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Canadian families will pay up to $695 more a year for groceries in 2021, report says

Vegetables could be particularly hard hit, with prices expected to jump as much as 6.5 per cent
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A customer shops at a meat counter in a grocery store in Montreal, on April 30, 2020. The average Canadian family will pay up to an extra $695 for food next year, as the pandemic, wildfires and changing consumer habits drive up grocery bills to the highest ever increase predicted by an annual food price report. THE CANADIAN PRESS/Paul Chiasson

The average Canadian family will pay up to an extra $695 for food next year, as the pandemic, wildfires and changing consumer habits drive up grocery bills to the highest increase ever predicted by an annual food price report.

Rising bread, meat and vegetable prices are expected to lead the overall food price increase of three to five per cent, according to CanadaB次元官网网址檚 Food Price Report 2021 released Tuesday.

For an average family of four, that means a $13,907 grocery bill.

B次元官网网址淲e donB次元官网网址檛 expect a break at the grocery store any time soon,B次元官网网址 said Sylvain Charlebois, lead author and Dalhousie University professor of food distribution and policy.

B次元官网网址淭his is the highest increase that weB次元官网网址檝e ever expected.B次元官网网址

The 11th edition of the food price report, published annually by Dalhousie University and the University of Guelph, has expanded this year to include the University of Saskatchewan and the University of British Columbia, making it more national in scope.

Researchers said in the study that COVID-19 will continue impacting food prices next year, with the meat industry particularly vulnerable to potential labour shortages, logistics disruptions, food plant and distribution centre slowdowns and shifts in consumer demand.

While meat prices could increase as much as 6.5 per cent overall, the biggest price hike could be for poultry, a supply managed industry in Canada.

Poultry prices are up seven per cent since July, Charlebois said, adding that as production costs continue to rise, so will retail prices.

B次元官网网址淲e are expecting poultry prices to be a bit of an issue,B次元官网网址 he said.B次元官网网址淚f farmers are asked to spend more on equipment and COVID-19 cleaning protocols, consumers will eventually have to pay more.B次元官网网址

Meanwhile, climate change, including heat waves, ice loss, wildfires, floods and droughts, will also influence how much we pay for groceries next year.

Vegetables could be particularly hard hit, with prices expected to jump as much as 6.5 per cent, according to the report.

Much of the produce Canadians consume comes from California, a state that has been ravaged by one of the worst wildfire seasons on record.

With CaliforniaB次元官网网址檚 crops heavily compromised by smoke and ongoing challenges with COVID-19, Stuart Smyth with the University of Saskatchewan said prices will be pushed up.

B次元官网网址淰egetables are where people are going to notice the greatest impact,B次元官网网址 said Smyth, associate professor in the Department of Agricultural and Resource Economics.

While the price of root crops like potatoes and carrots should remain stable, he said leafy greens and more perishable produce like tomatoes and cucumbers will be more expensive.

Yet some of the biggest price increases could be for vegetables like cabbage, cauliflower and asparagus, said Smyth, the chair of Agri-Food Innovation and Sustainability Enhancement.

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Meanwhile, the study warned consumers to expect bakery prices to increase as much as 5.5 per cent.

The cost of a bushel of wheat hit about $6 in November, Smyth said, up from about $4 roughly 18 months ago B次元官网网址 a 50 per cent increase.

The issue is about supply and demand, he said, noting that while B次元官网网址渨heat acresB次元官网网址 or the amount produced has remained relatively stable in Canada, demand has steadily risen.

B次元官网网址淚f we hold supply constant but the demand goes up, essentially weB次元官网网址檙e falling a little bit behind,B次元官网网址 Smyth said.

Meanwhile, the latest report has broken down average food costs for individuals based on age and gender, allowing consumers to estimate their potential food expenditures based on their own situation.

While it continues to provide the estimated cost of feeding a family of four, the report also shows that a man aged 31 to 50 can expect to pay $169 more for food next year, while a woman of the same age can expect to pay $152 more.

Brett Bundale, The Canadian Press


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