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Agriculture

Average family to pay $400 more for groceries next year, report estimates

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The average Canadian family will pay about $400 more for groceries and roughly $150 more for dining out next year, an annual food price report predicts.

Food prices will rise between 1.5 to 3.5 per cent in 2019, according to the report from researchers at the University of Guelph and Dalhousie University. That means the average family of four will spend $12,157 next year — up $411 from 2018.

Vegetables will see the biggest price jumps — between four and six per cent for the category, according to the report.

Meanwhile, meat and seafood prices are expected to fall, with the meat category to decline by one to three per cent and seafood costs to remain the same or fall up to two per cent.

Since 2015, the team has predicted prices in those two categories would rise as high as six per cent each year.

“This is a bit of a risk for us… We’ve never done that,” said Sylvain Charlebois, one of the lead researchers and a professor at Dalhousie University, referring to anticipating a decline.

But the team is confident in its prediction.

They believe there’s an oversupply of meat, he said, and Canadians are eating less animal protein. Instead, they’re showing more interest in alternative proteins, like quinoa and lentils.

The plant-based protein trend is evident in recent manufacturer and restaurant moves as well.

Meat processors Maple Leaf Foods Inc., for example, acquired two companies in this niche in recent years, Lightlife Foods and Field Roast GrainMeat Co.

At the same time, fast food chains have started adding vegan and vegetarian options to their menus. A&W Food Services of Canada Inc. even temporarily sold out of its Beyond Meat patties shortly after adding them to its menu.

Industry watchers have attributed the demand for plant-based protein to millennials, health-conscious baby boomers and concerns around antibiotic use in agriculture.

A turning point for animal protein, though, was 2014 when beef prices started to rise dramatically, said Charlebois.

Between December 2013 and December 2014 the monthly average retail price for one kilogram of ground beef rose more than 26 per cent, according to Statistics Canada data. For comparison, the price advanced about 3.5 per cent from December 2012-13. It reached a record high of $13.23 in October 2015.

“It really spooked consumers,” said Charlebois, adding they started substituting plant-based protein into their diet.

Butchers and grocers will likely take it easy on beef prices next year in an effort to bring people back to the red meat, he said.

Consumers’ embrace of plant proteins will help push vegetable prices higher next year, as will the weather, according to the report.

“Fruit and vegetables are some of the most perishable, fragile food products that are on the grocery shelf,” said Simon Somogyi, a lead researcher on the report and a University of Guelph professor.

They’re particularly influenced by climactic events, like the El Nino expected to occur this winter, he said, which can result in warmer and drier conditions, and create shortages in the supply chain.

As far as which vegetables may see the biggest increases, it’s difficult to know what produce item will become the next cauliflower, Charlebois said. The cruciferous vegetable saw soaring prices per head in 2016.

Charlebois points to lettuce and tomatoes as possible candidates for big price fluctuations. Meanwhile, Somogyi said produce imported into Canada is more susceptible to weather events and the corresponding price changes.

The report predicts more modest increases for bakery (one to three per cent), dairy (zero to two per cent), fruit (one to three per cent) and other food items, such as non-perishables, not covered by the other categories (zero to two per cent).

Restaurant prices will rise between two and four per cent, according to the report, mainly because operators’ labour costs increased as several provinces and territories boosted their mandated minimum hourly wage recently.

The researchers’ predictions for 2018 were fairly accurate. Fruit prices, which they estimated would rise between one to three per cent, stayed stagnant — the only category where they missed the mark.

Follow @AleksSagan on Twitter.

 

Companies in this story: (TSX:MFI)

 

Aleksandra Sagan, The Canadian Press

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Agriculture

Growing Alberta’s fresh food future

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A new program funded by the Sustainable Canadian Agricultural Partnership will accelerate expansion in Alberta greenhouses and vertical farms.

Albertans want to keep their hard-earned money in the province and support producers by choosing locally grown, high-quality produce. The new three-year, $10-milllion Growing Greenhouses program aims to stimulate industry growth and provide fresh fruit and vegetables to Albertans throughout the year.

“Everything our ministry does is about ensuring Albertans have secure access to safe, high-quality food. We are continually working to build resilience and sustainability into our food production systems, increase opportunities for producers and processors, create jobs and feed Albertans. This new program will fund technologies that increase food production and improve energy efficiency.”

RJ Sigurdson, Minister of Agriculture and Irrigation

“Through this investment, we’re supporting Alberta’s growers and ensuring Canadians have access to fresh, locally-grown fruits and vegetables on grocery shelves year-round. This program strengthens local communities, drives innovation, and creates new opportunities for agricultural entrepreneurs, reinforcing Canada’s food system and economy.”

Heath MacDonald, federal Minister of Agriculture and Agri-Food

The Growing Greenhouses program supports the controlled environment agriculture sector with new construction or expansion improvements to existing greenhouses and vertical farms that produce food at a commercial scale. It also aligns with Alberta’s Buy Local initiative launched this year as consumers will be able to purchase more local produce all year-round.

The program was created in alignment with the needs identified by the greenhouse sector, with a goal to reduce seasonal import reliance entering fall, which increases fruit and vegetable prices.

“This program is a game-changer for Alberta’s greenhouse sector. By investing in expansion and innovation, we can grow more fresh produce year-round, reduce reliance on imports, and strengthen food security for Albertans. Our growers are ready to meet the demand with sustainable, locally grown vegetables and fruits, and this support ensures we can do so while creating new jobs and opportunities in communities across the province. We are very grateful to the Governments of Canada and Alberta for this investment in our sector and for working collaboratively with us.”

Michiel Verheul, president, Alberta Greenhouse Growers Association

Sustainable Canadian Agricultural Partnership (Sustainable CAP)

Sustainable CAP is a five-year, $3.5-billion investment by federal, provincial and territorial governments to strengthen competitiveness, innovation and resiliency in Canada’s agriculture, agri-food and agri-based products sector. This includes $1 billion in federal programs and activities and $2.5 billion that is cost-shared 60 per cent federally and 40 per cent provincially/territorially for programs that are designed and delivered by provinces and territories.

Quick facts

  • Alberta’s greenhouse sector ranks fourth in Canada:
  • 195 greenhouses produce $145 million in produce and 60 per cent of them operate year-round.
  • Greenhouse food production is growing by 6.2 per cent annually.
  • Alberta imports $349 million in fresh produce annually.
  • The program supports sector growth by investing in renewable and efficient energy systems, advanced lighting systems, energy-saving construction, and automation and robotics systems.

Related information

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Agriculture

Canada’s air quality among the best in the world

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From the Fraser Institute

By Annika Segelhorst and Elmira Aliakbari

Canadians care about the environment and breathing clean air. In 2023, the share of Canadians concerned about the state of outdoor air quality was 7 in 10, according to survey results from Abacus Data. Yet Canada outperforms most comparable high-income countries on air quality, suggesting a gap between public perception and empirical reality. Overall, Canada ranks 8th for air quality among 31 high-income countries, according to our recent study published by the Fraser Institute.

A key determinant of air quality is the presence of tiny solid particles and liquid droplets floating in the air, known as particulates. The smallest of these particles, known as fine particulate matter, are especially hazardous, as they can penetrate deep into a person’s lungs, enter the blood stream and harm our health.

Exposure to fine particulate matter stems from both natural and human sources. Natural events such as wildfires, dust storms and volcanic eruptions can release particles into the air that can travel thousands of kilometres. Other sources of particulate pollution originate from human activities such as the combustion of fossil fuels in automobiles and during industrial processes.

The World Health Organization (WHO) and the Canadian Council of Ministers of the Environment (CCME) publish air quality guidelines related to health, which we used to measure and rank 31 high-income countries on air quality.

Using data from 2022 (the latest year of consistently available data), our study assessed air quality based on three measures related to particulate pollution: (1) average exposure, (2) share of the population at risk, and (3) estimated health impacts.

The first measure, average exposure, reflects the average level of outdoor particle pollution people are exposed to over a year. Among 31 high-income countries, Canadians had the 5th-lowest average exposure to particulate pollution.

Next, the study considered the proportion of each country’s population that experienced an annual average level of fine particle pollution greater than the WHO’s air quality guideline. Only 2 per cent of Canadians were exposed to fine particle pollution levels exceeding the WHO guideline for annual exposure, ranking 9th of 31 countries. In other words, 98 per cent of Canadians were not exposed to fine particulate pollution levels exceeding health guidelines.

Finally, the study reviewed estimates of illness and mortality associated with fine particle pollution in each country. Canada had the fifth-lowest estimated death and illness burden due to fine particle pollution.

Taken together, the results show that Canada stands out as a global leader on clean air, ranking 8th overall for air quality among high-income countries.

Air Quality infographic

Canada’s record underscores both the progress made in achieving cleaner air and the quality of life our clean air supports.

Annika Segelhorst

Junior Economist

Elmira Aliakbari

Director, Natural Resource Studies, Fraser Institute
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