Be wary this coming year as food prices are projected to rise in Canada amid the COVID-19 pandemic.
"It's the highest increase that we're predicting in 12 years, both in terms of dollars and percentage. It's not going to be easy,” says Sylvain Charlebois, Project lead and Director of the Agri-Food Analytics Lab at Dalhousie University.
Canada’s Food Price Report, an annual report, was recently published by Dalhousie University and the University of Guelph to provide the most compressive set of data about food prices in Canada.
Several provinces such as Alberta, British Columbia, Newfoundland and Labrador, Ontario and Saskatchewan, are expected to see price increases of up to 7% next year.
A typical grocery bill rose by 70% between 2000 and 2020. The average family of four is expected to spend up to $14,767 on food in 2022.
According to the Global Food Security Index, Canada ranked 18th in the world in 2019 when food affordability was measured. Now, in 2021, Canada ranks 24th in the world.
Inflation in 2021 increased to 4.4%, reaching an 18-year high. This substantial increase was driven by high oil costs, high housing costs and rising food prices.
2021 Food Price Results – Food Categories Forecast
- Bakery 1.7%
- Dairy 5.1%
- Fruits 2.5%
- Meat 9.5%
- Other 5.3%
- Restaurants 3.1%
- Seafood 2.5%
- Vegetables -2.1%
Strategies for Containing Food Prices
As the inflation rate and food prices continue to rise, food insecurity is expected to become a growing issue in 2022. Food loss (food produced but not marketed) and food waste (food purchased but not consumed) are significant drivers of climate change and global food insecurity.
This year’s survey drew insights from a total of 9,999 Canadians and their concerns over rising food prices and how they intend to change purchasing and use habits in 2022 as a result.
When survey respondents were asked what they intend to do more of in 2022, the top response was to focus on reducing food waste. Efforts are being made to reduce food loss and food waste by 50% to align with the United Nations’ Sustainable Development Goals.
More than 30% of respondents pledged to eat more fruits and vegetables, while 28.5% agreed to cook more. Over a fifth of respondents said they intend to eat healthier in 2022.
“Canada is a leader in the production of safe, sustainable foods. Buying products that are made in Canada is a good way to support sustainable, ethical, and healthy choices,” states Stuart Smyth, Campus Lead at University of Saskatchewan.
“Despite these challenges, consumers’ food choices continue to be motivated by health and environmental sustainability and a commitment to supporting local food supply chains, and overall food literacy appears to be improving.”