Food, should it really be that expensive???

[hollyquaiscer]

I'm only posting this to get everyone thinking, but every time I walk into a grocery store, I have the same thoughts! So, I'm trying to understand the pricing in the grocery stores down here, and why we pay so much more for some things in Canada. Both countries have dairy farms, and farms that produce meat and poultry. We have milk and dairy processing plants. We both have unions and such. Why is it here that a pound of butter costs $2.59 (when not on sale) and as little as $1.69 when on sale. We pay close to $5 when not on sale for the same product??? Milk, here $2.49 for a 4 litre jug (equivalent) and we pay over $4. Fillet or rib eye, even porterhouse and T-bone. We're over $18 a kilo and they always have it on sale for usually around $3.50 or less a pound. Even Costco here is almost half of what we pay.

Yet things like toothpaste, soap, and other type items are almost twice as much here, even with sales. The average cost of a regular size tube of Crest toothpaste at home in under $2. Here, that same tube is closer to $4 What gives? I know that prices vary all over the states (and in Canada) but for heaven sake, is there really that much of a price difference or is it just the manufacturers and stores want to make that much more of a profit? Both products are made by the same company, and even after taking into consideration the wage difference, the cost of doing business and such, it still boggles me.

I understand the regional products, like here, all my citrus is free, I just pick them in the park. but at the grocery store, you can buy a 20lb sack of oranges for under $3 It's not even that cheap in BC for fruits when they're in season. Everyday products, manufactured by the same company, why such a huge difference? Penny for your thoughts

[electric_viking]

they were talking about this on the news last night holly...

http://www.digitaljournal.com/article/342970

[Natalka]

You are really experiencing all of this first-hand!

I think the biggest reason is sheer volume - we are one-tenth of the US population. Labour costs and transportation, too.

For some things that are from farms, there are subsidies... but I don't know all the info about them.
Tariffs, free trades, etc. - frankly, it's beyond my ken...

For milk, I'd rather pay our higher prices because we have strict regulations on ours being artificial growth hormone and antibiotic free.

I don't understand about the beef prices, since we export so much to the US.
(I read and re-read these stats, but I really don't understand it...)
http://www.capi-icpa.ca/highlights20...dy_090612.html

Study on price discrepancies
http://www.theglobeandmail.com/repor...rticle8296607/

Info on tariffs
http://www.cbc.ca/news/canada/story/...fferences.html
http://opinion.financialpost.com/201...s-its-punches/

Oh, this is a great article - explains some things simply
http://www.cbc.ca/news/politics/stor...fferences.html

[hollyquaiscer]

It seems that all the politicians really want to do is sugar coat the issues. Lets take the J&J brand for instance, they make the exact same product in Canada as they do here, it's not imported, so given the facts of costs to manufacture, and wages (which are far less down here than in Canada) why should the USA pay twice as much? Just doesn't make sense. I agree with you on the guidelines for safer products. It seems down here, lots of things slip between the cracks, but butter??? Even the organic butter down here is cheaper. The good value brand (I think that's what is called) Wal-Mart brand, same butter in both places, in fact here in the USA, they wrap the butter in individual quarters. You can't even find a solid 1 lb of butter. So, all that extra paper to wrap, and still half price. Just gets my girdle some days Thanks for the websites, some interesting info, and a lot of sugar!

[thriftygranny]

On the news last night they said an Acura, which is made in Canada goes to the states and sells for $10,000.00 less than we pay. apparently the maker of Silver jeans(Canadian)has been pushing government to look at why we are paying tariffs on our products that don't even really apply to us anymore.The government is looking at this and hopefully things will go down.I am thinking it should only take about 10 years.

[Poirot]

They charge so much more in Canada because they can.

[walkonby]

I wish I had knowledge as to why it is like that holly......but I just have anger!! Feels like we have no say in anything. I guess that is another good reason to budget, and coupon, and price match, and eat less, and re evaluate the fresh good foods verses the processed ( which cost more everywhere)
Please someone else chime in and tell us what you know. I am all ears today!

[i_forget]

Every time we buy something, someone gets a slice. The difference in the products goes to many different pockets, like better wages for employees (reason why many businesses move south, cheaper wages, the city I live in is bleeding manufacturing jobs), health care, keeping our products "cleaner" like antibiotics out of milk and so on.

While I agree that a lot of it has to do with the government having their tariffs on stuff and retailers pocketing the extra money, I honestly believe that if we start paying lower prices like the Americans that we will just have to pay for things in other ways, like losing more jobs and losing our health care.

their system is broken, ours is bruised.

[thriftygranny]

I also think minimum wage is much lower in the states, sometimes it is all relative.

[newb]

What I heard is that the prices were set when the Can. dollar was at .69 to the U.S. dollar and now that we are at par or above the rate for retailers, wholesalers that they set are still at the lower rate .... and we get gouged .. you know tho .. I live 10 min. from the U.S. but still shop here ...... stupid huh ??

[cath007]

No!!!When I shop I purchase the products I can with a sale at minumun price...I dont want to encourage the store benefit. The difference between stores is huge.

[Mskittyandbigboy]

Retailers DO NOT get to "pocket extra money"!!! My family owns a small retail business, and I can guarantee you that our COST prices in Canada are between 20 and 40 % higher here in Canada. We are located close to the border, so we give an everyday discount to make up for some of the difference. When you factor in gas, time spent and shipping costs, it doesn't make sense for our customers to go stateside. I heard someone on the radio today saying consumers need to put more pressure on the retailers to match prices in the US and online. Believe me, we would if we could, but we are at the mercy of the wholesale suppliers. I have stopped stocking some products because the Canadian wholesale suppliers keep putting prices up, up, up, which just drives clientele to shop online, and in the long run hurts the bricks and mortar businesses like me, as well as the suppliers.
However, I cannot see why store brand items have such huge price differences, especially when the dollar is near par all the time. You would think that Walmart brand products would be the same price either side of the border because there is no middleman, but this just isn't the case.

[nicolthepickle]

This is where I get on my soapbox.
The government regulates things a lot more in Canada. And when the government sticks it's fingers into anything, money is wasted and spent foolishly. I would love it if people could actually buy milk without the government regulating it. People are allowed to have children. Why can't they make informed decisions about the milk they buy.
I should've been a hippie.

[nicolthepickle]

Bring me back some oranges Holly. Pretty please.

[mhmartel]

I'm sure there are many different reasons why the same products cost more in Canada than in the US -- some good, some not. At least one reason is lack of competition. When I visit my parents in the US, I am always struck by how many different brands are competing for the same shelf space. There are lots of products that I stock up on whenever I am in the states, because I simply cannot seem to find them anywhere in Canada (a few examples: wisk detergent, store-brand k-cups, rice-a-roni shells & white cheddar, oregon chai, ro-tel spicy tomatoes, etc.) There are numerous brands that simply aren't sold in Canada, which means those brands that are sold here face less competition.

This doesn't seem to explain the higher cost of meat, dairy, and produce, though. However, I got some insight on this from a local farmer I buy from on occasion. He told me that part of the cost is because the processing facilities are closing down. If you raise produce, you can only sell so much of it fresh locally, so the rest needs to be sold to a canning facility. Apparently, since a Del Monte facility in Ontario closed down a couple of years ago, the farmers that used to sell to them switched to other crops or just stopped growing as much. Same thing with meat -- if the local abattoir closes, and the next closest is several 100k away, it costs the farmer more to get his meat to market, and the added costs will force some smaller farmers out of the market altogether. Those that remain in the market are paying higher prices to the remaining processors (who now have a captive market), and higher transportation costs, and all these extra costs inevitably get passed on to consumers.

As I said, I don't think lack of competition is the only reason that prices are higher in Canada, but it does seem to be more of a factor here compared to the US.