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Farm Profitability – The Canadian Experience –. Presentation to the 2011 ABARE Outlook Conference Andrew Goldstein March 1, 2011. Structure of Canadian Primary Agriculture. Poultry. Dairy. Grains. Hogs. Cattle. Farm size matters… to a point. Grains. Dairy. Poultry. Hogs. Cattle.
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Farm Profitability– The Canadian Experience – Presentation to the 2011 ABARE Outlook ConferenceAndrew GoldsteinMarch 1, 2011
Poultry Dairy Grains Hogs Cattle Farm size matters… to a point
Grains Dairy Poultry Hogs Cattle Farm size matters… to a point
Significant profitability gap betweentop and bottom performers Note: Sample of Grain and Oilseed farms in with over 1000 acres and over $100K in revenue.
Top performers have higher revenues per acre Note: Sample of Grain and Oilseed farms in Saskatchewan’s Brown soil zone with over 1000 acres and over $100K in revenue. Farms ranked by average PM from 2003 – 2008.
Note: Sample of Grain and Oilseed farms in Saskatchewan’s Black soil zone with over 1000 acres and over $100K in revenue. Farms ranked by average PM from 2003 – 2008. Controlling costs is a key success factor
Negative Net Farming Income (NNFI) Low Family Income (LFI) Off-farm income is playing an increasing role
Input Suppliers$24 B Imports$7.9 B Exports$21.2 B Primary Agriculture$42 B Agriculture andAgri-Food Sector Food Processing $88 B Imports$18.5 B Exports$17.1 B Food Retail/Wholesale$96 B Foodservice$51 B Consumer Spendingon Food and Beverages$147 B Primary Agriculture: Part of a Broader System The Canadian Agriculture and Agri-Food System (2008)