A world body says Canadians are paying more at meal time, in contrast with food markets the world over. The UN FAO Food Price Index says the average price of food in global markets has fallen by 14.5% in the last year as wholesale prices fell for oil, grains and other food products.
Statistics Canada says that is a marked difference from Canada, where food prices rose 4% in the year to January.
Prices for fresh vegetables in Canada were up 18.2% in the 12 months to January, while meat prices rose by 5%.
The food price inflation in Canada is mainly tied to the value of the dollar, which has fallen 15% since this time last year.
Since 81% of fruit and vegetables sold here are imported, that has had a direct impact on the price of produce.
Worldwide, people are paying less for dairy products, cereals, sugar and vegetable oil as commodity prices, which are usually in U.S. dollars, decline. Even meat prices have fallen on an annual basis.
The price of canola oil is down 11% and wheat prices have fallen 15% on commodity markets in the past year.
But experts point out that even these products, which are grown in Canada, are often processed elsewhere.
Canada has no national food policy and allowed big processors such as Kellogg in London, Ont., and Quality Meat Packers in Toronto, to exit the country without planning to rebuild processing capacity here.
With the dollar as low as it's been, some entrepreneurs are considering investment, but there must be a focus on efficiency and productivity, as well as access to venture capital to re-establish processing capacity.
Canadian farmers are looking to move away from grain and oil crops, perhaps shifting production to vegetables because of low commodities prices. But they face higher prices on seeds, fertilizer and the new equipment needed for different harvesting methods because of the high U.S. dollar.
