By the Numbers: Food prices will rise significantly in 2021
Halifax – December 12, 2020 – According to Canada’s Food Price Report 2021, the average family in Canada will spend roughly $695 more on food in 2021 than in 2020 because of rising food prices.
The annual report is produced by researchers at Dalhousie University in Halifax, Nova Scotia and is one of the most accurate forecasts of food prices in Canada.
Below is a breakdown of the report’s findings:
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Overall food prices are expected to rise by 3 to 5 percent in 2021, an increase from the 2 to 4 percent jump that was forecasted last year.
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The average family in Canada is expected to spend $13,907 on food in 2021; up $695 from 2020.
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The cost of meat and vegetables will see the greatest increases among all food categories, with both categories expected to rise by 4.5 to 6.5 percent compared to 2020.
- Maintaining a healthy diet will also cost more in 2021, as fruit products are projected to rise 2 to 4 percent compared to 2020.
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Milk, cheese, and yogurt lovers should be happy, however, as dairy prices are expected to remain relatively flat, but could rise by as much as 1 to 3 percent. Seafood prices, meanwhile, are expected to grow by 1.5 to 3.5 percent.
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Finally, eating out will cost the average family 3 to 5 percent more in 2021.
- The COVID-19 pandemic affected the entire agri-food chain in 2020, from farmgate to consumers. This was due to border and facility closures, a shift in consumer demand from food service to food retail, and modifications in food manufacturing, distribution, and retailing practices to accommodate enhanced safety protocols. The pandemic will continue to impact the global food system and will put upward pressure on food price increases in most Canadian provinces in 2021.
- In addition to the coronavirus health crisis, the various impacts of climate change and the continued actions to mitigate its effects are expected to place additional pressures on food prices going forward.
Source: Canada’s Food Price Report 2021
