NWC drops produce prices in nine Nunavut communities

The reduced value of the Canadian dollar coupled with droughts in California and other southwestern states have produced a sharp rise in the prices for many fruits and vegetables imported from the United States. (FILE PHOTO)

The North West Co. has temporarily reduced prices on some produce items in nine Nunavut communities in response to a “perfect storm” of economic and weather conditions, an executive from the company told Nunatsiaq News Feb. 5.

“Food prices across Canada have been impacted, but particularly in northern communities, where there is already a higher cost of living,” said the company’s director of business development, said Derek Reimer.

“We decided last week to make a significant reduction — in excess of 10 per cent — on some produce in some of our communities, so this will make sure that food is more affordable for our customers.”

A lower Canadian dollar has resulted in “significant inflation” of prices on produce imported by the NWC from the United States, Reimer said.

This time of year, the company imports about 80 per cent of their produce from places like California and Arizona, he said.

On top of that, poor weather conditions in the Southwest of the United States has inflated crop prices as well, said Reimer.

“Produce has seen a greater impact than other food categories, mostly because the majority of it is imported and because of the poor growing conditions,” he said.

As a result, the price of over 50 produce items sold in nine Nunavut communities and six communities in the Northwest Territories have been lowered, said Reimer.

Produce like bananas, blueberries, apples and carrots have been reduced in price in the following nine Nunavut communities: Arctic Bay, Cape Dorset, Clyde River, Igloolik, Kimmirut, Pond Inlet, Baker Lake and Gjoa Haven.

“We’re going to keep an eye on the situation, but we’re hoping weather conditions will improve and prices will come back down to normalized levels,” Reimer said.

The latest financial data available on the NWC’s website — from the third quarter of 2015 — shows the company recorded revenue increases in almost every category.

That includes nearly 11 per cent increase in overall sales, as compared to the third quarter of 2014, and $2.3-million increase in net earnings for a total of $20.7-million.

But Reimer pointed out that nearly 96 cents of every dollar the company earns covers the cost of operations—things like shipping, payroll and utilities.

“We are investing significantly in the North and it’s an important economic impact we have as a result,” Reimer said, adding the company’s 3,100-member workforce in the North makes the NWC one of the largest employers in the region.

“We worked extremely hard in the last couple of years to cut costs, be more efficient and pass along savings to our consumers… We’re always looking for ways to work with our consumers to ensure they have access to healthy food choices and affordable choices.”

Reimer said the NWC will continue to monitor produce prices and “reduce prices where we see a significant inflation or impact on our customers.”