Food prices in Canada are projected to rise by four to six percent next year, mainly driven by increased costs of meat products, as per a forecast by researchers at Dalhousie University. Beef prices are expected to surge by seven percent due to shrinking cattle sizes and a reduction in ranchers, making the market susceptible to tariffs. The tightened beef supply is anticipated to persist until 2027, despite the country boosting its import volume to address the challenges.
Sylvain Charlebois, the director of the university’s Agri-Food Analytics Lab and the lead author of the report, highlighted that the shift towards chicken is also driving up chicken prices, contributing to the overall increase in the food category. Moreover, essential pantry items like canned goods typically found in the center of grocery stores may become more expensive in 2026 after years of price stagnation.
Various factors, including the ongoing trade dispute with the U.S., changes in the food manufacturing sector, and economic conditions such as labor issues, could collectively lead to grocery inflation over the next year, as outlined in the Food Price Report.
Food Banks Canada reports that approximately a quarter of Canadians reside in food-insecure households, lacking adequate access to food due to financial constraints. Neil Hetherington, the CEO of the Daily Bread Food Bank in Toronto, noted a significant increase in clients, serving 330,000 individuals monthly compared to around 60,000 pre-pandemic.
With food prices on the rise since April 2024, consumers are already feeling the impact. Some individuals, like Toronto resident Sabra Al-Harthi, are considering reducing meat purchases to cope with the escalating costs. Others, such as Giacomo LoGiacco, are cutting back on non-essential food items due to financial constraints.
The forecasted food price hike in Canada raises concerns among consumers, who are exploring ways to adapt to the changing economic landscape and mitigate the impact on their household budgets.