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These have been difficult times for the global brewing industry. While estimates vary, as the smoke clears, it appears world beer production was down between eight and 10 per cent in 2020, less than some early dire predictions of up to 14 per cent. Certain regions were particularly hard hit, such as Africa, Asia and Europe with output drops of 10 to 15 per cent. North and South America fared better with production down by two to five per cent. In China, the world’s largest brewer, production is estimated to have fallen by eight to 10 per cent, or 30 to 35 million hectolitres. To put this in perspective, Canada’s annual beer production is around 20 million hectolitres. In Japan, beer sales reportedly dropped nine per cent, while in Vietnam, which has a large population and strong beer culture, output is estimated to have fallen by a substantial 14 per cent.

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In recent years, China has hastily established barriers to Canadian imports that have created trade uncertainty. Canadian farmers have begun to see Chinese policy for what it is, a fragmented approach void of certainty that spurns the norms of regional and international trade agreements. Simply put, trading with China is like bartering on the black market; there is no recourse if you are ripped off. In order to ensure the livelihoods of Canadian farmers are not tied to the whims of Chinese politics Canada needs to take advantage of new markets that embody rules-based trade. If this occurs, farmers can expect predictability, the main ingredient of good business and trade.

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To think outside the box can be good for business as containerized shipping gains popularity in the Canadian grain industry. Though this mode of transport is not without its challenges, more and more shippers see it as a viable alternative to bulk movement.

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