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Ontario Faces a Gathering Storm of Price Increases & Tough Economic Times

Toronto, ON (June 26, 2008) – A new report released today at Queen’s Park by the Ontario Association of Food Banks (OAFB) revealed that the alarming rise in food, gasoline, and energy prices are beginning to affect low-income families and food banks across the province.  The report was the result of a study of food prices since 1995, a retail survey of First Nations communities, and a survey of food banks across the province.

“The results are startling,” said Adam Spence, Executive Director of the OAFB.  “The cost of essentials items from groceries to gas are all increasing at a rate that could further reduce many Ontarian’s ability to pay rent and put food on the table.”

Since November 2007, the retail price of the majority of tracked food items in Canada, including baby food, chicken, milk and bread, has increased by greater than four per cent, or double the rate of inflation.  Over the past decade, the price of healthier foods like eggs have increased at a rate much greater than inflation, whereas less healthy foods like fruit-flavoured crystals have increased at a much slower rate.  Beyond food, the price of gasoline has risen by an average of 62 per cent in major Ontario centres since 2003.  This has resulted in an annual spending increase on gasoline that it is equal one month’s rent for a one bedroom apartment.  An expected increase to natural gas prices in July will result in Ontarians spending an additional $265 per year to heat their homes.  Many households, from the suburbs of Southern Ontario to remote reserve communities in the North, are feeling the effects of rising prices.

“We are already at the front line of high prices for groceries, gasoline and energy,” said Glen Fiddler, Traditions and Culture Coordinator in Sandy Lake First Nation.  “Reserve communities facing issues of hunger and poverty also have to face the reality of food costs that are almost double the Canadian average.”

Rising prices of food, gas, and energy are compounded by a troubling economic picture.  Ontario is projected to have the lowest economic growth of all provinces, and unemployment is expected to grow by 0.6 per cent.  This could put up to 45,000 Ontarians out of work by the end of 2009.  Manufacturing jobs are being lost on a daily basis, including important food manufacturers, such as Cangro in Niagara Falls, that have supported Ontario communities for decades.

“We see the face of Ontario’s economic and social trends in our food bank every day,” said Diane Corkum, Assistant Executive Director for Project S.H.A.R.E. in Niagara Falls.  “In Niagara Falls, we face the challenge of losing a major food donor and a major employer for our region.  Alongside tough economic times and rising prices, we are worried about what will come in the next year.”

Seventy-two per cent of food banks in Ontario are worried that the increasing price of food will impact their ability to meet the needs of their clients.  Many are already spending more on food purchases compared to last year.  Two-thirds of Ontario’s food banks are spending more money for the same amount of food in 2008.  The vast majority of food banks (89 per cent) are also reporting an increase in the number of persons requiring support because of rising prices.

In today’s report, the OAFB is also calling on the provincial and federal governments to act.  The OAFB makes the following initial recommendations:

* The federal government must lower eligibility requirements for Employment Insurance (EI) to ensure more Ontarians access this vital program;
* The provincial government should reinstate the Back to School Allowance this fall; and
* The provincial government must quickly move to implement the poverty reduction strategy.  In its development, the provincial government should consider implementing a low-income inflation index that would direct future social assistance increases, as well as a coordinated low-income energy strategy with significant supports and demand reduction initiatives.

The OAFB will be releasing its comprehensive recommendations to the provincial government’s Cabinet Committee on Poverty Reduction at the end of July in order to fully address the issues outlined in today’s report release as well as other issues related to hunger and poverty in Ontario. 

“We will need the support of our provincial government, our federal government, and our neighbours over the next year.” said Spence.  “Without their full support, we will not be able to weather the coming storm, and any social and economic progress for low-income Ontarians that has been built over the past decade may be washed away.”

The Ontario Association of Food Banks (OAFB) is a network of over 100 food banks across the province from Ottawa to Windsor, and Niagara Falls to Thunder Bay. 320,000 Ontarians are served by food banks every month. If you would like to find out more about food banks in Ontario, or for a full copy of the report, please visit www.oafb.ca.

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For further information, contact:

Adam Spence, Executive Director, OAFB (Primary Contact), Work: 416.656.4100, Cell: 416.543.0897

Diane Corkum, Assistant Executive Director, Project SHARE (Niagara Falls), Work: 905-357-5121, x. 22

Hans Schmidt, Client, Welcome Inn Community Centre (Hamilton), Tel: 289-244-1206

Glen Fiddler, Traditions and Culture Coordinator, Sandy Lake First Nation, Tel: 807-774-3421

Photographs are also available upon request.

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