Your Grocery Bill - Lets Dig Deeper

Author: John Zekveld - Executive Board Member for CFFO

“Government intervention in private markets, such as grocery rebates or price controls, may offer short-term relief but ultimately function as Band-Aid solutions are many times are detrimental to long term solutions.”

Dear Consumer,

You have likely noticed that food prices have increased. Every generation raises concerns about the cost of fuel and food, two essentials we purchase frequently and that are immediately felt in household budgets. We fill our vehicles regularly, and we buy groceries once or twice a week, making these costs highly visible.

So why have food prices risen, and is this truly a crisis?

According to a recent news article, Prime Minister Carney attributed rising food costs to tariffs, climate change, and geopolitical disruptions, and further suggested that Canada is experiencing food insecurity. These statements raise important questions that deserve closer examination.

Tariffs increase costs primarily when we impose them on imported products, not when other countries tariff Canadian exports. The term “Climate change” has become a broad, catch-all explanation, yet weather variability, including droughts, disease, and extreme events, has existed throughout history. These challenges are not new to agriculture. Likewise, claims of geopolitical disruptions affecting domestic food prices require clearer, concrete examples to support the argument.

There are, however, several significant factors much closer to home that directly influence food prices: the carbon tax, inflation driven by excessive government spending and monetary expansion disconnected from GDP growth, sharp increases in production inputs since the COVID-19 period, and Ontario’s annual minimum wage increases. These policies directly affect farmers, processors, and food businesses operating within Canada.

While wages must rise to help Canadians manage inflation, as people need to earn a livable income; these increases also raise operating costs throughout the food supply chain. Rather than addressing these policy-driven pressures, it is easier to place blame elsewhere, including on our own food industry, which is often accused of price fixing or gouging despite paying significant taxes and operating under strict regulations.

Recently, Farm & Food Care released data showing that Canada’s Food Freedom Day falls on February 8. This means it takes approximately 40 days of annual income to pay for food, an amount that has remained relatively unchanged in recent years. Food prices have risen but not disproportionately compared to other household expenses.

Government intervention in private markets, such as grocery rebates or price controls, may offer short-term relief but ultimately function as Band-Aid solutions and many times are detrimental to long term solutions. They do not address the root causes of inflation. Meaningful change requires fiscal discipline, responsible spending, and policies that support a competitive and business-friendly environment.

Canada’s farmers and food processors provide food with exceptional care, safety, and efficiency. They continually make difficult decisions to remain viable while absorbing rising costs. Without their innovation, stewardship, and commitment to efficiency, food prices would be significantly higher. Canada is, in fact, among the countries with the lowest food-cost indexes in the world.

As for food insecurity, it is important to consider this term in a global context. True food insecurity looks very different in many parts of the world. In Canada, we are blessed with abundance. Food sovereignty, producing our own food, is a wise and important goal, and one we should continue to support.

May the Lord bless our governments with wisdom and resolve to examine domestic policies honestly and pursue healthy, sustainable solutions. Pray for our leaders as they govern and take a moment today, and every day, to give the Lord thanks for the food on your table. It is God who provides and cares for us all.

John Zekveld

Executive Board Member for CFFO

The CFFO Commentary represents the opinions of the writer and does not necessarily represent CFFO policy.