The rise in prices for wheat-based food products

Release date: November 16, 2022
Infographic: The rise in prices for wheat-based food products
Description: The rise in prices for wheat-based food products

The food supply chain consists of many essential steps that move products from producers to consumers. Canadians paid more for bread, pasta and cereal at the grocery store in March 2022 amid higher costs to produce and move wheat-based food products.

Year-over-year cost increases in the food supply chain in March 2022

Production

Canadian farmers grappled with rising input costs, resulting in the price for grains rising 65.1%.


Table 1
Table summary
This table displays the results of Table 1. The information is grouped by Inputs (appearing as row headers), Year-over-year percentage change (appearing as column headers).
Inputs Year-over-year percentage change
Pesticides and other agricultural chemicals +33.9%
Energy +27.8%
Agricultural wages +8.3%

Processing and packaging

Food manufacturers paid 63.8% more for raw wheat.


Table 2
Table summary
This table displays the results of Table 2. The information is grouped by Inputs (appearing as row headers), Year-over-year percentage change (appearing as column headers).
Inputs Year-over-year percentage change
Plastic bags +7.2%
Paperboard containers +15.4%
Manufacturing wages +6.6%

Transportation


Table 3
Table summary
This table displays the results of Table 3. The information is grouped by Inputs (appearing as row headers), Year-over-year percentage change (appearing as column headers).
Inputs Year-over-year percentage change
Diesel fuel +76.5%
Truck transportation +20.6%
Freight rail (grain and fertilizer) +7.5%

Wholesale and retail


Table 4
Table summary
This table displays the results of Table 04. The information is grouped by Inputs (appearing as row headers), Year-over-year percentage change (appearing as column headers).
Inputs Year-over-year percentage change
Wholesale food margins +11.8% (Q1 2022)
Retail grocery store margins +8.8% (Q1 2022)
Wholesale and retail trade wages +6.9%

Consumer prices

Following higher input costs, Canadian shoppers paid more for wheat-based food products year over year, with prices remaining elevated into the summer and fall of 2022.


Table 05
Table summary
This table displays the results of Table 05. The information is grouped by Date (appearing as row headers), Year-over-year percentage change, calculated using Bread, rolls and buns, Breakfast cereal and other cereal products (excluding baby food) and Dry or fresh pasta units of measure (appearing as column headers).
Date Year-over-year percentage change
Bread, rolls and buns Breakfast cereal and other cereal products (excluding baby food) Dry or fresh pasta
Jan-20 +2.7% +0.3% +0.0%
Feb-20 +1.5% +0.2% +4.5%
Mar-20 +2.8% +1.4% +2.8%
Apr-20 +2.7% +5.0% +5.1%
May-20 +0.8% +4.9% +7.8%
Jun-20 +0.3% +2.5% +9.4%
Jul-20 -1.4% +2.0% -0.8%
Aug-20 -0.4% +1.7% +1.9%
Sep-20 +0.3% +0.7% -1.5%
Oct-20 -0.3% +0.3% +2.6%
Nov-20 -1.7% -0.5% -0.6%
Dec-20 +0.1% -0.2% -2.8%
Jan-21 -3.2% +1.0% +0.7%
Feb-21 +2.0% -0.6% -0.2%
Mar-21 -0.5% -0.7% -2.5%
Apr-21 +0.2% -2.8% -9.2%
May-21 -0.1% -4.1% -13.7%
Jun-21 -0.2% -0.6% -11.2%
Jul-21 -0.1% +1.0% -2.0%
Aug-21 -0.4% +0.9% -6.1%
Sep-21 +1.1% +3.0% +5.2%
Oct-21 +1.0% +3.3% -6.4%
Nov-21 +3.0% +7.8% +6.0%
Dec-21 +5.1% +6.8% +6.7%
Jan-22 +7.5% +6.7% +12.6%
Feb-22 +3.7% +8.5% +12.0%
Mar-22 +9.1% +12.3% +25.8%
Apr-22 +12.2% +15.0% +30.1%
May-22 +11.1% +13.1% +25.3%
Jun-22 +11.9% +11.3% +31.7%
Jul-22 +15.4% +11.0% +29.9%
Aug-22 +17.6% +12.9% +32.4%
Sep-22 +17.0% +16.7% +29.7%
Oct-22 +17.0% +17.8% +44.8%

External factors

Low supply

Lower production in 2021 (-37.1% year over year), caused by drought conditions in the Prairies, lowered supply.


Table 6
Table summary
This table displays the results of Table 6. The information is grouped by Year (appearing as row headers), Canadian wheat production (appearing as column headers).
Year Canadian wheat production
2019 32.7 million tonnes
2020 35.4 million tonnes
2021 22.3 million tonnes
2022Note * 34.7 million tonnes

Russia’s invasion of Ukraine

With both countries being major wheat producers, this conflict created uncertainty in the global wheat market.

Sources: Statistics Canada, Estimated production of principal field crops, Employee wages by industry (average hourly wage rate), Farm Product Price Index, Industrial Product Price Index, Raw Materials Price Index, Wholesale Services Price Index, Retail Services Price Index, For-hire Motor Carrier Freight Services Price Index, Freight Rail Services Price Index, Consumer Price Index.

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