The recently-released Canada’s Food Price Report shows an increase of food prices in 2022.
According to the report, several provinces are expected to see higher than average food inflation rates in 2022, including Alberta, British Columbia, Newfoundland and Labrador, Ontario, and Saskatchewan.
Higher food prices will likely be due to inflationary conditions specific to these regions. In other words, these provinces could see price increases of up to 7 per cent next year.
The annual report is published annually as a collaboration between Dalhousie University, the University of Guelph, the University of British Columbia and the University of Saskatchewan (USask). Dr. Stuart Smyth, a USask associate professor who holds the Agrifood Innovation and Sustainability Enhancement Chair, was the lead for the USask.
Smyth said the report was a bit of a bearer of bad news.
Dr. Smyth said Saskatchewan will notice a greater increase in fruit and vegetable prices as so much of those products come from Southern California this time of the year. They would be transported via the west coast from the United States. But now, they will have to be rerouted to come in through the American midwest in Saskatchewan, as Dr. Smyth explains.
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“That adds time and additional fuel costs to get the products to our markets,” he said. “So, we will be paying a bit more money.”
This won’t only impact consumers but restaurant businesses, as well. The report shows menu prices at restaurants are predicted to increase as businesses contend with rising food prices, rising commercial rents and labour market challenges.
Mark Heise, the president and CEO of Rebellion Brewing says this food price increase doesn’t come as a surprise.
“We fully expect things will continually to go up,” he said. “We’ve seen a lot of global chain supply issues in general and poor harvest across North America. With inflationary pressures, this is going to be our reality going forward.”
Heise said Rebellion Brewing has already been looking into their pricing structure for next year.
“We actually had to implement a small increase so far,” he said. “We seen other breweries and restaurants already increase their pricing. It’s going to be another thing we have to keep a close eye on next year to ensure we stay financially sustainable.”
The food price report can be read here.
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