Rate of factory gate price increases slowing: StatsCan

Factory gate prices haven’t increased drastically, compared to 2022, reveals a recent study by StatsCan.

The Industrial Product Price Index, which measures the change in prices received by food producers at the factory gate, shows prices received by the food manufacturing sector changed little in December 2023 compared with December 2022 (+0.8 per cent). From December 2021 to December 2022, prices increased 11.1 per cent.

According to the study, prices received at the factory gate by grain and oilseed milling manufacturers declined 9.1 per cent year over year in December 2023, which is significant considering that costs were up by 25.5 per cent in May 2022. As you may recall the spike was due to Russia’s invasion of Ukraine in February 2022 and poor growing conditions in Western Canada in 2021.

Seafood product preparation and packaging manufacturers received 1.9 per cent less at the factory gate in December 2023 than the same month the previous year.

Prices received at the gate by fruit and vegetable preserving and specialty food manufacturers increased 1.2 per cent year over year in December 2023.

Over the same period, meat product manufacturers as well as bakeries and tortilla manufacturing experienced a 5.1 per cent yearly gain in factory gate prices.

Dairy product manufacturers (+1.8 per cent) saw a modest yearly increase in prices received in December, while those in other food manufacturing received 3.2 per cent more at the gate.

For more information, visit https://www.statcan.gc.ca/o1/en/plus/5792-price-increases-slowing-and-some-prices-are-cheaper-factory-gate-canadian-made-food.