Rising Food Prices Hit Ottawa Stores Hardest

related: Canada's Good Food Prices Likely to Run Out Next Year

April 25, 2008
Scott Cressman
The Ottawa Citizen

Operators of small food stores in Ottawa say rising prices -- especially for flour and rice -- are keeping away customers.

Prices have been stable at area Costco and Wal-Mart stores, but worldwide shortages have affected smaller specialty food shoppers.

"They can't stock up, it's already too expensive," said Chit Singh, owner of Pure Springs Indian grocery store on Somerset Street.

The price of the 20-kilogram bag of flour he sells has doubled in recent weeks to $30 from $15, he said. Prices have risen week by week, and his profits are down.

Mina Patoo is the owner of Shiraz Food Market on Somerset Street. An 18-kilogram bag of rice she once sold for about $40 now costs her $50.

Ms. Patoo has tried to resist raising her prices, but business is already slowing and people have complained they cannot afford the groceries they once could. She said she doesn't have the answer, but has sacrificed profits to help out on some of the products her customers need, like basmati rice.

"We don't make money on those," Ms. Patoo said. "I really care about my customers ... I feel bad."

Ethnic food stores are hit harder because they buy from different suppliers, said John Scott, president and CEO of the Canadian Federation of Independent Grocers. Price swings affect mainstream grocers less.

There is no reason to panic, he said. So far, Canadians have been largely insulated from soaring international prices by our strong dollar.

The food industry is too competitive for most stores to risk raising prices too much, Mr. Scott said, so Canadian customers will likely pay only a little more for their future groceries.

Grocery stores have not reported any trouble getting the supplies they need, he said. But this summer's crops will dictate how well store owners can keep their shelves stocked.

"There'll be enough to go around, but at what price?" Mr. Scott said.

Global shortages have not changed prices at Ottawa's Shanghai Restaurant, said manager Dave Kwan, but business is starting to suffer.

"All costs are going up, not just rice," he said. "We have no choice but to absorb it."

The shortage could get worse if people panic and stockpile food, Mr. Kwan said: "If the hysteria gets to a place where everybody hordes, we could be in trouble."

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