In sharp contrast to other manufacturing industries, Canada’s food manufacturing industry is proving to be largely recession-proof, indicating a potential opportunity for investors.

The Conference Board of Canada’s Canadian Industrial Outlook finds that although the global economic slowdown is limiting growth, profits in the food manufacturing industry this year are forecast to come close to the record highs recorded in 2008.

“Demand for everyday products such as food is not particularly sensitive to economic conditions, so the food manufacturing industry in Canada is expected to come through the economic turmoil without suffering too much,” said economist Valerie Poulin.

Food is one of the most overlooked components of the Canadian economy, according to the Conference Board. Food and beverages are the single largest component of retail sales, and food processing is the largest component of Canada’s manufacturing sector in terms of jobs.

Food processors may be affected by changing tastes and diets, and consumers may choose cheaper products over premium ones. But total food consumption is not expected to drop significantly due to the recession.

Production of food products is expected to decrease by less than 1% in 2009. Profits are expected to fall from their peak of $4.6 billion in 2008 to $4.3 billion this year and remain close to that level throughout the next four years.

The Conference Board also finds that companies in the food manufacturing industry have been able to attract consumers to new higher-value-added products with higher margins by providing increased convenience or food with greater health benefits.

IE