Soybeans market in Canada

Earlier Report Observations

Canadian soybean production fluctuated between 2018 and 2023, starting at 7 417 thousand tonnes in 2018 and declining to a low of 6 224 thousand tonnes in 2021. This initial downturn was influenced by a reduction in genetically modified soybean acreage in Quebec during 2019. The expiration of the Roundup Ready I patent in 2018 reduced seed costs for farmers, while a noted domestic shortage of processing capacity encouraged raw bean exports and prompted the emergence of new domestic processing companies.

The market recovered thereafter, with production rising to 6 981 thousand tonnes by 2023. This growth was driven by continuous innovation and the development of new soybean varieties better adapted to local Canadian conditions, coupled with an expansion of the national planted area. Consequently, the physical market volume increased from 2 195 thousand tonnes in 2021 to 2 934 thousand tonnes in 2023.

Recent industry developments include significant investments in domestic processing infrastructure, such as a new pilot plant in Ontario for non-GM and organic soy protein ingredients and the expansion of Soya Excel's dedicated organic production facility. The sector also adapted to new regulatory landscapes, including updated Canadian grain grading standards and stringent European Union regulations on imported deforestation, which affected export requirements.

Production soybeans in Canada

In kind, 2017-2020, K t

Globally, Canada ranked as the 7th largest producer of soybeans from 2017 to 2020.

Top producers of soybeans, 2017-2020

World map of production of soybeans, 2017-2020

Following a two-year decline, Canada's soybean production volume rebounded. In 2020, Canada produced 6,359 K t of soybeans, representing a modest increase of 3.5% compared to the previous year. Over the period from 2017 to 2020, production decreased by 17.6%, which translates to an annualized decline of 6.2%. The lowest production level was recorded in 2019 at 6,145 K t, with the largest year-over-year drop of 17.1% occurring that same year.

Annual dynamics of production in Canada in kind, 2017-2020, K t

In value, 2017-2020, M $ US

After a two-year decline, soybean production in Canada saw an upturn. In 2020, the output of soybeans was valued at 2,771 M $ US, reflecting a significant increase of 17.0% compared to the previous year. From 2017 to 2020, production decreased by 12.9%, with a compound annual growth rate (CAGR) of -4.5%. The lowest value was recorded in 2019 at 2,369 M $ US, which also saw the largest year-over-year decline of 20.9%.

Annual dynamics of production in Canada in value, 2017-2020, M $ US

Exports soybeans from Canada

Exports in kind, K t

In 2020, Canada's soybean exports reached 4,440 K t, marking a substantial increase of 11.2% compared to the previous year. Between 2017 and 2020, exports decreased by 4.8%, equating to an annualized decline of 1.6%. The lowest export volume was recorded in 2019 at 3,994 K t, while the highest was in 2018 at 5,504 K t. The largest year-over-year decline occurred in 2019 at 27.4%, and the largest increase was in 2018 at 18.0%.

Annual dynamics of product's exports from Canada in kind, 2017-2020, K t

From 2017 to 2020, Canada's soybean exports in kind were not heavily concentrated on a few key destinations. China accounted for 32.2% of exports, Iran for 9.5%, and Japan for 7.4%, with these three countries together representing only 49.1% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Canada in kind, 2017-2020

Exports in value, M $ US

In 2020, the value of soybeans exported from Canada reached 1,935 M $ US, showing a sharp rise of 25.7% compared to the previous year. The lowest value was recorded in 2019 at 1,540 M $ US, while the highest was in 2018 at 2,222 M $ US. The largest year-over-year decline occurred in 2019 at 30.7%.

Annual dynamics of product's exports from Canada in value, 2017-2020, M $ US

The structure of soybean exports in value terms from 2017 to 2020 indicates a diversified set of trading partners. China accounted for 30.5% of exports, Japan for 10.6%, and Iran for 8.4%, with these three countries together representing only 49.4% of total flows. The remaining 50.6% was distributed among numerous smaller markets.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Canada in value, 2017-2020

Imports soybeans to Canada

Imports in kind, K t

Import levels showed significant volatility during this period. The lowest import volume was recorded in 2020 at 1,006 K t, while the highest was in 2018 at 1,006 K t, resulting in a 3.1-fold difference between these years. In 2020, Canada imported 1,006 K t of soybeans, marking a contraction of 46.3% compared to the previous year. The largest year-over-year increase occurred in 2018 at 93.2%.

Annual dynamics of product's imports to Canada in kind, 2017-2020, K t

From 2017 to 2020, the United States dominated Canada's soybean imports in kind, accounting for 89.8% of total flows. The remaining share was distributed among various smaller destinations.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Canada in kind, 2017-2020

Imports in value, M $ US

Imported soybean volumes in Canada declined for the second consecutive year. In 2020, import volume totaled 136 M $ US, down by 40.5% compared to the previous year. Over the period from 2017 to 2020, imports decreased by 39.9%, with a compound annual growth rate (CAGR) of -15.6%. The highest value was recorded in 2018 at 374 M $ US, which also saw the largest year-over-year increase of 65.6%.

Annual dynamics of product's imports to Canada in value, 2017-2020, M $ US

From 2017 to 2020, the United States remained the primary market for Canada's soybean imports in value terms, holding a share of 82.1% of total flows. The rest of the volume was fragmented across numerous other destinations.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Canada in value, 2017-2020