The U.S.-Canada trade war has shown us how vulnerable our food economy is and how urgently we need to rethink our approach to growth.
For too long, Canada has overlooked the potential of foodtech—the innovations that make our food sector more competitive, efficient, and resilient. Now is the time to change that. We need to invest in foodtech—not just to navigate short term trade uncertainty, but to build a stronger, more productive, and more independent food sector for the long haul.
Here’s how we make it happen.
1. Investing in Value-Added Food Innovation at Home
Investments in the Canadian agrifoodtech sector are overwhelmingly weighted toward agtech. Foodtech, which encompasses all post-farmgate applications (think processing, supply chain logistics, novel ingredient development, and beyond) receives just 56% of total agrifoodtech investments, far behind the global norm of 83%. This is reflected in the fact that much of Canada’s agrifood exports are raw, unprocessed inputs, priced at commodity rates.
To boost national food security and economic growth in our agrifood food sector, we need to boost investments in—and the adoption of—Canadian foodtech solutions.
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Leverage trade agreements to scale Canadian foodtech globally. Canada has strong trade agreements that we could be leveraging more strategically to help food innovators. MOUs and existing trade deals should be used to expand market access for Canadian foodtech solutions, not just agricultural exports.
2. Closing Canada’s Growth-Stage Funding Gap
Between 2018 and 2024, Canada’s foodtech startups secured $1.6B in investment. That represents a ton of progress, but compared to $8.8B in the UK and $86.6B in the US over the same period, Canadian foodtech is still small potatoes, especially when it comes to late-series funding rounds. To keep pace with global foodtech leaders, addressing our current gap in mid-to-late-stage funding must be prioritized.
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Create anchor investment incentives to attract late-stage capital. Canada should offer more co-investment incentives for large institutional investors and corporate VCs willing to fund late-stage foodtech startups. By de-risking investments with matching funds and tax credits, we can bring more growth-stage capital into the ecosystem.
3. Unlocking Private Investment: The Key to Scaling Canada’s Foodtech Sector
Currently, 30% of foodtech investments in Canada come from public grants, compared to just 5% in the UK and 8% in the US. While public funding helps establish a viable foodtech ecosystem and accelerate the commercialization potential of novel technologies, it’s not designed for scale. We need to shift the balance toward private investment that can take companies beyond pilot projects and into commercial reality.
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Speed up regulatory approvals for new foodtech innovations. A fast-track system for alternative proteins, biotech-enabled ingredients, and food processing advancements would give investors more confidence in market timelines.
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Support the development of corporate venture partnerships between legacy food manufacturers and foodtech startups. Canada’s large food manufacturers and processors can play a role in scaling foodtech startups. We should encourage corporate venture capital partnerships, acquisitions, and joint ventures to help high-potential foodtech companies reach commercial scale.
This trade war has exposed Canada’s vulnerabilities. Right now, we’re overly reliant on one export market. That’s a losing game in the long run. If we don’t invest in foodtech now, we risk being stuck as a commodity supplier while other foodtech trailblazers capture the high-value market opportunities.
The solution isn’t just more investment—it’s smarter investment. That means de-risking private capital, building infrastructure for scale, and fixing the mid- and late-stage funding gap that’s keeping Canadian foodtech companies from reaching their potential.
Volatility in Canada-U.S. trade relations has made it clear: investing in foodtech is essential to ensuring the long-term resilience and growth of our food sector.