Produce under pressure: CPMA’s Ron Lemaire on CUSMA
From rising costs along the supply chain to shifting consumer preferences, Canada’s produce sector is already dealing with significant challenges. Adding to the uncertainty is the Canada-United States-Mexico Agreement (CUSMA). On July 1, U.S. President Donald Trump’s administration declined to extend the deal, triggering an annual review process for the critical trade agreement.
Ron Lemaire, president of the Canadian Produce Marketing Association (CPMA), shares his insights on what the future holds for the produce industry and what grocers should keep in mind.
What’s top of mind for CPMA right now?
Predictability is the biggest concern. The produce sector is already navigating rising input costs, supply chain pressures and changing consumer behaviour, making certainty around trade rules especially important.
At the same time, consumer sentiment toward U.S. products has become an increasingly important factor. While Canada, the U.S. and Mexico operate within a highly integrated produce market, some Canadian shoppers are deliberately choosing to avoid U.S. products because of political tensions. That creates challenges for retailers trying to balance consumer preferences with affordability, particularly when U.S.-sourced produce may offer price advantages because of proximity and established supply chains.
How important is this agreement to maintaining a reliable/affordable supply of produce for Canadians?
CUSMA is important to the way fresh produce moves across North America. The three countries operate within a deeply integrated market that allows retailers to source products efficiently throughout the year.
For produce, diversification beyond North America is often more difficult because of perishability. The ability to move fruits and vegetables quickly across borders helps maintain availability and manage costs for consumers.
The agreement also provides mechanisms to address trade disputes and concerns about unfair trading practices. Of course we want to see improvements, but we also want to make sure we don’t change a system that has a proven track record of working.
READ: FHCP’s Michael Graydon on CUSMA’s future
What will annual reviews mean for the produce sector and grocers?
Annual reviews create ongoing uncertainty and additional administrative burdens. Combined with shifting consumer sentiment and broader geopolitical challenges, it could make sourcing decisions more difficult for retailers.
For grocers, the greatest concern is uncertainty around supply planning and pricing. Produce moves quickly through the supply chain, and retailers need confidence that products can be sourced efficiently and sold at prices consumers are willing to pay.
Beyond CUSMA, what are the biggest challenges facing produce these days?
Input costs remain one of the industry's most pressing challenges. Rising expenses for fuel, fertilizer, packaging, logistics and other production inputs continue to put pressure on the entire supply chain.
At the same time, Mother Nature is Mother Nature. Weather-related disruptions can affect production and availability, forcing suppliers and retailers to source products from alternative regions, often at higher cost.
The industry's ability to absorb those costs through efficiencies and margin compression is becoming increasingly strained. Looking ahead, there is growing interest in improving infrastructure, accelerating innovation, modernizing regulations and adopting technologies that can help improve productivity and reduce costs.
What message do you want retailers and policymakers to take away from the situation as it evolves?
The North American produce market is highly integrated, and maintaining strong trading relationships benefits all three countries.
For retailers, the key is to remain proactive by working closely with suppliers, developing contingency plans and remaining flexible when sourcing opportunities or challenges arise. Understanding local consumer preferences while staying open to substitutions can help manage both costs and availability.
For policymakers, the focus should be on preserving a system that works. Canada depends on trade to ensure consumers have access to affordable fresh produce year-round, while Canadian growers also rely on export markets.
READ: You can't negotiate CUSMA with contradictions and false narratives (opinion)
What should grocers be doing right now?
Work with suppliers, wholesalers and local growers to understand where challenges may emerge and what alternatives are available.
Beyond sourcing, retailers should continue looking for operational efficiencies, improve merchandising and help shoppers stretch their food budgets through recipes, meal ideas and educational resources. Technology can also play a role. Even simple AI tools can help store staff quickly answer customer questions about produce, from how to use a particular item to recipe suggestions and preparation tips.
