Ottawa-based produce growers deal with spiking production costs

When Devon Allin and his family purchased SunTech Greenhouses in 2021, they didn't expect costs to immediately skyrocket.

“Everything has gone up so rapidly,” said the SunTech co-owner. “I'd say our cost of production has gone up twenty per cent.”

Located in Manotick, their greenhouses produce cucumbers and tomatoes that you'll find at Costco, Farm Boy and Loblaws.

Statistics Canada says that while overall inflation fell to 5.9 per cent in January, grocery prices rose to 10.4 percent compared to 2022. Many Canadians are feeling the pinch.

So is there price gouging or simply sky high costs passed on to the consumer?

“I don't know and I’m not about to lay blame on anyone, but from us there is not,” said special projects manager Corinne Turansky.

Farmers say inflation is hurting them, too, and they have no choice but to raise their prices to grocers and it's not about growing profits.

“There’s fertilizer, hydro, gas, employment costs… wages went up a dollar,” explained Turansky. “All these things together hit hard on our pocketbooks.”

In October, the Competition Bureau announced it is undertaking a study that will specifically look at whether competition in the grocery sector is playing a role in the higher prices.

The CEOs and presidents of Loblaw, Metro, and Empire—which operates chains including Sobeys, Safeway, FreshCo and Farm Boy—are set to testify before the House of Commons agriculture committee on Wednesday as part of its study on food inflation.

--With files from The Canadian Press.