More Canadians blame grocery stores over any other factor for soaring food prices: Nanos survey

More Canadians blame grocery stores over any other factor for soaring food prices: Nanos survey

A new survey conducted by Nanos Research reveals that Canadians are increasingly blaming grocery stores for the surge in food prices more than any other factor.

The survey, carried out earlier this week, gathered responses from over 1,000 Canadians aged 18 and older.

According to the results, 32 percent of respondents cited grocery stores as the primary cause of rising food costs, a notable increase from 28 percent in 2023. More than 20 percent attributed the price hikes to increased fuel costs, marking a three-percentage-point rise from last year.

Food prices have been steadily climbing since the COVID-19 pandemic and have remained a pressing concern. The Bank of Canada reported last month that grocery prices have surged nearly 22 percent between February 2021 and February 2024.

In addition to grocery chains, survey participants also pointed fingers at food manufacturers, extreme weather events, the Trudeau government, the carbon tax, or a combination of these factors.

Increased Food Bank Usage

The survey also highlighted the growing reliance on food banks, with nearly one in five Canadians reporting that they or someone they know has turned to food charity services in the past year.

Young adults aged 18 to 34 were the most likely to be affected, with just under 27 percent knowing someone who has used a food bank. The Prairie provinces had the highest percentage of respondents confirming food bank use, at 27.5 percent.

In February, Toronto’s Mike Walker reported that over one-third of Canadian food banks and charitable organizations have been forced to turn people away due to overwhelming demand. A study by Second Harvest, titled “Hungry for Change,” projects that over one million Canadians will need food assistance for the first time in 2024.

“People in Canada can’t keep up with rising food costs,” said Second Harvest CEO Lori Nikkel in February. “More people are being pushed towards food charity, which for most comes as a last resort. Our systems are buckling under the pressure.”

Grocery Code of Conduct

Efforts to implement a national grocery code of conduct have been gaining momentum. The Grocery Industry Code of Conduct Steering Committee has been advocating for a framework aimed at ensuring fair dealings between suppliers, independent retailers, and major grocery chains. The proposed code seeks to guarantee affordable prices and diverse product choices for Canadian consumers.

In February, a House of Commons committee investigating food prices urged Loblaw and Walmart to commit to the grocery code of conduct, warning that non-compliance could lead to legislative enforcement. Both retailers have refused to sign the current draft, arguing that it might ultimately drive prices higher for consumers.

However, Empire Co. Ltd. CEO Michael Medline, whose company operates Sobeys, Foodland, Farm Boy, and FreshCo, dismissed concerns that the code would increase costs. Speaking at a Retail Council of Canada event last week, Medline voiced strong support for the code, insisting that all retailers must participate for it to be effective.

“I think everyone’s caught in a bit of a stalemate right now, trying to figure out how to put pressure on the parties that won’t sign,” Medline stated. “I think it’s a bit of a game of chicken here.”

Sources - 

https://cpma.ca/docs/default-source/media-releases/2022/grocery-industry-code-of-practice-progress-report-july-2022.pdf

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