October 2016 • Country Life in BC


13 Small farmers resilient in the face of penny-pinching


by PETER MITHAM VANCOUVER –


Thanksgiving is a time when we’re supposed to be grateful for the abundance of food from local farms and the fact that no one needs to go hungry in Canada.


But hand-in-hand with the love for all foods local has been rising awareness of the cost of food and the fact that if we put our money – and not just food – where our mouth is, the household grocery bill is chewing up a lot more than it used to.


According to the University of Guelph’s Food Institute, the average household saw its grocery bills increase 4.1% in 2015, and a further increase of 2% to 4% is expected this year. The university published a report this summer suggesting that consumers were cutting back on purchases of fresh produce to combat the price hikes.


Statistics Canada, however, reports a more modest increase of just 3% between 2010 and 2014. Prices in BC – where a Kwantlen Polytechnic University report for Vancity pointed to the potential for increases of 25% to 50% in the cost of imported produce by 2021 – households actually spent 7.1% less over the same period.


Put in real numbers, that works out to $110.21 per household each week, or $44 a person.


Average spending


With a budget like that, chances are the average person isn’t making a habit of shopping at the local farmer’s market. A report in 2012 for the BC Association of Farmers Markets pegged the average spending of market patrons at


$28.81 a week, more than half the average person’s grocery bill.


The numbers look a little better if the spending is spread over the average 2.5- person household, but with many fruits and vegetables selling for $2 a pound and up, at least double what supermarkets charge for the same items, it’s easy to see how buying local can quickly add up.


Further $1 million


Small wonder the province recently allocated a further $1 million to the “nutrition coupon” program that gives low-income families, pregnant women and seniors $15 worth of coupons to spend at farmers’ markets each week. While the program helps approximately 10,000 people a year, up to 20 times as many are in some level of need. According to Food Banks Canada, 100,086 people in BC accessed food banks in 2015, up 2.8% from 2014. Twice as many again are probably finding it tough to stay fed, according to Valerie Tarasuk, a nutritional sciences professor at the University of Toronto. She points out that food banks can’t meet everyone’s needs, and most people who are underfed make do by going without.


Sylvain Charlebois, an advisor to the Food Institute in Guelph, underscores this point by pointing to the haves – “the foodies, the organic lovers and fan of local products” – and the have-nots, who struggle to make ends meet.


“The have-nots … are not necessarily the poor and socially inept,” he wrote earlier this year. “They may have lost their jobs, recently run into financial difficulties or trying to


raise children during a separation. They may even be working two or three jobs at once.”


They don’t have time to queue at food banks and when faced with higher food prices, Charlebois says they’re turning to Wal-Mart and Costco. These big-box retailers have the clout to secure quantity discounts and the scale to move huge volumes at a profit.


“What Wal-Mart and Costco are doing resonates with the have-nots,” Charlebois says. “They are capitalizing on that segment of the market who


must watch every cent they spend.”


This in turn puts pressure on other food retailers to cut costs, resulting in pushback against suppliers and, ultimately, farmers. While the big grocers are featuring more local products in response to the trend-setting haves, farmers are poised to take it on the chin as pricing drops to serve the have-nots.


True cost of farming


The premium people are willing to pay for local products at farmers’ markets – often touted as the true cost


of farming – is more likely the extra margin smaller farmers need.


The good news in all this penny-pinching is found in the Statistics Canada numbers mentioned earlier: despite the fear-mongering, the average grocery bill in BC has fallen in recent years even as farmers’ markets have seen increased traffic.


People are finding a way to give the farmers they know a bit more money through direct sales, even as the larger local producers feed the needs of those who depend on cheaper offerings.


Investment Ag releases impact assessment by DAVID SCHMIDT


ABBOTSFORD – The Investment Agriculture Foundation of BC invested over $145 million in BC agriculture during its first 18 years, resulting in an economic impact of over $350 million. So says an Impact Assessment report commissioned by IAF to mark its 20th anniversary. Released in mid-September, the report indicates that every dollar invested by IAF results in an economic impact of $1.85. The report states the Growing Forward 2: Canada-BC Agri-Innovation program has generated significant advances in promotion of agricultural technologies and tools. It has enabled producers and processors to adapt and utilize new technologies in their production systems. Funding for the Buy Local


program has given local agricultural processors “a more powerful and confident presence in domestic and international markets.”


It has also resulted in new jobs, IAF saying each stakeholder reported at least one new hire because of the IAF funding. In its first 20 years, IAF has delivered government funding to more than 1,700 projects across British Columbia. “This report demonstrates the impact that collaboration between senior levels of government and the agriculture industries can have. By working together, BC’s agriculture is competitive locally and internationally, advancing with the latest technologies and tools, and creating jobs in our province," IAF chair Ken Bates said.


Financing the future of agriculture. We’re here to help.  


   


  


     


   


       


ABBOTSFORD Randy Lam . . . . . . . . . . . . . . . . . . . . . . . . . . . 604-504-4626 Rick Tilitzky . . . . . . . . . . . . . . . . . . . . . . . . . . . 604-504-4970 Satpal Gill . . . . . . . . . . . . . . . . . . . . . . . . . . . . 604-504-4975 Greg Ksinan . . . . . . . . . . . . . . . . . . . . . . . . . . 604-504-4647 CHILLIWACK Carlie Fleenor . . . . . . . . . . . . . . . . . . . . . . . . . 604-793-7256 David Fuerst . . . . . . . . . . . . . . . . . . . . . . . . . . 604-793-7274 CLOVERDALE Igor Koblizka . . . . . . . . . . . . . . . . . . . . . . . . . . 604-574-6885 John Howard . . . . . . . . . . . . . . . . . . . . . . . . . . 604-574-6855 Philip Kunz . . . . . . . . . . . . . . . . . . . . . . . . . . . 604-574-6878 COURTENAY Caroline Neumann . . . . . . . . . . . . . . . . . . . . . . 250-703-5330 DUNCAN Ryan Wettlaufer . . . . . . . . . . . . . . . . . . . . . . . . 250-715-2705


You can call on your BMO Agri-Specialist to help you


grow your business.


DIANE MURPHY VICE PRESIDENT, AGRICULTURE 604-504-4980 604-302-8784


diane2.murphy@bmo.com


STEVE SACCOMANO SENIOR AGRICULTURE MANAGER


604-504-4976 604-703-5161


steve.saccomano@bmo.com


IAIN SUTHERLAND, P.Ag AGRICULTURE MANAGER


604-504-4978 604-751-0292


iain.sutherland@bmo.com


LYNN LASHUK, P.Ag AGRICULTURE MANAGER 250-979-7827


lynn.lashuk@bmo.com


HANEY / PITT MEADOWS Angie Edmonds . . . . . . . . . . . . . . . . . . . . . . . 604-466-3551 NORTH OKANAGAN Teri Kopp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250-838-5820 KELOWNA Shelley Holitzki . . . . . . . . . . . . . . . . . . . . . . . . 250-979-1078 CRESTON / CRANBROOK Christine Dayman . . . . . . . . . . . . . . . . . . . . . . 250-426-1179 PRINCE GEORGE / NORTH Ante Cirko . . . . . . . . . . . . . . . . . . . . . . . . . . . 250-612-3030 QUESNEL Robin Madison . . . . . . . . . . . . . . . . . . . . . . . . 250-565-8699 WILLIAMS LAKE Darlene Campbell . . . . . . . . . . . . . . . . . . . . . 250-305-6828


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44