Alberta (Rural Roots Canada) – The tariffs imposed by U.S. President Donald Trump on Canada and Mexico are shaking up Alberta’s food industry, and local processors are already feeling the pressure.
Bianca Parsons, Executive Director of the Alberta Food Processors Association, says businesses are already struggling to adapt. Long-term contracts with major retailers in the United States make it difficult to absorb sudden cost increases.
“They have contracts with major retailers in the United States selling their food and beverage products,” says Parsons. “Those contracts obviously don’t include a 25% increase in tariff. They’re now trying to renegotiate those contracts so that they can still make a viable business.”
Parsons says their members are nervous and scared about the future. “They survived COVID, they’ve survived inflation, and they’re terrified. Will they survive tariffs?”
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Companies are being urged to buy local whenever possible, but finding alternative suppliers isn’t always easy. Farmers and food processors are also caught in the ripple effects of the tariffs, with costs likely to be passed down the supply chain.
“What we’re telling these ingredient and agriculture producers and processors working with other forms of ag is, we’re going to have to share the burden right now, and this is going to be a tricky burden to share,” explains Parsons. “Unfortunately, some of this is going to get passed on to the consumer, but how can we work as an ecosystem to limit the shared burden to minimize the cost for all?”
The AFPA is calling for stronger interprovincial trade and the federal government to open up other borders to get their products to other markets. Parsons points to one tricky area for producers and processors: packaging. “Packaging laws aren’t the same across Canada. How you package your product in Alberta may not meet the requirements elsewhere, which is very difficult. Why should we create a whole new package if we want to sell in another province?”
Parsons believes alleviating some of these difficulties will help companies right now. However, with a prorogued parliament, the process may not move as quickly as they would like. “We’re hoping that as soon as the government can go back, the better so that we can start moving on some of these areas,” she says.
In the meantime, Parsons tells consumers you can help by choosing products with the “Made in Alberta” and “Made in Canada” labels.
“We really encourage the average consumer to go out there and find another product that hopefully you’ll fall in love with.”
To find a list of products made in Alberta, you can visit the website madeinalberta.co which showcases local growers and producers in the province.
