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Home > Must read! > Montréal and the regions - more complementary than we think


Montréal and the regions - more complementary than we think

We all know that Montréal and the other regions of Quebec have different industrial and economic structures. But does that mean they have nothing in common? Quite the contrary. While they may not be readily apparent, the fact is that there are some very real economic similarities. One need only look at the importance of the agrifood sector in the Quebec economy, particularly in terms of job concentration.

In fact, according to the ministère de l’Agriculture, des Pêcheries et de l’Alimentation du Québec (MAPAQ), in 2006, the biofood industry accounted for 467,000 or 12.4% of the 3,765,000 jobs filled in Quebec. Interestingly, these jobs were not only concentrated in the regions: with some 120,000 employees, the agrifood sector generated about 13% of the jobs on Montréal island, a similar proportion to that in the other areas of Quebec.

A study conducted by the Fédération des chambres de commerce du Québec (FCCQ) reveals that the agrifood industry, which represents 6% of Quebec’s GDP, is as solidly entrenched in Montreal as elsewhere, accounting for no less than 5% or about $4.4 billion dollars of Montréal’s GDP.

Although Montréal is not known for farming and livestock production, 13% of all businesses on the island of Montréal were agrifood-related establishments. More than half of them (52.2%) operated in the food services sector, while the next largest concentration (32.2%) was in food distribution. These figures clearly show that Montréal is an important market for regional products.

However, Montréal’s role is not limited to processing and distribution. The similarities between Montréal and the regions go much further, as evidenced by our foreign trade statistics. According to the Institut de la Statistique du Québec (ISQ), agrifood products accounted for 5.6% of Quebec’s total exports last year. Better yet, the value of these exports climbed 43.5% between 1998 and 2006. Better yet, the value of these exports climbed 43.5% between 1998 and 2006 and, according to EDC, Quebec agrifood exports will increase 4% in 2007 and 6% in 2008. As a result of its geographic location and infrastructures, Montréal is Quebec’s international trade hub. As most exports must go through Montréal, the city provides an outlet for the regions’ efforts.

An urban centre also helps its surrounding regions through efforts to raise its profile abroad. This often means holding international events – such as the Salon International de l’Alimentation (SIAL) – which generate considerable spinoffs for the local economy. As well, when a company decides to establish its headquarters in a metropolitan area, it does so for many reasons: the city’s national or international visibility, access to qualified and abundant labour and investment capital, an essential component for growth. It is therefore not surprising to find that not only agrifood, but aluminium and forestry companies - two strong industries in the regions – have set up their head offices in Montreal.

In light of these similarities, 2008 could be an important year in terms of developing complementary relationships between all the regions of Quebec. As a matter of fact, the Commission sur l’avenir de l’agriculture et de l’agroalimentaire québécois and the Groupe de travail sur les aides fiscales aux régions ressources et à la nouvelle économie will be presenting the conclusions of their reflections early next year. Hopefully, they will consider the dynamics at play between Montréal and its regions and make suggestions on how their complementarity can be leveraged.