Each year, we compile a list of highlights to highlight the trends, challenges and opportunities shaping the agri-food sector. This list aims to give a balanced perspective on the events that mattered in the agri-food world, to better understand where we come from and where we are going. Here are our top five highlights.
Posted at 6:30 a.m.
Loblaw Boycott
We were hesitant to include this fact on the list because it never actually came to fruition. Despite strong momentum online, particularly on Reddit, the boycott targeting Canadian grocers like Loblaw, Sobeys and Metro, while excluding American giants like Walmart and Costco, didn’t really work. Originally announced as a month-long protest starting on 1is May, it was later declared “undefined”. The impact of the boycott has been negligible, as evidenced by Loblaw’s shares rising to $195, an impressive 27% increase since the start of the campaign. Although Loblaw’s finances remained intact, this move sparked significant discussions about inflation through greed, corporate ethics and the public image of major Canadian chains. The controversy has highlighted a critical loss of consumer trust and intensified calls for greater transparency in pricing and competition practices. Addressing these issues will become essential to rebuilding trust and fostering a more equitable and competitive food landscape for the future.
Capital gains tax changes
Since June 25, the increase in the capital gains inclusion rate for profits exceeding $250,000 has alarmed the agricultural sector. Farmers, often asset-rich but cash-poor, face an average tax increase of 30%, according to Canada’s grain producers. Canada is already losing between 700 and 1,000 farms per year and these changes are compounding generational succession challenges and accelerating industry consolidation. Even though the lifetime capital gains exemption increased to $1.25 million, the higher tax rate disproportionately affects family farms, threatening the future of Canadian agriculture.
Adoption of the Code of Conduct for Grocers
The adoption of the Grocer Code of Conduct by Canada’s five largest chains marked an important step in addressing power imbalances between retailers and suppliers. By promoting fairer negotiations and reducing price volatility, the code is expected to improve transparency and stabilize the food supply chain. However, questions remain about its enforcement, and retailers will need to demonstrate their commitment to fair practices to regain consumer trust.
The rise of GLP-1 drugs
The rise of GLP-1 drugs, such as Ozempic, marks an important moment in the food sector, with the potential to impact millions of people around the world. Originally developed to treat type 2 diabetes, these medications are now widely recognized for their effectiveness in promoting weight loss by suppressing appetite and slowing digestion. With obesity rates rising globally, drugs like Ozempic are seen as game-changing solutions, with mass adoption expected in the coming years. In February, a key moment in this transition came with the announcement that Oprah Winfrey was stepping down from the Weight Watchers board of directors, signaling a potential decline in traditional weight loss programs in favor of pharmaceutical solutions. Although these medications offer important benefits, they also raise critical concerns: their cost, long-term safety, and equitable accessibility. Additionally, growing demand raises questions about their impact on healthcare systems and changing societal attitudes towards weight loss and wellness.
Food taxes and GST exemptions
The federal government’s measure to temporarily exempt food and restaurant items from the GST/HST has sparked heated debate. While consumers saw minimal savings, about $5 at the grocery store, they benefited more at restaurants, saving between $60 and $90. However, the logistical burden placed on retailers, regional disparities in tax rates and the possibility of opportunity pricing have been heavily criticized. A permanent removal of the GST on food would have been a more effective solution to encourage affordability without short-term policy instability.
* Don’t miss the rest of the agri-food year’s review next Thursday.
