Food prices in Canada are forecasted to rise by four to six percent next year, with meat products driving the increase, as indicated by researchers at Dalhousie University. Specifically, beef prices are expected to climb by seven percent due to diminishing cattle sizes and a reduction in ranchers within the industry. The tight beef supply is anticipated to persist until 2027, although the country has boosted its import quantities to address these challenges.
Sylvain Charlebois, the director of the Agri-Food Analytics Lab at the university and lead author of the report, highlighted that the shift towards chicken as an alternative is also causing an increase in chicken prices, contributing to the overall higher costs in the food category.
Additionally, staple food items typically found in the middle aisles of grocery stores may see price hikes after years of stagnant pricing, affecting products like canned goods. Various factors, including the ongoing trade dispute with the U.S., alterations in the food manufacturing sector, and economic conditions such as labor challenges, could contribute to grocery inflation over the next year, according to the Food Price Report.
Food Banks Canada reports that around a quarter of Canadians reside in food-insecure households, with inadequate access to food due to financial constraints. Neil Hetherington, CEO of the Daily Bread Food Bank in Toronto, noted a significant increase in clients, serving 330,000 individuals monthly compared to around 60,000 before the pandemic.
Consumers are already feeling the strain of rising food prices since April 2024, with many expressing concern about further price escalations at the grocery store. Some are considering adjusting their shopping habits, like Toronto resident Sabra Al-Harthi, who mentioned reducing meat purchases to cope with the higher costs.
The challenging food cost environment has led individuals like Giacomo LoGiacco to cut back on non-essential purchases and focus on essential items due to financial constraints. Living paycheck to paycheck, Giacomo emphasized the struggle of affording basic necessities amidst escalating food prices.
