From farm to table: How extreme weather affects prices along Canada’s food supply chain

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From farm to table: How extreme weather affects prices along Canada’s food supply chain
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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

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.

Shortages caused by extreme weather can also drive food prices higher if supply isn’t able to meet demand, she said. Drought in 2023 strained crop production in Saskatchewan, with output declining almost 11 per cent, two years after a historic 47-per-cent production decline due to extreme heat and drought in 2021.

While farmers often see direct impacts from extreme weather events, for those further along the supply chain, like manufacturers and processors, the effects are usually indirect, said Scali. If it’s a one-time disruption, the company usually tries to absorb it, he said, but longer-term disruptions or changes usually mean prices will have to go up.

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