Canadians will pay more to put food on their tables in 2017, according to Canada’s Food Price Report 2017.
The report, from Dalhousie University, forecasts a rise in food prices between three per cent and five per cent higher than last year’s increase and considerably higher than the general inflation rate.
For the average Canadian family, food expenses in 2017 could increase by as much as $420.
“Food prices are top of mind for everyone. Every single day we have to feed ourselves and we’re victims of fluctuating food prices,” said Sylvain Charlebois, lead author of the report and dean of the faculty of management at Dalhousie University.
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Charlebois points to a number of factors contributing to the price increase. “The biggest factor will be the falling Canadian dollar. Given how many food products we import from abroad our food economy is vulnerable to currency fluctuations. We’re also expecting the upcoming Trump administration to have an impact on Canada’s food prices.”
Charlebois says the new administration could create a period of U.S. protectionism aimed at improving domestic issues at the expense of the international community, impacting agri-food and seafood exports. The administration’s support of infrastructure and the development of the States’ next Farm Bill may result in subsidies to farmers and increased expenses, which could trigger a super cycle in grain prices and further push food prices higher.
Vegetables, fruits and nuts, are all expected to experience a sharp price rise in 2017, due to the need for imports. Vegetables are expected to increase by four per cent to six per cent and fruit and nuts by three per cent to five per cent. Pork, fish and seafood are all expected to see increases in 2017.
Expected price increases:
- Dairy and eggs – two per cent to four per cent;
- Fruit and nuts – three per cent to five per cent;
- Bakery and cereals – zero per cent to two per cent;
- Meats – four per cent to six per cent;
- Vegetables – four per cent to six per cent;
- Fish and seafood – four per cent to six per cent;
- Restaurants – two per cent to four per cent;
- Other food items – four per cent to six per cent.
This is the first time the report has looked at anticipated increases in food prices by province. Both Ontario and British Columbia are likely to have above-average increases in food prices. Newfoundland and Labrador, New Brunswick, Quebec, Manitoba and Alberta are likely to experience lower -than-average, due to a weaker economy and a competitive distribution environment.
