CALGARY WEATHER

Beyond the Border: Alberta's Agri-Food Eyes Diversification Amid US Unease

Canada's agriculture and agri-food sector faces significant headwinds, particularly concerning the United States. A December 2, 2025 report from the Angus Reid Institute and CAPI reveals four-in-five stakeholders are pessimistic about the industry's ability to deal with the Trump administration. Concerns about the U.S. political dynamic as a risk rose sharply from 32% to 57%. This resonates deeply in Alberta, where the U.S. remains the largest agri-food export market, accounting for $8.79 billion in 2023, including 90% of bovine meat. Threats of potential 25% U.S. tariffs have caused considerable apprehension among producers.

Alberta's Diversification Drive

Recognizing the over-reliance on the U.S., two-thirds of surveyed stakeholders prioritize trade diversification. Alberta is actively responding: Agriculture Minister RJ Sigurdson led a May 2025 trade mission to Vietnam and the Philippines, aligning with the province's "Buy Alberta" campaign. Stakeholders identify the domestic Canadian market (84%), Asia (83%), and Europe (82%) as significant growth opportunities, prompting provincial legislation to foster new revenue streams and bolster the biogas industry.

Strengthening Domestic Ties

Among top government priorities, improving interprovincial trade now stands at 42%, a marked increase from 15% last year. This focus, supported by the federal government's $5 billion Trade Diversification Corridors Fund, aims to reduce internal barriers and enhance overall market access.

Optimism Amidst Challenges

Despite rising perceived risks like trade barriers (up to 69%), seven-in-ten (70%) stakeholders remain optimistic about the future of Canadian agriculture. Alberta is bolstering this outlook with initiatives like the Agri-Processing Investment Tax Credit, projected to attract $3.2 billion in investment for 2025, strengthening the industry from farm to market and ensuring resilience in an evolving global landscape.