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Word on the Street
What residents Are Really Talking About
A comprehensive review of policy and developments that impact our communities.
“In Canada, beef is no longer just food—it’s a financial decision. What was once a staple of the summer grill is now a luxury item, priced out of reach for many families.”
For months, families have been asking a straightforward question: why is beef still so expensive in Canada when inflation is cooling elsewhere? Hint, its not beef farmers who are contributing to rising prices. It’s the beef distribution and retail monopoly. Farmers should be paid their fair share which would far more than they are paid currently.
For reference, farmers are paid about $200 per ton for wheat sold to wholesalers. Guess how much companies like Kellogg’s (now Kellanova) sell standard wheat-based cereal to end consumers? An astounding $6,660 and $8,660.
Price Breakdown (Estimated)
Based on current 2026 retail averages for a standard wheat-based cereal like Frosted Mini-Wheats:
- Retail Price: Approximately $5.00 – $6.50 for a 24oz (1.5 lb) family-size box.
- Price per Pound: Roughly $3.33 – $4.33.
- Price per Ton (2,000 lbs): Between $6,660 and $8,660.
- Price paid to farmer: ~$200 per ton for wheat
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New reporting from the Agri-Food Analytics Lab at Dalhousie University suggests part of the answer lies not in droughts or global shortages, but in Ottawa’s own import-permit system—an opaque framework that has not been updated in a decade and may be amplifying food prices unnecessarily.
This deserves careful attention because it isn’t simply an agriculture policy issue. It is a competition and affordability issue directly affecting households across the country.
Canada’s Food Price Report 2026
Canada’s Food Price Report (CFPR) 2026 forecasts that overall food prices will increase by 4% to 6%. The average family of four is expected to spend $17,571.79 on food in 2026, an increase of up to $994.63 from last year. Food prices are 27% higher than they were five years ago. Annual food price increases are currently within the range predicted in the 2025 report (4%), however meat increased at a faster rate than predicted (5% to 7%). Alberta, New Brunswick, Nova Scotia, Ontario, and Quebec are forecasted to experience food price increases above the national average next year.
The Canadian Centre for Food Integrity (@FoodIntegrityCA) recently released its report on consumer trust in the food industry. Since 2016, trust levels had plateaued at a respectable level, but the situation has taken a dramatic turn. According to their latest survey, an unprecedented number of Canadians now believe the food industry is heading in the wrong direction. At the same time, trust in the industry has plummeted to its lowest level in eight years. Nearly one-third of Canadians think the industry is failing to focus on the right issues. While this is a broad critique, it raises valid and pressing questions.
How Canada’s Beef Import System Works
Canada operates beef imports under a Tariff Rate Quota (TRQ), a standard mechanism in international trade.
- A limited volume of beef can enter at a low tariff.
- Anything above that quota faces a punitive over-quota tariff—often more than 26.5%, according to the Canada Border Services Agency (CBSA).
- When domestic supply tightens or specific cuts are in short supply, supplemental import permits are available to ensure the market remains stable.
This system is supposed to protect producers while ensuring consumers are not overcharged. In practice, it is no longer functioning as intended.
The Advisory Committee Has Been Inactive for a Decade
A key finding from the Dalhousie report is that the Beef and Veal Tariff Rate Quota Advisory Committee, responsible for advising on supplemental permits, has not met since 2015. That means:
- No structured dialogue with retailers, importers, or independent distributors
- No transparent decision-making framework
- No updated criteria or public explanations for approvals or denials
When an oversight body goes dormant for ten years, the process inevitably becomes opaque. And opacity invites influence from the most powerful market players.
Two Companies Dominate Beef Processing in Canada
The Canadian beef supply chain is unusually concentrated:
Cargill (U.S.) and JBS (Brazil) control the overwhelming majority of Canadian beef slaughter and processing capacity.
Multiple Competition Bureau briefings over the past decade have flagged this concentration as a risk because:
- Fewer processors mean fewer competing buyers for cattle
- Fewer processors also mean fewer competing sellers of finished beef
- High concentration allows processors to indirectly influence retail pricing and supply availability
When a market is this concentrated, any government decision that restricts imports—whether intentionally or not—reinforces existing market power.
Cases Emerging: Imported Beef in Bond, But Not Allowed Into the Market
The Agri-Food Analytics Lab reports a troubling example:
An established importer had legally purchased beef overseas and brought it into Canada. The product was stored in bonded facilities pending approval of a supplemental permit, which would allow it to enter the market at the standard tariff rate.
The permit was denied. The reason given: the beef was “priced too low” compared to U.S. product. This justification raises red flags:
- The product was not from the United States.
- Price competitiveness has never been a listed criterion under Global Affairs Canada’s import-permit rules.
- The denial forced the importer to either
- wait until the next quota year, or
- pay the full over-quota tariff, which only became feasible because retail beef prices have risen so sharply.
Meanwhile, the federal government collects substantial tariff revenue from these over-quota imports. If accurate, this case shows how policy dysfunction—not supply shortages—is constraining availability and inflating prices.
The Canadian Meat Council Is Now Mobilizing
Another striking development is that the Canadian Meat Council (CMC), representing major processors including Cargill and JBS, has convened an internal meeting specifically on this issue.
CMC is generally quiet on controversial topics; its decision to mobilize indicates:
- Industry insiders see the permitting system as strategically important
- Processing giants may be aligning positions before any consultations with Ottawa
- The balance of influence may be tilting away from independent importers and retailers
When one side of an industry has disproportionate access or influence, the system’s integrity is at risk.
This Is Not About Increasing Imports—It’s About Fairness
Canada is a major beef producer. The question is not whether Canada should import more. The question is:
Does the current system function transparently and in the public interest?
Right now, evidence suggests:
- A decade-old framework limits competition
- A small number of processors effectively shape the playing field
- Importers face unclear or inconsistent permit decisions
- Tariff revenue increases as consumer prices rise
- Consumers see artificially tight supply and higher prices
This is not a supply-managed sector, but the effect increasingly resembles supply management in practice—without the transparency or formal governance supply management systems require.
A Competition Issue, Not Just an Agriculture Issue
The Competition Bureau has repeatedly expressed concern about consolidation in grocery retailing and food processing. Beef is no exception.
If two multinational companies dominate processing and appear to influence import access—intentionally or structurally—those dynamics warrant scrutiny.
A healthy market requires:
- Multiple buyers
- Multiple processors
- Multiple import channels
- Transparent rules
Right now, Canada’s beef import system provides none of these.
Questions Ottawa Should Answer
Canadians deserve clarity on several points:
- Why has the advisory committee not met since 2015?
- What objective criteria are used to approve or deny supplemental permits?
- Why was legally imported beef denied entry for being “too cheap”?
- Why do concentration and influence appear to shape outcomes more than market need?
- Is Ottawa prioritizing tariff revenue and processor interests over consumer affordability?
With grocery affordability still the top concern for many households, these questions cannot remain unanswered.
A System That No Longer Serves Consumers
The evidence now points to a federal import-permit framework that is outdated, opaque, and vulnerable to influence. Whether by design or neglect, the effect is the same:
Beef prices remain higher than they need to be.
Canada does not have a beef shortage. It has a policy problem.
Until Ottawa restores transparent oversight, modernizes the criteria for supplemental permits, and ensures equal access across the supply chain, consumers will continue to pay more at the meat counter than the market truly requires.