1、Farm Credit Canada2025 FCC Food and Beverage ReportContents 2 Introduction 8 Grain and oilseed milling:Profitability softening coming off commodity supercycle 12 Sugar and confectionery products:High reliance on exports to the U.S.clouds 2025 outlook16 Fruit and vegetable preserving and specialty fo

2、ods:Falling sales pressure already tight margins 20 Dairy product manufacturing:Strong demand supporting profitability 23 Meat product manufacturing:Rising prices not likely enough to offset rising input costs27 Seafood preparation:Challenges with dependency on U.S.market 31 Bakery and tortilla prod

3、ucts:Lower commodity prices supporting margins 35 Beverage manufacturing:Consumers move away from alcohol beverages IntroductionA quick glance at the financials of the food and beverage manufacturing sector suggests an uneventful year in 2024.Expenses and sales experienced less than a 1%shift,leavin

4、g only a slight improvement in profit margins.However,this is far from the truth.Inflation started to retreat,the Bank of Canada began cutting interest rates and tensions in the labour market eased.In 2024,cocoa prices skyrocketed,cattle prices remained elevated and grain prices declined.The year en

5、ded with the announcement of a change in the U.S.leadership and the threat of tariffs.Its shaping up to be another eventful year in 2025.Trade disruptions will take centre stage for the sector as exports,sales and margins are pressured.Aside from trade disruptions,the sector will also have to grappl

6、e with the impacts of a slowing population on labour supply and the strength of consumer demand.Per capita expenditure on food and beverages declined for the fourth consecutive year in 2024,due to household budget pressures.However,food and non-alcoholic beverages did show signs of recovery near the