Supply Chain Strain
Canadian Produce Marketing Association (CPMA) reacts to the measures proposed by the government of Canada to stabilize food prices
![Supply Chain Strain Supply Chain Strain](https://media.potatopro.com/supply-chain-strain-2400.jpg?width=1200&height=743&crop=smart&mode=crop)
Canadian Produce Marketing Association (CPMA) recognizes the federal government’s attempt to alleviate the impact of rising food prices in Canada via the October 5th announcement.
While CPMA is supportive of improved data collection and the development of a Grocery Code of Conduct we have significant concerns with other elements of the proposed strategy including potential discounts, price freezes, price matching, and the development of a Grocery Task Force.
Implementation of discounts, price freezes, and price-matching campaigns, without considering full supply chain impacts, will not help in lowering food prices and will add more financial burden throughout the domestic and global supply chain including fresh produce growers who are already struggling under significant increases to production costs.
According to a report released by the Global Coalition of Fresh Produce comprised of fresh produce associations including CPMA, the inflationary pressures Canadians are facing are also being felt around the world and this is due to the increase in the costs of production of fruits and vegetables.
In addition, further information is required to determine the value of the Grocery Task Force that supports consumer advocacy. CPMA recognizes the efforts of existing groups within the Canadian marketplace supporting consumer interests; duplication of these efforts and adding more costs to a burdened supply chain must be considered before institutionalizing a new structure.
Ron Lemaire, CPMA President:
"The federal strategy has some gaps and the produce supply chain partners have not been consulted, if produce is included in any price freeze model it will impact the flow and availability of produce in Canada."
"We are a global food system and a full food supply chain approach is necessary to address food prices as well as federal government multiple policies which have added to the end cost to Canadians."
CPMA does appreciate the government's recognition of efforts made by industry to develop and implement a Grocery Code of Conduct. Federal funding is necessary to launch this tool that will support fairness and transparency across the industry.
This necessary industry tool is a long-term solution that will support companies in their efforts to sell and market grocery items in Canada. Additionally, CPMA is supportive of building a database to access information on food prices and cost breakdowns to enable the government to make informed decisions around food policies.
CPMA continues to collaborate with its members and partners from Canada and around the world to address issues that impact Canadians’ access to food.