Profitability in the food processing sector

FCC Senior Ag Economist Craig Klemmer explains how to use price indexes from Statistics Canada to track profitability in the food processing industry.

Video Highlights

  • Raw materials, labour and the price of manufactured products all contribute to profitability in the food processing sector
  • Statistics Canada uses two price indexes to help track patterns in food processing profitability
  • If the price indexes don’t move in the same direction, profit margins could be “squeezed”
  • Increasing your operations’ efficiency is the only response to declining food processing profits