For several years, Canadians have been feeling the pressure of affordability.  The rising cost of living is making it increasingly difficult for households to balance their budgets.

The looming threat of U.S. tariffs and retaliatory Canadian tariffs poses a significant risk to grocery inflation and availability on Canada’s grocery and drug store shelves.  There isn’t another industry that engages Canadians as frequently as the grocery sector.  If Canadian jobs are impacted, the grocery industry feels the effects—whether or not grocery goods are directly in the crossfire.

However, there’s a silent killer that isn’t receiving enough attention: the Canadian dollar. Over the last three months, the Canadian dollar has dropped nearly 600 basis points—from roughly 75 cents to 69 cents against the U.S. dollar. With over 65% of grocery products imported from the U.S., the impact of this currency depreciation cannot be absorbed by suppliers and retailers, if sustained.

Foreign exchange pressures are only one piece of an already strained food and consumer packaged goods (CPG) industry. According to FHCP’s latest member survey:

· 65% of manufacturers reported that input costs are rising faster than net sales.

· 80% of manufacturers are still experiencing lower profitability compared to pre-COVID levels.

· Over 90% of manufacturers have passed on less than their total cost impact to retailers, meaning they are absorbing and offsetting the impact through synergies.

Here’s the critical issue - compared to the U.S., on average, Canadian divisions of multinational food and consumer goods manufacturers operate with a gross margin that is only 70% of their U.S. counterparts—and the gap is widening. This trend leads to less investment in Canada, fewer jobs, reduced innovation, and limited consumer choice. Ultimately, exiting the Canadian market becomes a very real consideration.

If there’s any industry that understands the importance of putting Canadian consumers and workers first, it’s the grocery industry. This sector knows how to unite and drive product accessibility and value for Canadians everyday.

It’s time to unite and ignite a self-sufficient food and consumer goods manufacturing powerhouse in Canada. Together, we can ensure Canadian consumers and workers have access to innovative and affordable food and consumer products they depend on.