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NUNAVUT
Prices of nutritious food have dropped in Nunavut communities and some residents are noticing.

The subsidy rates for foods under the Nutrition North Canada program shipped via air to Northern communities were adjusted Oct. 1, the minister of aboriginal affairs and northern development announced on Nov. 3.

John Duncan said the adjustments are a reflection of advice from the Nutrition North Canada advisory board, current data from retailers and an analysis of shipping costs. Rates are adjusted twice a year, with the latest one effective Oct. 1.

Every Nunavut community has had its Level 1 subsidy rate increase by at least 70 cents. The largest increases were in Iglulik and Hall Beach, with subsidies $1.70 higher, and Kimmirut with a subsidy increase of $1.40. The rates in Clyde River and Qikiqtarjuaq also increased by more than $1.

The Level 2 subsidy rates were revised to a more modest degree. The community's rate either stayed the same or increased, except in Iqaluit and Pangnirtung, where subsidies decreased.

At least three Nunavut residents have noticed a recent price drop while grocery shopping.

Iglulik resident Dan Guay said he sees savings on items, often up to a couple of dollars.

"Fruits, vegetables, milk and eggs seem very cheap compared to what they used to be," he said. "It's great living in Iglulik, but the cost of living is very difficult sometimes so that's a really really good thing."

Clyde River resident Troy Jenkins said he's noticed prices on several items have dropped as much as 30 per cent in some cases.

"I've noticed milk, for two litres of milk, was over $10 previously. It's approximately between $5 and $6 now," he said. "There's also some meat products that have dropped in price as well. They're still, of course, quite relatively high, but they've come down quite a bit in the last few months. Anything that decreases the cost of living in the communities is a positive."

In the Kitikmeot, Cambridge Bay resident Patti Bligh said any price decrease is better than nothing. Living in the North for so long, she added she's happy with anything.

"I did notice the other day the milk seemed cheaper. It was a couple of cents (lower), but the store does have a marker to tell us how much the subsidy rate is for milk," she said.

Retailers in early April provided the federal government with information on how much food on the eligibility list they expect to have shipped to their stores. Based on those projections and other factors, a subsidy rate was determined within the program's envelope, said Stephen Van Dine, director general, devolution and territorial relations with Aboriginal Affairs and Northern Development Canada.

Actual shipment data collected monthly from retailers was compared to the projection.

"Retailers, at the start of the year, thought they would be shipping much more, which meant once we received our real data on the actual food shipped, we realized we had some financial room more than we expected to have," he said.

Because rates are adjustable, they could conceivably also go down, he added.

As for shipping costs, the federal government found the information it had at the beginning of the year was not as good as what they were able to find out later in the year, explained Van Dine. So that provided an opportunity to revise the numbers, he added.

"The lowest shipping rate number we had at the beginning of the year we found was probably not the best number," said Van Dine. "And that allowed us to make an adjustment to bring it in more in line and more equitable to the other communities in the area."

North West Company executive vice-president Michael McMullen said they are "absolutely pleased" with the new rates. The company owns 21 stores in Nunavut.

"The rates went into place Oct. 1 and we had new prices out that day. We got it in place right away. We didn't hesitate," he said. "We didn't wait for the new product to come in. The stuff that was on our shelves, we marked down."

He added the company is shipping more perishable products because consumers are buying more. And it has shipped, depending on the community, between 15 to 20 per cent more non-perishable dry goods by sealift, McMullen said.

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