The labour dispute at Chiquita's Panama location could lead to potential banana shortages, which may cause increased grocery prices in Canada and the U.S. Chiquita is the largest banana supplier in the U.S., and Panama is a key production country. Experts highlight the global supply chain's fragility and how localized events can ripple through to affect availability and costs. Although immediate inventory levels in Canadian distribution centers might be unaffected, the repercussions could be felt relatively quickly if Chiquita's supply diminishes due to the strikes.
Imported bananas are generally ripened in Canadian distribution centres, which means the situation in Panama won't affect inventory right away, von Massow explained.
It could mean fewer bananas in Canada, which could raise the price, said Michael von Massow, a professor of food agriculture and resource economics.
Experts point to a combination of the U.S.-Canada trade war, a weak loonie and North American droughts reducing cattle herds for price spikes.
A labour dispute at Chiquita's Panama location could potentially mean fewer bananas and higher prices at the grocery store.
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