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High fuel prices driving up shipping costs for northern grocers
Air freight surcharges of 20 to 50 cents per pound are pushing up prices for milk and other staples, grocers said.
- Rising fuel surcharges are driving up grocery prices across Northern Canada. Mike Beaulieu, vice-president of Canadian store operations at The North West Co., said, "There are some costs already flowing through. It's unavoidable."
- "The vast majority of all the perishable food is coming in by air freight," said Nicholas Li, an economics professor at the Toronto Metropolitan University. Retailers face surcharges of 20 to 50 cents per pound on air freight cargo.
- A four-litre jug of milk weighs 10 pounds, triggering a two-to-five dollar cost increase. Beaulieu noted this hits items "that most Canadians would take for granted as being pretty price stable, even in this high inflation environment."
- Air Inuit vice-president of commercial Marie-Noëlle Pronovost reported the airline added a three per cent fuel surcharge on April 1. Duane Wilson, vice-president of stakeholder relations for Arctic Co-operatives Ltd., said rising fuel costs threaten business viability.
- While the federal Nutrition North Canada subsidy helps offset costs, Wilson said, "The marginal benefit of that subsidy has continued to erode over time." Market volatility threatens further increases ahead.
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29 Articles
29 Articles
The Toronto Star+27 Reposted by 27 other sources
High fuel prices driving up shipping costs for northern grocers
Whether it's Florida oranges, Colombian coffee or even homegrown items from another province, food has often travelled a long way before it reaches grocery stores in Canada.
·Toronto, Canada
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Total News Sources29
Leaning Left19Leaning Right0Center5Last UpdatedBias Distribution79% Left
Bias Distribution
- 79% of the sources lean Left
79% Left
L 79%
C 21%
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