Christmas exports still suffering from loonie, slumping U.S. economy
Last Updated: Friday, October 24, 2008 | 5:00 PM AT
CBC News
The dramatic fall of the Canadian dollar is not helping some of New Brunswick's export-based companies as much as its equally dramatic rise hurt them last year.
Martha Bell of Bell's Woodlots in Stickney, N.B., had trouble adjusting to the soaring loonie that hit par last year, which squeezed the wreath-making company. Bell said the plummeting value of the Canadian dollar this year is offering her business some "breathing room" compared with 2007, but her company isn't out of the financial woods just yet.
"This year I am not completely sold out," Bell said. "For the first time in 22 years, the Americans are just not buying."
So far, the most noticeable change is coming from the big wholesalers and not individuals. Bell said that these large U.S. wholesale companies are putting orders for 60 per cent of last year because they cannot afford to risk leaving any stock unsold at the end of the season.
"[The wholesalers] are the ones that are really feeling the credit crunch," she said.
Already Bell has lost two or three customers from last year, causing her wreath-making business to branch out into more domestic markets.
When Bell began making her price sheets for this season, she budgeted for the dollar to remain at par. That has given some added flexibility although she said some of her customers have complained about the change in the dollar.
On Friday, the Canadian dollar opened at 78.65 cents US, down 0.99 cents from Thursday's close.
Janette Desharnais, the executive director of INFOR Inc, a New Brunswick research centre for woodlot owners, Christmas tree growers and maple syrup producers, said many industry players are still optimistic for this year.
"The dollar is on a downward trend; they might get some new orders coming up," Desharnais said. "It is wait and see, it is a bit early."
After suffering such a difficult year in 2007, many Christmas tree growers and other producers spent the off-season looking at markets in Central and South America.
"All of [the producers] had a whole year to think about new markets and look at the new opportunities and take advantage of that," she said.
Share Tools
Latest New Brunswick News Headlines
- Cataractes advance to Memorial Cup final by beating Sea Dogs
- Yannick Veilleux broke a tie at 13:14 of the third period as the host Shawinigan Cataractes upset the defending champion Saint John Sea Dogs 7-4 in the semifinal of the Mastercard Memorial Cup on Friday night. more »
- 4 arrests in Elsipogtog drug trafficking case
- Four people are facing charges in connection with a two-month long investigation into prescription drug trafficking on Elsipogtog First Nation. more »
- David Alward worried about EI changes
- Premier David Alward says he's worried proposed changes to employment insurance will hurt seasonal industries in the province, such as fishing, forestry and tourism. more »
- Pharmacists get generic drug pricing 'transition period'
- New Brunswick pharmacists will be allowed a 10-day transition period to help them adjust to the province's new generic drug pricing policy, Health Minister Madeleine Dube announced Friday. more »
Top News Headlines
- Teen struck by lightning in Ottawa dies
- The victim of a Friday lightning strike during a storm in east Ottawa has died, CBC News has learned. more »
- Everest team unable to bring down Toronto woman's body
- Bad weather has hampered the recovery team that is attempting to bring down the body of a Toronto woman who died trying to climb Mt. Everest. more »
- 32 Syrian children die in artillery attack, says UN
- More than 90 people have been killed by regime forces in a district of central Syria, with the head of the UN team in the country confirming at least 32 children and 60 adults were killed the attack. more »
- Woman's remains found in hockey bag on Cape Breton river
- Police in Nova Scotia are investigating after a woman's remains were found in a hockey bag floating on a Cape Breton river Friday night. more »
- 4 arrests in Elsipogtog drug trafficking case
- Armed robbery at Saint John gas bar
- David Alward worried about EI changes
- Woman robs store in Tracadie-Sheila
- Loose dog prevents mail delivery to area residents
- Pension snafu may erode public trust, says Norton
- Main Street reopened to traffic
- Pharmacists get generic drug pricing 'transition period'
- Bathurst teen charged with attempted murder

