Will the floods in Canada raise the price of pasta?

Transportation to the port of Vancouver has been killed and damaged by floods and landslides in Canada. The availability of grains and oil in the markets may be affected. All details

Heavy rains that hit British Columbia, a province in western Canada – have killed at least four people, as well as thousands of farm animals – and not just Canada. Floods and landslides have actually compromised the communication routes to and from the port of Vancouver. It is the largest in the country and is the main crossroads for goods to or from the Pacific. The entire range of raw materials destined for international markets, from oil to grains, must find other ways.

Situation

It will not be easy. The water and mud railway and the Trans-Canada Highway make it impossible to cross the main artery connecting the eastern and western parts of the country: trains and trucks cannot travel with them. Fears that basic necessities on store shelves – from eggs to meat to toilet paper – have sparked buying panic among British Columbia residents. The danger, however, is that hoarding precisely the essential items, reducing access to all, can turn discomfort into a real crisis.

The Sobeys supermarket chain, one of Canada’s largest companies, is urging consumers to stop exporting to the Vancouver area due to road conditions and to refrain from buying in excess of their regular shopping habits. The Ministry of Public Safety has said that the government is monitoring the supply of fuel at petrol stations.

Two major railway companies, Canadian Pacific and Canadian National, are reviewing their respective routes and have not yet announced the resumption of services. The Trans Mountain Pipeline – which carries about 300,000 barrels of oil a day from Alberta to the Vancouver area, where it is shipped to refineries in Washington, DC – was closed on Sunday, November 14 due to rain.

Grain problem

Last week – according to the report Bloomberg – There were more than 1500 train cars with standard grains: they had to reach Vancouver. There are some alternatives to the port, which handles more than $ 435 million in cargo each day.

In theory, the raw materials could be shipped near the port of Prince Rupert in northern British Columbia and near Alaska. Some companies, such as Tech Resources, which is involved in the mining industry, do this. However, the point as he points out Reuters, At least grains cannot do this: there are not many alternatives to both closures, and terminals dedicated to this type of product are practically complete and cannot handle extra volumes.

Although the tracks need to be repaired and re-activated soon, it is still a long time to get rid of the accumulated loads and bring the situation back to normal – up to a month. To return to normal. The CBC says there are about one lakh tonnes of grain in the wagons that could not reach their target. Cereals may come in handy Stock The logistics structure is waiting to be upgraded, but the availability ensures coverage for a few days.

Canadian grain producers – one of the world’s largest grain producers and exporters – are already struggling this year as a result of poor harvests, summer drought and fire damage to the soil.

Is pasta expensive?

Logistics disruptions caused by floods in British Columbia will exacerbate the already difficult international situation of epidemic-damaged supply chains. They can also reduce the availability of wheat for pasta in the market and raise prices.

In September, the CEO of La Molisana, referring to the meager wheat crop in Canada, announced that “before Christmas” pasta would cost “15 to 20 cents a pack”. And “we do not have enough wheat to produce it between March and May”.