Last week, I caught up with Dana McCauley, CEO of the Canadian Food Innovation Network (CFIN), to discuss some of the challenges facing Canadian food manufacturers amidst the abrupt and surprisingly hostile stance taken by the Trump administration towards our northern neighbors.
CFIN is a national organization dedicated to helping Canadian food and beverage businesses enhance productivity, competitiveness, and economic potential through innovation and technology adoption, and in her position as president of the organization, McCauley had a bird’s eye view on how the Canadian food companies are navigating considerable uncertainty due to shifts in trade policies, tariffs, and antagonistic rhetoric from the U.S. administration
We discussed the disruption caused by sudden policy reversals on trade agreements previously established between Canada and the U.S., and what the imposition of tariffs has meant to Canadian food companies. According to McCauley, the uncertainty forces Canadian food companies to spend extensive resources on scenario planning, detracting from productivity and innovation. McCauley pointed out that these issues are magnified in the food business compared to other industries because of the food’s unique constraints compared to other sectors, such as limited shelf life.
Another struggle for Canadian food manufacturers under the new reality is figuring out how to move forward in a business that often involves complex products that historically have integrated cross-border ingredient lists. McCauley shared the example of organic dairy products, which traditionally have included American-sourced dairy components for value-added products. McCauley said that rising tariffs and trade barriers now render these business models economically unsustainable, prompting businesses to rethink their strategies drastically.
And then there’s the hostile rhetoric from an administration of a country that Canadians have long-seen as their biggest ally. McCauley has said that the result of this rhetoric has been a strong push among consumers to “buy Canadian”. The shift to Canadian and drop American products has been swift and one has to wonder about the long-term damage that Trump is doing to the American brand in Canada and elsewhere.
I asked McCauley how CFIN is supporting Canadian companies given all the sudden changes, and she said that CFIN is actively supporting Canadian food businesses through this volatile period by advocating for enhanced domestic innovation and accelerated regulatory approvals for low-risk food technologies. She emphasized the urgency for Canadian food manufacturers to diversify markets, embrace domestic technological solutions, and leverage Canada’s extensive international trade agreements to navigate ongoing trade uncertainties effectively.
We talk about lots more, so you won’t want to miss our conversation. You can listen to my full conversation below or on The Spoon Podcast.
