The latest report on Canadian food prices anticipates the average family will spend three to five per cent more on food next year.
The most significant increases, according to the 2021 Canada Food Price Report, will be for meat and vegetables. Prices for both could jump by 4.5 per cent to 6.5 per cent. Consumers can also expect to pay up to five per cent more for bakery items. All seven categories predict a rise in cost.
This is the 11th annual report compiled by the University of Guelph and Dalhousie University. However, this is the first year the University of Saskatchewan and the University of British Columbia contributed to it. Unlike reports over the past decade, this one includes the impact of the COVID-19 pandemic.
The pandemic looms large in the report's findings but is by no means the only reason why the cost of feeding a family is increasing. The report also points to climate change, the oil price war, and the devaluation of the Canadian dollar.
It said this year's oil price war between Russia and Saudi Arabia may have cut the cost of energy to produce food and distribute it, but it also weakened the Canadian dollar. That affected "the buying power of importers, meaning imported items likely cost more for the consumer."
Many Canadian families also had less money to spend. With more people out of work, there is less disposable income to spend on imported and luxury food products.
The food supply chain is adapting. During the pandemic, many food producers and manufacturers switched to online ordering. One in five Canadians also started home gardens this year.
Councillor Dave VanDamme stands in a garden with chicken wire to keep rabbits out, June 8, 2016 (Photo courtesy of Dave VanDamme)
"While most home gardeners do not grow all of the food they consume, the decision to grow their produce could be related to increasing concern with food supply chains and food shortages," said the report.
Over half of Canadians surveyed for the paper are concerned about food supplies.
Overall, food prices are expected to rise two to four per cent in 2021. The predicted expenditure for an average family of four next year could be $13,907, an increase of $695 from this year, excluding food service. The calculation is the highest predicted increase since the first report 11 years ago.
The 2020 Food Price Report predicted the average family would spend up to $12,667.
