Food prices in Canada are projected to rise by four to six percent next year, primarily driven by higher costs of meat products, according to a forecast from researchers at Dalhousie University. The report anticipates beef prices to increase by as much as seven percent due to a reduction in cattle sizes and a decrease in ranchers within the industry. The tightened supply of beef is expected to persist until 2027, although the country has increased its import volume to address these challenges.
Sylvain Charlebois, the director of the Agri-Food Analytics Lab at the university and the lead author of the report, highlighted the shift towards more expensive chicken prices as consumers pivot away from beef, resulting in an overall increase in the cost of various food categories. Additionally, staple pantry items like canned goods typically found in the center aisles of grocery stores may also see price hikes after years of stable pricing trends.
Several factors, including trade conflicts with the U.S., changes in the food production landscape, and economic conditions such as labor issues, could contribute to inflation in grocery prices over the next year, as outlined in the Food Price Report.
The rise in food costs has led to a surge in clients seeking assistance from food banks, with roughly a quarter of Canadians residing in food-insecure households, according to Food Banks Canada. Neil Hetherington, the CEO of the Daily Bread Food Bank in Toronto, noted a significant increase in the number of clients served monthly, from 60,000 before the pandemic to 330,000 currently.
Consumer sentiments reflect concerns about the escalating prices, with many individuals already feeling the financial strain. Some consumers, like Toronto resident Sabra Al-Harthi, are considering cutting back on meat purchases to cope with the higher costs. Others, such as Giacomo LoGiacco, have resorted to spending less on food essentials due to financial constraints.
The forecasted rise in food prices and the resulting impact on consumer behavior highlight the challenges faced by Canadians amidst economic uncertainties and changing market dynamics.
