Grocery prices causing growing anger, frustration, in community

“When you go to the grocery store, you’re really making some pretty tough decisions.”

A report from the Centre for Future Work shows grocery profits continue to rise at a historic rate, and while rising prices can certainly be attributed to supply chain costs, climate conditions, global conflict, and more, Stanford explains grocery companies have done a lot more than just increase costs alongside inflation.

“Supermarkets have done much more than just pass on higher costs. They have also fattened their profit margins, and they have recorded all time record profits across the food retail sector. In Canada last year, profits equaled $6.3 billion, and that is more than double what the typical profits were in a year before the pandemic,” Stanford said.

A graph from the report done by the Centre for Community Work

While rising grocery prices have caused headaches for many, it has been especially challenging for our disabled community members. Ryan Labatiuk is on disability payments of $1400 a month, which is supposed to cover rent, utilities, and food. But with groceries rising at such a rapid rate this has been more challenging than ever.

“When you go to the grocery store, you’re really making some pretty tough decisions. And a lot of the time you end up not eating as healthy as you want to be because price of produce and dairy is just outrageous right now,” Labatiuk said.

Feeling like health is being gatekept due to prices, Labatiuk says he’s had to use the food bank more than usual, as his budget simply can’t afford things like fruits and vegetables.

“You’re eating a lot of processed, a lot of heavy carbohydrate foods, just because they are cheaper than fresh produce, fresh meat. So you don’t really feel as good as you do eating,” Labatiuk said.

Even when trying to find discount options Labatiuk says that has been challenging too. Saying he’s seen some frozen meals jump by $4 in just one year, alongside “shrinkflation” causing you to pay more for less of a product, budgeting for food has been near impossible.

What can be done to address the issue?

Stanford says there is no magic bullet that will fix everything right away, as the issue has many different angles that must be approached. However, a huge issue that must be rectified according to Stanford is the lack of competition.

“In the grocery sector in Canada, the three biggest firms control two thirds of the market,” he says.

This has led to grocers being able to raise prices more or less on their own terms, as Stanford explains food price increases have not been consistent with inflation. Even though inflation is starting to slow down, Stanford says grocers continue to increase prices and raise profits.

“Companies are keeping prices at a more normal pace of growth, even though their input costs have fallen. So they’re now profiting on the way down, just like they profited on the way up,” he says.

Stanford says the government has already taken action in some ways to increase competition, such as prohibiting a former practice where a supermarket chain could demand clauses from real estate leasing companies to prohibit other food stores from setting up nearby. While it’s a step in the right direction, Stanford says more must be done.

“We need the federal government’s competition bureau to be able to block more of the mergers that have contributed to such a concentrated sector and in some cases, to force divestment of certain divisions or certain stores where competition is clearly inadequate,” he says.

Other actions, such as an excess profits tax, could also be a way to share the wealth among Canadians who are struggling to make ends meet. Other sectors already have this in place, so Stanford says it’s worth looking into ways to implement this in the grocery retail sector as well.

While the price of groceries continues to rise, Stanford, alongside many Canadians, hopes to see action take place sooner rather than later to address a crisis that many believe has been left unattended too long.

Pattison media and Save-on-Foods are both owned by Jim Pattison Industries.

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by Tommy Osborne

Grocery prices causing growing anger, frustration, in community

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