Significant increase in food prices in 2022

Canadian consumers will have to pay more for food next year. The overall cost of food will increase between 5% to 7%, according to the 2022 Annual Food Price Report, released on Thursday.

Nathaelle Morissette
Press

“We’ve been doing this for 12 years and this is the first time that we have predicted such a significant increase, 7% is a lot,” says one of the authors of the document, Sylvain Charlebois, principal director of the laboratory. in Agri-Food Analytical Sciences from Dalhousie University.

Yogurt and cheese lovers as well as those who enjoy dining in restaurants are among those whose budgets will be affected the most. According to the document, produced by four Canadian universities, the anticipated increase for dairy products and the restaurant bill is between 6% and 8%. These two categories are expected to experience the largest increase.

Last year, the Report predicted an overall increase in food for 2021 of around 3% to 5%. How to explain that this increase is even more important for the year to come? “First, there is the cost of inputs: everything costs more to produce,” says Sylvain Charlebois.

“Labor costs more,” he adds. We saw it with Exceldor and Olymel at Vallée-Jonction, he cites as an example, recalling that the workers in these factories negotiated wage increases. Wages are improving in the sector. Good for employees, but in an environment where margins are very slim, you have no choice but to adjust prices. ”

“The last factor is logistics. It costs more to transport anything. ”

“According to the World Food Security Index, Canada ranked 18th^e world rank in 2019 when food accessibility was measured. Today, in 2021, Canada ranks 24^e to the world ”, we can also read in the report.

In 2022, Quebec should experience a lower than average inflation rate (6%). On the other hand, Alberta, British Columbia, Newfoundland and Labrador, Ontario and Saskatchewan will have price increases of up to 7%.

Less variety

In addition, the reduction in the number of products available and the empty shelves that have marked the imagination since the start of the pandemic are likely to become commonplace. Also indicated in the report.

“There are a lot of problems in the supply chain,” recalls Mr. Charlebois. You can’t expect perfection in the grocery store. Traders are also (adjusting) their portfolio of brands. There are a few products that are discontinued, that they no longer offer. Often there will be space between two (types of product). ”

Same scenario in restaurants, where consumers risk having to choose their dish from a smaller menu. “More choice leads grocers to spend more. Restaurant owners are the same. If there is less choice, there is less loss. ”