Across the country, farmers are under pressure with rising prices of fuel, fertilizer, feed and forage. However, they are doing well so far thanks to inflation, which allows them to sell their production at a higher price. On the other hand, for consumers, the addition is likely to be salty.
In Montérégie, the sowing season is in full swing. Under the blazing sun, gigantic tractors raise clouds of dust in the midst of meadows that reach as far as the eye can see on the plains.
Jérémie Letellier, a grain producer in Napierville, stopped her seed drill to look at inflation. Its machinery is starved of diesel and the price has doubled in the past year to reach $ 2. At seed time it was a $ 1500 to $ 2000 bill every three dayshe says.
At the moment, he spends without thinking, he has no choice, but he knows that at the time of balance, the fuel charge is heavier than expected on balance.
However, the price of hydrocarbons remains a secondary problem. This year, the biggest issues are fertilizers and manurehe laments, speaking of his biggest expense item.
Last year, a ton of fertilizer cost him $ 500, on average. This year it’s $ 1,000. And again, he considers himself happy. For producers who paid for their order after March 2, rates could reach $ 1,500 per tonne.
That month the federal government imposed a 35% tariff on fertilizers from Russia and Belarus. One of many sanctions that Ottawa imposed following the invasion of Ukraine, but now hinders many growers across the country.
Jérémie Letellier hopes the government will reconsider its decision, as it is almost impossible to do without Russian fertilizers. Tariffs will be sent to producers, not the Russians will pay themsomewhat disillusioned he let go.
The price of grain at its highest
On the other hand, Jérémie Letellier also has something to celebrate: the value of her production has increased. The price of wheat, for example, has doubled in the past two years. If prices remain the same, there will be no problempredicts the grower of wheat, corn and soybeans.
” We can’t complain, it’s compensatory. Will it last? We do not know. If it goes down, will the price of inputs go down? That, I totally doubt. We are in an inflationary spiral that is hard to break. “
But not everything works well. Mr. Letellier, who is also president of the Fédération de l ‘UPA of Montérégie, is concerned about pig farmers.
Due to the price of grain, the price of feed also increased. They also have to deal with the setbacks of the main processor, Olymel, which buys fewer small animals.
These producers are going through a situation that is quite difficult, quite stressfulaccording to him, because inputs are very expensive and pigs do not leave the farm.
Although the context is the same for beef producers, dairy and poultry producers work well, as supply-managed sectors benefit from periodic price adjustments.
The grocery bill will continue to rise
There is a lot of uncertainty in the marketsreviews Institut du Québec chief economist Luc Belzile.
It details a list of things to consider. First is the increase in the price of fertilizers, feed, seeds, agricultural equipment (purchase and maintenance). Then the price of transportation that affects the entire chain of production and distribution.
Then there was the war in Ukraine that disrupted both maritime transport and grain production. A third of the world’s wheat production comes from Ukraine and Russia.
And finally, there are common climate factors that, with global warming, are becoming more unpredictable. Mr. Belzile monitors the situation in California in particular, garden of the united stateswhere many fear severe drought again this year.
All these factors produce a lot of uncertainty and put pressure on the prices of agricultural commodities., graduation specialist in agricultural issues. And, according to him, the grocery bill has a good chance of rising in the coming months.
” Rising fuel prices have an impact on the price of fertilizers, then on grain prices and then on the price of milk and meat. This is a ripple effect. The consumer wonders why the increase in fuel price has an influence on the price of milk. This is the price sequence that is felt at all stages. “
According to Statistics Canada, food prices jumped 8.7% in Quebec between March 2021 and March 2022.
Before returning to his sowing, Jérémie Letellier assured us that he keeps his spirit and he stays focused on his harvests.
There are many uncertainties at the economic and environmental level, but we need to adaptphilosopher said, at the prices we have, if the harvest is good, the year will be good.
Source: Radio-Canada
