Food prices in Canada are projected to rise by four to six percent next year, mainly driven by increased costs of meat products, according to a forecast by researchers at Dalhousie University. Specifically, beef prices are expected to climb by up to seven percent as cattle sizes decrease and more ranchers exit the industry due to market vulnerabilities. The report by Canada’s Food Price Report anticipates a continued tight supply of beef until 2027, prompting the country to raise its import levels to address these challenges.
Sylvain Charlebois, the director of the university’s Agri-Food Analytics Lab and lead author of the report, highlighted the expected surge in chicken prices as consumers shift away from beef. As a result, the overall food category is anticipated to become more costly. Additionally, staple items like canned goods typically found in the middle aisles of grocery stores may see price hikes after years of stagnant prices, contrary to their historical role as a refuge from inflation.
Several factors, including the ongoing trade dispute with the U.S., changes in the food manufacturing sector, and economic conditions like labor issues, could contribute to grocery inflation over the next year, as outlined in the Food Price Report. Meanwhile, food banks in Canada are witnessing a rise in clientele, with approximately a quarter of Canadians residing in food-insecure households, according to Food Banks Canada.
Neil Hetherington, CEO of the Daily Bread Food Bank in Toronto, noted a substantial increase in the number of clients served monthly, indicating a growing demand for food assistance. With food prices on the upward trend since April 2024, many consumers are already feeling the financial strain. Concerned individuals, such as Toronto resident Sabra Al-Harthi, are contemplating reducing meat purchases to manage costs.
As consumers adapt to the impending price hikes, some like Giacomo LoGiacco are adjusting their spending habits by cutting back on non-essential items. LoGiacco, who struggles to make ends meet with his factory job, mentioned focusing on discounted essential items like milk, eggs, and bread.