7 industries impacted by the hot and dry weather out west
Digital Reporter
Thursday, August 27, 2015, 4:01 PM - Abnormally hot and dry conditions in parts of B.C. and the Prairies have sparked numerous wildfires this summer, leading to evacuations, business closures and poor air quality. The severe conditions have impacted several local businesses and industries, and not all of them in a bad way. Here's a snap shot of how the conditions are influencing commerce in western Canada.
1. The agricultural industry
A July industry report is forecasting Canadian wheat and canola yields will drop to an 8-year-low amid dry conditions. The situation is so dire that Alberta has officially declared an agricultural disaster, after parts of the province experienced 1-in-50 and 1-in-100 year drought. According to the CBC, approximately 80% of Alberta's farmers have been impacted. The Agriculture Financial Services Corporation believes it will pay up to $900 million in claims from farmers this year, with $70 million paid out so far.
2. The livestock sector
Statistics Canada data released in early July suggests the price at slaughter for 100 pounds of Alberta beef rose 36 percent between May 2014 and May 2015. The price in May 2015 sat at $192.80, the highest on record.
Under normal conditions Canadian producers will try to increase their herd sizes to meet consumer demand, but hot and dry weather has made it impossible to grow enough food to sustain the animals.
3. Convertible sales in B.C.
In June, warm and sunny weather translated into good business, with some people willing to spend a lot of money in celebration of the warm weather. Convertible sales at at least one local business were going "through the roof."
Ed Pierik of Victoria Premium Automobiles told CHEK convertibles made up 70% of his dealership's sales in May.
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4. Tourism
Tourism has taken a hit in small communities across B.C. and the Prairies as nearby wildfires prompt evacuations and business closures. The community of La Ronge, Saskatchewan, for example is said to be "devastated" after evacuations cut business by as much as 85 percent. In July, La Ronge & District Chamber of Commerce President Betty Hutchinson told the Star Phoenix that many businesses in the area are summer-dependent, with spikes in July and August.
Wildfires have caused the community's tourism industry to grind to a halt, with local hotels, restaurants and camping supply stores experiencing dramatic losses.
5. Fishing
In July, freshwater fishing was banned on Vancouver Island after it was discovered higher water temperatures in salmon streams were stressing the fish, threatening to put a dent in a sport-fishing industry that's valued at $1 billion CAD annually, according to Bloomberg.
6. Air conditioner and fan retailers
Warm weather has left some people scrambling for ways to cool off. According to News 1130, a Canadian Tire manager in Vancouver reported a spike in air conditioner sales in July, when temperatures were soaring to 30C across the Lower Mainland.
RELATED: Storms ahead in the west
7. Hay production
The price of hay production is skyrocketing out west.
Parts Calgary have seen near-normal rainfall this year, leading to patches of green grass that can be turned into lucrative hay. This year the cost of a small, rectangle bale of hay has risen from $7 to $10.
