FCC Senior Ag Economist Craig Klemmer explains how to use price indexes from Statistics Canada to track profitability in the food processing industry.
- Raw materials, labour and the price of manufactured products all contribute to profitability in the food processing sector
- Statistics Canada uses two price indexes to help track patterns in food processing profitability
- If the price indexes don’t move in the same direction, profit margins could be “squeezed”
- Increasing your operations’ efficiency is the only response to declining food processing profits