Canada’s food manufacturers are beginning to cut capacity and focus on certain key products as they face labor shortages and supply chain issues that show no signs of easing. ‘mitigation.
Shipping backlogs, delays in getting packaging and ingredients, and high worker absenteeism due to COVID-19 isolation protocols are interfering with the availability of some products, experts say.
The situation has prompted some food suppliers to notify grocers of steps they are taking to fulfill orders, including finding new sources of materials, adding shipping capacity and even changing product recipes, in certain cases.
Buyers should expect intermittent issues with product availability, warned the CEO of the Food, Health and Consumer Products of Canada industry group, Michael Graydon.
“Some goods come and go and are a bit sporadic,” he claimed. “But the essentials of life will be there. »
Many food manufacturers are coping with labor and product shortages by focusing on the most popular product flavors and sizes to maximize efficiency, Graydon noted.
Despite everything, others have been forced to reduce their production while absenteeism reaches up to 20% in some factories, he said.
“You end up having to significantly reduce your manufacturing capacity because you don’t have the manpower,” he explained. “We already have a strong demand for the products because the catering industry is practically at a standstill and household consumption has increased. »
Meanwhile, supply chain issues are also impacting the movement of goods, especially across the border.
Shipping issues are delaying the delivery of U.S.-made products to Canadian fulfillment centers, as well as the availability of raw materials like packaging, experts say.
“There is a massive shortage of truck drivers,” Mr. Graydon recalled. “The goods do not move and the cost of transporting them increases. »
The situation is aggravated by the entry into force of mandatory vaccination for truckers, he added.
“It’s all about timing,” Graydon said. “This new variant had a significant impact on absenteeism […], we can’t afford to lose any more drivers right now. »
Sylvain Charlebois, professor of analytical sciences in agri-food at Dalhousie University, says access to food in Canada will be a challenge for some time.
“There are bottlenecks all along the supply chain, especially in processing,” he observed. “It impacts distribution and eventually the ability of grocers to restock shelves. »
As a result, consumers will see fewer sales and products on supermarket shelves, Charlebois warned.
“Promotions are going to be really, really rare,” he said. “And shoppers can sometimes notice half-empty shelves. »
Meanwhile, the shortage of truckers will make the border less fluid, leading to delays in getting ingredients and finished goods, Charlebois said.