A grocers’ lobbyist yesterday denied allegations of profiteering. Profit margins in the retail food trade average just 3%, the House of Commons finance committee was told..“Grocers make less than 5% typically on their operations and 3% on average,” testified Karl Littler, senior vice president of the Retail Council of Canada. “That is a lower rate than just about any other industry, certainly lower than food manufacturers and big agriculture.”.“Some commentators are rushing to judgment or seeking to play the blame game,” said Littler. He blamed high checkout prices on rising costs for farmers, wholesalers and processors. “Farmers themselves have been hit hard, facing massive cost increases for fertilizer, fuel and feed,” said Littler..According to Blacklock's Reporter, New Democrat MP Daniel Blaikie (Elmwood-Transcona, Man.) said higher wholesale costs alone could not account for food inflation. “Some of these prices are exceeding the increase in costs,” said Blaikie. Statistics Canada in its latest report on Monthly Average Retail Prices For Selected Products said on an average basis nationwide consumers were paying year over year:.• 12% more for eggs from $3.82 to $4.29 per dozen;• 13% more for ground beef from $9.41 to $10.64 per kilogram;• 14% more for coffee from $5.58 to $6.34 per 340 grams;• 15% more for cabbage from $2.38 to $2.73 per head;• 17% more for white bread from $2.98 to $3.50 per loaf;• 18% more for butter from $4.85 to $5.72 per 454 gram block;• 23% more for spaghetti from $2.56 to $3.16 per box;• 25% more for ketchup from $3.24 to $4.04 per litre;• 27% more for chicken breasts from $12.58 to $15.94 per kilogram;• 28% more for onions from $4.39 to $5.64 per kilogram;• 43% more for canned soup from $1 to $1.43 per can;• 54% more for cooking oil from $7.97 to $12.29 per three litre jug..“We are often hearing reports of higher profits by grocery chains, higher dividends being paid out to their shareholders,” Blaikie told the finance committee..Professor Sylvan Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University, said he found no evidence of profiteering. “That said, some prices in some categories have behaved unreasonably,” said Charlebois..“Higher food prices at the grocery store over the past year have been difficult for many of us to accept,” said Charlebois. “Canada needs a food autonomy policy to make our food economy less vulnerable.”
A grocers’ lobbyist yesterday denied allegations of profiteering. Profit margins in the retail food trade average just 3%, the House of Commons finance committee was told..“Grocers make less than 5% typically on their operations and 3% on average,” testified Karl Littler, senior vice president of the Retail Council of Canada. “That is a lower rate than just about any other industry, certainly lower than food manufacturers and big agriculture.”.“Some commentators are rushing to judgment or seeking to play the blame game,” said Littler. He blamed high checkout prices on rising costs for farmers, wholesalers and processors. “Farmers themselves have been hit hard, facing massive cost increases for fertilizer, fuel and feed,” said Littler..According to Blacklock's Reporter, New Democrat MP Daniel Blaikie (Elmwood-Transcona, Man.) said higher wholesale costs alone could not account for food inflation. “Some of these prices are exceeding the increase in costs,” said Blaikie. Statistics Canada in its latest report on Monthly Average Retail Prices For Selected Products said on an average basis nationwide consumers were paying year over year:.• 12% more for eggs from $3.82 to $4.29 per dozen;• 13% more for ground beef from $9.41 to $10.64 per kilogram;• 14% more for coffee from $5.58 to $6.34 per 340 grams;• 15% more for cabbage from $2.38 to $2.73 per head;• 17% more for white bread from $2.98 to $3.50 per loaf;• 18% more for butter from $4.85 to $5.72 per 454 gram block;• 23% more for spaghetti from $2.56 to $3.16 per box;• 25% more for ketchup from $3.24 to $4.04 per litre;• 27% more for chicken breasts from $12.58 to $15.94 per kilogram;• 28% more for onions from $4.39 to $5.64 per kilogram;• 43% more for canned soup from $1 to $1.43 per can;• 54% more for cooking oil from $7.97 to $12.29 per three litre jug..“We are often hearing reports of higher profits by grocery chains, higher dividends being paid out to their shareholders,” Blaikie told the finance committee..Professor Sylvan Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University, said he found no evidence of profiteering. “That said, some prices in some categories have behaved unreasonably,” said Charlebois..“Higher food prices at the grocery store over the past year have been difficult for many of us to accept,” said Charlebois. “Canada needs a food autonomy policy to make our food economy less vulnerable.”
