Canada has one of the most concentrated food systems in the industrialized world. Typically, when corporate concentration surpasses levels that generate "efficient" business activities, processes and products, then negative social and economic effects are produced. Beyond that level of concentration, firms are able to extract excessive profits and / or control entry into marketplaces, to the detriment of other firms. High levels of concentration also typically penalize suppliers, who receive lower prices for their goods relative to what they would receive in a more competitive environment. Consumers also pay more because sellers can charge higher prices for their goods in the absence of a base of competing sellers. There is some evidence that recent inflationary pressures are partly the result of tacit collusion amongst firms in highly concentrated sectors. The Competition Bureau (2023) concludes that low competition in the grocery sector has resulted in increased profits the last 4 years during inflationary pressures, sometimes referred to as seller's inflation. There's also evidence that concentration can suppress wages. Since the 1970s, around 10% of the wage stagnation in the United States is due directly and indirectly to buyer corporate concentration (e.g. Walmart and Amazon).
Canadians should consider that overly consolidated, corporate-controlled food systems are unstable.
Canada’s current food system lacks diversity, which makes it vulnerable to global supply chain disruptions. The mainstream system also enables a few food retail tycoons to achieve record-breaking profits, while Canadians experience growing food insecurity.
Discussions around the need for public alternatives should not focus solely on profit margins. We need to start thinking about food the way we think about roads or public transit — infrastructure that deserves public investment.
This shift will require Canadians to see food not simply as a commodity, but as a public good. Government-run stores are only part of the picture. There are already community-led alternatives across Canada worth paying attention to.
Probably a great horned owl:
