Situation could disrupt the supply of fruits and vegetables.   Ottawa—Lumber shortages and resulting higher prices have led to plenty of jokes but the situation is no laughing matter to the fruit and vegetable sector, says the Canadian Produce Marketing Association (CPMA). There is a critical shortage of the wooden pallets used to transport produce from farmers to consumers, CPMA warns. “Many do not yet realize the factors impacting the situation and the potential scope of the issue, including the availability of produce to consumers. “The lack of pallets is adding stress to a supply chain that is already facing significant challenges which include a lack of available trucks and shipping containers, ongoing labour challenges, fluctuating fuel costs, pandemic-related challenges and a pending shortage of resin used to make reusable containers and pallets,” CPMA said. “At this time expectations are that the pallet shortage will continue for months, perhaps for the rest of 2021 – all at a time when many North American produce items are just beginning seasonal harvests and shipments.” Shortages have increased the cost of raw lumber from 200 per cent to 350 per cent driving up the cost of wood pallets, CPMA said. In some recent cases, the cost has risen by more than 400 per cent “if the pallets are even available, and often they are not. “One farmer was told by one pallet supplier that they are not taking any new customers due to an inability to fill even existing customer demand.” The pallet shortages are forcing companies to purchase pallets from other jurisdictions, which increases border and transportation costs. Pallets are being held in-house due to delayed and cancelled orders from pallet services, leading to higher storage charges and increased congestion within operations. “Working together, the supply chain must balance organizational goals relative to overall availability of goods with availability of food,” CPMA said. “If there is not a concerted effort across the supply chain to ensure pallet availability for shipment of produce, there is little doubt that it will be very difficult, if not impossible, for the grower/shipper community to meet buyer, and ultimately consumer, demand for produce.” Growers and shippers are working hard to remain compliant with pallet requirement specifications where they can, but this is proving challenging. Temporary modifications or exceptions to pallet requirements, as long as they do not jeopardize safety, would prove advantageous until this pallet shortage is resolved. CPMA says it is trying to deliver its pallet message to the entire sector “to ensure a consistent understanding of the issue and to encourage discussions and efforts towards a path forward. All partners in the supply chain should have regular conversations with their pallet suppliers to understand the situation and pallet inventories/availability.” It added that it wants “to work collaboratively with all parties within the supply chain to mitigate the impacts of the current shortages and will reach out to stakeholders to identify a path forward that provides solutions to this increasingly disruptive threat and enables the continued flow of goods.” Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.