Why is Food so Expensive in Canada?

We’ve all felt the pinch at the grocery store checkout — grocery prices are still much higher than they were a year or two ago, and more and more Canadians struggle to make ends meet. As of October 2024, food prices have increased 10.4% year-over-year, more than double the rate of inflation. More families than ever face food insecurity. In 2022, Alberta led the provinces with 22% of families reporting food insecurity within the last 12 months.

 There are a bunch of factors at play — anome have a bigger effect than others.

Climate change is one of the biggest reasons food costs more right now. Most of the food Canadians eat is grown elsewhere and imported from places like Mexico and California, where farmers can grow food year-round. But many of those areas are already dealing with water constraints, and climate change will only make this worse. 

“The consumer relying on a particular diet throughout the year, regardless of the season, is something that might have to change, as the places we rely on for that food to come to us from California or from Mexico as they face their own climate problems, we may not be able to rely on that supply.”

Dr. Tatenda Mambo, Food Systems Specialist and Simon Farms Project Manager

At home, climate change is posing its own challenges for Canadians. A fierce heatwave in 2021 pushed up the prices of grain and forced ranchers to purchase feed for their cattle. This increased the cost of cattle feed, which in turn drove up the cost of beef. Events like this are just one example of the ripple effect climate change can have on the food supply.

Corporate profits have been cited as a driver in rising grocery prices. It’s one Canadians believe — a Leger survey in February 2024 showed that 28% of respondents believe food inflation is caused by grocery store chains attempting to increase profit margins. There’s evidence to bear this out — profits in the Canadian grocery retail sector rose to record levels in 2023. All three of the largest retailers posted higher profits in the first half of 2022 than their average performance over the five years prior. The leaders of the Canadian companies that own grocery store chains denied allegations of profiteering in their testimony in front of a parliamentary committee.

Supply chain disruptions. This one is complex and includes many factors. The grocery store giants often cite it as the reason prices are high, although their own control over supply chain is complex, too. Climate change is a major disruptor here as well — lower agricultural yields drive up costs, as do increased costs including labour and fuel.

These combined factors mean that food inflation has outpaced overall inflation for the past three years. And Canadians are feeling the pinch.

While food inflation (and overall inflation) has come down from the heights of 2023, lower inflation doesn’t mean overall costs are dropping. It just means they’re increasing at a slower rate. The price of some foods has dropped recently; for example, crackers, margarine, frozen berries, flour, and pasta are a little less expensive now. The price of imported goods has continued to rise, and climate change will only continue to make this worse. 

Creating climate resilience and taking action against climate change is an important part of increasing food security and reducing costs. In Alberta, the University of Calgary has awarded $720,000 to projects advancing climate awareness and action. One grantee, the Rural Routes to Climate Solutions social innovations lab, is working to build infrastructure that will move us towards a more regenerative agricultural sector and food system.

Green Calgary’s Spill the Beans program is a community-centered food education initiative that aims to help Calgarians become familiar with the local food system and reduce food insecurity. The program has partnered with University of Calgary Communications Studies students to expand the program’s reach and develop educational resources. The program uses the principles of the circular economy to guide students through food planning, storing and preserving food, finding affordable (and local) produce, and storing leftovers. 

The City of Calgary’s Farm Stand Program brings local, fresh produce to communities around the city. Part of the City’s long-term Food Action Plan, CalgaryEATS!, the program supports local and regional farmers and vendors and helps improve access to healthy food options. 

The good news is that there are ways you can trim your grocery bill — and in some cases you might even be taking climate action as you do. Here are some places to start:

• Consider shopping at independent grocery stores.
• Shop at farmer’s markets, where local producers take home a much higher percentage of profits than they do if they sell to grocery chains.
• Buy in-season produce.
• Explore community-supported agriculture (CSA) options. CSAs are a great way to connect with local farmers and purchase fresh fruits, vegetables, and meat from local farms. Take a look at Alberta Open Farm Days for a list of CSAs in Alberta. 
• Use services like Too Good To Go, where you purchase food directly from local bakeries, restaurants, and stores at a fraction of the cost, reducing food waste. 
• Try grocery apps like FlashFood and Food Hero, which discounts food nearing its sell-by date and helps cut down on food waste.
• Incorporate more fruit, vegetables, and legumes in your diet.
• If possible, plan your meals and cook in bulk.
• Reduce food waste. Buy only what you need or can reasonably store, plan your meals to include ways to use up leftovers, and properly refrigerate leftovers. 
• Learn about food dates — confusion over these causes a lot of food waste. Know the difference between “use by” (which must be used by the date on the package) and “best before” (how long a food will last before it loses quality). Most foods marked with a “best before” date will last well past that date if stored properly.