In May 2022, Canadians paid 9.7% more for food than they did the same month in 2021, according to Statistics Canada, while food prices in the United States were 10.1% higher in the same comparison. Meat prices have been of particular concern, going up 10.1% in Canada and 14.2 % in the U.S. for meats, poultry, fish and eggs.
Advocates of plant-based proteins hope that these higher meat prices may eventually convince consumers to switch to meat alternatives if environmental benefits haven’t already done so. But that won’t happen immediately, as prices for plant-based alternatives have remained stubbornly high, according to a recent study from Dalhousie University’s Agri-Food Analytics Lab (AAL). The study found that plant-based versions of specific meat products are more expensive in Canada, costing on average 38% more than meat. Researchers found that chicken nugget alternatives cost 104% more than animal-based versions at the highest end.
Plant-based food advocates say government subsidies that go to the meat industry are largely to blame, as they keep meat prices artificially lower and make it hard for alternatives to reach competitive pricing.
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In the meantime, high prices may be eating into demand for plant-based foods. A recent CBC report claims that demand for plant-based meat alternatives is on the decline in Canada, after the market saw rapid growth of 40% in 2019 and 2020. While the report includes a couple of industry experts claiming taste to be the reason behind the drop, it appears price is the true culprit.
