The Competition Bureau announced Tuesday it will undertake an “examination of competition across Canada’s food supply chain.”
Food prices have risen sharply in recent years, putting significant pressure on Canadian households. While many factors influence food prices, competition plays an important role in keeping prices in check and giving Canadians more choice, it explained.
The Bureau said its examination will look for potential competition issues in three key areas:
- Production and processing, including how food is grown, caught, transformed and packaged;
- Transportation and distribution, including how food moves to retailers across Canada; and
- Retail pricing practices, including loyalty programs, pricing algorithms, shrinkflation and skimpflation.
The Bureau said it is seeking input from Canadians and organizations with experience in the food supply chain. They are invited to share their views through an online form by July 31. The Bureau said it will also meet with groups and hold roundtable discussions in the coming months to determine where competition is not working well, where there are barriers, and what could help improve competition.
The Bureau added it will publish a final report in spring 2027. The report will share findings and make recommendations to governments on how competition can be strengthened across the food supply chain.
For more information on the examination and how to participate, visit the Competition Bureau’s website.
“The cost of food matters to all Canadians, and strong competition can help keep prices in check. Our examination builds on our earlier work in the retail grocery sector and will look at all parts of the food supply chain. If you have experience in any sector along that supply chain, we want to hear from you. Your input will help us find solutions that support competition and affordability,” said Jeanne Pratt, Interim Commissioner of Competition.
The Bureau said the examination builds on its 2023 retail grocery market study, Canada Needs More Grocery Competition.
“This is not a market study. It is a broader approach to understand where engagement from the Bureau is needed going forward, and where policymakers may be able to take action,” it said.
“The Bureau does not set prices. We examine whether markets are working competitively and whether barriers may be limiting competition.
“This examination is not a law enforcement investigation and is not about any specific complaint or allegation of wrongdoing. However, if the Bureau finds evidence of anti-competitive behaviour, it will investigate and take appropriate action.”
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