Opinion: Don't scapegoat grocers and food manufacturers for high food prices

financialpost.com:

In the ongoing debate over the soaring food prices in Canada, it’s tempting to lay the blame at the feet of the most visible players — the grocery stores, suppliers, farmers and fishers. However, as someone deeply entrenched in the food industry, both as a supplier and distributor and a food brand owner, I can tell you that the situation is far more complex than it appears.

Let’s set the record straight. Canadian grocery stores are not solely responsible for these high food prices, nor are suppliers, farmers, or others in the supply chain. In fact, it has been an uphill battle for those of us on the supply side to even consider passing increases through to consumers. Our grocery partners have fought hard against such price hikes, with a consistent message that they do not want to burden consumers with higher costs. This sentiment resonates with us because we too are consumers, and we have our own families to feed and employees to support. It’s not just about business; it’s about survival.

So, who’s to blame for the current state of affairs? To put it simply: war, energy prices and weather.

Firstly, Russia’s invasion of a crucial global breadbasket had a massive impact. The Black Sea’s closure, although now reopened through the Black Sea Grain Initiative, led to a substantial reduction in global wheat and corn supplies, a 1.5 per cent decrease that can alone raise cereal prices by 10 per cent within a year.

Secondly, rising energy prices have rippled through the supply chain, affecting fuel and fertilizer costs. Fertilizer prices have doubled since the pre-pandemic era, adding yet another layer of pressure to the agriculture sector.

One often overlooked contributor to these high prices is the positive aspect of higher