Why Cheaper Groceries Might Require Public Ownership

In an effort to tackle out-of-control unaffordability, Prime Minister Mark Carney is upping the GST rebate and renaming it the Canada Groceries and Essentials Benefit. A family of four will get nearly $1,900 in credits this year and $1,400 in each of the next four years.But is that enough to counter the problem of skyrocketing grocery prices? In Canada, five giants control more than 80 per cent of the market – Loblaw, Sobeys, Metro, Costco and Walmart. And while they blame other factors such as supply chain problems for rising prices, their continually rising profits – and profit margins – suggest oligopoly is also at cause.It’s why the idea of public grocery stores – those owned or operated by government – are gaining cachet. New York City Mayor Zoran Mamdani recently rode the promise of establishing public grocery stores to an election victory while here in Canada, federal NDP leadership candidate Avi Lewis is making them part of his pitch to voters.The concept has been criticized, notably by the Globe and Mail, as unworkable, but a group of food experts beg to differ. In a recent paper, they’ve worked out the math and suggest that public grocery stores aren’t just possible in Canada, they’re necessary to provide competition and price discrimination to the oligopoly.Aaron Vansintjan, policy manager at advocacy group Food Secure Canada, joins Do Not Pass Go to discuss how public grocery stores would lead to lower prices for consumers.Read the paper by Vansintjan and his colleagues here.Do Not Pass Go is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber. Get full access to Do Not Pass Go at www.donotpassgo.ca/subscribe