Canadians will be paying more for food in 2019 – according to an annual study of food costs by Dalhousie University and the University of Guelph, Canadian food prices will rise between 1.5 to 3.5 percent next year.
This translates into the average family paying CAD 370 to 400 (USD 277 to 299, EUR 243 to 263) more for food, for a total annual spend of CAD 12,157 (USD 9,104, EUR 8,009).
The biggest price jump is in vegetables, which researchers believe will rise between four to six percent. Conversely, meat prices are expected to decline by one to three percent. Seafood prices could stay the same, or decline by up to two percent, the study posited.
Sylvain Charlebois, one of the lead researchers and a professor at Dalhousie University, said the research team believes there is an oversupply of meat, coupled with a decline in Canadians consuming animal protein. He notes that in 2014, beef prices in Canada rose 25 percent in six months. That steep rise drove consumers away and the sector has struggled to make up its loses, which created the oversupply of meat.
In what he labels as “protein wars,” Charlebois said millennials are looking at alternative protein sources. This, he said, is where seafood and fish have an opportunity. Charlebois described fish and seafood as an “under-loved protein” that should come down one to three percent to attract more consumers.
Another food trend Charlebois highlighted is the move to more plant-based proteins, like quinoa and lentils. This trend is fueled by millennials and health-conscious Baby Boomers who are concerned by the use of antibiotics in agriculture, he said.
Major food manufacturers and restaurateurs are listening. Maple Leaf Foods, for example, has diversified its product line by investing in alternative protein companies like Lightlife Foods and Field Roast Grain Meat Co. In the fast food sector, A&W Canada has added vegetarian and vegan menu options, which were so popular the retailer sold out their introductory offerings.
The study concluded that this widespread embrace of plant proteins by consumers will help push vegetable prices higher next year, as will climate events, like El Niño. Climate disruption should create shortages in the supply chain of what researchers describe as “some of the most perishable, fragile food products that are on the grocery shelf."
