Worries build over economic impact of Alberta border blockade: Meat industry chimes in

Alberta retailers and manufacturers are growing increasingly frustrated with protestors blocking an essential border crossing into the United States, warning that it’s interrupting critical supply chains affecting both groceries and equipment

“We’re extremely frustrated,” said John Graham, director of government relations for the Retail Council of Canada, which represents  many grocery stores across the province.

“We’ve called on both the provincial government, the federal government [and] have communicated directly with RCMP as well, asking that they take more aggressive action to reopen smooth passage at that border.”

The comments came as the truck blockade entered its fifth day at Coutts, Alta. The demonstration is tied to an ongoing, nationwide protest over federal rules for unvaccinated or partially vaccinated truckers entering Canada from the United States. The rules took effect Jan. 15.

 

“We need that blockade to end and we need get back to business“ 

 

The border checkpoint is the primary conduit for the approximately $6 billion in trade between Alberta and the U.S. The protest has halted all traffic at this point of Highway 4 since Saturday.

Graham said retailers are beginning to see gaps on shelves, in particular perishable items that grocery stores expect to be delivered daily to keep things as fresh as possible, traveling significant distances from southern United States. 

He said the blockade of the border crossing at Coutts won’t have an impact only on Alberta retailers but will ripple out across other Prairie provinces as well. Graham said it was too early to put a dollar figure on the impact.

The impact on the agricultural sector could also be significant. Alberta Premier Jason Kenney on Tuesday said that if the blockade continues, it will have a material negative effect on the provincial economy. 

“Every day that port of entry is closed represents a cost, particularly to agriculture producers, to livestock producers, farmers and food producers here in Alberta,” Kenney said.

 

Earlier this week, the Canadian Meat Council, which represents the country’s federally inspected meat packers and processors, warned an ongoing closure would hurt production.

“There are over 150 loads of Canadian Beef stuck at the #coutts border,” the organization said on Twitter.  “Our members are going to have to slow down production if this keeps up. What is the government’s approach to fix this?”

The Canadian Cattlemen’s Association also warned that transportation delays can severely affect the beef supply chain on everything from animal feed through to the transport of cattle.

Kevin Serfas, co-owner of a cattle farm near Turin, Alta., located about 130 kilometres north of Coutts, said the blockade is compounding other problems the ranching sector is already having, including drought and feed shortages. 

He said the port of entry at Coutts is the only crossing in Alberta where you can transport live animals over the border.

“We have a lot of fat cattle in southern Alberta that go south for slaughter, and there’s a lot of feeder cattle in the U.S. that come into Canada to be fed,” he told CBC Calgary News at 6 on Tuesday. 

“That has essentially been been shut off.”

He said although feed supplies move by rail, some is also transported by truck. 

Serfas said he is also tired of the vaccine mandates and understands the frustration of the demonstrators, but he believes the Coutts blockade now has to go.

“I think that, you know, they may be doing more damage than good,” he said. “It can’t stay.“

Manufacturers are also worried about the effect of a prolonged interruption at the border.

David MacLean, Alberta vice-president for Canadian Manufacturers and Exporters, said the organization is “gravely concerned” about the impact of the blockade.

He said he spoke Wednesday morning with members of the organization who said they’ve got shipments stranded on the U.S. side of the border, including important equipment they need for their manufacturing processes.

MacLean said manufacturers invest a lot of time in building relationships with customers and suppliers in the U.S. The disruption is damaging to those relationships and the reputation of the manufacturing sector, he said.

“And this is all stacked on top of a supply chain crisis that’s been ongoing for four months,” MacLean said. “We need that blockade to end and we need to get back to business.”

Though difficult to estimate the cost of the blockade, MacLean said there are around 800 to 1,200 trucks that pass through the Coutts border crossing every day.

“If you imagine $20,000 to $40,000 — even just on the back of a napkin — it easily adds up to tens of millions of dollars a day in product, and consumers are going to start to feel the impact,” he said.

“We’re going to see increasing shortages of certain items in the next coming days.”

While shipments can be rerouted to other border crossings, it costs both money and time, he said. Though he doesn’t think the blockade could lead manufacturers to shut down temporarily, it’s “very likely” that it could lead to a slowdowns in the coming days.