By Alice McFarlane

Food costs increase while farmers see a smaller portion

Jun 17, 2024 | 11:12 AM

Farmers are getting less while consumers are paying more.

The Agricultural Producers Association of Saskatchewan’s (APAS) 2024 Farmers and Food Prices report highlights the concerning trend that farmers are receiving lower prices for their commodities at the same time as consumers are shelling out for higher prices at the grocery store. This discrepancy raises the critical question of why food retail prices are steadily increasing.

APAS president Ian Boxall says the disparity between the farmers’ portion and retail prices highlights a broken system that fails both producers and consumers.

“This report underscores the critical need for a more transparent and equitable food supply chain that fairly compensates producers while also ensuring affordability for Canadians,” Boxall said.

Echoing these sentiments, the recent report from the Standing Committee on Agriculture and Agri-Food titled “A Call to Action: How Government and Industry Can Fight Back Against Food Price Volatility” emphasized similar concerns.

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The committee’s recommendations highlight how reduced competition in food retail negatively impacts consumers and offers guidance to ensure the agricultural marketplace remains fair and competitive and protects the economy, consumers, and producers.

The report indicated prices for raw commodities such as canola, wheat, lentils, barley and hogs dropped by five to 16 per cent from 2022 to 2023, while food products made from these commodities saw price increases.

The retail price jump in margarine is 21 per cent and beer at 19 per cent respectively, despite a decreasing percentage of grocery store prices on multiple products making their way to producers. The share of the retail cost farmers received in 2023 for products like bread and beer fell by 20 and 28 per cent respectively.

Boxall said the outcry from the public is a wake-up call that aligns with what APAS has been advocating.

“The need for a competitive market with fair practices, and transparency that support both the producer and the consumer,” he said. “We hope this serves as a catalyst for real change toward a system that values the hard work of farmers and restores consumer confidence.”

The APAS report was supported by research from Statistics Canada, Canadian market analyst Kevin Grier, and the United States Department of Agriculture.

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alice.mcfarlane@pattisonmedia.com

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