Report says farmers’ share of grocery dollar continues to shrink

By Your Southwest Media Group

Canadian consumers are paying nearly 30 per cent more for food than they were in 2020, while prices paid to farmers have remained largely stagnant, according to a new report from the National Farmers Union.

The report, Fair Food Prices?, compares price data for 14 farm products and their retail equivalents over the past 20 to 50 years. It found retail prices have continued to rise while farmgate prices have seen little movement.

The NFU says the widening gap is being driven by corporate concentration in Canada’s agri-food sector. According to the report, four companies control 80 per cent of grocery sales in Canada, four companies account for 88 per cent of grain-handling capacity, and two companies dominate meat processing.

The report says major grocery companies earned more than $6 billion in profits last year, up from an average of $2 billion annually between 2015 and 2019.

“This report highlights a growing disconnect between rising retail prices and stagnant returns at the farmgate,” said Adrian Arts, executive director of the British Columbia Fruit Growers Association.

NFU vice-president of policy Phil Mount said the issue is not new, pointing to the 1959 Royal Commission on grocery retailing.

“Our report shows that nearly 60 years later, the handful of grocery giants left in this country are so powerful that they can openly profiteer during a pandemic, taking money directly out of the pockets of both farmers and consumers, with no consequences,” Mount said.

NFU president Jenn Pfenning said farmers are being told to expand to remain competitive while having little control over market prices or rising input costs.

The NFU is calling for stronger regulation of grocery profits, public grocery stores as non-profit competitors, and continued support for supply management and collective marketing systems.