The federal government held a new round of discussions today with senior executives from major grocery chains in an effort to address rising food prices that continue to strain household budgets across the country.

March 11, 2024- Industry Minister François Philippe Champagne said the meeting focused on improving price transparency, strengthening competition, and identifying measures that could help ease costs for consumers.

Grocery executives pointed to ongoing supply chain issues, high transportation costs, and fluctuations in global commodity prices as major factors driving higher prices on store shelves. They said retailers are facing increased operating costs across distribution networks and continue to navigate global disruptions affecting goods shipped to Canada.

Consumer advocates expressed concern that concentration within the grocery sector limits choice and contributes to elevated prices. They urged the government to accelerate efforts related to a proposed grocery code of conduct. The code, which has been under development for several years, is intended to ensure fair dealing between retailers and suppliers, especially small producers who struggle to negotiate with dominant players in the market.

The Competition Bureau has also been reviewing the role of industry consolidation in food pricing. Last year, the agency released a report recommending changes to competition laws to increase accountability and reduce barriers for new entrants. Federal officials said legislative updates remain on the table.

Canadians continue to cite grocery prices as one of the most pressing affordability issues. Several national surveys conducted in recent weeks show that many households have shifted to budget friendly stores, reduced purchases of fresh produce, or relied more heavily on discount brands.

Following today’s meeting, the federal government said it will continue to work with both grocers and producers on measures designed to strengthen competition and improve price stability. Officials added that upcoming federal budget announcements may include further actions aimed at supporting families facing high food costs.