AV俱乐部

Canada鈥檚 Food Price Report 2021 predicts annual food expenditure could go up by as much as $695 compared to 2020

COVID-19 changes consumer behaviour and affects food prices in surprising ways

Halifax 鈥� The 11^th annual edition of Canada鈥檚 Food Price Report forecasts an overall food price increase of 3 to 5% for 2021. The most significant increases are predicted for meat at 4.5 to 6.5%, bakery at 3.5 to 5.5%, and vegetables at 4.5 to 6.5%.

鈥淔amilies with less means will be significantly challenged in 2021, and many will be left behind,鈥� says Dr. Sylvain Charlebois, project lead and Director of the Agri-Food Analytics Lab at AV俱乐部. 鈥淚mmunity to higher food prices requires more cooking, more discipline and more research. It鈥檚 as simple as that.鈥�

The COVID-19 pandemic led to border and facility closures, shifting consumer demand and unemployment, as well as modifications in production, manufacturing, distribution and retailing practices to enhance safety 鈥� all of which impacted food prices. An oil price war and the devaluation of the Canadian dollar were also significant factors.

The 2021 Food Price Report has two new features this year. For the first time, the report is a cross-country collaboration, jointly released by long-time research partners AV俱乐部 and the University of Guelph, as well as the University of Saskatchewan and the University of British Columbia.

Dr. Simon Somogyi, project co-lead and Arrell Chair in the Business of Food at the University of Guelph, was most surprised by the increase in the price of vegetables and has some advice for consumers. 鈥淗ealth Canada wants us to eat more vegetables and that鈥檚 going to be harder. Hopefully when the Canadian growing season comes online in summer 2021, prices will soften and more families will have access. When folks go to the grocery store, they should have a look in the frozen food aisle, particularly for peas, broccoli, carrots and corn. Frozen vegetables are snap frozen just after harvest, so their nutrients are locked in. They can be just as nutritious as fresh vegetables, but at a lower price.鈥�

This year鈥檚 report is more robust than ever, with national expertise and collaborations between economists and data scientists strengthening the accuracy and interpretation of price forecasts and reflecting the regional differences in the Canadian food system.聽

This year鈥檚 report also takes into account the diversity of Canadian families by calculating average food expenditure by individual consumer based on age and gender, rather than for an 鈥榓verage鈥� Canadian family. For example, based on a family including a man (age 31-50), woman (age 31-50), boy (age 14-18) and girl (age 9-13), the annual food expenditure is predicted to be $13,907 in 2021, an increase of up to $695 (5%) compared to 2020.

Last year鈥檚 report predicted the average Canadian family would spend up to $12,667 on food in 2020. Based on the 2020 inflation rate to date, this figure is likely to be closer to $12,508, largely because consumers ate at restaurants less frequently.

鈥淭he COVID-19 pandemic will potentially have long-lasting effects on Canadians' relationship to food,鈥� explains Alyssa Gerhardt, a PhD Student in the聽Department of Sociology and Social Anthropology聽at AV俱乐部 who worked on the project.聽鈥淲e've seen more demand for online services in both food retail and food service, an increase in Canadians gardening and preparing meals at home and renewed interest聽in local food supply chains.鈥�

While the impacts of the pandemic and the uncertainty that accompanies it will continue into 2021, Canadians can be confident in their food supply. 鈥淐anada has one of the safest food systems in the world that has, over the past 10 months, shown just how resilient it is when it comes to responding in an efficient and timely fashion to ensure that consumers are guaranteed a constant provision of safe, nutritious food products,鈥� says Dr. Stuart Smyth, project co-lead and Industry Funded Research Chair in Agri-Food Innovation at the University of Saskatchewan.

Dr. Jim Vercammen, project co-lead and Professor in the the Faculty of Land and Food Systems and the Sauder School of Business at UBC, agrees. 鈥淲ith the exception of some short-term hoarding of high-demand food products, the various food supply chains continue to function remarkably well. But consumers need to understand that Canada imports a sizeable fraction of its fresh fruits and vegetables from the U.S., Mexico and other countries. The potential exists for significant disruptions in these imports if there is a second wave of the COVID-19 pandemic.鈥�

Food price factors to watch for in 2021 include the continued impact of COVID-19, the effects of climate change, the growth in e-commerce and online services, the continued loss of the food manufacturing sector, the national ban on some single-use plastics and the impact of the U.S. presidential election on food policy and the Canadian dollar.

The research team uses historical data sources, machine learning algorithms, and predictive analytics tools developed over many years to make predictions about food prices in Canada. This year鈥檚 research team included AV俱乐部 colleagues Vlado Keselj, Stacey Taylor and Mitchell Kane (Faculty of Computer Science); Kathleen Kevany, Stefanie Colombo and Janet Music (Faculty of Agriculture); Elizabeth Fitting and Karen Foster (Faculty of Applied Social Sciences); and Don Fiander (DalAnalytics). University of Guelph researchers included Simon Somogyi (Arrell Chair 聽in the Business of Food,聽Gordon S. Lang School of Business and Economics), Erna Van Duren (Gordon S. Lang School of Business and Economics), Paul Uys (Ontario Agricultural College), Jess Haines (Family Relations and Applied Nutrition), Graham Taylor (School of Engineering), Dr Maria Corradini (Ontario Agricultural College), and Ethan Jackson (Vector Institute & School of Engineering). They were joined by University of Saskatchewan鈥檚 Rim Lassoued (Agricultural and Resource Economics) and University of British Columbia鈥檚 Kelleen Wiseman and Richard Barichello (Faculty of Land and Food Systems) and Matias Margulis (School of Public Policy and Global Affairs).

For more information, please read the complete Canada鈥檚 Food Price Report 2021.

Media Contacts:

Sylvain Charlebois, Scientific Director, Agri-Food Analytics Lab
Faculty of Agriculture, AV俱乐部
sylvain.charlebois@dal.ca
902-222-4142 (cell)

Janet Music, Research Program Coordinator
Agri-Food Analytics Lab
Faculty of Management, AV俱乐部
jlmusic@dal.ca
902-494-2471