Every month, more Canadians struggle to keep their families fed. The Food Banks fall farther behind their commitment. And the Supermarkets continue to post double digit profits. But the new Canadian Food Security Strategy may change all that…
At least that’s what Prime inist6er Mark Carney said, in hos announcement of a new Canadian Food Strategy recently. The government has grown tired of the food industry’s lacklustre efforts at self-regulation and is imposing a wide-ranging new set of laws and regulations designed to force down food prices and increase competition.
A cartel
Just 5 Canadian supermarket companies currently control almost all food sales in the country. The largest of those is Loblaw’s, which owns and operates 22 regional and national supermarket chains. It also owns Shopper’s Drug Mart pharmacies and the Joe Fresh clothing label. And it operates private label programs that include grocery and household items, clothing, baby products, pharmaceuticals, cellular phones, general merchandise and financial services.
And that’ just one of the Big 5. They all own extensive chains of national and regional supermarket ‘banners’. Except for Walmart, which has its hands full with its own grocery business, that takes over more and more floor space in its 344 Canadian ‘Supercentres’ every year.
That’s a huge, powerful and girded force to reckon with.
The new strategy
The new Food Security Strategy is designed to break the Big 5’s dominance in the Canadian grocery sector by loosening the cartel’s iron grip on the food sector. The supermarkets are so powerful that they can dictate prices to suppliers, and charge premiums manufacturers for premium shelf display space. Loblaw’s alone has the clout to make or break a new product in the Canadian market.
“Canadian farmers deserve more options to sell their produce, and Canadians deserve more options for where to buy their food,” Carney told reporters. “Canada’s first-ever National Food Security Strat-egy will help grow and process more food here and put more Canada on Canadian plates – lowering costs, creating jobs, and building a food system that is more resilient, more competitive, and more our own.”
Sounds great…
Wow. That sounds great. But Carney didn’t say how his government will accomplish that monumental feat. Or when the new economic programs, laws and regulations will come into effect…
My take
We’re all in favour of the new Food Security Strategy. But…
My questions to you:
Do you believe it will work?
When do you think consumers will actually start to enjoy its benefits?
Or…
Do you suspect it will be toothless?
Do you suspect the supermarket cartel will find ways to get around its provisions?
Do you suspect that the government will renege on its commitment to the Strategy under pressure from the Cartel?
Muse on that!
~ Maggie J.