In the agricultural sector, we sometimes (too often) simplify by focusing on dairy production and cash crops when thinking about "professional" farms in Quebec.
This situation might change with emerging trends. Instead of discussing evolution or revolution, it seems that "agriculture" is polarizing into two poles: Agriculture with a capital A and "other agriculture."
1- Agriculture with a Capital A
This refers to traditional agriculture, including dairy, poultry, pork, and cash crops. These sectors generate 87% of Quebec's net agricultural income.
Main animal productions are managed through supply management or integration, simplifying marketing for farmers. Sales are less complex, with more focus on production, true for most cash crops.
A recent study indicated that successors of these farms often come from established farming families, ensuring generational continuity. While the total number of farms is decreasing, those remaining are growing larger, and the same goes for traditional suppliers who are consolidating.
New solution providers, particularly agtech companies, help improve existing practices, making them more efficient, profitable, and easier. Major solutions for farmers include environmental practices, management software, robotics, and traceability. (Kudos to Aleop , Agrilog, Fermes Overbeek, and many others!)
2- The "Other Agriculture"
This sector attracts a growing number of women, people who haven’t necessarily studied agriculture, and new "outsider" farmers.
This "other agriculture" includes:
a) Niche products from more or less conventional productions: mushrooms, Certified humane meat, A2 milk, etc.
b) More technological productions: vertical farms, greenhouses, agrivoltaics, etc.
Perhaps due to a lack of prejudice or financial means for land and quota purchases, these farms (especially type a) have lower barriers to entry (economically and in feasibility), with more owners having an off-farm job.
Marginal productions, you might say? To some extent, but beware of generalizing! For example, greenhouse crops accounted for 40% of all agricultural investments in Quebec in 2019, matching dairy two years later (42%) and ranking second over three years, ahead of cash crops. Vertical farming is expected to grow by nearly 700% globally in less than 10 years.
Although we lack conclusive data, these operations can be a gateway to entrepreneurship for future successors whose parents are not ready to pass the torch!
Most of these productions face marketing challenges in addition to production, which definitely needs addressing! One in five farms in Quebec has turned to direct consumer sales with success: sales have increased by 12% in recent years. These 6131 farms primarily sell minimally or unprocessed products: eggs, fruits, vegetables, meat, cheese, maple syrup, cider. (5)
In more tech-driven sectors (b), there are agtech suppliers doing things that weren't done before: innovative foods, agricultural biotechnology, bioenergy, innovative production systems, etc. (Hats off to Ribozome, la Mouche rose, Coop Carbone and LBM Agtech!)
Conclusion
Small farms and large operations, new farmers and 5th-generation producers, young and more experienced individuals have more in common than we might think. Quebec's agricultural landscape is transforming, enriched by the diversity of approaches and profiles.
Your role as a supplier to agricultural producers is crucial: you must be able to meet the diverse needs of these producers and fully capitalize on both agricultural models.
While some may simply watch the train go by, at Puzzle, we encourage you to be the locomotive of change. Are you ready to take the lead? Contact us!
Sources:
Net market income adjusted for depreciation of tangible assets in 2021. Source : Statistics Canada. Table 32-10-0213-01
MAPAQ, BioClips 2023, Vol. 31, no 4.
MAPAQ, BioClips 2024, Vol. 32, no 20.
MAPAQ, BioClips 2024, Vol. 32, no 1.
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