The federal Competition Bureau is launching a broad examination of Canada’s food supply chain to determine whether competition problems are contributing to higher grocery bills and limiting consumer choice.
Announced Tuesday, the review will look beyond grocery stores to examine how food moves from farms and fisheries through processing, transportation and distribution before reaching retail shelves, according to a bureau release.
The bureau said food prices have risen sharply in recent years, placing growing pressure on Canadian households. Although factors such as weather, labour, transportation and global commodity markets also influence prices, it said strong competition can help restrain costs and provide consumers with more options.
The examination will focus on three areas. The first is food production and processing, including how products are grown, caught, transformed, packaged and prepared for sale. The second is transportation and distribution, with attention to how food is moved to retailers across the country.
The third area will focus on retail pricing practices, including loyalty programs, pricing algorithms, shrinkflation — when package sizes are reduced without a corresponding price cut — and skimpflation, in which product quality or service is reduced while prices remain unchanged.
The bureau is inviting farmers, processors, distributors, retailers, consumers and other organizations with food supply chain experience to submit comments through an online form by July 31. Officials also plan to hold meetings and roundtable discussions to identify barriers to competition and possible policy solutions.
A final report is expected in spring 2027 and will include findings and recommendations for federal and provincial governments.
The review builds on the bureau’s 2023 grocery market study, which concluded that Canada needed greater competition in the retail grocery sector.
