A look at how much more you could be paying for food in 2025
Dec 10, 2024
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Sylvain Charlebois, the lead author of the 2025 Canadian Food Price Report and head of the Agri-Food Analytics Lab at Dalhousie University, discusses the troubling rise in grocery costs expected for Canadian families. He reveals that food expenses could increase by $800 in 2025, driven by factors like meat prices and currency fluctuations. Charlebois also highlights the shift towards seafood and a potential decrease in dairy costs. The conversation unpacks the emotional toll on consumers and the impacts of climate change and government policies on food pricing.
Canadians can expect grocery prices to rise by about $800 in 2025 due to inflation and supply chain challenges.
Climate change is significantly impacting food prices in Canada, particularly for items like beef and coffee, as production costs increase.
Deep dives
Rising Food Costs for Families
The cost of feeding a family of four in Canada is projected to rise significantly, with estimates indicating an increase of around $800 for 2025, bringing the total to approximately $15,800. This rise is attributed mainly to heightened prices for meat, particularly chicken, pork, and beef, alongside expected increases in vegetable prices. The 2025 Canada Food Price Report highlights the complexities of supply chain economics, noting that these projections stem from various factors, including currency fluctuations and low purchasing power of grocers. As families grapple with escalating food expenses, the need for consumers to be informed and strategic in their purchases becomes increasingly apparent.
Impact of Climate Change on Food Prices
Climate change is influencing food prices in Canada through its effect on agricultural productivity and food supply stability. Specific products, such as beef, coffee, chocolate, and orange juice are expected to see price increases due to climate-related factors affecting their availability and production costs. The report underscores how a decline in beef herd sizes and rising feed costs are part of a broader challenge that could lead to higher prices for consumers. Anticipating these changes, consumers may want to stock up on certain staples, such as coffee, before they become more expensive.
Consumer Behavior and Market Dynamics
Patterns of consumer behavior have evolved, with shoppers becoming increasingly price-sensitive and knowledgeable about food prices compared to previous years. The podcast highlights how Canadians are utilizing technology and social media to stay informed about prices, leading to shifts in shopping habits and loyalty dynamics in the grocery sector. Additionally, competitive pressures are altering the landscape, as major players like Dollarama and Costco expand operations to attract cost-conscious consumers. This changing environment may result in more strategic pricing and promotional efforts from grocers as they adapt to the challenges posed by rising costs and informed consumers.
While inflation may have cooled in Canada this year, the price of groceries is still increasing faster than before the pandemic.
According to the 2025 Canadian Food Price Report, families can expect to pay $800 more for food next year than they did this year.
But it's not all bad news - there are some savings to be had!
Host David Smith speaks with report author Sylvain Charlebois, head of the Agrifood Analytics Lab at Dalhousie University, about the outlook for Canadians struggling to fill the fridge on a budget.
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