Ontario potato harvest nears completion amid rising farm input costs
What happened
Potato harvesting is nearing completion in Alliston, Ontario, with P&K Vander Zaag Farms reporting that 92% of its crop has been harvested. While the harvest compares favorably to last season, growers are facing pressure from rising operating costs, particularly for diesel and steel. The farm supplies potatoes to the processing sector, including Frito-Lay.
From freshplaza.com
Why it matters
Growers supplying the processing sector are absorbing higher expenses for fuel and materials, which Keith Currie, representing the Canadian Federation of Agriculture, noted are difficult to pass on to consumers. These rising input costs affect the raw material supply chain for major food companies.
From freshplaza.com
Who's involved
- Keith CurriePresident of the Canadian Federation of Agriculture, commenting on harvest expenses.
- Frito-LayFood company that receives potatoes from the processing sector in Ontario.
- OntarioThe province where the potato harvesting is taking place.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- agricultureSpeculative
Agriculture might face squeezed margins due to rising fuel and material costs that growers must absorb.
- Frito-LaySpeculative
Frito-Lay might see increased raw material costs (COGS) due to higher farm input prices for potatoes and diesel.
- PepsiCoSpeculative
PepsiCo might experience increased costs (COGS) as input prices rise for its subsidiary, Frito-Lay.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- PepsiCo may face higher costs as potato and diesel prices riseRising input costs for Frito-Lay may increase PepsiCo's cost of goods soldLikely
- How could Farm supplies potatoes to the processing sector affect agriculture?Rising fuel and material costs squeeze Ontario's potato growersLikely
- Rising diesel costs may pressure Isuzu's logistics fleet utilizationRising diesel costs may increase operational pressure on Isuzu's fleet usersPossible
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The entities involved
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Frito-Lay
American food company
-
Ontario
company
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Keith Currie
researcher
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