(Ottawa) MPs want to hear from the bosses of Canada’s largest grocery chains on rising food prices.
The House of Commons committee that studies inflation on the food side invited the CEOs of the major chains Loblaw, Metro and Empire (IGA) to attend an upcoming meeting in Ottawa on Monday.
The hearing has not yet been set.
NDP MP Alistair MacGregor made the request at Monday’s meeting, and he won the unanimous support of Liberal, Conservative and Bloc members of the Standing Committee on Agriculture and Agri-Food.
Executives from all three companies, as well as Save-On-Foods, have testified at past committee meetings focused on rising food costs, but not their CEOs.
“Those who are at the head of these companies, where the responsibility stops […] should at least have to answer questions about why their profits are so high and why their prices are so high, NDP Leader Jagmeet Singh said on Tuesday. And why are they making profits on the backs of Canadians? »
The Commons committee began the study in October, originally planning six meetings to discuss the topic, but agreed to extend the duration of its study into rising food prices, adding further meetings to its agenda as well as more witnesses, in addition to the CEOs.
The Retail Council of Canada, which advocates for grocers, said it wants the committee to involve global brands, manufacturers, processors and wholesalers.
“Grocers are food distributors – they buy products from suppliers and then resell them to customers. This means they are largely dependent on what suppliers ask them to pay for their products,” council spokeswoman Michelle Wasylyshen said in a statement on Tuesday.
Metro declined to comment, while Loblaw and Empire did not immediately respond to a request to comment on the committee’s study.
According to Statistics Canada, prices for food purchased in grocery stores rose nearly 10% in 2022, its fastest rise since 1981, with higher prices in all food categories except canned salmon. .
MP MacGregor said he was eager to ask the CEOs of major chains direct questions about rising grocery bills.
“Canadians are cutting back on their usual grocery lists and stretching their paychecks even further, and they have even less for their families, while meanwhile these CEOs are making more money than they ever have won before. It just doesn’t work,” said MacGregor, NDP Food Inflation Critic.
Last year the Liberal government asked the Competition Bureau to study food prices at grocery chains to ensure fair pricing.
The Bureau found that many factors may have impacted the price of food in grocery stores, including extreme weather conditions, higher input costs, Russia’s invasion of Ukraine, and disruptions in supply chain.
The Competition Bureau study, which should be published this year, will also examine whether the competition model between brands is also contributing to higher prices.
Empire Chief Operating Officer Pierre St-Laurent told the committee in December that global challenges are driving up food production costs.
“Unfortunately, the current circumstances are such that our suppliers have no choice but to ask retailers for significant price increases if they want to remain profitable,” said Mr. St-Laurent.