Regina-based Farm Credit Canada sees a brighter future for food and beverage processors in the last half of 2022.

Chief economist J.P. Gervais says food processor profit margins have suffered due to rising costs.

But he feels declining commodity prices will mean better incomes for food and beverage processors in the last half of the year.

Gervais says ongoing strong demand for grain and meat products will fuel improved profit margins in the coming months for food processors.

Gervais says food and beverage sales in Canada are expected to show a 9 percent rise in 2022.