Canadians Panic As Food Prices Soar On Collapsing Currency
It was just yesterday when we documented the continuing slide in the loonie, which is suffering mightily in the face of oil’s inexorable decline.
As regular readers are no doubt acutely aware, Canada is struggling through a dramatic economic adjustment, especially in Alberta, the heart of the country’s oil patch. Amid the ongoing crude carnage the province has seen soaring property crime, rising food bank usage and, sadly, elevated suicide rates, as Albertans struggle to comprehend how things up north could have gone south (so to speak) so quickly.
The plunging loonie “can only serve to worsen the death of the 'Canadian Dream'" we said on Tuesday.
As it turns out, we were right.
The currency's decline is having a pronounced effect on Canadians' grocery bills.
As Bloomberg reminds us, Canada imports around 80% of its fresh fruits and vegetables. When the loonie slides, prices for those goods soar. "With lower-income households tending to spend a larger portion of income on food, this side effect of a soft currency brings them the most acute stress" Bloomberg continues.
Of course with the layoffs piling up, you can expect more households to fall into the "lower-income" category where they will have to fight to afford things like $3 cucumbers, $8 cauliflower, and $15 Frosted Flakes.
As Bloomberg notes, James Price, director of Capital Markets Products at Richardson GMP, recently joked during an interview on BloombergTV Canada that "we're going to be paying a buck a banana pretty soon."
Have a look at the following tweets which underscore just how bad it is in Canada's grocery aisles. And no, its not just Nunavut: it from coast to coast:
Three bucks. For a cucumber. pic.twitter.com/xGkygxkxqB
— Steve Ladurantaye (@sladurantaye) January 12, 2016
If the CAD $ gets any weaker we might be able to buy groceries with shiny rocks #Canada
— Josh Landine (@joshlandine) January 12, 2016
@sladurantaye Heh. Had a similar reaction when I saw the price of cauliflower. Welcome to the future… pic.twitter.com/fxloxyePY3
— Craig Saila (@saila) January 12, 2016
The cost of Tide detergent in Nunavut: pic.twitter.com/2t2xA1EmYk
— themsteri (@teririch) December 31, 2015
And while some Canadians might think this is a regional phenomenon ...
... folks in the northern parts of the Great White North do have the most cause to cry foul:
No "Jack Nasty" it's not The Great Depression, but as we highlighted three weeks ago, it is Canada's depression and it's likely to get worse before it gets better. "Last year, fruits and veggies jumped in price between 9.1 and 10.1 per cent, according to an annual report by the Food Institute at the University of Guelph," CBC said on Tuesday. "The study predicts these foods will continue to increase above inflation this year, by up to 4.5 per cent for some items."
If you thought we were being hyperbolic when we suggested that if oil prices don't rise soon, Canadians may well eat themselves to death, consider the following from Diana Bronson, the executive director of Food Secure Canada:
"Lower- and middle-class people — many who can't find a job that will pay them enough to ensure that they can afford a healthy diet for their families" — also feel the pinch of rising food prices"
"The wrong kind of food is cheap, and the right kind of food is still expensive."
In other words, some now fear that the hardest hit parts of the country may experience a spike in obesity rates as Canadians resort to cheap, unhealthy foods. As we put it, "in Alberta it's 'feast or famine' in the most literal sense of the phrase as those who can still afford to buy food will drown their sorrows in cheap lunch meat and off-brand ice cream while the most hard hit members of society are forced to tap increasingly overwhelmed food banks."
And the rub is that there's really nothing anyone can do about it.
Were the Bank of Canada to adopt pro-cyclical measures to shore up the loonie, they would risk choking off economic growth just as the crude downturn takes a giant bite out of the economy - no food pun intended.
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It is amazing watching Putin because he tells the truth with no BS. The video about Crimea returning home to Russia had interviews with Putin who talked about exactly what happened and what he and Medvedev did during the coup.
Russia may have some tough times but at least they do not have all those zio blood suckers like Soros looting the country.
Donating to the handrubbing merchant Stefan Molyneux was never this cheap.
he's not a merchant and he doesn't rub his hands.
he's a philospher and he rubs his bald head.
A "good" philosopher, by his own reckoning.
(Incidentally, I studied under some very good philosophers, and never once did I hear them praise themselves in that way.)
i haven't heard him call himself a "good" philosopher, but i guess it wouldn't surprise me too much. would need to see context though.
he is not a perfect human being, and has failings, but he had a hellish childhood it sounds like and came out relatively ok.
and even though i don't watch him all that much any more, i have learned quite a bit from him in the past, and for that i am grateful.
The wrong kind of food is cheap and the right kind expensive?
Frosted Flake AINT the right kinda food, and its DAMNED Expensive!!!!
As for the Cucumbers - those are English Cucumbers, and they range from $2 ro $3 here in the states ALL THE TIME.
I bet the other items are "Organic" or somethign also...
The Tide detergent...sorry...thats life...its $20 here, and you Can-A-Di-Ans were making fun of the US Dollar 3 years ago when YOUR dollar was worth 10% more...now your back to the 70's BIATCHEZ, and stop bitching.
Your housing aint worth what you think it is, and you all get to pay the piper too...you played the SAME GAMES and got away with it for a few years longer, but the piper ALWAYS comes 'round.
Deal 'Wit it my Northern furry friends!
I'm sure the locals in Nunavut are only really interested in how much the booze costs.
I'm sure the locals in Nunavut are only really interested in how much the booze costs.
I'm sure the locals in Nunavut are only really interested in how much the booze costs.
Seal blubber.
I hope that's Halal blubber.
Don't want to hurt any senitivites there now do ya.
whats the price of a rack of MOLSONs?
Ya, but in Canada an OZ of bud is like 120.00 $CDN = $82.00 $USD and its Canadian Bud no chemicals.
I was in AZ last year and they were bragging about thier local BUD. The only buzz i got was from the tylonol for the headake I got from it.
Local bud in AZ equals Mexican dirt weed.
I live in southern Ontario, I'm closer to Florida than Alberta. Just cooked up a 4lb chicken for 6 bucks. but yeah I'm sure things will get worse but at least theres no inflation eh. Anybody paying $30 for a box of tide is fucking retarded. As for importing 80% of our fresh fruit and veggies well yeah it's January and we live up North!
As long as we don't leave the country we are fine
Don't foget the Socialist PST and GST when calculating the price of canadian Goods! Foreward Soviet!
PST & GST do not apply to food, YET!
Don't worry - the Socialist/NWO test bed that is Australia is already trying to increase its GST to 15% and apply it to fresh food (it already applies to processed items).
Here's a handy guide for any aspiring sociopathic politician who would like to collect taxes on food: https://www.ato.gov.au/Business/GST/In-detail/Your-industry/Food/GST-foo...
Long Spam.
Canada produces 3X more food than it consumes.
Now they know what we ahve been going thru for the last 7 years! 7 votes short of auditing the Fed. 2 Republicans didn't vote and 1 democrat in a Republican robe voted against it. Bast**r$s!
Gold over $1500 Canadian per ounce, interesting. Incidently the dollar is only strong compared to other currencies, measured by the CPI, which measures purchasing power, the U.S. dollar is down 15% since 2009. Good enough for you Paul Krugman? Or maybe we can trash it a little more to spur the economy? Savers be damned, after all they are nothing but rank hoarders and deserve to have their savings crumble, right Paul?
The real problem is that if you could get a 3-5%/yr nominal return in a savings account with no risk, like in the late 90s and part of 2007/2008, you sure as hell will do that instead of further overbidding the fraudulent and massively overvalued crap in the bond and equity markets. And to paraphrase George Carlin, your owners don't want that. They want your hard-earned money to constantly flow into risky paper "assets", so that you can be more fully sheared.
This article was not written by someone in Canada. I shop all the time and I don't see anyone panicking at the store. Anyone that would pay $3 for a cucumber is an idiot. There are plenty of stores selling for less. The article implies that The U.S is the only source of fruits and vegetables which isn't true. I am seeing more and more product from Chile , central America Asia etc. Companies will source their products from cheaper locals so the story is actually funny. The currency decline is not producing any panic here. What it is doing is hurting the US economy. There used to be a big business going to US border towns and buying "things" , that business is dead and if the US currency continues to stay high the only thing you will be able to sell in military equipment.
I got news for you Tylers, shit has always been very expensive in Canada. Last time I was there in 1990, 12 PACK COST 18 DOLLARS, ANY 12 PACK, a pack of smokes was $6 and a 2 litre of pepsi was $4.....25 years ago.
Socialism is expensive. Don't even get me started on the cost of good steak, because THERE WASN'T ANY!
for once I agree with you. We just sit here waiting for some poor ass sucker to be robbed by the gov. to give to some other loser.
Coming to your once great counrty unless you do something radical like elect Trump. All the others, your one party system, doesn't give a shit about anything except their greed & lust for power
Canadians are used to & like being ass raped by their socialist government. The harder the better. More taxes & lying inept politicians please. We just elected the shiny pony, part time drama & arts teacher who likes canoeing! He will save us for sure!
Economic Growth is not defined as DEBT in CANADA no matter how much the CB wants to massage the GDP. CANADA is not in the Greater Depression anymore due to the fact that we have now officially entered the apocalyptic stage of currency devaluation.
When CANADA goes down America goes down-er.
I hear you. The last pin left standing still usually gets knocked down either by one nearby, or by the shaking of the floor beneath it caused when the others hit the ground.
Hell, obunga, maybe we's a come illegal like, across the border to get all that free sheit you hand out for votes. All aboard bretheran
Yeah, right... Nunavut... Around 35000 folks over 2 000 000 km2 above the Arctic Circle... Obviously, this is not where 35.7 milllion Canadians buy their food. Hell, most Canadians don't even know what Nunavut is! And by the way, thoses prices are subsidized.
Bad journalism at its best!
And 20 years from now, they may be living in the only place outside Antarctica that's cool enough for human habitation. Subsidies make sense for tactical positions.
Good observation. Anyone contesting this should google prices in Alaska and you will see similar prices. Sensationalism?
All I can afford to eat is rice anyways, how is this news?
These groceries are at the arctic circle and had to be delivered by Sergeant Fucking Preston.
On, Clickbait!
On you huskies!
A sobering look at what the next great Collapse might look like in your neighborhood, any time soon. Don't let a growing season go by without planting your Seeds and tending them carefully. If you don't need the veggies, the animals will be happy to dispose of them. If you do, you might not know it until suddenly halfway through the season.
Wake up and look no further than China for all the low metals/commodities prices and high $US. Cut a deal on Wall Street and manipulate the paper price down, while soaking up the physical resources. Without the political pain of militarily taking over territory. Just suck out all its resources to help support the future reserve currency. And guess who owns all the $US treasuries and is selling them at these high prices. Think about it.
Venezuelans do not plant toilet paper and Canadians do not manufacture cucumbers.
Both have oil.
I suggest Venezuelans use corn cobs.
It is recyclable, you give a pass or two in the ass, lava and can reuse!
As for the Canadians, using those great buildings to practice some hydroponics.
Any vegetables or undergrowth fruit is likely to hydroponics.
Or, attempting to drink oil.
hehe.
Incomprehensible
Os venezuelanos não plantar papel higiênico e canadenses não fabricar pepinos.
Ambos têm petróleo.
Sugiro venezuelanos usar espigas de milho.
É reciclável, você dá um passe ou dois na bunda, lava e pode reutilizar!
Como para os canadenses, usando aqueles grandes prédios para praticar alguns hidroponia.
Qualquer legumes ou fruta mato é susceptível de hidroponia.
Ou, a tentativa de beber óleo.
hehe.
Nunavut is near the north pole,a desolate vast land with no easy access. Prices are always outrageous regardless of exchange rates. Zero heads seem to have a hard time with geography like their USSA rednecks. Go and check out banana prices in Greenland.
This website is becoming more and more sensationalist trash reporting. I texted a friend in Toronto to see if prices were anywhere near that and replied back WTF instead saying stuff was 1/3 to 1/2 of what was in pictures here.
Not enough they run a steady stream of trash opeds on here with terrible investing advice and fringe political/foreign policy ideas but now they post crap like this too increasingly.
Yeah, I noticed that too. They seem to take special pleasure raking Switzerland, Canada, Denmark, Germany. And even though there are lots of good insights, they do tend to go way overboard sometimes.
Funny stuff! Dunno where these pics were taken, Fort McMurray probably, but food inflation is just not like that in Toronto. We pay $4 for butter or a bag 4L milk, $5 for 3/4 lb bacon, meat is pricey, english cuke this week was 2.99, that size tide is around $8, but Costco helps, and stocking up on sale items is important. Take bread for instance... grocery store price is over $3 per loaf, but costco offers 3 loaves for $5. Makes a membership worth the price. Groceries for 2 run about $125 a week and we eat pretty well.
Now if we could just get some Farella Vineyard wines up here we'd make it through winter just fine!
Nanuvut
food costs are still a very small and disproportionate part of our income.
I'll start complaining when real food costs a third of our income, which is where it should be for agriculture to be at par with the rest of the economy.
People complain about paying 3.00 for a cucumber and pull out 3.75 for a friggin' Starbucks coffee on the way out of the store without batting an eye. Crazy!
food costs are still a very small and disproportionate part of our income.
I'll start complaining when real food costs a third of our income, which is where it should be for agriculture to be at par with the rest of the economy.
People complain about paying 3.00 for a cucumber and pull out 3.75 for a friggin' Starbucks coffee on the way out of the store without batting an eye. Crazy!
Uh, sorry, but I don't agree with you at all. In the last 5 years before we left Canada we saw our food bill rise from 17% of income to over 30% of income. Now we always shopped organic so that certainly added to the cost, but anybody who tries to tell me they are only paying 500 Cad a month for grocers is a fucking liar, or they are eating onions and carrots only.
Are you F'n kidding me?! 30% of what exactly? And what paradise do you call home now? Anyone who can actually cook and do basic arithmetic can feed a family of 2 very well for $500 no problem, we don't buy chemical GMO manufactured sh&t and yes we do buy organic when it makes a difference - most products are still genetically clean, and organics have an unhealthy level of pesticides just like regular produce. There's a difference between shopping and buying, it's called value.
Yeah. Like the other guy said ... 30% of what?
I am single and in my younger days my food budget was a couple hundred dollars month and isn't that much more now.
Breakfast today was a few spoonfuls of yogurt and a slice of home made bread with butter and an egg (over easy). Espresso and water to wash it down.
Lunch was the last bit leftover chicken from Monday and about half a head of romaine lettuce dipped in homemade aoli.
Dinner was a bit more complicated. What I call vigor soup. A can of chicken broth. Egg noodles. Bok choy. Green onions. Cayenne pepper. And miso paste and an egg stirred in after it simmers.
Food cost certainly less than 10$ canadian and a few minutes of electricity to cook it up.
I think some people eat too much. Or waste too much. Or pay too much for the convenience of processed food.