By Alice McFarlane

Report says farmers are not behind food price inflation

Dec 8, 2023 | 12:26 PM

The Agricultural Producers Association of Saskatchewan (APAS) released its final report on Farmers and Food Prices.

APAS president Ian Boxall said after a full year of study, consultation, and review, the report found food prices are not driven by the farm gate.

“Farm families are not to blame for higher grocery prices,” Boxall said. “Despite fluctuations in commodity prices, food prices and farm input costs continue to rise, challenging the notion that farmers are the cause of expensive groceries.”

Boxall said while there had been strong commodity prices in the recent past, many of those commodities are experiencing a downturn. He said the same cannot be said for food prices or the escalating farm input costs.

Along with Kevin Grier Market Analysis and Consulting, APAS examined eight separate consumer products to determine the farmer’s share of the retail price. The products examined included flour, bread, canola oil, margarine, lentils, beer, retail beef, and retail pork.

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The report used the United States Department of Agriculture (USDA) methodology to determine the quantity of a farm commodity required to produce a unit of the final consumer food product.

Boxall said the data presented in the report showed there is no direct correlation between farm gate prices and grocery food prices and there was no way grocery food inflation was exclusively attributed to increases in commodity prices.

He said the report showed the discrepancy between commodity and food prices. In October, canola prices declined by 21 per cent, yet margarine increased by 17 per cent. Wheat saw a 19 per cent decrease, yet flour and bread increased by four per cent and three per cent respectively. Barley decreased by 16 per cent, but beer surged by 19 per cent.

“The goal of the report is to enhance transparency along the supply chain, shedding light on the portion of food costs returned to farm and ranch families,” he said. “We wanted to provide clarity on this critically important issue and contribute to a more informed understanding of the factors influencing food prices.”

The report was released at the 2023 APAS Annual General Meeting in Regina on Tuesday.

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alice.mcfarlane@pattisonmedia.com

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