B.C.’s industrial land scarcity is putting food production at risk

BC’s food production sector is facing significant challenges. This trend is not unique to BC, as Canada’s Atlantic region is also facing similar issues. However, the challenges in British Columbia are primarily policy-driven, unlike the Atlantic region, where geographic and demographic factors contribute to the problems food producers face.

Food production is critical as a strategic anchor of a food supply chain, crucial for creating wealth and value and driving innovation. A strong food processing sector not only supports farmers, but also protects the entire food industry from the effects of macroeconomic variables such as currency fluctuations. Furthermore, the challenges posed by climate change only exacerbate the problems, making it critical for regional economies to have robust processing capabilities to mitigate these impacts. Due to inadequate processing facilities, consumer prices are subject to greater volatility and uncertainty.

Farmland values ​​serve as an important indicator of the health of the food production sector. According to the 2023 Farm Credit Canada report, farmland values ​​in Canada have increased by an average of 11.5 percent. By comparison, most Atlantic provinces have been consistently below the national average, with New Brunswick at 5.6 percent, Newfoundland and Labrador at 7.4 percent and Nova Scotia at 7.8 percent.

This trend reflects decades of focus solely on supporting farmers, without sufficient emphasis on food production. As a result, the Atlantic region has lost many plants, allowing Quebec and Ontario to supply most of the domestic food consumed in the region. Even in the case of supply-driven commodities such as dairy, most of the milk and butterfat is transported out of the region and returned days later for consumption, contributing to higher retail prices. It is no coincidence that the Atlantic region currently has the highest food insecurity rates in the country.

However, the challenges in the Atlantic region are largely due to its remoteness and weak economic case for processing in an area with fewer than three million inhabitants. Conversely, the situation in British Columbia is different. According to the same Farm Credit Canada report, British Columbia was the only province where farmland values ​​fell by 3.1 percent. This decline points to underlying problems in the sector.

A recent report commissioned by the Greater Vancouver Board of Trade and NAIOP Vancouver Chapter highlighted industrial lands, which make up just four percent of the total land area, support more than 450,000 jobs and contribute $50.1 billion to regional GDP, with a total production of $92.5 billion. This demonstrates the significant economic contribution of value-added sectors. Unlike the Atlantic region, British Columbia has many competitive advantages, including a younger and larger population, better infrastructure, more capital, a vibrant entrepreneurial ecosystem, and proximity to major urban markets.

What British Columbia urgently needs now, however, is greater access to industrial lands. Without sufficient industrial space, investments are shifted elsewhere. The shortage of industrial land is holding back growth and innovation, prompting companies to relocate from Metro Vancouver to nearby areas such as Calgary, Edmonton and Washington state, taking new jobs and investment with them. For example, a poultry factory, Sunrise Foods, recently moved to Alberta to serve the British Columbia market, which may have contributed to higher chicken prices in the province. Consumers in BC pay 40 per cent more for chicken than the national average, even though the chicken supply is managed in Canada and prices should be stable.

British Columbia is at risk of following in the Atlantic region’s footsteps by not prioritizing food production due to outdated land management principles. Processing is and is likely to remain the neglected part of the food supply chain. Once it’s gone, it’s difficult to recover. As food processing in the region erodes, British Columbia will gradually become more precarious, a direct result of policy decisions that emphasize an idyllic, pastoral view of agriculture over the practical needs of modern food supply chains. This short-sightedness could lead to significant economic and social challenges for the province.

Sylvain Charlebois is senior director of the agrifood analysis laboratory and professor of food distribution and policy at Dalhousie University.