As of late, headlines speculating about “greedflation” in the grocery retail sector have been circulating yet again. Despite recent signs of improvement, it seems some are still trying to engage more in finger-pointing than in advancing real solutions.

Earlier this summer, the Standing Committee on Agriculture and Agri-Food released results of their in-depth review of food price inflation, a challenge that has confronted shoppers in Canada and around the world since the early days of the COVID-19 pandemic. The committee’s report concluded that food prices, unsurprisingly, are being driven by a wide range of systemic factors. The committee did not find any evidence of price “gouging” by actors in the food supply.

Rather, inflation is a deeply complex issue that cannot be traced back to one singular cause. Global factors like major cost increases for feed, fertilizer, and fuel combined with weather impediments, supply chain disruptions, and labour shortages all play part in this phenomenon.

Canada’s food companies work tirelessly to manage as best they can through these challenges and continue to deliver the products Canadians rely on. A recent Ubuy study, notes that despite the increased costs, Canada’s food inflation remains lower than that of many of our economic peers in the G7.

There are encouraging signs that inflation has slowed. natural gas and corn prices are coming down, but changes in the cost of inputs like transportation and ingredients will take considerable time to be reflected in manufacturing processes and at the grocery store. The situation is further aggravated by the continuing impact of government regulations tied to labelling and packaging that put further financial stress on industry at a time when critical efforts to upgrade and innovate could be made with the aim of stabilizing rising costs.

Nevertheless, FHCP and our members have worked with responsible partners across the food supply to increase resilience and support stronger essential supply chains.

The Agriculture and Agri-Food committee’s report clearly identifies the need for increased transparency and trust in the grocery industry:

“While driven in part by global factors, such as rising input and fuel costs, relationships in the food supply chain have a major influence on how prices are transmitted along the supply chain and ultimately to the consumer. As the primary source of food for many Canadians and the primary sale outlet for many producers and processors, the grocery sector plays a critical role in these relationships. This study highlights the need to increase transparency in the grocery sector and to strengthen its collaboration with other supply chain actors to ensure fairness in the business relations between each link in the chain.”

This is exactly what we have championed through our work on the Grocery Code of Conduct. Increased trust and transparency have the potential to both strengthen and reinvigorate the grocery supply chain. While we cannot ourselves end the war in Ukraine or stop extreme weather from damaging crops, we can and must address the constraints that have held back the full potential of Canada’s grocery, manufacturing and supply chains.

This op-ed was originally published on LinkedIn.