Dollar hurting food processors

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(CBC)

Already hurting from the recession, P.E.I.'s food processors are taking another hit from the strong Canadian dollar.

"It is kind of like a double whammy," Ted Boutilier of Future Seafoods told CBC News Friday.

"It's like somebody has knocked you down and took all of the wind out of you and you're slowly climbing back up and somebody kicked you again."

Future Seafoods, an oyster grower and processor, is launching a new product line in the United States. It planned the launch carefully, but much of that planning is now in disarray caused by the fluctuations in the value of the dollar.

"It's very, very difficult because, of course, we based all of our cash flow analysis, all of our projections, on this certain price point in the marketplace and now we're not going achieve them," said Boutilier.

It's not just premium seafood products that are suffering. Robert Irving, president of Cavendish Farms said exporting potatoes south of the border is also getting more difficult.

"It's a major challenge for the organization in that most of our business today is done in the U.S. currency," said Irving.

"Every time the Canadian dollar gets stronger, of course it puts stronger pressure on our margins in terms of trying to compete in the marketplace."

The one positive factor in the economic outlook is the price of fuel. Exporters say if gasoline and diesel stay below a dollar a litre it could give them the break they need to get through the winter.