Iran Conflict Sends Oil Prices Soaring, Fueling Food Price Worries

The ongoing conflict in Iran has caused oil prices to surge, and this increase is expected to impact Canadian farmers and grocery store owners.

According to Sylvain Charlebois, director of the agri-food analytics lab at Dalhousie University, 'we're in trouble' when it comes to food prices due to surging oil costs. He noted that a huge difference in food inflation rates is seen three to six months after oil price increases.

Charlebois explained that Canada gets much of its nitrate and sulfur from the Strait of Hormuz, which will likely lead to higher fertilizer costs for farmers. He stated that energy costs affect 'pretty much all verticals within the food industry,' particularly livestock, dairy, and grains.

Farmers are bracing for the impact, with Alberta farmer Kevin Bender saying his grain prices have risen in recent weeks, but farm margins have gotten tighter over the past year. He is concerned about fertilizer costs, which make up a third of his input expenses.