Canadians to pay more to buy less food

 

Farm Credit Canada has issued a forecast that Canadians will pay more for food this year and will buy less.

They will pay eight-tenths of a per cent more and buy seven-tenths of a per cent less it said in its report on the food and beverage sector of the Canadian economy.

Chief economist Craig Johnston said higher food prices over the past several years are really weighing on households’ budgets,. They’re making more cost-conscious decisions.

He said margins are tight across the sector, including for farmers.

The report was prepared before the United States and Israel attacked Iran leading to a sharp increase in prices for diesel, gasoline, fertiliers and ultimately almost all products farmers need.

Food production costs increased by an average of two per cent last year, it said.

Dairy prices are likely to increase by 3.5 per cent this year, it said. Farmers will be paid more, but that is only one of the reasons dairy prices will rise this year.

The outlook for meats is a 1.5 per cent increase in prices, but a 5.6 per cent decline in sales volumes.

Last year outbreaks of highly-pathogenic avian inlluenza and porcine epidemic diarrhea virus drove the cost of producing poultry and pork higher.

CFIA testing finds 99 per cent compliance

 

Canadian Food Inspection testing found that 99 per cent of Canadian-produced foods it tested last year were satisfactory on microbiological standards.

The track record for imported foods was 98.9 per cent.

It performed 12,641 tests on 5,304 domestic products and 3,933 on 1,248 imported products.