Alberta Agriculture Statistics Yearbook, 2012
- 1 -
Year in Review, 2012
Alberta’s agriculture and agri-food industries set records for several key indicators in 2012 despite the impact of factors such
as the relative strength of the Canadian dollar, the slowdown in growth of the global economy, and rising input costs.
Drought in the United States, as well as tightening global supply and higher demand led to exceptional grain and oilseed
prices and strong slaughter cattle prices. Provincial farm cash receipts (FCR) were the highest on record and ranked first
among the provinces. Overall, it was a record setting year for most measures of farm income. Total food manufacturing
sales also set a new industry record, and ranked as the second largest manufacturing industry in Alberta. Total agri-food
exports were highest on record in 2012. The province continued to be the third largest exporter of agri-food products in
Canada. In the livestock sector, as of July 1, 2012, “year-over-year” marginal declines occurred for inventories of cattle and
calves and sheep and lambs, while the pig inventory increased. Alberta remains the largest beef producing province in
Canada. Total production of principal field crops in the province was relatively strong, despite lower yields compared to
2011.
The following are brief commentaries on various sections of this Yearbook.
For detailed commentaries, users are
advised to refer to the individual subject area section of the Yearbook.
Farm Income
1
For the second consecutive year, Alberta’s total FCR (sum of crop and livestock market receipts plus program payments to
producers) reached a record high at $12.0 billion, up 14.1 per cent from 2011. The increase was due to substantially higher
crop market receipts coupled with increases in livestock market receipts and program payments to producers. The province
ranked first in total FCR, followed by Saskatchewan and Ontario. Alberta accounted for over one-fifth (22.4 per cent) of total
Canadian FCR ($53.7 billion).
The major driver for the record FCR was crop market receipts, which also set a record at $6.3 billion, up 22.4 per cent from
2011.
The substantial increase was driven by stronger prices and marketings. Receipts from canola, wheat, dry peas, and
potatoes all set record highs in 2012. Other notable increases included barley, flaxseed, and sugar beets. Fuelled by
stronger prices, livestock market receipts increased 5.1 per cent to $4.9 billion. While notable increases were reported for
cattle and calves, dairy (sixth consecutive record high), poultry, eggs, and honey, receipts for hogs and lambs declined.
Direct program payments to producers increased 12.9 per cent to $769.2 million in 2012. The gain was mainly attributed to a
substantial jump in Crop and Hail Insurance payments, while AgriRecovery payments remained more or less flat. Offsetting
the increase were lower payments under programs such as AgriStability and AgriInvest.
Farm operating expenses for Alberta producers increased 6.2 per cent to a record $9.1 billion in 2012. Noteworthy increases
in farm inputs included commercial feed, fertilizer and lime, machinery fuel and repairs, livestock and poultry purchases, and
cash wages and room and board. Overall, 2012 was a record setting year for most measures of Alberta’s farm income.
Preliminary 2012 Alberta Agriculture and Rural Development estimates indicate Alberta’s net cash income (difference
between total FCR and total expenses) at about $2.9 billion, a new record high and 49.6 per cent higher than in 2011. Net
cash income when adjusted for depreciation (a non-cash cost of $1.5 billion) resulted in a record realized net income (RNI)
of $1.4 billion, up significantly from $490.0 million in 2011. Total net income (RNI adjusted for inventory change) was $661.4
million, down from $897.9 million in 2011.
Economic Indicators
Alberta’s real gross domestic product (GDP), in chained (2007) dollars, for agri-food industries remained more or less flat at
$6.6 billion in 2012, up 0.1 per cent from 2011. Of the agri-food industries total, primary agriculture industries accounted for
$3.7 billion (down 1.4 per cent), while food and beverage manufacturing industries accounted for $2.9 billion (up 2.1 per
cent). There were a total of 75,900 Albertans employed in agri-food industries in 2012, an increase of 3.7 per cent from
2011.
These industries accounted for 3.5 per cent of the provincial employed labour force (2,149,600 persons). Employment
in primary agriculture industries increased 8.5 per cent to 56,200 persons, while employment in food and beverage
manufacturing industries fell 7.9 per cent to 19,700 persons. The annual all-items Consumer Price Index for Alberta, a
measure of overall inflation, increased to 127.1, up 1.1 per cent from 2011. The Canadian dollar (annual average) fell slightly
(
down 1.0 per cent) against the United States dollar to $1.0006 in 2012.
Food Manufacturing Sales
Alberta food manufacturing sales totaled a record $11.8 billion in 2012, an increase of 19.6 per cent from 2011, and
represented the second largest manufacturing sector in the province, following petroleum and coal products industries. This
was the largest annual increase for food manufacturing sales in the past two decades, and the third consecutive increase.
The record sales were paced by substantial growth in meat product (including poultry) manufacturing (up 20.5 per cent to a
record $5.9 billion), and animal food (including feed) manufacturing (up 28.6 per cent to $845.6 million), as well as an
increase in grain and oilseed milling (up 1.3 per cent to $1.7 billion). Meat product manufacturing (including poultry), grain
and oilseed milling, and animal food (including feed) manufacturing accounted for 71.6 per cent of total food manufacturing
(1)
For detailed definitions of terms, see page 5.