Overall Canadian food prices are expected to baloon in 2022, but seafood prices will not increase as much as those of other foods, according to a new report.
Canadian families will pay on average CAD 966 (USD 755, EUR 669) more for food in 2022 than they did in 2021 due to the continuing impacts of the COVID-19 pandemic on the country’s food supply chain, according to Canada’s Food Price Report from the University of Guelph’s Arrell Food Institute (AFI), Dalhousie University, the University of British Columbia, and the University of Saskatchewan.
The universities predicted food prices in Canada will increase by 5 to 7 percent overall, the largest predicted increase since the report started 12 years ago. In 2021, the report forecasted prices to increase by 3 to 5 percent – a prediction that proved accurate, the University of Guelph in Guelph, Ontario, Canada, said in a press release.
However, Simon Somogyi, a professor at the Gordon S. Lang School of Business and Economics at the University of Guelph, told SeafoodSource he believes seafood prices will stay flat or to up to 2 percent.
“Meat increased by over 10 percent in 2021, and [there were] some similar increases for seafood. We think that those prices will remain high but won’t have such a large increase like they did in 2021,” Somogyi said. “We just don't think they are going to drop, and therefore, they will stabilize.”
Dairy products will see some of the highest increases, rising 6 to 8 percent, according to the report. Vegetable and bakery item prices are both expected to rise by 5 to 7 percent.
In addition, menu prices at restaurants are predicted to rise by 6 to 8 percent, as restaurants contend with high food prices, labor market challenges, and ongoing problems with supply issues, the University of Guelph said.
Higher food costs are being driven by supply chain pressure that is projected to continue in 2022.
“Those challenges include high transportation costs, reduced maritime cargo capacity, and labor shortages,” Somogyi said. “The drought conditions and wildfires throughout 2021 didn’t help either and worsened supply problems, which contributed to further increases.”
Photo courtesy of Niloo/Shutterstock
