A Canadian food bank fears it will soon be unable to keep up with demand, amid new report findings that predict families will pay more than $800 more on groceries this year.
On Thursday, Dalhousie University’s Agri-Food Analytics Lab released its 15th annual Canada Food Price Report, conducted by researchers from Dalhousie University, University of Guelph, University of Saskatchewan, and University of British Columbia. The report highlights and analyzes information on the country’s food trends and prices using expertise from staff in agriculture, management and computer science departments.
Overall, food prices are expected to increase by three per cent to five per cent this year, the report says. Additionally, the average family of four is expected to spend over $16,833 on food, an increase of up to $801.56 from last year.
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Dalhousie University Project Lead, Professor, and Director of the Agri-Food Analytics Lab Dr. Sylvain Charlebois says the rising food prices reflect a broader financial strain on the cost of living in Canada, noting that 45 per cent of Canadians say the prices are impacting their ability to meet daily expenses.
“These indicators highlight a need for concern, as rising costs disproportionately impact vulnerable populations and erode disposable income,” he told Now Toronto in a statement on Friday.
Charlebois adds that the reason behind the spike in food prices hinges on several factors, including climate challenges, labour disruptions, exchange rates and imports, commodity price increases and geopolitical risks.
The report found that extreme weather events affect food production and in turn the country’s food supply chain, which has faced significant disruptions due to multiple labour disputes.
Moreover, the weak value of the Canadian dollar will reduce the buying power of Canadian importers this year and geopolitical conflicts and trade dynamics will put Canadian producers at a disadvantage, according to the report.
To help save money on food costs this year, Charlebois suggests searching for deals, finding cheaper alternatives to products, exploring alternative proteins, reducing waste, buying in bulk and utilizing loyalty programs at grocery stores.
CONCERNING RISE IN FOOD BANK VISITS
The report comes on the heels of a growing number of visits to food banks across Canada. According to Daily Bread Food Bank Vice President of Research and Advocacy Sahar Raza, the Canadian charity documented 3.7 million visits in 2024 and anticipates more than that this year.
“In our November report, we actually saw a direct correlation between food prices going up and food bank visits going up over the last year. So, we expect that to continue into the coming year, which means we could see well over four million food bank visits next year,” Raza told Now Toronto on Friday.
She adds that food banks are also at capacity and the organization is concerned it will not be able to meet demand if food prices continue to climb at the current pace.
“If we see the same over one million food bank visits increase that we saw last year, we are going to have to start making some difficult choices. We may reduce the amount of food that we give each client because our warehouse is at capacity. We can’t grow anymore,” Raza said.
The organization understands that the main denominator is the rising cost of living and that in addition to grocery prices being reined in, affordable housing and rental supplements also need to be prioritized.
“The cost of living is just out of control. Over 50 per cent of clients say that the rising cost of living is the main reason that they are coming to food banks, so that’s more than losing a job or any other reason. It’s just because they can’t keep up, their incomes are not keeping pace,” Raza explained.
WHAT IS THE SOLUTION?
Raza believes every level of government needs to be involved in order to address surging food prices and food insecurity.
“…What we need to see is every level of government focused on producing the kind of deeply affordable housing that we actually need to reduce food bank use and to reduce homelessness,” she said, referencing Toronto’s universal student nutrition program as an example of an initiative which other levels of government should fund.
Furthermore, the organization is calling for the Canada Disability Benefit to be fully funded to help Canadians move above the poverty line. In the federal government’s 2024 budget, the disability benefit is set to receive $6.1 billion over the next six years, starting in 2024-2025 and $1.4 billion per year afterwards.
Raza also encourages community members to write to their elected officials demanding solutions to the cost of living.
“We can’t keep up with the need if it just keeps rising. We need policy change, so that people stop having to come to food banks in the first place,” she said.
