How the food supply chain in Canada works and what is important to know

Supermarket executives in Canada have come under public scrutiny. They are frequently called to parliament to answer questions about rising food prices and accusations of profiteering.

However, experts note that the increase in food prices is not solely due to the actions of stores, but also global issues such as the pandemic, military conflicts, and weather-related disasters. These factors put pressure on the entire industry and lead to an overall increase in prices.

Michael Graydon, a representative of the grocery store association, points out that shoppers often don't understand all aspects of food supply and blame stores for price increases as a result. He also emphasizes that many people have limited budgets and are looking for someone to blame, which creates problems for the entire industry.

Food prices continue to rise faster than other prices, although inflation has slowed due to interest rate hikes. Experts note that prices for some products, in particular, have risen sharply due to global conflicts but have stabilized at a high level.

To cope with increasing costs, manufacturers may change packaging or automate production processes, but high interest rates make it difficult to invest in such changes. Ultimately, stores and manufacturers are forced to negotiate prices, which can lead to further increases in the cost of goods for consumers.

Despite accusations that stores are profiting from price increases, experts note that they also face a number of challenges, such as rising energy costs and wages. Stores are forced to make decisions about which prices to raise in order to maintain profitability and remain competitive in the market.

While there is hope for stabilization of food prices in the future, many experts warn that risks remain high due to global challenges.