Cold and hungry: Food inflation bites Canada's north

North West

08/08/2022 20:26

By Rod Nickel
    IQALUIT, Nunavut, Aug 8 (Reuters) - In Canada's remote
north, residents have long paid dearly for food, and rising
prices have worsened an already dire situation, exposing the
vulnerability of one of the world's biggest exporters of grains
and meat.
    Communities in Nunavut -- the largest of the three
territories that make up Canada's northernmost region -- have no
roads to connect them with each other, forcing them to rely on
fresh food airlifts twice each week. Permafrost and freezing
temperatures nearly year-round make growing crops impractical.
    Supply chain disruptions driven by the coronavirus pandemic
and Russia's invasion of Ukraine have worsened food insecurity
in poor countries globally. Nunavut's experience shows it has
taken a toll on poor regions of even rich nations like Canada,
which is the No.3 exporter of wheat and pork.
    In stores in Nunavut's capital Iqaluit recently, a bag of
cherries sold for C$21 ($16.34), and a six-pack of bottled water
cost C$19 - both about double the cost in southern Canada. A
12-pack of soft drink cans sold for C$27, triple the price in
the south.
    Iqaluit resident Nathaniel Chouinard, 35, says he used to
spend C$500 every two weeks to feed his family of six. Since
January, he has been spending C$150 more every two weeks.
    "I compensate by working more hours," said Chouinard, who
works two jobs in security and information technology. "I’m
spending less time with my family."
    The Qajuqturvik Community Food Centre in Iqaluit, a soup
kitchen that offers free meals to those in need, says by June
this year it had served 20,000 meals - the number served up in
all of 2021.
    "Food insecurity in the north was already called the
longest-lasting public health emergency in Canadian history,"
said Rachel Blais, Qajuqturvik's executive director.
    "The sharp increase in demand we've seen in the last seven
months is alarming."
    Nunavut's Family Services Minister Margaret Nakashuk said
hunger was hampering the ability of children to learn in school
and fueling crime, especially break-ins.
    
    'GETTING WORSE'
    It is difficult to quantify how much food prices have risen
in the north this year. Statistics Canada's measurement of
inflation in the northern territories is limited, only assessing
price increases in the three main cities and not breaking out
individual components like food and fuel.
    Iqaluit's consumer price index has doubled since the start
of this year, hitting 4.3% in June and well above the Bank of
Canada's 2% target. That is well below Canada's national
inflation rate of 8.1%, mostly because Nunavut's government made
bulk purchases of fuel before prices spiked.
    The region has long struggled with food sufficiency.
According to a 2020 Statistics Canada study, 57% of households
in Nunavut dealt with food insecurity in 2017-2018, the highest
level among provinces and territories in the country. Food
insecurity is defined as a household lacking money to buy the
variety or quantity of food it needs.
    Residents benefit from the Nutrition North federal food
subsidy, which lowers the price of certain foods in some
northern communities. But that is failing to reduce inequality,
says Qajuqturvik's Blais.
    The region is also unable to directly reap the benefits of
having waters swimming with fish. More than 95% of the turbot
and shrimp caught offshore are exported because the territory
lacks both a deepwater port to offload its catch as well as
research to identify economic fishing locations closer to shore,
said Brian Burke, executive director of the Nunavut Fisheries
Association.
    The Canadian government has promised C$40 million to build
Nunavut's first deepwater port, but that is a few years away.
    Blais, the soup kitchen director, said there is also concern
among people in Nunavut that stores may be charging too much.
    North West Co  NWC.TO , one of the biggest grocers in
northern Canada, last year reported profit that was up 82.5%
from its 2019 level. However, that reflects consumers buying
more during the pandemic and the company's profit ratios are in
line with those of southern grocery chains, said Mike Beaulieu,
vice president of Canadian store operations at North West.
    Regulations to cut down on overpackaging and lengthen expiry
dates could help, since Nunavut's biggest additional cost is
flying in food, Beaulieu said.
    For example, a third of a box of cereal is often just air
and certain foods carry longer best-before dates than needed, he
said.
    Iqaluit Mayor Kenny Bell said he doesn't blame food
companies.
    "It's really expensive to do business here," he said. "It is
definitely getting worse." 
 ($1 = 1.2849 Canadian dollars)

 (Additional reporting by Julie Gordon in Ottawa, editing by
Deepa Babington)
 ((rod.nickel@tr.com; Twitter: @RodNickel_Rtrs;
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