Are possible price increases in the grocery store are not related to rates or even inflation? In this economy?
Yes, they are bananas. No, literally: this story is about bananas.
The Chiquita fruits giant is one of the main brands that lead the world banana industry, and its bananas are sold in 47 countries, including Canada, according to its most recent sustainability report. And Canada maintains a constant import supply of popular and generally affordable fruit, according to Statistics Canada.
But now, a work dispute in the location of Chiquita in Panama could mean less bananas and higher prices in the grocery store. Experts say that the fragility of the global supply chain stands out and how global events can affect what is available in their local stores.
Chiquita is the largest bananas supplier for the United States, and Panama is the largest banana producing country, so there will be a greater demand in the United States for other banana sources such as Dole, said Michael Von Massow, professor of food agriculture and resource economy at the University of Guelph in Ontario.
“It could mean less bananas in Canada, which could increase the price,” Von Massow told CBC News.
Imported bananas generally mature in Canadian distribution centers, which means that the situation in Panama will not affect the inventory immediately, Von Massow explained.
“But it could be relatively fast that we begin to feel the impact of the elimination of those bananas in the market.”
Despite a drop in the general inflation rate of Canada, food prices continue to rise, with some products such as the summary of approximately 16 percent. Experts point to a combination of the United States trade war, a weak Loonie and North American droughts that reduce cattle herds.
Chiquita shoots Panama staff in the middle of strikes
On Monday, Panama Labor Minister said that the administrative staff of Chiquita Panama has left the country and the company will seek the authorization of the government to fire its remaining staff in Panama.
Last month, the company triggered about 5,000 of its approximately 6,500 employees in the country in response to a strike on its banana farms that began in April.
Thousands of banana workers have strike as part of a broader strike throughout Panama. Protests and obstacles have spread throughout the country as workers, including teachers, construction workers and other unions march to protest several issues, including social security reform, which, they say, will affect their future pensions.
The president of Panamano, José Raúl Mulino, described the illegal and illegitimate strike.
At the end of May, Chiquita Panama estimated its strike losses of around $ 75 million in the United States.
Unions and NGOs have denounced the shots. On Friday, the Labor Justice of the NGO based in Washington asked Chiquita to “immediately” restore “its agricultural workers in Panama, qualifying the reprisal of the move. The International Union of Food Workers said it had “serious concerns” about the shots.
Even so, in terms of the impact on consumers, the banana market is not monopolized, said Joel Gregoire, associate director of food and drinks at the Market Mint Montal intelligence agency based in Toronto. The main players like Dole and del Monte are also in space.
This “makes it difficult to imagine a scenario in which Canadian buyers cannot find bananas,” he told CBC News.
“If work interruption continues for a prolonged period, it could create an opportunity for other companies to gain market share in Canada.”
‘Any interruption’ is probably noticed
The Covid-19 pandemic highlighted the fragility of global supply chains for many buyers, Gregoire explained. Now, with the panorama of the fluctuating rate, consumers are remembered once again these vulnerabilities, and says that the situation with little girl could serve as another example (although smaller).
“Bananas are a basic element for many homes, and it is likely that any interruption in the supply chain will be noticed, particularly in retailers who depend largely on Chiquita as a supplier,” he said.
As Statistics Canada points out, bananas have generally been less expensive compared to other fruits. In April, for example, the average price of bananas was $ 1.66 per kilogram. The apples, in comparison, were $ 5.85 per kilogram, the oranges were $ 4.56 and the pears cost $ 5.14.
They are also popular. The bananas led the list of all fresh fruits available for consumption to Canadians in 2023, measured by Agriculture Canada in kilogram per person, which represents 21 percent of the total participation of the available fruit (followed by melons, apples and orange).
In 2023, bananas were the third most imported fresh fruit in Canada by basic products, arriving just behind grapes and strawberries.
Food analysts already expected some long -term interruptions in the global bananas production before Chiquita’s work dispute, said Von Massow, pointing out climate change, the increase in extreme climate and diseases that affect banana crops.
“There are a variety of risks in the supply chain, and any of them can lift your head and cause a short -term interruption.”
Not only bananas, but also coffee
Meanwhile, another dispute (and another success for breakfast) is also highlighting how global events can affect what is available on store shelves.
Loblaw Cos buyers. The Ltd. stores will no longer be able to buy Folgers-Band products after a price dispute leads the shopkeeper to get them out of their shelves.
In an email sent to the retailers on Wednesday and seen by the Canadian press, Loblaw said he decided to eliminate all Folgers products after the conversations with the coffee maker could not solve the impasse.
Folgers is owned by JM Smucker Co., based in Ohio, which increased the price of its coffee offers both last June and October in response to the highest costs it faces.
In February, the company attributed a small increase in its net sales in the national retail coffee segment, its largest income generator, to the highest prices of its Folgers and Café Bustelo brands. President and CEO Mark Smucker told analysts about the quarterly gains of the company that call more increases in coffee prices.
Loblaw spokeswoman Catherine Thomas, told the Canadian press that the costs of costs proposed by the folgers were “unreasonable and unjustified according to the underlying costs.” She said Loblaw expects most of her stores to be in the stock of Folgers products during the next week or two.
Experts say that the highest coffee prices are partly due to the recent extreme climate and temperature changes, which has caused some producers to experience lower yields.
Gavin Fridell, professor of global development studies at Saint Mary University, told CBC News Manitoba last month that world prices worldwide are the highest in which they have been in more than 50 years due to droughts and dry conditions.
