Food Manufacturers Start to Cut Capacity Amid Labour Shortages and Supply Chain Woes

Food Manufacturers Start to Cut Capacity Amid Labour Shortages and Supply Chain Woes
An empty shelf of a grocery store is seen in Chilliwack, B.C., November 19, 2021. (The Canadian Press/Jonathan Hayward)
The Canadian Press
1/19/2022
Updated:
1/19/2022

Canada’s food manufacturers are starting to cut capacity and focus on key products as they confront labour shortages and supply chain problems that show no signs of easing.

Experts say food manufacturers are facing inflation, shipping backlogs and delays in obtaining things like ingredients and packaging.

Michael Graydon, CEO of Food, Health & Consumer Products of Canada, says shoppers should expect issues with product availability and fewer promotions in stores.

He says many food manufacturers are concentrating on product flavours and sizes with the highest demand in order to maximize efficiencies.

Graydon says others are cutting manufacturing capacity due to a shortage of workers.

Sylvain Charlebois, Dalhousie University professor of food distribution and policy, says food access in Canada will be a challenge for some time as the industry contends with numerous supply chain issues and a chronic labour shortage.