Better by
the Drop:
Revealing the Value of Water
in Canadian Agriculture
A summary of Better by the Drop, a 2013 report published by the Blue Economy Initiative
FOOD FOR THOUGHT

Global food demand is set to
double by 2050, but the
availability of fresh water is
on the decline

With 3,300 km3 of annually
renewable water, Canada is
one of only five countries in
the world that can significantly
expand its agricultural exports

Can we unlock this economic potential by developing a strategic
approach to the way we use and manage water?
BEI REPORT TACKLES SOME
TOUGH ISSUES

Canada’s most productive food-growing regions are our driest—
and getting drier. Will we be able to expand production there?

Based on water availability and the economic return on “water”
investment, which crops should we grow and where?

Some countries target certain crops for domestic production
and decide what they’ll import based on water availability. What
lessons are there for Canada?

Water for food, or water for fuel? What’s the global impact of
this trade-off, and what role can Canada play?

Which regions are getting the “crop-per-drop” ratio right?

What impact would an increase in food productivity have on the
long-term health of our fresh water systems?
ISSUE 1: FOOD DEMAND IS ON THE RISE
Population growth
Changing diets, with increased demand for meat
Urbanization
ISSUE 2: AVAILABILITY OF CROPLAND
IS SHRINKING
Urban expansion
Rising oceans
Soil degradation
Acreage used for bio-energy production rather
than food
These factors are sharply reducing the land area available
for food production in many regions.
ISSUE 3: FRESH WATER IS
INCREASINGLY SCARCE
Climate change
Water pollution
Without water,
nothing can
grow
Groundwater overdraft
These factors are curtailing fresh water availability in many
of the world’s traditional ‘breadbaskets’.
WHAT’S NEEDED FOR A COUNTRY TO
BE A SUCCESSFUL FOOD EXPORTER?

Sufficient fertile land and water

Suitable climate for the key export commodities

Reliable infrastructure

Efficient commercial and financial services
FIVE COUNTRIES HAVE WHAT IT TAKES
TO FEED THE WORLD
Only five countries possess the ‘Goldilocks’ combination of
ample precipitation and low ratios of population to arable land:
Canada
Russia
Brazil
United States
Argentina
CANADA’S COMPETITIVE ADVANTAGES
Water
3,300 km of annually renewable water
Land
Second highest ratio of arable land per capita
Growing
Seasons
Extended seasons in parts of Canada due to warming
in the continental interior and higher latitudes
Infrastructure
Agri-food infrastructure, well-known and well respected
national identity, well-established producers and
producer associations, and sophisticated intermediary
sales, finance and distribution services for agricultural
commodities. Canada’s transportation and shipping
infrastructure is competitive with any other exporting
nation.
OUR TOP FOOD EXPORTS AND
EXPORTING REGIONS

Canada is ranked number one in global production of lentils,
peas, linseed (flax seed), and rapeseed (canola), and second in
oats and blueberries (as ranked by the United Nations).

Agricultural production is estimated to contribute $139 billion
annually to Canada’s economy

In 2011, beef was the most valuable commodity in Canada,
followed by rapeseed, pork, milk and chicken

Canada ships more than half the peas, lentils and linseed
available to other nations, and roughly a third of the world’s
canola

Canada exports between 56-93 per cent of its national
production of key food commodities
VALUE OF FOOD COMMODITIES
PRODUCED IN CANADA BETWEEN
2001-2011
Source: FAO (2011)
VALUE OF TOP FOOD COMMODITIES
EXPORTED FROM CANADA 2001-2010
Source: FAO (2011)
ON THE OTHER HAND

Canada’s farm belt is getting drier

The most fertile regions are most at risk

We are degrading the water we have

There’s a limited opportunity to grow crops in Canada's boreal
region and the Canadian Shield
OUR FARMLAND
Provinces with irrigated agriculture:

Saskatchewan

Alberta

British Columbia
Provinces that primarily rely
on rainfed agriculture:

Manitoba

Ontario

Quebec

Maritime provinces
TOTAL VIRTUAL WATER REQUIREMENT
British Columbia , Okanagan Valley – Irrigation water needed per year
FIVE WAYS TO MAXIMIZE WATER
PRODUCTIVITY
1
Improve irrigation efficiency
2
Reduce the area under irrigation
3
Grow crops that are water efficient
Establish virtual water metrics
4
(the volume of water required to produce a quantity of food or
any other product)
5
Distinguish between irrigated water use (blue and
grey water) and rainfed production (green water)
P.S ON WATER MATH
Crop-per-Drop
crop
water required
to produce it
=
farm product’s
water efficiency
Dollar-per-Drop
$
crop-perdrop
x
market
price for
that crop
=
economic
value of the
virtual water
TO SUM UP
When water is plentiful in a growing region, a rational
strategy may be to pursue the highest export dollar value
regardless of a crop’s water intensity.
But as water supplies become more strained, new
alternatives can arise when individual farmers, irrigation
districts, agri-food producers and government authorities
know which farm products deliver the most ‘crop-per-drop’
under different conditions.
SEVEN RECOMMENDATIONS
1
Develop drought/flood contingency plans
2
Provide incentives for innovation in water efficiency
3
Establish virtual water and water footprint analysis pilot projects
4
Create national virtual water inventory and risk assessment tool
5
Support farm level research, education and access to information
6
Implement true cost accounting to capture externalities
7
Evolve toward full water footprint/life cycle assessment
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