Amid Soaring Food Prices, Are You Reducing Your Grocery Purchases?
Recent reports indicate that while Canadian grocers are reaping record profits, food manufacturers are facing significant losses.
According to a report released by the industry association BC Food and Beverage, its members are experiencing challenging times. This revelation comes after the Centre for Future Work’s December report, which highlighted Canadian grocers’ record profits, anticipated to exceed $6 billion, marking an eight per cent increase from the previous year.
BC Food and Beverage’s breakdown of $100 in grocery spending illustrates where the money is allocated. Of this amount, $68.24 is attributed to food costs from manufacturers, comprising $14.29 for input and supply-chain expenses, $21.99 for labor costs, and $23.28 for other manufacturing expenses. However, $8.68 remains unaccounted for. Despite this allocation, food manufacturers incur a net loss of $6.38 on the $100 basket of food.
In contrast, grocers earn a profit of $4.29 from the same $100 food basket, with an additional $27.47 designated for “other grocery retailers’ costs,” as outlined by BC Food and Beverage. The association drew on various Statistics Canada data points to substantiate the information presented about the $100 food basket.
