1
The story
A large association representing farmers in Canada required a study to demonstrate the jobs and revenue benefits to the Canadian economy of growing and processing oilseeds, grains, and pulses. Our client needed an analysis of the contribution of various crops (oilseeds, grains and pulses) to the Canadian economy both in terms of the number of jobs created and the value generated. The analysis allowed our client to publicize the benefits of agriculture effectively and aided their ongoing efforts to generate government and public support for Canadian farmers.
2
The solution
- Developed over the last 10 years, GlobalData Agribusiness’s (formerly known as LMC International) Economic Impact Analysis uses a robust methodology for quantifying the economic impact of various crops and their downstream derivatives such as food, feed and biofuels.
- The methodology accounts for all aspects of the value chain including farming, elevation, primary processing (milling or crushing), further processing (oil refining, biofuel production), transport costs, trade, feed milling and co-products such as Distillers Dried Grains (DDG).
- We include the direct impacts as well as the important indirect multiplier effects created by a sector in its surrounding area. The benefits were calculated nationally for seven different categories of crops.
3
The outcome
The calculations are composed of three key elements:
- Direct effects: This is the revenue, and employment impacts that can be directly attributed to the supply value chain. The results were calculated using models populated with data from public and private sources, our in-house industry knowledge and databases, and discussion with industry stakeholders.
- Indirect effects: These effects are the revenue, employment and wage impacts created by those industries that supply the value chain or those at the periphery of the sector.
- Induced effects: These refer to revenue, employment and wage impacts that stem from household spending of income earned from the sector.
3
How we can help you
“By including indirect and induced effects, our methodology can provide the global Agribusiness industry with a comprehensive country-level analysis of its economic contribution to a country’s economy. The figures generated by this methodology are robust and defensible. Clients frequently commission updates of these studies as the results can easily be compared to previous years to show how economic impacts have changed. The methodology could be applied to other Agribusiness industries and crops such as the livestock sector or sugar crops. We also regularly undertake provincial and state analyses where required". Caroline Midgley, Consulting Director Agribusiness, Consumer Custom Solutions, at GlobalData.
An analysis of the contribution of various crops to the Canadian economy
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