Ag committee to study food inflation

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Published: October 27, 2022

Members of Parliament on the standing agriculture committee have agreed to study rising food costs and grocery store profits as soon as they are done clause-by-clause assessment of Bill C-234, which proposes exemptions from the carbon tax to natural gas and propane used on farms. | Getty Images

Members of Parliament on the standing agriculture committee want to know what is driving food inflation.

They have agreed to study rising food costs and grocery store profits as soon as they are done clause-by-clause assessment of Bill C-234, which proposes exemptions from the carbon tax to natural gas and propane used on farms.

NDP agriculture critic Alistair MacGregor put forward the motion to study inflation in the food supply chain, noting that large grocery chains are making record profits at a time when Canadians are struggling to buy groceries.

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He also introduced a motion in the House of Commons, supported by all parties and passed Oct. 17, that the federal government “recognize that corporate greed is a significant driver of inflation, and to take further action to support families during this cost-of-living crisis.”

The motion includes supporting the standing committee’s study and launching a fair food strategy against corporate greed in the grocery sector.

Loblaw has since announced a price freeze on its No Name products until Jan. 31.

On Oct. 24 the Competition Bureau announced it will study grocery store competition. It will examine how much competitive dynamics affect higher grocery prices, what can be learned from other countries in terms of increasing grocery competition, and how governments can lower barriers to entry and stimulate competition in the sector.

The bureau is accepting submissions until Dec. 16.

The agriculture committee study will look at grocery company profits in relation to employee wages and grocery costs. The motion also said the committee will “examine the ability of large grocery chains to leverage their size to cut into the earnings of Canadian farmers” and look at how the supply chain could help reduce rising food costs.

Publicly reported earnings showed net profits for the food conglomerate company Empire jumping by 27.8 percent from 2020 to 2022, MacGregor said.

“For 2021 to 22 Loblaw’s net profits went up 17.2 percent and Metro, in the same time period, their profits went up by 7.8 percent,” he said during committee.

MacGregor read an email from someone who works in one of the chains as a file maintenance clerk and said that part of the job is to make sure retail price adjustments from corporate are represented in stores. The email said lately the price increases occur weekly but corresponding costs don’t come until much later, if at all.

The committee intends to invite testimony from industry stakeholders, including farmers, economists, unions and grocery and supply chain executives, as well as experts on inflation.

At least four meetings will be set aside to hear testimony.

About the author

Karen Briere

Karen Briere

Karen Briere grew up in Canora, Sask. where her family had a grain and cattle operation. She has a degree in journalism from the University of Regina and has spent more than 30 years covering agriculture from the Western Producer’s Regina bureau.

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