Competition Bureau Launches Probe Into Food Supply Chain to Address High Grocery Prices
Canada’s Competition Bureau has announced a broad investigation into how competition — or the lack of it — across the entire food supply chain may be driving up grocery prices for consumers.
Three Key Areas Under the Microscope
The bureau says it will focus its examination on three critical stages of the food supply chain: production and processing, transportation and distribution, and retail pricing practices.
That means scrutinizing competition from the moment seeds are planted on farms or livestock are raised on ranches, through to processing, loading onto trucks, and delivery to wholesalers and distributors.
Retail Practices Also in the Crosshairs
The investigation will also examine how food items are priced on store shelves and how consumer-facing tools — such as loyalty programs — shape purchasing behaviour.
Not a Formal Market Study
The bureau is careful to distinguish this effort from a formal market study. Officials describe it as a broad diagnostic exercise to identify where intervention is needed and what actions policy-makers can take to improve affordability.
Jeanne Pratt, interim commissioner of competition, said the cost of food matters to all Canadians and that strong competition can help keep prices in check. She is also calling on industry stakeholders to share their experiences with the bureau.
Building on 2023 Findings
The investigation builds on the bureau’s 2023 retail grocery market study, which concluded that greater competition in the sector could help lower prices and spur innovation.
A final report, expected to be published next spring, will include findings and recommendations to governments on how competition could be improved across the full food supply chain.
