Alberta's Food Affordability Crisis and a Potential Solution
Food affordability remains a pressing concern for consumers across Canada, with projections indicating continued price increases in the coming years. According to the Canada's Food Price Report, national food prices are forecast to rise by four to six percent in 2026. However, Alberta faces an even more challenging situation, with food prices expected to climb above the national average.
The Stark Reality of Food Insecurity in Alberta
This prediction is particularly troubling given Alberta's current food security landscape. The Canadian Income Survey reveals that Alberta has the highest proportion of people living in food-insecure households among all provinces, at 30.9 percent. These households experience insufficient or uncertain access to adequate food due to financial constraints.
The financial strain on these families will only intensify with rising food prices alongside other increasing living costs. While the provincial government has allocated $5 million in food-security funding to support food banks, many experts argue that charitable food-distribution systems represent an ineffective long-term response to systemic food insecurity.
Property Controls: A Hidden Factor in Grocery Competition
To genuinely support Albertans, the government could implement a no-cost initiative to address inflationary pressures on food prices: eliminating unfair grocery market competition practices. Most Canadians purchase groceries from stores owned by a small number of grocery giants, which maintain limited competition and higher prices through property controls known as restrictive covenants.
These legal instruments, registered on a property's title, can prevent competing grocery stores, bakeries, butchers, greengrocers, or specialty food stores from opening after a grocery store closes. Additionally, grocery conglomerates can purchase property and apply restrictive covenants to prevent competitors from establishing operations on that land.
Real-World Impacts on Edmonton Neighborhoods
The consequences of these property controls are already evident in several Edmonton communities. In Griesbach, a restrictive covenant imposed by Sobeys means this developing neighborhood—anticipated to house approximately 14,000 residents upon completion—may never have a grocery store. Similarly, a restrictive covenant exists on the site of a former Safeway in Highlands.
In both neighborhoods, residents without vehicles lack accessible and affordable grocery options within walking distance, creating what some describe as food deserts in urban areas.
Regulatory Support for Increased Competition
The Competition Bureau has acknowledged the need for enhanced grocery competition to decrease food costs and improve consumer access to independent grocers. The Bureau investigates breaches of the Competition Act, which prohibits anti-competitive behavior that harms marketplace competition.
Recent amendments to the Competition Act now explicitly forbid companies from forming agreements that significantly restrict or reduce competition. This regulatory environment suggests that increased grocery competition could indeed lead to reduced prices for consumers.
Following Manitoba's Lead
Edmonton City Councillor Michael Janz has advocated for Alberta to follow Manitoba's approach in addressing this issue. Manitoba has taken steps to end restrictive covenants on former grocery store properties, creating opportunities for more diverse grocery options and potentially lower prices through increased competition.
As Alberta grapples with both rising food costs and significant food insecurity, addressing property controls represents a tangible policy option that could make groceries more affordable without direct government expenditure. The solution lies not in temporary charitable measures, but in structural changes to how grocery markets operate across the province.
