"No Choice," All 6,900 Canadian Supermarkets Are Raising Prices Collectively!

Experts in Canada's food and grocery industry said that after months of trade tug-of-war, the impact of tariffs has begun to appear on Canadians' dining tables.

Gary Sands, senior vice president of the Canadian Federation of Independent Grocers, stated that small grocers especially feel the rise in procurement costs, with the price increase of fresh produce subject to new tariffs being the most significant - these perishable goods have very fast turnover rates.

Sands added that since the profit margins of about 6,900 independent grocery stores in Canada are typically only around 2% - much lower than other industries, these cost increases are difficult to absorb internally and will ultimately be passed on to consumers.

In response to U.S. tariffs, the Canadian federal government began imposing a 25% retaliatory tariff on $30 billion worth of American goods starting March 4. This includes various foods such as orange juice, some berries, nuts, ketchup, shrimp, etc. These tariffs are now showing their influence in the supply chain.

The price increase of tariff-affected goods is also clearly visible on supermarket shelves. For example, the price of American orange juice is significantly higher than that of products produced elsewhere.

Michael Graydon, CEO of the Canadian Food, Health & Consumer Products Association (FHCP), pointed out that in addition to the price hikes of imported American goods, tariffs are also driving up the costs of local food producers in Canada.

Graydon said that at present, most Canadian food producers are still trying to absorb these costs themselves, hoping to wait for unstable tariff policies to ease before deciding whether to raise prices.

Meanwhile, the "Support Local Products" movement is also putting extra pressure on small retailers, who are struggling to quickly adjust their supply chains to meet consumer expectations.

Despite the fact that supermarkets and merchants have already started feeling the effects of tariffs, many price increases have yet to truly reflect on retail prices.

Graydon said that when suppliers want to adjust prices, retailers usually require them to submit applications and explain reasonable reasons for the price increase. This process may take 6 to 12 weeks, meaning that some price increases have not yet begun to show.

Source: https://www.toutiao.com/article/1829763773060170/

Disclaimer: The article solely represents the author's own views.