The rotten core of Canada’s food industry trust crisis
The Canadian Centre for Food Integrity recently released its report on consumer trust in the food industry. Since 2016, trust levels had plateaued at a respectable level, but the situation has taken a dramatic turn. According to their latest survey, an unprecedented number of Canadians now believe the food industry is heading in the wrong direction. At the same time, trust in the industry has plummeted to its lowest level in eight years. Nearly one-third of Canadians think the industry is failing to focus on the right issues. While this is a broad critique, it raises valid and pressing questions.
Farmers, for instance, continue to enjoy considerable goodwill from consumers. However, this goodwill is often directed more toward farmers as individuals than toward their practices. Criticisms related to pesticide and herbicide use, on-farm milk dumping, feeding cows palm oil to increase butterfat content, ethical animal treatment, and environmental concerns remain persistent. Farmers are often perceived as victims of a system dominated by multinational corporations that dictate products and rules. Yet as they move closer to consumers within the food supply chain, skepticism and doubt become apparent.
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Food processors also face constant scrutiny, particularly over “shrinkflation” and so-called ultra-processed foods. Even though these companies innovate and deliver high-quality products, these efforts often fail to quell public dissatisfaction. Allegations of price fixing, such as in the bread industry and more recently targeting McCain Foods and Cavendish Farms over frozen french fries, are further eroding trust in this segment of the industry. Such accusations only reinforce the perception that some companies prioritize profit over fairness and transparency, deepening consumer skepticism.
However, it is food retailers who sit squarely at the top of the trust deficit. Whether independent or part of major banners, retailers are frequently accused of abusive practices and unjustified price hikes. According to a trust index developed by our Agri-Food Analytics Lab, nearly 80% of consumers believe retailers' efforts to address concerns are insufficient. Even when accusations lack solid evidence, resentment against retailers persists.
Grocers, in particular, need to step up. Loblaw recently acknowledged its willingness to eliminate property controls, a practice that has long suppressed competition by allowing major grocers to restrict rival stores from operating in close proximity to their own locations. These property control agreements, which often appear in commercial leases, limit consumer choice and keep prices high by stifling competition. Manitoba is poised to regulate property controls in food retail, likely becoming the first province to do so. Other provinces should follow suit, as greater competition would benefit both consumers and smaller retailers.
True capitalism thrives not by controlling competition but by driving innovation, creating value, and earning trust through excellence in meeting market needs.
But here is the broader issue. Consumers tend to direct their criticism at what they see and interact with most—stores—rather than farms or barns, which feel distant and unfamiliar. Against this backdrop, a key question emerges: what can the agri-food sector do to regain Canadians' trust?
The underlying issue is a mutual lack of understanding. For the industry to be better understood, it must first make a genuine effort to better understand consumers, particularly younger generations. Millennials and Gen Z now make up 19.8 million people in Canada—over 50% of the population. However, an equally significant challenge lies within the food sector itself. Observing conferences and industry events, it’s evident there is often a reluctance to address sensitive topics. Speakers frequently adopt overly agreeable tones or are constrained by sponsors who shy away from discussions on critical issues like supply management or carbon markets.
This culture of avoidance must end. If the industry is serious about rebuilding trust, it must break these taboos and embrace bold, forward-thinking conversations. Conference organizers and speakers must stop tiptoeing around difficult topics, as this only stifles innovation and leadership.
The agri-food sector must take a hard look in the mirror and critically assess its practices. Regaining consumer trust is not only possible but essential for the industry’s future. True transparency and a willingness to engage openly on challenging issues will be key to restoring confidence and ensuring the long-term success of Canada’s food industry.
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