CHARLEBOIS: Canadians desperately need help to combat food inflation

SYLVAIN CHARLEBOIS

Budget It wasn't a good week for a limited number of consumers. That is, most of us. Consumers are under attack.

I learned that Canada's food inflation rate was a record 9.7% in May. Everyone is aware of soaring food prices and no section of the grocery store is exempt.

It is a global phenomenon that is hitting Canada. Food prices will not fall immediately. This fall, global commodity production will be in short supply and prices could rise further globally. Supply chain problems, coupled with the new inflation cycle caused by the Ukrainian conflict, are affecting the ability of the food industry to fill the shelves.

The shift is so rapid that many vendors disagree with grocery stores about pricing and put their businesses on hold, as we saw in the Frito-Lay dispute with Loblaws earlier this year. Is urging. There are many stop cells there.

There is only one macroeconomic situation. But some Canadian policies only make things worse.

The Royal Canadian Dairy Commission (CDC) believed that dairy farmers needed a second milk price increase. Last week, we learned that milk prices paid to farmers rose 2.5% again after showing a record rise of 8.4% in February. The increase last winter was so severe that the prices of most dairy alternatives are now at or below the same as milk.

Canada's dairy farmer, one of Canada's most powerful lobby groups, demands further increases in the middle of the year due to "exceptional situations" without telling the source of the data Did.

The Commission's decision to raise the price of milk to insult the injury was made by a federal public body that has been running for several months without giving a full compliment to the board. rice field. There are only two members of the board, both engaged in dairy farming.

As in politics and academia, there are widespread conflicts of interest in the Commission. Many Canadian university scholars are more than just researchers. They are, in essence, advocates of the leading funding agencies in the dairy industry.

The Dairy Commission has incredible power and influence. If only Canadians noticed. The fact that Canadian dairy farmers and the Canadian Dairy Commission work together is very alarming. Canadian consumers need to listen.

Many Canadians will sympathize with dairy farmers facing higher production costs if only the Commission shares more data.

The lack of disclosure concerns asking Canadians to support the dairy sector, which is more inefficient than adequately compensating farmers. And by the fall, this new price increase will leave the dairy sector of grocery stores out of the market for many consumers.

Eventually, as sales decline, you will lose more dairy farms.

The federal government has also announced new labeling rules for saturated fats, sodium and sugar. Labeling on the front of Health Canada's packaging has been postponed for a long time, which will make our food healthier.

However, the new policy also covers minced meat, a major single-ingredient product that many Canadians enjoy.

Ground beef and pork are one of the most affordable sources of animal protein we have. Based on the plans we have seen, only excess lean meat is exempt from the new label. If this goes on, grocery stores will stop carrying more affordable minced meat and make the meat department even more expensive.

That's ridiculous.

The federal government is currently the worst enemy of consumers. Some of these untimely policies that make food even more expensive need to be considered.

The recently announced Treasury Minister Chrystia Freeland's so-called anti-inflation program is not very effective for Canadians in grocery stores. Many of us wanted tax cuts to ease our financial burden, as many countries have done in recent months. However, Freeland chose to make a "microwave" announcement. Basically, it reheats the program that is already in place. This is like clapping with one hand.

NATO Secretary General Jens Stoltenberg recently said that the war in Ukraine could last for years. Unfortunately, this requires the Government of Canada to focus on the foreseeable future.

Farmers need help with inputs to prepare for fall, winter, and next spring.

Governments also need to become one of the most influential trade advocates in the world and prevent other countries from storing food. More nationalist protectionism only makes things worse.

— Dr. Sylvain Charlevois is a Senior Director of Agricultural Food Analysis Labs and Professor of Food Distribution and Policy at Dalhousie University.