With groceries costing as much as 30 per cent more than they did five years ago, it's no doubt many Canadians are feeling the pinch. However, the Ontario Greenhouse Vegetable Growers says farmers are not making bank off it.
In fact, it says farmers have seen their profits shrink as food prices rise.
The OGVG issued a rare statement on Tuesday morning addressing what it calls a "growing misconception."
Recent industry data shows that greenhouse growers producing tomatoes, cucumbers, and peppers have seen a three to six per cent decline in returns compared to the five-year average.
Production costs, including for fertilizer, fuel, freight, labour, and labour, have risen sharply.
"At the farm level, margins are tightening, not expanding," added Executive Director Richard Lee. "Growers are committed to supplying safe, high-quality, locally-grown produce, but the economic realities are becoming more challenging every year."
Without sustainable returns at that level, the OGVG fears Canada will lose domestic food production capacity and become more dependent on imported produce.
"Consumers are understandably concerned about the rising cost of food," added Lee. "However, it is important to clarify that the price increases seen at the retail level are not reflected in what growers are receiving. The perception that farmers are benefiting is not accurate."
