It can be difficult to summarize an entire supply chain’s worth of issues into one predominant problem and yet, all three panelists seemed to agree on one theme behind inefficiency. Food systems are speckled with greed. From the tradeoffs made in the field to processing decisions to retail mechanisms, there are unfortunately numerous occasions where shareholders focus on the dollar value of food. There are opportunities to be economically aggressive, but not when land quality is the sacrifice or when Canadians are in a cost-of-living crisis.
Dr. Sylvain Charlebois, of the annual Canada Food Price Reports, points to shrinkflation (reducing the size/weight of a product but offering it for the same price) and price blackout cycles (the inflated price jump in October and February to get around the period between where prices cannot be raised) as classic examples of widespread corporate greed in our retail systems. These realities informed the voluntary Grocery Code of Conduct, which attempts to reduce price volatility upstream by ensuring fairness between grocery store and supplier.
A misunderstanding of how food systems operate and the role those dynamics have on other steps in the supply chain can breed equally misinformed policy. Agriculture frequently requires consideration of the future, anticipating land performance based on today’s practices; retailers must focus on the immediate, which tends to be more reactive. Overly reactionary policy can sacrifice long term success. For this reason, diversifying Canada’s trade and production prospects would benefit the reputation we have (geopolitically) gained in recent months, however our ability to do so will always be at the whim of realistic economic barriers.