Question Period Note: FOOD PRICE STABILIZATION

What is the government doing to stabilize food prices?

• All Canadians deserve to be able to afford to put food on their tables.
• That is why the Government of Canada is taking concrete actions to promote the stabilization of grocery prices, including establishing the Grocery Sector Code of Conduct, amending the Competition Act, and investing in local food infrastructure.
• The government has also called on companies throughout the food supply chain, both grocers and suppliers, to take meaningful actions to stabilize grocery prices.
• Recent data has shown that food inflation has slowed, and the government will continue to take action to ensure Canadians are paying fair prices for groceries.

Competition Act

The Government of Canada has enacted or proposed significant amendments to the Competition Act through Bill C-19; Bill C-56 and Bill C-59 These amendments seek to enhance competition to improve affordability and consumer choice across Canada by modernizing Canada’s merger review process, revamping enforcement, addressing environmental and labour concerns, and ensuring that the Act is internally consistent and in line with Canada’s legal framework as well as international best practice.

Grocery Code of Conduct

The Grocery Code of Conduct is an industry-led process that aims to bring transparency and certainty to commercial dealings across the agri-food value and supply chain by establishing a framework for dispute resolution and governance through the establishment of a Grocery Code Adjudicator’s Office. A Grocery Sector Code of Conduct (the Code) is viewed as an instrument to improve transparency, predictability and respect for the principle of fair dealing in supply chain relations.
ISED’s Contributions Program for Non-Profit Consumer and Voluntary Organizations

Innovation, Science and Economic Development Canada’s (ISED) Contributions Program for Non-Profit Consumer and Voluntary Organizations is the only federal funding mechanism of its kind to support these organizations to conduct research and encourage financial self-sufficiency. The Contributions Program for Non-Profit Consumer and Voluntary Organizations is a grants and contribution program managed by the Office of Consumer Affairs and dedicated to supporting a broad range of consumer advocacy organizations.

Grocery Code of Conduct

• The Government of Canada, working in partnership with provinces and territories, recently announced the participation of all large grocery retailers in the Grocery Sector Code of Conduct, a positive step towards uniting supply chain partners to collaborate to bring more fairness, transparency, and predictability to Canada’s grocery supply chain and for consumers.

Competition Act

• The Government of Canada is prioritizing key amendments to the Competition Act to enhance competition and ensure the Competition Bureau has the tools and resources it needs to protect competition.
• Three phases of reform have either been completed or are underway, in an effort to better align Canada’s system with international best practices.

Strengthening local food security

• Local food programs enable communities to grow, process, store, and distribute food to those in need within the community, improving the availability of and access to nutritious, local food and reducing the need to shop at major grocery chains.
• Budget 2024 proposed $62.9 million over three years to renew and expand the Local Food Infrastructure Fund to support community organizations across Canada to invest in local food infrastructure.

Lower costs for farmers

• When farmers have to purchase new, more expensive equipment to grow our food, it can drive up their costs, which get passed on to consumers at the checkout counter. Helping farmers keep costs low is a key component of ensuring the sustainability of our food supply chains. It also helps keep grocery prices in check.
• Budget 2024 announced:
o the launch of consultations in June 2024 on farming equipment interoperability
o a call on provinces and territories to amend their contract laws to support interoperability
o $64 million in 2024-25 to Agriculture and Agri-Food Canada to support a $250,000 interest-free limit on Advance Payments Program loans.

 
Status of food inflation in Canada

• Inflation for groceries has fallen from a peak of 11.4 per cent in January 2023 to 2.4 per cent in August 2024. The Government of Canada will not hesitate to take additional measures if required to ensure food price stability, and no options are off the table.

Supporting Consumers

• In October 2023, the Government of Canada announced that it would be tripling its investment in the Contributions Program for Non-Profit Consumer and Voluntary Organizations in support of efforts to examine and address factors affecting food affordability in Canada.
• By providing further funding for consumer advocacy, the government is ensuring that consumer interest organizations are supported to meaningfully advocate for consumers.
• On February 6, 2024, the government announced new funding for consumer advocacy:
o The Public Interest Advocacy Centre will investigate food pricing policy and regulatory challenges;
o Union des consommateurs will bring together 100 experts to discuss solutions to the most pressing challenges Canadian consumers are facing;
o Food Secure Canada will investigate retail practices that negatively impact consumers, such as shrinkflation and skimpflation in the grocery sector;
o Option consommateurs will conduct research to help consumers identify and protect themselves from potentially unfavorable sales practices;
o Équiterre will highlight innovative solutions that provide consumers access to affordable, healthy, and sustainable food; and,
o The Consumers Council of Canada will conduct research on food fraud, per unit pricing, price scanner accuracy, and shrinkflation and skimpflation.
• The government also launched an open call for proposals on February 27, 2024, to fund further consumer research and advocacy projects focused on affordability-related issues including in the grocery sector.

Food Price Data Hub

• The Food Price Data Hub provides Canadians with more detailed information on food prices and helps consumers make informed decisions about their food purchases.
• The data is provided through a partnership involving Statistics Canada, Agriculture and Agri-Food Canada and key partners in the food system.