Agriculture

Canada was once a largely rural nation. At the turn of the last century, agriculture employed about 40% of the workforce. That's no longer the case. Nationally, just over 2% of workers have jobs in this industry, while just under 2% of BC workers are employed in agriculture.

Although BC's agriculture industry is small compared to the rest of the economy, it is an important industry in many areas of the province. BC farmers supply many of the inputs used by the province's food processing industry.

What's included in the agriculture industry?

The agriculture industry includes establishments that are primarily engaged in growing crops or raising animals. Crop and livestock farms, as well as hatcheries and fish and shellfish [1] farms are part of this industry.

Crop production generated over half of the industry's GDP in 2005

Also included are various types of services related to crop and animal production, such as soil preparation, planting, harvesting, crop spraying, breeding, pruning and suppliers of farm labour on a contract or fee-for-service basis.

Nearly a quarter of the agriculture industry's GDP originates in the greenhouse, nursery and floriculture industry, while 36% comes from other types of crop production. Animals and animal products account for about a fifth of the industry's GDP, while aquaculture contributes another 14%. Finally, crop and animal services generated about 7% of the industry's total GDP in 2005.

A variety of crops, seafood and livestock are raised in BC

A variety of different types of crops, animals, fish and shellfish species are raised in BC. The province has long been known for its tree fruit and berry industry, but the importance of these crops has declined over time as the focus of farming activities in the province has shifted.

The production of ginseng, flowers and nursery products has been one of the fastest-growing segments in the industry. BC greenhouses account for significant share of total Canadian production of peppers, tomatoes, cucumbers and mushrooms. Some BC greenhouse operators have expanded their operations to locations in the US.

British Columbia is the country's biggest producer of sweet peppers, blueberries, apples, raspberries and sweet cherries. Dairy farms, poultry producers, and other livestock operations play an important role in the province's agriculture industry, which also includes such diverse activities as beekeeping, ostrich and Christmas tree farming.

A fifth of farm cash receipts [2] come from sales of floriculture & nursery products

Aquaculture operations are an important component of the industry

BC has been a major player in Canada's aquaculture industry for many years. In fact, commercial cultivation of Pacific oysters in BC was already occurring in 1912.

In BC, Fish farmers produce salmon and trout, as well as several varieties of shellfish, including oysters, clams, scallops, mussels and geoduck. There is also some cultivation of marine plants such as kelp. BC fish and shellfish farming operations supply these products to markets ranging from California to Japan and other parts of Asia.

About 93% of the total value of BC's aquaculture production comes from farmed salmon products. Most of the salmon is exported, with much of it going to the US.

What's happened since 1990?

Agriculture is a highly labour-intensive industry, and this is reflected in the relationship between GDP and employment. About two percent of the province's workforce is employed in agriculture, roughly double the industry's share of total GDP.

Agriculture has maintained its share of GDP at a steady level since 1990, but the job market has been more volatile. During the last five years, employment growth in agriculture has outpaced job gains in the province as a whole.

The industry has held its own in terms of GDP, but employment has been volatile

Mad cow disease and avian flu have hurt BC farmers

The last few years have been difficult ones for BC's agriculture industry, which has faced some big challenges. In 2003, the discovery of a single case of bovine spongiform encephalitis (BSE, or mad cow disease) in Alberta led to the complete closure of the US export market for Canadian farmers. BC is not a major beef-producing province, but the border closure hurt cattle producers in this province.

The cattle industry was just beginning to recover from the effects of the export ban when livestock producers in BC were hit with another shock: the discovery of birds infected with avian flu in the Fraser Valley. This led to the forced slaughter of poultry flocks in the surrounding area. Although farmers received compensation for the loss of their livestock, the poultry industry suffered a setback in 2004. Cash receipts have since recovered and the industry is back on an upward track.

Mad cow disease and avian flu created major challenges for BC livestock farmers

Other challenges

Livestock diseases aren't the only challenges the industry has been dealing with. BC farmers have to compete with growers from all over the world. You can see the result of this in your local supermarket. Fruits and vegetables sold there are often imported from places like California even when they are available from local producers. Similarly, meat products aren't necessarily produced locally; they can come from as far away as New Zealand or Australia.

Why do supermarkets import food when they could buy it from local suppliers? They do it because the imports cost less, or because they buy in bulk from big farming operations that can produce large quantities of fruits and vegetables, or meat and dairy products.

Lower production costs in other parts of the world, better cold storage facilities and refrigerated containers make it possible to import fresh produce from further away, sometimes for less than what they would cost to purchase locally. In addition, many supermarket chains have fixed contracts with suppliers in the US, South America, or other parts of the world. Freer trade has opened many new markets for BC producers, but it also means that they must compete with producers from all over the world.

Competition from the outside world isn't the only challenge that this sector is facing. Our eating habits are changing. People are eating less red meat, but more poultry products. Per capita consumption of fruit has risen nearly 20% since 1990. Some consumers are concerned about the use of pesticides and techniques like irradiation, and prefer to buy organically raised products. They've also developed a taste for fruits and vegetables that can't be grown in the province and for ethnic foods that may not be available from local producers. Not so long ago, mangos, pineapples, papayas and other tropical fruits were somewhat exotic, available at supermarkets for short periods only, if at all. Now, they're found year-round in many grocery stores.

Farmers are adapting to these changes. They're finding new ways to get their products to consumers, and focusing more on growing crops or raising livestock that is of higher quality or cheaper than those available from other suppliers.

They're also focusing on areas where they have a comparative advantage. BC is a major supplier of blueberries that are shipped around the world. It's a major producer of farmed salmon. Vancouver Island is home to the biggest daffodil farming operation in Canada, and the second biggest in North America. A wine industry has developed in the province. Some farmers have converted their orchards to grape vineyards and offer tours of their wine making facilities. Organic farming and greenhouse operations have become more prevalent. Many farmers sell directly to consumers from roadside stands, grow corn mazes, or host special events and provide tours to interested visitors.

What are the most common occupations?

Almost all of the workers in this industry are in occupations that are specific to farming. Fifty-eight percent are farmers or farm managers. Another 20% are general farm workers, while 8% work in greenhouses or nurseries. Other occupations include labourers, truck drivers, sales and service workers, bookkeepers and others who have office jobs.

Almost all of the jobs are in occupations specific to farming

 

How many people work in agriculture and how much do they earn?

In 2005, there were 38,700 people working in this industry. Greenhouse, nursery and floriculture production employed about a third (11,400) of these workers. Cattle ranching and farming (9,000) and fruit and tree nut farming (5,100) were other big employers.

Agriculture workers earned an average hourly wage of $12.69, about two-thirds as much as the average for all industries. Farm workers typically spent just over 41 hours on the job each week.

What are the characteristics of the work force?

Full-time employment is somewhat less common in agriculture than is the case in other goods industries. Eight in ten workers have full-time jobs, compared to nine out of ten for the sector as a whole.

Union coverage is not common in this industry. Just 12% of the workers have union coverage, compared to 33% of all workers in the economy.

Forty-four percent of the workers in agriculture are female. It's the only industry in the goods sector where the male-female ratio is close to the provincial average (women make up 47% of the total workforce).

Unemployment rates for farm workers are higher than the all-industry average. Between 1990 and 2004, the average jobless rate in this industry was 11.6%, compared to 8.4% for the province as a whole.

Self-employment is very common in this industry. Nearly half (46%) of the people who work in agriculture are self-employed. That's higher than in any other industry group, and more than double the provincial average.

The importance of small businesses in agriculture is highlighted in the above figure, which shows that 53% of employees in agriculture work at establishments with fewer than 20 workers. Another 33% have jobs at mid-size establishments, with 20-99 employees. However, there are some larger establishments: 13% work in establishments with 100-500 employees.

These figures don't include self employment: only employees are counted in the data by establishment size.  In agriculture, about a quarter of all self-employed workers have paid help, while the rest work on their own. Thus, it's very likely that virtually all of the self-employed people in this industry are in small operations with fewer than 20 employees.

More than half of all agriculture establishments have fewer than 20 employees

Where are the jobs located?

Only 3% of the land in the province is arable or potentially arable. A wide variety of agricultural products are grown in British Columbia, and farm holdings cover 2.6 million hectares of land.

Thompson-Okanagan and the northern regions of the province are areas where agriculture accounts for a higher-than-average share of total employment. The Fraser Valley, which has some of the richest soil in the country, is a source of berries and vegetables, and 50% of all agriculture workers in the province are located in this region. Tree fruits and grapes are primarily grown in the Okanagan, and grain is grown in the Peace River region. Large cattle ranches are located in the Cariboo and elsewhere in the Interior, while dairy farms operate near most major population centres. BC's hog and poultry farming industry is concentrated in the Vancouver and Victoria area.

Almost all of the aquaculture operations are located in coastal communities (trout, a freshwater fish, can be farmed inland).  Many of the operations are located in the Vancouver Island/Coast region of the province.

Thompson-Okanagan and the northern regions of the province have a high concentration of agriculture workers

What's the outlook to 2014?

It's expected that the agriculture industry will grow a little faster than the rest of the economy during the next few years. By 2014, the industry's share of total GDP is forecast to be a little over one percent. However, the industry's share of total employment is expected to edge down slightly.

GDP in agriculture is expected to increase a little faster than the average for all industries

[1] Aquaculture used to be included with fishing, hunting & trapping, but is now considered part of the agriculture industry as defined by the North American Industrial Classification System (NAICS).

[2] Excluding special payments from government and sales of aquaculture products