Maple Leaf Foods, a Canadian food processing company, is experiencing higher fuel and poultry prices, which may limit its ability to increase prices due to consumer budget constraints.
What happened
The company's CEO, Curtis Frank, reported that fuel surcharges have risen by 17 percent since the second quarter, and poultry farmers have increased prices for live birds by about three percent in the fourth quarter with short notice.
Frank attributed the price increases to inflation and higher agricultural commodity prices, which are impacted by global conflict, including the continued closure of the Strait of Hormuz.
The company has raised prices earlier this year to offset higher costs but may need to take further action to address overall inflation early next year.
Maple Leaf Foods reported a third-quarter profit from continuing operations of $22.3 million, with sales edging higher compared to the same quarter last year.
