Ag sector warns of food price, supply issues

By COLLIN GALLANT on March 28, 2020.

cgallant@medicinehatnews.com@CollinGallant

Groups representing food producers are warning of higher food prices and potential food shortages if the agriculture sector is hampered by the COVID-19 pandemic regulations, a call echoed by the Alberta government.

Alberta Ag minister Devin Dreeshen told a press conference Thursday that he had confidence in the food supply chain as it is operating, but said Ottawa should declare all facets of food production, processing and delivery as essential services.

“We are working with producer groups to ensure there are no impediments to primary (food) production,” he said. “Hardworking people have really stepped up to ensure that food supply is there for all Albertans.”

The Canada-U.S. will remain open to food and other important commercial traffic, and transport workers are already subject to job specific pandemic safety rules.

Early this week, Ottawa announced $5 billion in new credit facilities and changes to due dates for ag producers accessing the cash advance program. That is to ensure operational financing, but farm groups are increasingly worried about their members getting what they need – parts, seed, chemicals and other supplies – as they look to move toward planting in April.

Beef and grain producer groups in the west and national produce and retailer associations say any production lost in the remarkable steps taken to halt the spread of COVID-19 will hurt and unsteady

The Canadian Cattlemen’s Association wants to make sure $3 billion worth of annual beef and animal exports to the United States remains in place.

Vice President Dennis Laycraft said industry has worked with the Canadian Food Inspection Agency to ensure meat-packing plants remain open, and supplies are available to Canadians.

“We’ve had good assurance that we’re going to be able to keep the plants up and operating at capacity,” he said.

This week, Cargill announced it would boost salaries and sick-time allowances of its packing plant workers in High River to levels sought by the United Food and Commercial Workers union. The JBS plant in Brooks has been approached about implementing similar measures there.

Jeff Lewandoski, who runs a cow-calf operation in Jenner, told the Canadian Press that worries are six months away when young calves will be taken to market.

“Our payday comes in the fall, so as long as we’ve got things half way back to normal by then, I don’t think this is going to be much of an issue.”

Lewandoski is more concerned about the long-term impact.

“It’s not the virus itself,” he said. “People panicking worries me and the decisions our government makes worries me that some of this might have some long-lasting effects on our whole economy.”

The Alberta government has requested that the federal government declare the entire food supply chain is an essential service, thereby meaning special regulations or exemptions would be applied to keep it open, even as health authorities order others to close.

In terms of in-province action, Dreeshen said the food production sector is ramping up production. The province is monitoring the sector in terms of production, delivery and demand that major retailers say have been 50 per cent higher than normal over the last three weeks.

The supply system is working, said Dreeshen, but the province is monitoring availability in rural, remote and indigenous communities, and provincial action could be taken if problems arise.

“The system is in tact and people should be aware of the effect that panic buying and hoarding has on their neighbours,” he said.

In terms of processing, he said that food processors are already subject to high federal and provincial health and safety standards, but are adding human resource measures to ensure sick or at risk employees stay home.

The major railroads and the Alberta Motor Transport Association have said they can handle the sudden spike in logistics.

Local producers have told the News they much of what’s needed for seeding in a few weeks is either on-farm or on its way.

Paul Haynes, the CEO of ag supplier South Country Coop, reported no shortages, but said outlets are selling higher volumes of bulk petroleum and seeing increased orders of chemicals and fertilizer.

“A lot of farmers are coming in, getting ready to plant, and we now we’re only a few weeks in front of the season,” he said.

Alberta Wheat Commission president Todd Hames said it is crucial that the grain terminals at the Port of Vancouver and fuel and farm implement supply companies also need to remain open for producers that were hit by transportation woes and a rough harvest last fall.

“We’re in unknown territory,” said Hames, who farms near Marwayne, Alta. “Just when prices were starting to see our seasonal rallies in the spring, coronavirus hit. It’s just all gone to hell in a handbasket. Who knows what we’re in for this year?”

— with files from The Canadian Press

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