Food prices in Canada are anticipated to rise by four to six percent next year, mainly driven by higher costs of meat products, as per a projection by researchers at Dalhousie University. Specifically, beef prices are expected to surge by up to seven percent due to shrinking cattle sizes and the departure of more ranchers from the industry. The forecast indicates that the tight beef supply is likely to persist until 2027, despite increased import volumes to address the challenges.
Sylvain Charlebois, the director of the university’s Agri-Food Analytics Lab and the lead author of the report, mentioned that the shift towards chicken as an alternative to beef is also pushing up chicken prices, contributing to an overall increase in the food category prices. Additionally, staple items typically found in the center aisles of grocery stores, such as canned goods, may also witness price hikes after years of stagnant prices, contrary to being a refuge from inflation.
Various factors, including the ongoing trade dispute with the U.S., changes in the food manufacturing sector, and economic elements like labor conditions, could collectively contribute to grocery inflation over the next year, according to the Food Price Report.
Food Banks Canada reported that around a quarter of Canadians live in food-insecure households due to financial constraints. Neil Hetherington, the CEO of the Daily Bread Food Bank in Toronto, noted a significant increase in clients, with the organization now serving 330,000 clients monthly, a stark rise from the pre-pandemic figure of around 60,000.
With food prices on an upward trajectory since April 2024, many consumers are feeling the financial pressure. Concerns about further price hikes at the grocery store have prompted some individuals to consider adjusting their shopping habits. For instance, Toronto resident Sabra Al-Harthi mentioned that she may reduce meat purchases to cope with rising prices, while Giacomo LoGiacco shared that he is cutting back on food expenses due to financial constraints, focusing only on essential items like milk, eggs, and bread.