Weather puts pressure on prices

Extreme events are more frequent, intense, posing risks for supply chain

- ROSA SABA

Extreme weather events like fires, floods, heat waves and droughts pose an increasing risk to Canada’s food supply chain, putting pressure on prices all the way to the grocery store shelf, say experts.

“Any time you have major weather-related events, it tends to increase costs,” said Frank Scali, vicepresident of industry affairs at Food, Health & Consumer Products Of Canada.

These kinds of events are becoming more frequent and intense in Canada and around the globe.

A 2019 federal government report said temperatures are projected to keep increasing, driven by human influence, while precipitation is also projected to increase.

Weather plays a big role in food production, and factors like too much or too little heat or moisture can affect not only the volume of food produced, but also the prevalence of pests and diseases, said Amanda Norris, senior economist at Farm Credit Canada.

“Weather can also impact activities further down the supply chain,” she said. “For example, you might have damaged infrastructure from floods that changes transportation routes and the ability to move those products along the food supply chain.”

Shortages caused by extreme weather can also drive food prices higher if supply isn’t able to meet demand, she said.