Canada's 2020 Food Price Forecast Is Here & It's Not Looking Good
Do you have an extra $500 lying around?
Do you ever go to the grocery store and cringe at how expensive some items are? Well, you can expect to be doing that quite a bit more next year. Food prices in Canada are on the rise and grocery shopping will cost you more in 2020.
Canada's Food Price Report, the newest edition put out by Dalhousie University and the University of Guelph on December 4, shows that food prices will continue to rise in 2020 between 2% and 4%.
That might not seem like a lot but when you think of it in terms of dollar amounts, the average Canadian family can expect to spend an average of $487 more in 2020 which is an average total of $12,667.
All food categories will see a rise in cost, so it's not just limited to one area but just how much they'll go up for each category will be different.
According to the report, the issues that are causing prices to rise in Canada include single-use plastic packaging, trade tactics from China and the U.S. on Canadian exports, illness outbreaks from vegetables, and people wanting more customizable and tailored food options.
And the "elephant in the room" that will likely have a significant impact on food costs in Canada for 2020 is climate change.
Climate change and the weather played a big role in 2019 as well.
"Vegetable prices were affected by climate change quite a bit in 2019, prices went up 12 percent as a result of drought in America, but most importantly the e.coli outbreak which really affected supplies both in California and Arizona are due to climate change as well," said lead author Sylvain Charlebois to The Weather Network.
Moving forward, the report stated that Canada's agricultural regions will feel the impacts of drier summers and wetter springs and winters which could make crop yields unpredictable, threaten livestock health, and potentially cause disease outbreaks.
Because of this and other factors, you'll see costs rise.
Meat prices will go up the most, with a 4% to 6% hike expected.
Seafood and vegetables will see a 2% to 4% rise while fruits and dairy hover around 1% to 3.5%.
Bakery items will see the smallest increase of up to 2% but there's a possibility for there to be no increase at all.
Grocery stores aren't the only place you'll see prices rise.
If you love eating out, this isn't the best news. Restaurants are expected to see a 2% to 4% increase in prices so your favourite meal at your favourite restaurant will likely cost you more in 2020.
"The more you go out to eat at restaurants, well, it's expensive. Cut back on eating outside of the home and it’ll be cheaper," said Simon Somogyi, co-author of the report and project lead for the University of Guelph, to Global News.
Once the calendar flips over to 2020, whenever you go out to eat or go grocery shopping, it'll be best to keep an eye on the prices.