Image: Mike Vanden Bosch / Pattison Media
PREPPING PRODUCE PRICES

Loblaw expects higher produce prices as region ramps up Buy BC, agriculture efforts

Mar 1, 2025 | 3:26 PM

CHILLIWACK — A Loblaw’s Food Inflation report released Thursday (Feb. 27) has brought up some relief and anxiety for the coming months. The report says food inflation has been cooling across Canada thanks to the GST holiday’s effect on grocery chains and restaurants, but the U.S.-Canada tariff yo-yo could ignite some big price swings again.

The grocery giant is particularly concerned about the weak Canadian dollar, which has hit some of its lowest values in roughly 20 years. The impact of this will be more noticeable during the winter months when USD-valued imports make up the bulk of coffee, olive oil and fresh produce goods, like lettuce and tomatoes.

This isn’t news to the B.C. government, though. The Province has been ramping up its Buy BC campaign, and in the Fraser Valley, companies like Delta-based Windset Farms are now working to replace U.S. tomatoes while using renewable energy sources.

Image: Some of the most volatile grocery commodities this year, according to Loblaw. / Release / Loblaw

Finding green pastures at home

The Fraser Valley Regional District (FVRD) has also been planning to boost the region’s agricultural strength before the tariffs were announced. The FVRD’s 2023-26 Strategic Plan touted its priorities to “Support Agriculture and Protect Agricultural Lands” and “Enhance Fraser Valley’s Position as Agriculture Innovation Hub.”

Fraser Valley farms consistently generate the most revenue compared to other B.C. districts. The 2021 census data show $1.9 billion in gross farm receipts– that’s 40 percent of all provincial farm operating revenues.

“The type of agriculture practiced in the region varies between communities,” wrote the FVRD in its Agriculture Snapshot. “As represented by the number of farms, dairy, beef and greenhouse/nursery farms are more numerous in the Chilliwack area, whereas poultry and fruit farms are more numerous in Abbotsford.”

Nearly two-thirds of all dairy and egg production in B.C. are found in the Fraser Valley. There are also 583 fruit and nut farms across the region, which would be helpful if Loblaw’s predictions come true in the coming months.

Image: Regional farm cash receipts per census year. / FVRD

The company wrote: “The U.S. supplies about two-thirds of Canada’s vegetable imports, one-third of fruit imports, over half of Canada’s beef imports, and our country is the top market for US processed and prepared/ preserved pork. If Canada’s counter tariffs on U.S. products go into effect, this is likely to increase the price of these foods on the shelf.”

Business chambers from the region’s biggest producers have spoken up on the tariffs, citing their disastrous effects on the local economy if passed.

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