Why Is Food So Expensive in Canada Right Now?

But why is food so expensive in Canada right now?

1. Global Supply Chain Disruptions

The COVID-19 pandemic severely disrupted international supply chains. Many producers scaled back operations, and freight costs—especially overseas container shipping—skyrocketed. Even today, port congestion, labour shortages, and increased global demand continue to strain the system, leading to higher prices.

Source: Statistics Canada & Bank of Canada Reports on Supply Chain Resilience (2024)

2. Rising Fuel and Transport Costs

According to the Canadian Transportation Agency, fuel prices remain volatile, contributing to significant cost increases for food transportation. Since nearly every item on store shelves travels hundreds or thousands of kilometres, these added costs are reflected at checkout.

3. Tariffs on Imports

Canada imports a substantial amount of food, especially out-of-season produce, dairy substitutes, and packaged goods. When import tariffs rise—due to international trade policy shifts or retaliatory trade actions—it raises the cost of those goods. For example, certain U.S. food exports to Canada are currently subject to counter-tariffs.

Source: Government of Canada Global Affairs Trade Report (2023)

4. Corporate Grocery Markups

Major grocery chains in Canada—Loblaws, Sobeys, and Metro—have reported higher profits over the last three years. A recent Parliamentary report on food inflation cited concerns over "greedflation," suggesting that price hikes aren’t always directly tied to supply chain costs.

Source: House of Commons Standing Committee on Agriculture and Agri-Food, 2023 Report on Food Price Inflation

So How Can You Save Money on Food in Canada?

✓ Buy Direct from Local Farms

By bypassing large retailers and buying direct from Ontario farms, you're eliminating retail markups.

✓ Buy in Bulk

Larger-format packages of meat, eggs, and seafood reduce packaging waste and overall cost per pound.

✓ Shop Smarter

Services like Junction Buyers Group give households access to wholesale prices on premium-quality food. We make buying local easier, not more expensive.

Want to cut your grocery bill this month? Join Junction Buyers Group and access wholesale farm pricing on high-quality meat, eggs, and seafood. No subscription. No middlemen. Just real food at better prices.