It is not uncommon for the price of goods and services in a country to go up over time. A loaf of bread costed $1.50 in 2000 and today the same bread is $3.25.
This is a gradual rise in price over time and we are always hopeful that wages also increase and keep stride with inflation over the years. However, in 2022 the alarm bells are ringing, as inflation grips most of the World.
The pandemic has disrupted the supply of most imported goods. Supply drops, demand rises and in a short time price begins to jump up. Lockdowns and pandemic restrictions have greatly impacted production and supply chains internationally. Food prices are up. Gas prices are up. Housing prices are up. And that’s just 3 categories which directly impact our lives.
In Toronto, a family home which 3 years ago sold for $800K is now sold for $1.4M CDN! A packet of chicken bought 2 years ago for $5.50 is now $7.99! And that is across the board and throughout the supermarkets! Suppliers struggle to meet demand, labor is in short supply, energy costs are rising - market forces are driving prices up all across the board.
Inflated food prices can severely disrupt and herald a major crisis situation in a country; albeit developed or developing.
History has made it abundantly clear that health pandemics send significant economic shockwaves in most affected economies. Flu pandemics in 1957 and 1968 were followed by serious economic downturns, while the 1918 Spanish flu was extremely disruptive to entire societies at the time. Similarly, the Covid 19 pandemic has dealt some severe blows to economies worldwide.
Recent data shows that in 2022, several countries are over a 30% inflation rate, which is ‘hyperinflation’. Some of these are Syria, Sudan and Ethiopia. Second tier of countries just below the 30% mark include Sri Lanka, Ghana (26%) and Russia. The USA is just below 7% while Canada is not too far behind at 6.8%.
The Russia-Ukraine war has had significant impact on many supply chains. Recently across the USA families are facing a severe shortage of baby formula. Sunflower oil a key ingredient is in short supply. Together Russia and Ukraine supply 50% of the world’s sunflower oil requirement.
At Global Eden Farms, we have a major task ahead to produce as much as we possibly can in the shortest period of time in which we can get the job done! Food insecurities plague the world, and we must rise to the challenge! Our Greenhouses occupy over 120 acres in Phase 1 and will be doubled in Phase 2. We are structuring and strategizing to ensure that our operations run smoothly and seamlessly to maximize output.