Editor's Note: This article was originally published on 1-05-2023
As Canada’s second largest manufacturing sector, the food and beverage industry is a significant contributor to Canada’s GDP, labour and export market. Canada’s food industry includes a wide range of vibrant sectors and jobs, from agrifood production and food and beverage processing, to grocery/retail and foodservice, as well as associated sectors such as transportation, equipment manufacturing, biotechnology and software.
Like many sectors of Canada’s economy, more than two-thirds of the food industry’s businesses are SMEs. With relatively low barriers to entry and unlimited growth potential, the food industry offers considerable opportunities for entrepreneurship, and is an important driver of innovation and prosperity in Canada.
Yet to continue to grow and remain internationally competitive, the industry needs to become more efficient and sustainable, with an emphasis on smart processes and product development. Investing in automation, digitization, Industry 4.0 practices and IT adoption would boost production capacity for food businesses, while optimizing both startup and scale ups, and creating skilled, high-paying jobs across Canada’s manufacturing sector. It would also help produce stronger, more nimble and traceable supply chains able to respond quickly to changing consumer demands or safety concerns. These sorts of changes have had much slower adoption rates in the food industry, but have the potential to be just as transformative.
Digitization has the capacity to strengthen our food supply chains and make them more resilient against ongoing and future challenges. Supply Chain 4.0 solutions as they relate to food businesses include digitizing and automating key elements of operations, and applying Internet of Things (IoT) and Industrial Internet of Things (IIoT) technology, artificial intelligence (AI), machine learning, robotics, blockchain and data analytics to supply chain management in order to improve efficiency, traceability, performance and customer satisfaction.
The last few years have revealed just how vulnerable the Canadian food supply chain is to disruption, and the resulting challenge it creates for our food companies. With new tools to address the increasing volatility in customer requirements and supply availability, while addressing overall efficiency improvement expectations and food safety needs, Canadian food companies will be a position to move products faster, with more flexibility, granularity, accuracy and ultimately with less risk of disruptions. After several years of suffering from supply chain disruptions, food companies are now beginning to invest in Supply Chain 4.0 solutions. In coming years look for technology that provides operators with real-time data analytics to help manage supply chain and inventory, allowing them to optimize the use of raw materials and energy, reduce waste, and achieve higher margins.
Other challenges shifting the food landscape include labour shortages, climate change, higher raw material costs and rapidly changing consumer demands around food safety, transparency and delivery. Much of these challenges can be addressed by digitizing and automating processes. Food companies are already making incremental investments in elements of Industry 4.0 in order to create more transparent, agile and competitive operations. In the future expect to see automation being added to food manufacturing and foodservice in areas with repetitive tasks or where consistency and food safety is crucial, such as in healthcare. At the same time, IoT and IIot technology embedded with AI and machine learning, including robots, will begin appearing in facilities and foodservice kitchens.
Over the next decade costs of implementing automatic systems and robotics will continue to fall, while performance and consistency increases. These robotic systems will do tasks that are repetitive but necessary, or which can be dangerous or dirty. You’ll also see collaborative robotic systems which are designed to work side-by-side with workers, who are then free to perform more skilled duties.
Canada’s food industry is also working to become greener, to reduce food and plastics waste, packaging, energy use and carbon emissions, and build more socially and environmentally responsible, sustainable supply chains. Further investing in digitization and automation will help close this circular economy, from packaging and production through to waste disposal, while removing costs and inefficiencies throughout the process.
Technologies like machine vision, data, robotics and automation are changing all aspects of the food industry. There are so many entrepreneurs in Canada who have great ideas for improving the food business, but we also know that they often struggle to find the partners, resources and funds they need to bring those ideas to market. In 2023 CFIN will continue to help make those ideas a reality through innovation challenges, funding and mentorship opportunities. Watch YODL for more announcements in coming weeks.
This article originally appeared in FoodBev's December 2022 issue under the title "Lessons Learned from Canada."
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