The times, they are a changing in the Arctic

[Commonwealth]

What, no more subsidies on grape Crush?


http://www.cbc.ca/canada/north/story/20 ... ogram.html

[. ._]

Those damned CBC Left-Wing Liberal scum reporters!

No mention at all in the article how this will affect southern Ontario potato chip producers.

-istp

[Hot Fuel]

Perhaps you should have a little knowledge about the topic before you post uninformed comments. Neither of the items you folks have suggested are eligible for the food mail shipping cost subsidy.

[iflyforpie]

Perhaps you should have a little knowledge about the topic before you post uninformed comments. Neither of the items you folks have suggested are eligible for the food mail shipping cost subsidy.

The federal government also plans to reduce the subsidy on items such as frozen dinners, processed foods and junk foods — or remove them from the list altogether — while increasing the subsidy on fresh fruits and vegetables, dairy products and meat, Graham reported.

Read more: http://www.cbc.ca/canada/north/story/20 ... z0oJIzcSFP

There.

[Hot Fuel]

I'll put it another way, being informed before you post goes along ways towards ones credibility.

foodmailguide_en.pdf

(417.73 KiB) Downloaded 57 times

If you take the time to go through the list of eligible and non eligible items you will find that only some types of TV dinners were allowed, your definition of junk food might be different than INAC's and you will also find that pop and chips are definitely not on the list of subsidized items.

[Hawkerflyer]

pop and chips are definitely not on the list of subsidized items.

They are not on the list but they are on the airplanes. Sensitive subject for you? Do you need pop and chips?

[On condition]

the subsidy frees up cash for the pop and chips. Unless they try and 'dry' up the reserves from junk food, it's coming one way or another.

[Commonwealth]

OK, I wanted to start a dialogue on the implications of the cancellation of this program; sense of humor checked.

Seems like a lot of power has just been shifted to the Arctic retailers from Canada Post. Is it fair to say that the landscape of cargo transportation in the arctic is about to shift also?

Discuss

[modi13]

I'll put it another way, being informed before you post goes along ways towards ones credibility.

foodmailguide_en.pdf

If you take the time to go through the list of eligible and non eligible items you will find that only some types of TV dinners were allowed, your definition of junk food might be different than INAC's and you will also find that pop and chips are definitely not on the list of subsidized items.

Why would they bother reading through a list of food items to make sure a joke is 100% factual? It's a joke, lighten up.

[Hot Fuel]

No I wouldn’t call it a sensitive subject for me; it just bothers me to see uninformed stereotypes perpetuated.

On a personal level I think that the food mail program was and is a good idea. In a nutshell the idea is to subsidize the shipping costs of healthier choices into remote communities. The goal is to make the healthier choices more affordable than the unhealthy choices…better overall health in the community equals less medical expense.

The previous posts are suggesting that pop, chips and other assorted junk foods are being flown into northern communities at subsidized rates and that is simply an untruth.

In not going to sit here and deny that the diets in most northern villages are terrible, because they are and I have years of firsthand knowledge, my point was singular in nature…the food mail program is not supporting or subsidizing the unhealthy eating habits of the indigenous peoples as some on this board choose to suggest. .

[Doc]

No I wouldn’t call it a sensitive subject for me; it just bothers me to see uninformed stereotypes perpetuated.

On a personal level I think that the food mail program was and is a good idea. In a nutshell the idea is to subsidize the shipping costs of healthier choices into remote communities. The goal is to make the healthier choices more affordable than the unhealthy choices…better overall health in the community equals less medical expense.

The previous posts are suggesting that pop, chips and other assorted junk foods are being flown into northern communities at subsidized rates and that is simply an untruth.

In not going to sit here and deny that the diets in most northern villages are terrible, because they are and I have years of firsthand knowledge, my point was singular in nature…the food mail program is not supporting or subsidizing the unhealthy eating habits of the indigenous peoples as some on this board choose to suggest. .

Not like they're likely to eat the healthier foods, just now they will be able to afford to. Not just a problem with the "indigenous" peoples, but a nation wide problem. When I went to school, there were three fat kids in the entire school. Today, there may be three thin kids in a class?
I remember when (might well still be?) seeing Canadian Club for the same price as it is in Toronto, while two litres of milk was 11$!!
Another idea, nice in theory.

[. ._]

To clarify, I was suggesting that, and I quote that there was:

"No mention at all in the article how this will affect southern Ontario potato chip producers."

It was a joke to make fun of how people slam the CBC for being left wing.

OK, they can't all be zingers. Try the prime rib on Thursday nights and don't forget to tip your waitress.

-istp

[square]

Does this mean the northern grocery stores are going to be getting their food delivered to them cheaper? Because if that's the case it might be fair for some of the northern air operators to charge more for their freight hauls. It's barely break-even as it is.

[Hot Fuel]

First the food mail program has been running for more than 20 years, as far as airlines raising rates. They already get whatever they tendered when the mail contract was tendered. It's whomever is paying for the goods that benefits from the subsidy. If the air carrier quoted a price of $1.50 per kg between A and B to Canada Post and was awarded the contract that is what they get paid for hauling the mail or in this case food mail, however the shipper or reciever only pays the subsidized rate which is a fixed price (subsidized) that is much lower than the standard airline rate.

End effect the store gets certain products flown in at a much reduced cost and in theory charges less at the cash register for the product. The carrier still gets him premium rate that he quoted to Canada Post because INAC pays airline the difference between the airlines contract rate and the fixed subsidized rate of the product.

Its an interesting change, I don't think it means the program is folding up it's tent. I think it means that Canada Post is no longer going to administer the program on behalf of INAC. It wasn't a cash cow for Canada Post, I don't think they actually made any money acting as the go between for the the airline and the store. I have some clear ideas as to why the change but unfortunately I have to keep those thoughts to myself for a few more days.

[square]

So you're saying the Northern Store gets their food shipped by Canada Post, and Canada Post charters a trucking outfit to haul the food into the hangar and then Canada Post charters the air operator to fly it up to the northern community?

[Hot Fuel]

Not quite, The North West Company similar to the Coop store have large buying power and they supply there own stores with product through there own distribution system. Meaning their suppliers deliver the products that they sell directly to the two companies distribution centers, not the actual stores. The individual stores place there “orders” with their distribution centers not the actual product suppliers. Northern has its own trucking network; they load the trucks and send them off to the various airports that their contracted air carriers work from. In some cases, the carrier that has the Northern or Coop contract also has the Canada Post mail contract. The goods are off loaded and separated into food mail and regular cargo. On the scheduled “food mail deposit” day a Canada Post rep comes in and verifies that the items identified as food mail meet the criteria. Canada Post prepares the FDB (Flight Dispatch Bill) and releases the food mail to the carrier for shipment. The carrier ships the food mail to destination and bills Canada Post for the shipments, Canada post pays the carrier. Where the subsidy comes into the equation is between the shipper or receiver and Canada Post, depending on who is actually paying for the shipment. In the case of Northern or Coop they are one in the same. Because the items meet the criteria for shipment via food mail the shipper/receiver i.e Northern or Coop pay Canada Post directly at the fixed (subsidized) rate for the food mail shipments, they don’t deal with the carrier at all for the payment of food mail…remember food mail is administered by Canada Post. INAC pays Canada Post the difference between the subsidized price Northern paid and the price that the carrier charged Canada Post for flying the food mail. Cargo that is outside the scope of the food mail program is shipped with the contract holding air carrier at whatever rate was agreed to in the non food mail contract, I can assure you those rates are much higher than the rates they are paying Canada Post for shipping items as food mail. It does not effect the carrier at all from a pricing stand point because they always get paid their Canada Post contract rate which is also much higher than the fixed food mail price. Does that explanation make sense?

[square]

Yeah it makes sense but when I was a ramp guy we just had trucking outfits dropping the food off, we'd fly it up to the Northern and just bill them by the pound, same price for everything. No Canada Post.

[Hot Fuel]

I worked in places and for outfits that the food mail scenario didn’t work or happen as well. There are a number of catches to the program, there are identified “entry points” for food mail and “air stage” points. Meaning that the airport you work at might not be an entry point for food mail, as well, just because you’re at an entry point it might not be economical for then to utilize food mail, remember Northern and the like have volume behind them and they can and do command preferred pricing. Often, particularly on shorter segments they can, because of volume negotiate a better price than what the food mail program offers. In those cases the food mail program sometimes benefit the mom and pop stores that don’t have the volume club to beat you with, the food mail rate can be lower than the per kg price the airline is willing to quote them. The difference between Northern and the Mom and Pop operation is when Northern can’t cash in on the reduced food mail shipping costs they sleep at night because they grind the airline for a good per kg rate and they save on ground transport by trucking full loads to the air stage point themselves. The Mom and Pop store generally pays assorted trucking companies their full published per kg tariff rates to get the goods from the supplier to the air carrier, anything they gain by way of the food mail program saving they often lose in the trucking costs.

[Phileas Fogg]

So does this mean my North West company stock will finally increase?