Disappointment. That's how some produce growers and shippers are feeling post-implementation of a 25 percent tariff on product from Canada and the U.S. "On the surface, we understand the ramifications of these tariffs. However, I don't think any of us are thrilled with tariffs on any produce items," says Ken Gad of Cambridge Farms, Inc.
This sentiment follows a general sensitivity around higher grocery prices, a concern consumers have expressed for months if not years. In produce though, the disappointment comes in the all-encompassing notion of the tariffs. "The impact of tariffs on items such as a new car or phone–when you break down the average, it's not going to hurt them as dramatically as it does every day with groceries. I think many of us are disappointed that the tariffs will encompass produce and food items that you need every day to survive. You don't need a new car but you do need food," says Gad. "That's going to be the largest impact as it already has been on U.S. and Canadian citizens."
Looking ahead at U.S. potatoes
So what does this mean for the potato industry? "Potatoes are probably one of the easier commodities to keep in the U.S. for sure. We grow more than ample supply in the U.S. A large portion of what Canada grows does come into the U.S.," says Gad.
He also adds that there have been some Canadian provinces that were shipping potatoes at much lower prices than other provinces which in turn was hurting the U.S. potato industry.
What this means for pricing and how it develops is still being determined, but one notion that Gad mentions is variety and regional-specific pricing–buyers might be offered pricing on red or yellow potatoes from different regions for example. "The 25 percent tariff on this Canadian province may still be less because they were so inexpensive than for example, new crop from a U.S. growing region such as Florida," he says.
What about Russet potatoes? "While a Russet may not be as necessary to import as the other colors and we do have ample supply in the U.S, we also do appreciate having the option of using that imported supply to keep a competitive balance on both price and quality," adds Gad.
For more information:
Ken Gad
Cambridge Farms Inc.
Tel: +1 508-297-2630
Ken@CambridgeFarms.com
https://cambridgefarms.wordpress.com/