132 – Canada’s Food Price Report Predicts Prices Will Rise – What You Can Do

Wayne Kay 00:00
Well, we’re heading into a new year and already they’re giving us some bad news. Canada’s food report is reporting the average family grocery bill is going to go up another $700 next year. 

That’s our topic today with the Debt Matters podcast where we help Canadians find solutions to their debt with Licensed Insolvency Trustees from across Canada. 

I’m Wayne Kay. And coming up in today’s show, we know grocery bills just keep going up. Why is it happening? Are there some ways you can reduce those bills and food expenses? How does high food prices impact your finances and your health? And how can you help other people? And if you are in trouble, you’re having a hard time with your debt, what do you do?

My guest today is Derek Chase from Chase & Associates Licensed Insolvency Trustee serving Vancouver Island, Sunshine Coast, BC and the BC north Coast. Welcome back, Derek.

Derek Chase 01:03
Oh, hi, Wayne. It’s great to be here today.

Wayne Kay 01:05
Well, here’s a big topic for today. Food. We all need it. And I hear a lot of people talking about, oh, food. Grocery prices just keep going up and everything is so darn expensive. Do we actually have a reason why everything has gone so high?

Derek Chase 01:24
Well, I think there’s multiple reasons why. There’s pressure, upward pressure on grocery bills. And the stats predict that the average family grocery bill will go up about $700 in 2024. So it’s just a steady climb. And the past couple of years we’ve seen some dramatic jumps, kind of shocking jumps. How can it go that high that fast?

But there are multiple layers of reasons. You could certainly easily point it, generally speaking, at inflation. I don’t really want to get into a deep discussion on what’s causing inflation, but it is this pressure that suppliers have that just gets passed down the track to the end retail store where we see it. 

And another part of that is, no doubt about it, that the farmers facing higher expenses due to carbon tax increases and everywhere down the line have got that extra layer of taxation and that just keeps getting passed along. You hear some people point the finger at grocery stores that are greedy. And I don’t buy that because if that were the case, there’d be a heck of a lot more grocery stores if it were that profitable.

But generally, inflation, taxation levels, it’s just pushing things up and it’s not good because it’s one of the cornerstones of anyone’s budget – the cost of food. So it’s definitely worth fighting back.

Wayne Kay 03:05
Okay. And you’ve got some advice here on some ways that we can fight back. Where do we even start with this?

Derek Chase 03:12
Yes, I think there’s a variety of different ways. And where to fight back starts with understanding where you’re spending your money, whether you’re spending it at the grocery store or whether you’re spending it for takeout food or some sort of prepared foods. So first of all, you need to know. You need to know that number. If you don’t know any other number in your budget, know what you’re paying for your food for a month. And it’s not that hard to track, you’re not going to have too many transactions during the month.

So the first step would be to understand those expenses, and then you can start planning around how much you do want to eat out versus how much you’re just going to stick with the grocery store. Avoiding eating out too much or buying prepared foods is one way to push back. 

When I do go shopping at the grocery store, I like to shop either super early or super late in the day. And oftentimes you find things that are marked down early in the morning or late in the day, and the middle of the day not so much. They’re all gone by that time.

And you also get a very peaceful experience if you go to the grocery store during those hours. One of the least favorite things in my world is if I’m asked to go to the grocery store at 05:00 – just such a gong show. I do my best to avoid shopping for food at 05:00. So that’s another way. 

One thing that’s been really fun for us is in fighting this fight of food costs is actually growing some food. I know everyone’s circumstances are a little bit different. You might not have the space to grow food, but it’s a bit symbolic in a way you’re pushing back. You don’t have to buy that tomato. You’ve grown it. 

In other cases, you can grow a lot of food and be quite self-sufficient. So if you don’t have the space to do it, there are lots of community gardens that I see around, different communities where you can participate in that, or even in a small space. You could grow in a pot. You can grow, believe it or not, potatoes or carrots and a big black pot. 

So anyways, there’s ways to push back on growing food that is cheap and kind of fun and, yes, just a way to say, shake your fist at the high food prices and say you’re doing something about it.

Wayne Kay 05:51
Lettuce is another thing that you just put in a little planter, and it’s amazing how much lettuce you can get from just this small little planter.

Derek Chase 05:59
Yes, you can be overwhelmed, really can be.

Wayne Kay 06:02
But I mean, isn’t that great in helping. The prices coming out of my wallet, for sure, and I absolutely agree with you, is that if things are just too expensive, I’m not going to be buying them. I’m not going to be going to have the prime rib steak. But if I see it on that early morning, sometimes I’ll go Sunday mornings early, and there’s a lot of stuff that’s marked down, and that’s when I’ll buy the majority of things.

Derek Chase 06:32
Yes, I almost don’t want to let that out to the listeners because there’ll be less for you and I, but it is a way to find a deal on something that might be a bit more expensive.

Wayne Kay 06:47
It’s very weird when it comes to grocery stores, though, the different prices in different towns. Now you have a lot of different towns kind of surrounding you, probably within an hour, quite a few different towns. Have you ever noticed the difference in maybe some of the bigger cities versus your city?

Derek Chase 07:08
I’d agree there’s different prices in different towns, which is strange. Part of that, I think, might have to do with transportation costs, especially on the west coast here, if things are getting transported in. It pays to shop around and check out the prices on a couple different stores just to see if it’s worth changing your pattern of where you shop. 

I know some people have a lot of loyalty to one grocery store, but hey, you know what? A no name brand can be 20% less expensive. And to have a look at that is worth your while. I don’t know why that is. Maybe, yes, it’s one of the mysteries of the world.

Wayne Kay 07:59
We went and visited my son, and he’s 2 hours away, so we met him halfway. And then I went into the grocery store there, and everything was way more expensive than it is here in my town. And this is so strange. 

I saw this couple, and they probably had five gallons of milk, the big four liter ones of milk. I said, oh, really – do you like milk? And they said, no, we’re from another town. And it was probably an hour north, just a tiny little town. And the cost of milk up there was like $9, and they were paying 5 something for the milk.

So there’s somebody who said they make it a mission that they save up to get their groceries where they can get the best deal within an hour, as opposed to in this tiny little town.

So shopping around, super important. You can save a lot of money.

Derek Chase 08:58
You can, yes. And might be worth checking out what the cost of a membership is at Costco or something like that. I do see that as well in our area, where people will travel from, perhaps a remote town or remote island, and they load up when they get to the bigger place. 

But back to growing some food or just having that food available to you.
I do think there’ll be a renaissance in the backyard garden, and that’s going to lead to more – making a batch of something is cost efficient and time efficient. But also, I don’t know if you ever tried canning, but I think canning is going to be more prominent going forward. We had a try at canning this last summer, and we’re really enjoying it right now. So it’s not that hard to do.

And oftentimes you can get the product for free and can pick it up if someone else doesn’t want it. So something to consider or look into, and certainly don’t be afraid of it, because it’s not that hard.

Wayne Kay 10:13
That’s a great idea. And you can put stuff up on social media these days and say if anybody has extra pears or anybody has, because everybody’s always trying to give away all the extra food that they grow. 

I mean, look at all the zucchinis that are given away every year. I always get zucchinis that people are giving me, which is very cool. So I love that idea. Thanks for that, Derek.

Derek Chase 10:41
You’re welcome, but that’s also a really good point about social media, because I also think there’ll be a bit more of a barter system developing here as we go forward.

And certainly we’re very lucky here on the west coast of Canada and the fact that there’s an abundance in some communities of either fishing or hunting. And I know people are open to trades. You got something else you want to trade for a little bit of salmon? Sure, let’s do it. 

There’s that whole networking and social media, and I guess overall, I want to just make the point that you don’t have to roll over and accept the fact that these food prices are so high. There are ways to fight back, and you just have to think about it and start leaning on your circle of friends to see how you can do it.

Wayne Kay 11:35
High food prices. Do you feel like it affects people, their mental health and their physical health? Because that’s tragic when that happens.

Derek Chase 11:45
Absolutely. I think when you get these high food prices, sometimes it does affect people’s health because they just can’t afford to get stuff and so they’re going to go to eat differently. 

For example, if you’re not eating in a healthy way, it’s going to affect your health. I can remember one dramatic case where someone came in to talk to us. They were using their monthly budget to pay their debts and sacrificing eating in a healthy way. 

I said, oh my gosh, you don’t have to live like that. There’s ways that we can help with those debts and subsequently improve their food budget and their health. 

So it’s definitely a way that these high food prices can drive you to use your line of credit or your credit card. It can drive your choices to eating different things or worse, quality food. And so there’s some real consequences downstream to not eating healthy. And it’s really sad, really.

Wayne Kay 13:05
And when we talk about the stress of it all, I mean, you’re stressed out. Well, you’re not going to grab a carrot when you’re stressed out and you’re needing something to comfort yourself, right? 

It’s going to be the comfort foods that are not going to be great for you and you’re feeling stressed, you can’t eat anyway. And it’s just this horrible cycle that people get into. So I’m glad you brought that up, that if anybody’s in that kind of a situation, this is a perfect opportunity to contact you and your team.

Derek Chase 13:32
Yes, for sure. Or for that matter, any Trustee right across Canada I think will be able to give some sound advice as to how to deal with your finances so you can eat better. That’s shelter, food, utilities. These are things that we just have to have. So don’t lose out on having a decent amount to eat because of your credit card bill.

Wayne Kay 13:57
Okay. How about helping other people? What’s your advice for that?

Derek Chase 14:03
I think it’s worth a shout out to the food banks in Canada. They do a great job. They stretch the dollar dramatically. So especially this year, I think if you’ve never done it, do something for the food bank.

It can be some canned goods or it can be a dollar donation and it does go a tremendous distance at that food bank. I saw a stat that there’s been more people using food banks across Canada than ever before. And again, that shouldn’t be the case, but it. So how can you help in the short term – direct assistance to the food bank.

But I also think people should get a bit more comfortable talking to their MP, their Member of Parliament. And I noticed the other day that there’s quite a few things in the grocery store that are taxed. And I thought, why is that? Why are we paying tax on stuff in the grocery store? And you can’t even really easily identify them because the tax just shows up on the bottom of your bill.

I’m going to make it a point to wander by the MP’s office and raise that with them. There should not be tax on food items. It’s just fundamental to it. Just shouldn’t be. 

There’s two ways you could help out. You could contribute to your food bank and get used to talking to your MP. They’re supposed to be representing us, so they need some feedback as to what they need to look at.

Wayne Kay 15:36
Absolutely. That’s great advice. What a great show. I’m happy we got to discuss all this and share some of these different ideas that are out there. Do you have any final words that you wanted to share?

Derek Chase 15:47
Yes, it always seems to be a battle, especially around food, but it’s a battle that can be won. So take some of these ideas and go for it.

Wayne Kay 15:56
Perfect. Derek, always a pleasure. Thanks so much for being on the show.

Derek Chase 16:00
Thanks for having me, Wayne.

Wayne Kay 16:02
Well, my guest today, Derek Chase. You can learn more or schedule that free consultation with Chase & Associates Licensed Insolvency Trustee through their website bankruptcytrusteebc.ca

And that’s it for today’s Debt Matters podcast. Make sure you subscribe wherever you get your favorite podcasts from. And of course, for more information, you can always check out debtmatters.ca. Thanks for listening.