Gatineau, QC. (Rural Roots Canada) – Canada’s Competition Bureau is launching a broad review of the country’s food supply chain as rising grocery bills continue to put a squeeze on household budgets.

The competition watchdog has announced it will study how competition works across the supply chain, from the farm to the grocery store. It will look for factors that may be affecting food affordability and consumer choice.

Food prices have climbed sharply in recent years, adding pressure on Canadian families already dealing with higher costs of living. While the Bureau noted that many factors influence food prices, it said competition remains a key tool for helping keep costs in check.

The review will focus on three major areas of the food supply chain: production and processing, transportation and distribution, and retail pricing practices.

That includes examining how food is grown, caught, processed, and packaged, how it moves through distribution networks to retailers, and how grocery stores set prices. The Bureau said it will also look at issues such as loyalty programs, pricing algorithms, shrinkflation and skimpflation.

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“The cost of food matters to all Canadians, and strong competition can help keep prices in check,” said interim Commissioner of Competition Jeanne Pratt in a statement.

The Bureau is inviting Canadians and organizations involved in the food supply chain to share their perspectives through an online submission process open until July 31.

“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,” added Pratt.

Officials will also meet with industry groups and hold roundtable discussions in the coming months to identify areas where competition may not be working effectively, where barriers exist, and what could help improve competition.

A final report is expected in the spring of 2027. The report will outline the Bureau’s findings and include recommendations for governments on ways to strengthen competition throughout the food supply chain.

The examination builds on the Bureau’s 2023 retail grocery market study, Canada Needs More Grocery Competition.

Officials emphasized the initiative is not a formal market study or a law enforcement investigation. Rather, it is intended to provide a broader understanding of where the Bureau may need to focus its efforts in the future and where policymakers could consider action.

The Bureau also stressed that it does not set food prices. Its role is to assess whether markets are operating competitively and whether barriers are limiting competition.

However, the agency said that if evidence of anti-competitive conduct emerges during the examination, it will investigate and take appropriate action.

For more information and to learn how to participate, you can visit the Competition Bureau’s website.