4,378
Food services and drinking places 3,592 638
Other industrial use 104,288 26,978
Exports 328,600 92,889

Note that numbers may not total due to the exclusion of inventories

Restaurants and bars used $34 million of unprocessed agricultural and seafood products and $265 million of processed food products in 2014. Inputs with a high import share include fresh fruits and vegetables and processed meat products (including beef and pork).

Inputs to Food Services and Drinking Places in Nova Scotia, Basic prices, $,000 (import share of inputs, %), 2014

Total Inputs 797,982
Unprocessed 34,151 (42.0)
Processed 264,750 (60.4)
Alcohol 23,107
Prepared Meals 3,592
Alcohol for immediate consumption 638
Other inputs 471,744
Wages and salaries 477,601
Gross Operating surplus 68,845

Domestic production of beer, wine and spirits was $152 million in 2014 while imports totaled $208 million. Households consumed $159 million and another $134 million was exported. From this information, it is unknown how much local alcohol is purchased by local consumers.

Supply and Use of Alcoholic Beverages in Nova Scotia Basic prices, $,000, 2014

Supply
Total Supply 359,866
Domestic production 152,259
Imports 207,607
Uses
Total Use 359,886
Household consumption 159,203
Food manufacturing 1,564
Alcohol manufacturing 1,719
Education, healthcare and government 3,101
Food services and drinking places 23,107
Other industrial use 30,260
Exports 134,126

Alcoholic beverages include beer, wine and brandy, and distilled liquor. Note that numbers may not total due to the exclusion of inventories

Breweries and wineries and distilleries require inputs with a high import share in Nova Scotia, including fresh fruits and fruit juices for wineries and grain products for breweries.

Inputs to Alcohol Manufacturing in Nova Scotia Basic prices, $,000 (import share of inputs, %), 2014

  Breweries Wineries and distilleries
Total Inputs 101,106 (57.3) 16,538 (66.0)
Unprocessed 2,069 (67.6) 1,291 (66.3)
Processed 2,889 (50.0) 2,248 (65.8)
Other inputs 96,148 12,999
Wages and Salaries 10,359 6,077
Gross Operating Surplus 11,563 5,679

Using the best available information, it is still unknown how much local agricultural and seafood products are ultimately consumed by Nova Scotian households. To better understand the domestic linkages in Nova Scotia’s agricultural markets, a model is being built that will clarify how local producers and consumers rely on local markets. When this analysis is complete, there will be a better understanding of the domestic markets for local food: how much local agricultural product is consumed by Nova Scotian households, how much is used in local food processing, and served at local restaurants.

Notes:

  • Agricultural commodities include oilseeds (except canola), grains (except wheat), fresh potatoes, fresh fruits and nuts, other miscellaneous crop products, fresh vegetables (except potatoes), cattle and calves, unprocessed fluid milk, hogs, eggs in shell, poultry, and other live animals.  Seafood commodities include fish, crustaceans, shellfish and other fishery products. Animal or pet food is not included.

  • Processed food products include flour and other grain mill products, fresh, frozen and canned fruit and vegetable juice, preserved fruit and vegetables and frozen foods, processed fluid milk and milk products, cheese and cheese products, butter and dry and canned dairy products, ice cream, sherbet and similar frozen desserts, fresh and frozen beef and veal, fresh and frozen pork, fresh and frozen poultry of all types, processed meat products, other miscellaneous meats and animal by-products, prepared and packaged seafood products, bread, rolls and flatbreads, cookies, crackers and baked sweet goods, snack food products, and other food products, n.e.c..  Import heavy products including margarine and cooking oils, breakfast cereal and other cereal products, grain and oilseed products, sugar and sugar mill by-products, chocolate and confectionary products, flour mixes, dough and dry pasta, coffee and tea, and flavouring syrups, seasonings and dressings are not included.

  • Alcoholic beverages include beer, wine and brandy and distilled liquor.

  • Food manufacturing sectors include animal food, grain and oilseed milling, sugar and confectionary product manufacturing, fruit and vegetable preserving and specialty food manufacturing, dairy product manufacturing, meat product manufacturing, seafood product preparation and packaging, bakeries and tortilla manufacturing, soft drink and ice manufacturing and other food manufacturing.

Changes to the indicator, baseline, or target:

  • As there was no data available on local food consumption, a methodology was developed for estimating the value of local food consumed by households.

  • We were unable to replicate the baseline number of $230 million quoted in the OneNS Report by any measure of local food.

  • As the estimated value of local food consumed was not similar to the original baseline, a new target was adopted. A levels target was adopted instead of the original target of doubling the baseline. In keeping with the spirit of the original goal, an increase of $230 million was adopted as the target.