Opinion: Simple regulatory fix would unleash B.C.'s agricultural powerhouse
By Bridgitte Anderson, James Donaldson
B.C. stands at a critical juncture. Our economy, already facing headwinds from global trade uncertainties, is missing a golden opportunity: the chance to transform our agricultural sector into a resilient, self-sufficient powerhouse. The key to unlocking this potential lies in a remarkably simple, yet profoundly impactful, regulatory adjustment: the removal of the outdated 50-50 food processing regulation on agricultural land.
This regulation, which dictates that at least 50 per cent of a processed product must originate from the very farm on which it is processed, is a relic that actively hinders food security, innovation, and growth. Imagine a farmer who has invested in state-of-the-art equipment to process their own strawberries into jam. The 50-50 rule severely limits their ability to use that same equipment for other local produce, such as blueberries from a neighbouring farm, even if the technology is identical. This restriction makes it economically illogical for farmers to invest in costly processing capabilities if they’re confined to processing only their own crops, preventing crucial economies of scale and diversification.
The consequences of this outdated rule are stark. We are already heavily dependent on imported food, particularly from regions like California. The 50-50 rule exacerbates this problem by forcing some of our growers into the absurd position of sending their hard-grown produce across the border to the U.S. for processing, only to buy it back at a higher cost. This isn’t just inefficient, it’s a direct threat to our food security. This doesn’t have to be the case.
At a time when climate change, inflation, and rising geopolitical tensions are straining global food supply chains, strengthening local processing capacity isn’t just an economic imperative — it’s a critical step toward building a secure and self-reliant province. We possess the agricultural land, the skilled hard-working farmers, and the agricultural innovation needed to reduce our dependency. Yet, the economic realities facing farmers and potential agricultural processors in B.C. are grim. There’s a major, well-documented shortage of industrial land across the province, particularly in the Lower Mainland, driving up prices and making it effectively impossible to establish or expand operations on non-agricultural land for most aspiring farms.
This is precisely where the 50-50 rule becomes a chokehold. It restricts the extent to which essential food processing activities can occur on the very land that makes them economically feasible. This limitation on viable agricultural processing is a direct barrier to our province’s competitiveness and is actively pushing growth away from B.C.
By enabling more local processing, we foster a stronger “made-in-B.C.” brand. This allows us to confidently market our high-quality, value-added products to new trading partners in the increasingly important markets of Asia, Europe, and beyond. It’s critical we do so, as historically we’ve relied upon the United States for 80 per cent of our agricultural exports. We commend Premier Eby and Agriculture Minister Lana Popham on their trade mission to Asia — this is important work. But to truly have something to sell, we need to unlock our local production and processing potential first.
Consider our provincial peers: Alberta, Manitoba, Quebec, Ontario, and Saskatchewan do not have the same restrictive processing rules. They already have a head start with the advantage of lower land costs, with most also providing significant incentives and tax credits that further disadvantage B.C. as a destination for investment.
We are already seeing agricultural jobs and investment leave B.C. for other jurisdictions, or simply not come here, in part due to the prohibitive nature of the 50-50 regulation. If we continue to hamstring our own agricultural sector, we concede market share, investment, and food security to our neighbours. Those provinces will sell their agricultural products to international trading partners through ports in British Columbia, when we should be leading the way.
The urgency of this issue is further highlighted by recent federal government commitments. Prime Minister Mark Carney has pledged $200 million to make Canada a food processing powerhouse, but British Columbia, through its restrictive 50-50 regulation, is actively opting out. Every day of delay means lost investment, lost jobs, and a more perilous, food-insecure future.
The solution is clear, simple, and within our grasp. By immediately removing the arbitrary 50-50 processing regulation, with a stroke of a pen, the B.C. government can unleash the generational entrepreneurial spirit of our farmers, attract vital investment, and create a resilient, prosperous, and self-sufficient agricultural economy for generations to come.
Let’s act today and make this vital change to allow British Columbia to take its rightful place as a global leader in food and agriculture and help build Canada Strong by building a stronger B.C.
This op-ed was originally published in the Vancouver Sun on June 04, 2025 and is written by Greater Vancouver Board of Trade President and CEO Bridgitte Anderson and B.C. Food and Beverage CEO James Donaldson.