Following a three-day protest in Canada's capital city, Ottawa, over a COVID-19 vaccine mandate that Canadian truck drivers and other essential workers require proof of vaccination to enter the country, the question now is: What is really going to happen with the vaccine mandate? ? Courchesne Larose's Guy Milette says the mandate, which came into effect on January 15, is another tug on a supply chain that is already becoming stressed thanks to a variety of factors. However, the goods will pass.

“Every company has a different situation,” says Milette, who is also chairman of the board of directors for the Canadian Produce Marketing Association. “In our case, after a quick survey, within the transport that we use, we probably have between 5 and 10 percent of drivers who do not have double vaccination. That means there's still 90 percent out there."

The first area in which the mandate will be considered is pricing. "We're used to transportation charging $6,000-$9,000-$10,000 at peak demand," he says, noting that, for example, a $10,000 fee occurs during the holidays, when fewer drivers may be available due to travel time. holidays. However, it is also the time when retailers want to promote more products. “So with fewer trucks and more demand, there are unbalanced prices. The mandate just adds an extra layer to that and we're seeing prices move to, we've heard, $15,000."

Better planning in order

The key, says Milette, is better planning to ensure you have trucks at the best price. “We normally say we need two trucks to move lettuce today. We can't do that anymore. If you're last minute and want a truck, you'll pay $15,000,” she says. “But if you plan properly a day or two or even three days in advance, you will have a regular truck that will have a more standard rate. A buyer who plans better can save $25,000 in a week.”

And what will it mean for retailers and customers? Also increased costs and probably some ongoing fluctuations of when the product will be on the shelves. “Our warehouse is full and we have a very good range of products. So if you see a store with empty shelves, chances are the store is understaffed and doesn't have anyone to restock the shelves. We have seen it many, many times in the last few weeks,” she says.

However, customers will pay the price. “Customers should consider not having a very accurate shopping list. Some families buy the same thing every week. If your cauliflower is $8, leave it there and cook up some root vegetables,” says Milette. “We have a lot of winter vegetables in Canada, mainly roots, and there is very little transportation involved in moving this product. Although the average price is still higher than in previous years, it is still much lower than those products that have a lot of transportation charges.”

Heavier Products vs. Lighter Products
Commodities also influence high prices. “Consumers will see a price increase on most products. But you will see a lot of price spikes for heavy goods,” he says. “If you have a load of celery that is 65 pounds per box, you can only put 800 boxes on a truck vs. a load of raspberries where you can put 4000 on a truck. Celery at this time, 65 percent of the delivered price is freight. While with raspberries it's not so much."

And consumers are likely to be frustrated. “Eventually, consumers are going to get fed up: how many cauliflowers can you buy for $8-$9? If consumers are not happy with the price of cauliflower, simply stop buying it. That has a big effect,” Milette says, noting that the pressure doesn't have to come from consumers alone. “Consumers must say no, but importers and retailers must also say no. If a truck calls and says I can do this for $15,000, we should say forget it."