INDEPENDENT EDITorIal Randomly inspecting grocery receipts is not conducive to building trust

According to a recent report by Community Food Centres Canada, the poverty rate among working-age single adults in Canada is three times higher than the national average.

In terms of grocery expenses, purchasing the same quantity of food as compared to the previous year would require an average of over $1,100 more. Consequently, individuals would need to allocate over $8,000 to maintain the same quality of life.

Some Canadians, academics, and political leaders have lost sight of the primary purpose of food companies. These companies must generate profits in order to fulfill their mission and continue operating. Profit generation is essential. Striking the delicate balance between profit-making and maintaining a food-secure market is unique to the food sector and sets it apart from other industries.

The concept of the experience curve aptly demonstrates that as a food company expands, it accumulates greater experience and achieves improved performance, particularly in terms of cost-effectiveness. This surpasses what individuals or small communities can achieve.

Large-scale farmers, for example, excel in their craft due to the experience curve. Companies also exhibit remarkable adaptability, enabling them to navigate sudden market shifts caused by climate change, labour disputes, or other socio-technological disruptions. By relying on food companies with an innovative mindset, food systems can enhance their resilience, a perspective that many Canadians have overlooked.

However, numerous market failures have been observed over the years, encompassing various issues such as the manipulation of bread prices, the imposition of “black-out” periods, the exploitation of low-paid employees, the timing of corporate bonuses, the exercise of supply chain bullying by certain grocers, and the remarkable volatility of food prices.

While making food free or implementing a windfall tax may seem tempting, it is unlikely to effectively address any of these problems. Instead, a more robust and authoritative Competition Bureau, in conjunction with establishing a Grocer Code of Conduct, holds greater potential for success in enhancing accountability within the food industry. While challenges will inevitably persist, the elimination of abusive practices within the supply chain and toward consumers is certain to contribute to their mitigation.

And abuse can be quite real for consumers. For instance, Loblaws recently implemented receipt verification in numerous stores across the country without providing a rationale for this decision. In contrast, Costco has been practicing receipt verification for several years as a means of validating memberships.

However, it is worth noting that Costco’s approach differs, as they verify receipts for all customers. Randomly inspecting grocery receipts as customers exit stores is not conducive to fostering a social contract that can build trust between Canadians and the food industry.

Dr. Sylvain Charlebois is senior director of the agri-food analytics lab and a professor in food distribution and policy at Dalhousie University. © Troy Media