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Food manufacturers start to cut capacity amid labour shortages and supply chain woes

January 19, 2022   The Canadian Press

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.

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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.