The loonie is now hovering in the 0.90-0.92 range. So we don’t really have a Canadian dollar when it comes to international trade. Otherwise the U.S. dollar would be quoted at $1.09 Cdn. The U.S greenback is still dominant when it comes to international trade.
What does this have to do with grape juuice? Everything as all our products are imported. Obviously, paying with 0.92 dollars is more costly (~10%). Exporters are the ones who stand a chance to benefit from this.
Could the lower priced loonie mean a price increase? Not in the near future insofar as Northern hemisphere crops are concerned. Our suppliers bought in on the new crop in October 2013 and usually have enough stock to last until the next crop. However, the same may not apply to Southern hemisphere crops, such as Chile and Argentina, which are harvested in March/April. What if? We have no idea.
Next week – The wines of Germany and Austria. In the meantime, a little quiz. What is a Liebfraumilch? A grape, a blend, a brand, or a town?