In supermarkets across the country, the cost of a two-liter container of 2% milk and that of soy, almond or oat drinks of the same size are practically nose to nose, reveals the Laboratory of Analytical Sciences in Agrifood from Dalhousie University, in a report to be released this week. At equivalent prices, many consumers could opt for the milk alternative, according to Jordan LeBel, full professor of food marketing at Concordia University.
Posted at 7:30 p.m.
“It’s one for one in the price, I think it will promote alternative drinks, supports the expert. The heavy trend is that if it’s alternative, it’s better. The alternative enjoys an aura of ‘better for you’, ‘better for the planet’. By comparison, milk faces a lot of criticism and associations on the carbon footprint, on animal abuse. »
It should be noted that the Canadian Dairy Commission (CDC) recently recommended an increase in the price of milk at the farm of 2 cents per litre, or 2.5%, from the 1er september. This is the second increase this year. The CDC had also given its approval at the beginning of the year to an increase of 8.4%. This came into force on 1er february. At the other end of the chain, the price of milk displayed in supermarket refrigerators is determined in Quebec by the Régie des Marchés Agricoles. Hearings on this matter will be held on Friday. Consumers may therefore once again have to pay more. The retail price of milk varies from province to province.
What does the report say?
First observation: in grocery stores, customers have the choice between two types of products whose price is comparable, and this, in ten provinces of Canada. For comparison, the researchers analyzed the cost of a two-litre carton of 2% milk with equivalent formats for plant-based drinks between January and June 2022. Organic products were not taken into consideration. In Quebec, for example, milk sold on average during the first six months of the year for $4.44, compared to $4.34 for vegetable drinks. This is one of the cheapest places in the country for alternative drinks. “Combining results from all provinces, milk sells for 5% less than dairy alternatives,” the report reads.
In supermarkets, the cost of milk has risen 25% in Canada since January, while that of soy beverages and others has increased by 31%, it was also noted.
These conclusions surprise the director of the Laboratory of Analytical Sciences in Agrifood at Dalhousie University, Sylvain Charlebois. “For alternative products, I have trouble understanding why we follow the same curve as milk,” he admits. It surprises me because one of these categories [le lait] is heavily influenced by a pricing mechanism at the federal and provincial level, in the case of Quebec. »
So he expected soy drinks, for example, to have a significantly lower price. Contrary to Jordan LeBel, Mr. Charlebois does not believe that this quasi-equality will make consumers pass from one category to another.
The milk industry
These results also surprise the Council of Dairy Industrialists of Quebec (CILQ), but for reasons different from those mentioned by the director of the Laboratory of Analytical Sciences in Agrifood. “The figures that are there surprise me a little. I thought that substitute products were more expensive than milk, that doesn’t seem to be the case,” says Charles Langlois, president and CEO of the CILQ. “The prices are pretty much nose to nose. Ultimately, it’s up to consumers to choose,” he adds.
For the moment, he does not believe that milk sales will suffer from this equality between prices, but recognizes all the same that there is competition. “Yes, we are concerned. We know very well that consumption is falling. Of course, the more offers there are, the more competition there is. But in general, we are advised to take the least processed products. Milk has an advantage that the others do not have. »
“According to our data, milk remains advantageous and competitive,” adds François Dumontier, director of communications and public affairs for Les Producteurs de lait du Québec. The entire food and agricultural sector is experiencing rising costs. Despite everything, the craze for dairy products remains. »
Substitute drinks
Retail milk price hikes – one of which could come in the fall in Quebec – will work in favor of soy, almond and oat drinks if they are produced locally, argues Ignace Daher, vice-president of sales and marketing of Aliments Natura, a company located in Saint-Hyacinthe. “In theory, the increase in the price of milk should automatically work in favor of plant-based drinks since they have become a serious alternative to milk,” he wrote in an email sent to The Press while he was abroad. However, the factors responsible for the price increase affect vegetable drinks as much as milk, but apart from a few details, the pressure is lower on the price when they are made locally and with local ingredients such as soy and oats. »
However, he adds that his company has little control over the retail price displayed. “Let’s not forget that the price of vegetable drinks is not regulated. So retailers do what they want for the price of our drinks, unlike milk. »
rehabilitate the cow
For Jordan LeBel, the strong presence of vegetable drinks and the possible increase in the price of milk are cause for concern for producers. “Yes, there are changes, it’s brewing. If you are a dairy manufacturer, you have to wonder how to place your pawns to deal with this. »
He points out that the cow has become the symbol of “everything that is wrong with agriculture today”. “The cow that farts, the cow that is mistreated,” he illustrates.
“And one of the benefits is that consumers think [qu’en boudant le lait], they don’t endorse the bad cow, the cow that is destroying the planet. Consumers, on the other hand, don’t see the devastation of California’s almond industry, which is drying up waterways. There is not a food choice that is zero footprint at the moment, ”he wishes to point out, however.