Summer should bring some relief on produce prices, Loblaw says

As June kicks off the local growing season in Canada, shoppers should soon find some relief at the checkout, Loblaw Companies said.

Canadians can expect savings on local products until October, with July and August bringing the widest variety of local fruit and vegetables, the grocer’s latest food inflation report said.

This month, strawberries and bunched vegetables (asparagus, carrots, green onions and radishes) shift from imported to locally grown. 

With no foreign exchange and less transportation costs, shoppers will see lower prices. The produce is also often harvested and ready for purchase in one to two days, versus U.S. or Mexican produce which can take three to four days in transit to reach distribution centres.

Loblaw said local field strawberries are generally up to 20% cheaper than their imported counterparts at this time of year. 

However, despite a dip in May, Loblaw noted that food inflation remains elevated compared to overall inflation.

As retailers look to diversify their international supply chains beyond the U.S., the strengthening Euro and other global currencies compared to the Canadian dollar has offset some of the benefits, Loblaw said. 

That’s especially true for products like fresh produce, deli meats and cheeses, some vinegars, olive oil and seafood.

Loblaw warned that the shift could help improve supply stability in the future, but it may mean higher prices for these categories in the near term.