In agriculture, economics is said to be most important and the economics of the low Canadian dollar is good for the grain markets.
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People who are happy with the price of corn, wheat, and soybeans right now are happy because of basis, which is the result of the exchange rate. Without it, prices are not so hot.
Then there is the price of cauliflower. I'm using cauliflower as an example here because it reportedly hit $8 a head in some Ontario stores recently, it certainly was in the $6 range elsewhere and when I tried to price it out in one of our local stores there was none to be had.
Fruits and vegetables as well as meats and other consumables are costing more. The dollar may well be part of the reason of course, but it is only part of the reason.
The California drought and major storms in other parts of the vegetable producing portions of the United States are having their own impact on agricultural economics.
Sadly it is not just about commodities it is also about food and people and nutrition. Many of the people who track such things on behalf of social service agencies in Ontario say the cost of buying a typical basket of healthy fruits and vegetables is up again this winter.
But then there is Food Freedom Day. It will happen sometime in February and possibly later than some years but by the end of the second month the average Canadian will have earned enough to pay for the food they will consume until 2017.
The trouble with average one end of the scale if it is far enough out there can shift the position of average.
Eight bucks for a cauliflower is a lot, and there are no doubt other cheaper alternatives. You can only switch so far and healthy food is getting more expensive.
That being said, the fact that Food Freedom Day is expected in February implies that most people are more or less keeping up and the issue with not being able to afford food is more a poverty issue than a cost issue.
But the situation this winter does make one wonder.
Remember a few years ago there was a book that took direct aim at the local food movement, especially in Canada that argued directly that Californians are much better at growing fruits and vegetables than Canadians so we should let them and import everything and basically stick to our knitting.
Well that argument never rang any bells with me, but it certainly seems to have fallen off the table right now.
Granted California is a big state but sourcing most of your any product in one place is risky.
There is apparently a whole science of studying a diversified supply chain compared to a concentrated one. Single sourcing may where in industry where high output can cut costs, but if there is a supply issue, look out.
Granted there are some things we can't grow in Ontario in the winter and others that just don't store very well. But there seems to be a good argument for diversifying the food supply just as there is a good argument for not always eating the same food.
While we can't grow everything in Ontario all the time, the wider the range of products we do grow successfully and profitably, the more secure our supply, no matter where the dollar goes.
