How Much Are Canadians Paying for Milk?

Transcription

1 June 18th, 2018 How Much Are Canadians Paying for Milk? Prepared By: Field Agent Canada

2 Executive Summary Field Agent Canada conducted a cross-country price survey on fluid milk prices at 171 retailers in 18 markets from coast-to-coast between June 12th to 18th, The survey compared prices recorded in the past week with prices collected at the same outlets back in October 2014 to highlight any shifts that have taken place over that period. While we did see quite a few price changes for milk, the one thing that did not change was the huge differences in the price Canadians are paying for one of the most basic grocery items - 2% Milk. With the on-going criticism of Canada s supply management system by the Trump administration in the US, we wanted to allow Canadians to see how Canada s system of provincial production quotas is affecting their pocketbook. says Jeff Doucette, General Manager of Field Agent Canada. Additionally, we looked at prices for milk at Walmart stores in six border communities in the US to provide a comparative benchmark of the cost of similar products in the larger US market. The least expensive city to purchase milk in Canada is Sudbury, Ontario. In 2014 the Sudbury market was quite competitive and it has now landed in the number one spot despite being a smaller market in Northern Ontario. said Doucette. The most expensive city to purchase milk in Canada was St. John s, Newfoundland. Although average prices in St. John s have come down 5.6% since our 2014 survey, this market is by far the most expensive. exclaimed Doucette. A small, closed milk market and the use of smaller 2L containers vs. 4L containers in the rest of Canada are hitting Newfoundlanders in the pocket book. In fact, all four Atlantic provinces are paying the high prices for 2% milk with prices being 15-48% higher than the Canadian average. - June 2018

3 Executive Summary Where is the cheapest overall milk in Canada? If you live in Ontario and you are a Costco member you are in luck. Costco stores in Ontario sell 4L packages of milk for $4.25/L, most likley keeping overall prices in Ontario lower. Looking across the border we see that prices for 1 Gallon (3.78L) packages of Great Value milk at Walmart stores close to the Canadian border are consistently cheaper than in Canada, even after adjusting for package size and foreign exchange. The lowest price for a 4L equivalent package was in Amherst, NY (near Buffalo) was $2.22 (CAD), almost half the price at Costco in Ontario. Canadians are paying more for milk than they would if the marketplace was truly an open market. stated Doucette. If trade barriers between provinces were broken down, we could have a more efficient system, although the smaller production systems in smaller provinces would likely be consolidated into larger systems in Central Canada. A consolidated, more efficient, national milk production system may be a necessary evil in order to ensure that Canada s dairy industry is competitive with a much larger system in the United States over the long term and delivers better value to Canadian consumers. Contact Us: Jeff Doucette, General Manager, Field Agent Canada jeff.doucette@fieldagentcanada.com June 2018

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5 Price Survey - Cheapest Milk Across Canada The LEAST EXPENSIVE milk in Canada is at Costco in several Ontario stores with a 4L 2% Milk retailing for $4.25 ($1.06/L). The MOST EXPENSIVE milk in Canada is at Hasty Market in Toronto, ON with a 2L 2% Milk retailing for $4.99 ($2.50/L). - June 2018

6 Least Expensive / Most Expensive Least Expensive Milk Costco - Ontario Locations 4L - $4.25 Cost Per Litre = $1.06 Most Expensive Milk Hasty Market - Toronto, ON 2L - $4.99 Cost Per Litre = $ June 2018

7 Price Survey - Cheapest Overall City To Purchase Milk The LEAST EXPENSIVE city to buy milk in Canada is SUDBURY, ON with an average cost of $4.28 ($1.07/L) on 4L packages of 2% milk. The MOST EXPENSIVE city to buy milk in Canada is ST JOHN S, NL with an average cost per litre of $3.70 ($1.85/L) on 2L packages of 2% milk (no 4L packages available). This is despite a decrease of 5.6% in average prices since our 2014 survey. - June 2018

8 Cross Border Comparison - US Walmart USD Price L USD Price Per Litre CAD Price Per Litre CAD 4L Equivalent Price Bellingham, WA $2.97 $0.79 $1.04 $4.15 Grand Forks, ND $2.87 $0.76 $1.00 $4.01 Dearborn, MI $2.28 $0.60 $0.80 $3.18 Amherst, NY $1.59 $0.42 $0.56 $2.22 Saint Albans, VT $3.70 $0.98 $1.29 $5.17 Source: Walmart.com Houlton, ME $3.49 $0.92 $1.22 $ June 2018

9 - Average Price by Market Average Current Price Average Price Per Litre Index v. National Rank Average Current Price Average Price Per Litre Index v. National National Average $4.88 $ $3.88 $ Rank St. John s, NL NA NA NA NA $3.70 $ Halifax, NS $5.60 $ $3.78 $ Moncton, NB $6.64 $ $3.78 $ Charlottetown, PE $7.20 $ $3.46 $ Laval, QC $6.60 $ $4.10 $ Ottawa / Nepean, ON $4.40 $ $3.98 $ Mississauga, ON $4.52 $ $4.02 $ Scarborough, ON $4.36 $ $4.08 $ Toronto, ON $4.48 $ $4.34 $ London, ON $4.36 $ $3.98 $ Windsor, ON $4.44 $ $3.94 $ Sudbury, ON $4.28 $ $4.04 $ Winnipeg, MB $4.88 $ $3.52 $ Regina, SK $4.80 $ $3.78 $ Edmonton, AB $4.76 $ $3.80 $ Calgary, AB $4.76 $ $3.84 $ Kelowna, BC $4.92 $ $3.78 $ Burnaby / Coquitlam, BC $4.76 $ $3.70 $ June 2018

10 St. John s, NL Circle K NA NA NA $3.65 $4.79 $2.40 Costco NA NA NA $3.39 $3.29 $1.65 Dominion NA NA NA $4.17 $3.37 $1.69 Needs NA NA NA $3.70 $4.49 Market Price Summary 2% Milk 4L NA NA NA $3.97 $3.37 $1.69 Sobeys NA NA NA $4.17 $3.37 $1.69 Walmart NA NA NA $4.21 $3.37 $1.69 Market Price Summary 2% Milk 2L $2.40 $1.65 $ June 2018

11 Halifax, NS Circle K $5.99 $5.29 $1.32 $4.59 $4.79 $2.40 Costco $5.19 $5.19 $1.30 NA NA NA Needs $8.97 $8.00 $2.00 $3.65 $4.35 $2.18 $5.39 $5.19 $1.30 $3.49 $3.39 $1.70 Sobeys $5.69 $5.19 $1.30 $3.69 $3.39 $1.70 Superstore $5.69 $5.19 $1.30 $3.69 $3.38 $1.69 Walmart $5.67 $5.19 $1.30 $3.67 $3.38 $1.69 Market Price Summary 2% Milk 4L $2.00 $1.30 $1.40 Market Price Summary 2% Milk 2L $1.69 $1.89 $ June 2018

12 Charlottetown, PE Circle K NA $6.99 $1.75 $3.60 $3.50 $1.75 Market Price Summary 2% Milk 4L NA NA NA $3.58 $3.67 $1.84 Sobeys $7.27 $7.29 $1.82 $3.69 $3.39 $1.70 $1.75 $1.80 $1.82 Superstore $7.27 $7.27 $1.82 $3.69 $3.38 $1.69 Walmart NA $7.27 $1.82 NA $3.38 $1.69 Market Price Summary 2% Milk 2L $1.69 $1.73 $ June 2018

13 Moncton, NB Circle K $7.79 $7.19 $1.80 $3.40 $4.79 $2.40 Market Price Summary 2% Milk 4L Costco $6.17 $6.45 $1.61 $3.29 $3.43 $1.72 Needs NA NA NA NA $4.29 $2.15 $1.61 $1.66 $1.80 $6.17 $6.45 $1.61 $3.29 $3.43 $1.72 Sobeys $6.49 $6.79 $1.70 $3.33 $3.59 $1.80 Superstore $6.18 $6.45 $1.61 $3.33 $3.51 $1.76 Walmart $6.18 $6.45 $1.61 $3.33 $3.43 $1.72 Market Price Summary 2% Milk 2L $2.40 $1.72 $ June 2018

14 Laval, QC Boni Soir NA NA $1.70 $3.52 $4.65 $2.33 Market Price Summary 2% Milk 4L Costco $6.18 $6.39 $1.60 $3.39 $3.39 $1.70 IGA Extra $6.18 $7.99 $2.00 $3.52 $4.85 $2.43 $1.60 $1.65 $2.00 Maxi $6.18 $6.39 $1.60 $3.52 $3.66 $1.83 Metro $6.18 $6.39 $1.60 $3.52 $3.99 $2.00 Pharmaprix $6.18 $6.39 $1.60 $3.22 $4.99 $2.50 Super C $6.18 $6.39 $1.60 $3.52 $3.66 $1.83 Walmart $6.18 $6.39 $1.60 $3.52 $3.60 $1.80 Market Price Summary 2% Milk 2L $2.50 $2.05 $ June 2018

15 Ottawa / Nepean, ON Costco $3.89 $4.25 $1.06 NA NA NA Food Basics NA $4.27 $1.07 NA $3.69 $1.85 Market Price Summary 2% Milk 4L FreshCo $4.99 $4.27 $1.07 NA $3.67 $1.84 Independent $3.97 $4.35 $1.09 $3.99 $3.99 $2.00 $1.06 $1.10 $1.32 Loblaws $3.97 $4.35 $1.09 $4.29 $3.99 $2.00 Mac's $3.99 $5.29 $1.32 $4.99 $3.99 $2.00 Metro $3.97 $4.35 $1.09 $3.69 $4.19 $2.10 $6.09 $4.27 $1.07 $3.99 $3.99 $2.00 Sobeys $3.97 $4.27 $1.07 $3.47 $3.77 $1.89 Superstore NA $4.28 $1.07 NA $3.98 $1.99 Walmart $3.97 $4.27 $1.07 $3.70 $3.87 $1.94 Market Price Summary 2% Milk 2L $1.99 $2.10 $ June 2018

16 Mississauga, ON 7-Eleven $5.89 $5.49 $1.37 $5.19 $4.89 $2.45 Costco $3.89 $4.25 $1.06 NA $4.59 $2.30 Market Price Summary 2% Milk 4L Food Basics $3.97 $4.27 $1.07 $3.79 $3.69 $1.85 FreshCo $3.97 $4.27 $1.07 NA $3.67 $1.84 $1.06 $1.13 $1.37 Loblaws $3.97 $4.35 $1.09 $4.29 $3.99 $2.00 Metro $3.97 $4.29 $1.07 $2.99 $4.19 $2.10 No Frills $3.97 $4.27 $1.07 $3.69 $3.68 $1.84 $3.97 $4.27 $1.07 NA $3.99 $2.00 Sobeys $3.97 $3.47 $3.85 $1.93 Superstore $3.97 $4.28 $1.07 $3.69 $3.68 $1.84 Walmart $3.97 $4.27 $1.07 $3.70 $3.93 $1.97 Market Price Summary 2% Milk 2L $2.45 $2.01 $ June 2018

17 Scarborough, ON Costco $3.89 $4.25 $1.06 NA $4.59 $2.30 Food Basics $3.97 NA NA $3.79 $4.49 Market Price Summary 2% Milk 4L FreshCo $3.97 $4.27 $1.07 $3.29 $3.67 $1.84 Mac's $3.99 $4.69 $1.17 NA $3.99 $2.00 $1.06 $1.09 $1.17 Metro NA $4.49 $1.12 $2.99 $4.99 $2.50 No Frills $3.69 $4.27 $1.07 $4.79 $3.68 $1.84 NA $4.27 $1.07 $3.99 NA NA Superstore $3.97 $4.28 $1.07 $3.69 $3.68 $1.84 Walmart NA $4.27 $1.07 $3.29 $3.58 $1.79 Market Price Summary 2% Milk 2L $2.50 $2.04 $ June 2018

18 Toronto, ON 7-Eleven $5.89 $5.49 $1.37 $5.19 $4.89 $2.45 Food Basics $3.97 $4.27 $1.07 $3.79 $3.69 $1.85 Market Price Summary 2% Milk 4L FreshCo $3.97 $4.27 $1.07 $3.29 $3.67 $1.84 Hasty Market $5.49 NA NA $4.99 $4.99 $2.50 $1.07 $1.12 $1.37 Loblaws $3.97 $4.35 $1.09 $4.29 $3.99 $2.00 Longos $4.49 $4.49 $1.12 NA NA NA Mac's $3.99 $4.69 $1.17 NA $3.99 $2.00 Metro NA $4.35 $1.09 $4.19 $4.99 $2.50 No Frills $3.97 $4.27 $1.07 $3.69 $ - NA $4.27 $1.07 $3.99 $3.99 $2.00 Sobeys $4.69 $4.27 $1.07 $4.09 $3.77 $1.89 Market Price Summary 2% Milk 2L $2.50 $2.17 $ June 2018

19 London, ON Costco $3.89 $4.25 $1.06 NA NA NA Food Basics $3.97 $4.27 $1.07 $3.79 $3.69 $1.85 Market Price Summary 2% Milk 4L FreshCo $3.97 $4.27 $1.07 $3.29 $3.67 $1.84 Loblaws $3.97 $4.39 $1.10 $4.29 $3.99 $2.00 $1.06 $1.09 $1.30 Mac's $3.99 $5.19 $1.30 $4.99 $3.99 $2.00 Metro $3.97 $4.35 $1.09 $4.19 $4.99 $2.50 No Frills $3.97 $4.27 $1.07 $3.69 $3.68 $1.84 $3.97 $4.27 $1.07 $3.97 $3.99 $2.00 Sobeys $3.97 $4.27 $1.07 $4.17 $3.79 $1.90 Superstore $3.97 $4.28 $1.07 $3.69 $3.98 $1.99 Walmart $3.97 $4.27 $1.07 $3.70 $3.97 $1.99 Market Price Summary 2% Milk 2L $2.50 $1.84 $ June 2018

20 Windsor, ON 7-Eleven $5.89 $5.49 $1.37 $5.19 $4.89 $2.45 Costco $3.65 $4.25 $1.06 NA NA NA Market Price Summary 2% Milk 4L Food Basics $3.97 $4.27 $1.07 $3.79 $3.69 $1.85 FreshCo $5.97 $4.27 $1.07 $3.29 $3.67 $1.84 $1.06 $1.11 $1.37 Mac's $3.99 $4.69 $1.17 $4.99 $3.99 $2.00 Metro $3.97 $4.35 $1.09 $3.69 $3.99 $2.00 No Frills $3.65 $4.27 $1.07 $3.65 $3.68 $1.84 $3.97 $4.27 $1.07 $3.99 NA NA Sobeys NA $4.35 $1.09 NA $3.85 $1.93 Superstore $5.69 $4.28 $1.07 $2.49 $3.68 $1.84 Walmart $3.97 $4.27 $1.07 $3.70 $3.87 $1.94 Zehrs $3.97 $4.35 $1.09 $3.99 $3.99 $2.00 Market Price Summary 2% Milk 2L $2.45 $1.84 $ June 2018

21 Sudbury, ON Costco $3.89 $4.25 $1.06 NA NA NA Food Basics $3.97 $4.27 $1.07 $3.79 $3.69 $1.85 Market Price Summary 2% Milk 4L Independent $4.47 $4.35 $1.09 NA $3.99 $2.00 Metro $3.97 $4.29 $1.07 $3.69 $4.19 $2.10 $1.06 $1.07 $1.09 $3.97 $4.27 $1.07 $3.89 $3.99 $2.00 Superstore $3.97 $4.28 $1.07 $3.69 $3.98 $1.99 Walmart $3.97 $4.27 $1.07 $3.70 $3.87 $1.94 Market Price Summary 2% Milk 2L $1.85 $2.02 $ June 2018

22 Winnipeg, MB 7-Eleven $5.99 $5.99 $3.99 $3.99 $2.00 Co-op $4.99 $5.29 $1.32 $2.99 $3.09 $1.55 Market Price Summary 2% Milk 4L Costco $4.54 $4.58 $1.15 NA NA NA Extra Foods $4.56 $4.58 $1.15 $2.98 $3.20 $1.60 $1.15 $1.22 Mac's $5.29 $5.49 $1.37 $4.49 $4.59 $2.30 Safeway $4.89 $4.59 $1.15 $2.99 $3.19 $1.60 $4.44 $4.58 $1.15 $3.79 $3.99 $2.00 Sobeys $4.59 $4.59 $1.15 $3.19 $3.19 $1.60 Superstore $4.54 $4.58 $1.15 $2.98 $3.20 $1.60 Walmart $4.54 $4.58 $1.15 $3.35 $3.18 $1.59 Market Price Summary 2% Milk 2L $2.30 $1.76 $ June 2018

23 Regina, SK 7-Eleven NA $5.99 $4.39 $4.49 Co-op $5.09 $4.59 $1.15 $3.59 $3.49 $1.75 Market Price Summary 2% Milk 4L Costco $4.54 $4.58 $1.15 NA NA NA Extra Foods NA $4.59 $1.15 NA $3.43 $1.72 $1.11 $1.20 Mac's $5.29 $5.49 $1.37 $4.49 $4.59 $2.30 Safeway $4.59 $4.59 $1.15 $3.89 $3.54 $1.77 $4.59 $4.45 $1.11 $3.79 $3.99 $2.00 Sobeys $4.59 $4.45 $1.11 $3.39 $3.54 $1.77 Superstore $4.54 $4.58 $1.15 NA $3.43 $1.72 Walmart $4.54 $4.58 $1.15 $3.45 $3.43 $1.72 Market Price Summary 2% Milk 2L $1.89 $ June 2018

24 Calgary, AB 7-Eleven NA $5.49 $1.37 NA $4.49 Co-op NA $4.66 $1.17 NA $3.69 $1.85 Market Price Summary 2% Milk 4L Costco NA $4.54 $1.14 NA NA NA Mac's NA $5.49 $1.37 NA $4.59 $2.30 $1.14 $1.19 $1.37 No Frills NA $4.54 $1.14 NA $3.43 $1.72 Safeway NA $4.56 $1.14 NA $3.69 $1.85 NA $4.65 $1.16 NA $3.99 $2.00 Superstore NA $4.54 $1.14 NA $3.43 $1.72 Walmart NA $4.54 $1.14 NA $3.43 $1.72 Market Price Summary 2% Milk 2L $2.30 $1.92 $ June 2018

25 Edmonton, AB 7-Eleven $5.99 $5.49 $1.37 $4.59 $4.39 $2.20 Costco $4.54 $4.54 $1.14 NA NA NA Market Price Summary 2% Milk 4L Mac's $5.29 $5.49 $1.37 $3.99 $4.59 $2.30 No Frills $4.54 $4.54 $1.14 NA $3.43 $1.72 $1.14 $1.19 $1.37 Safeway $4.59 $4.56 $1.14 $3.39 $3.54 $1.77 Save On Foods $4.69 $4.59 $1.15 $3.65 $3.53 $1.77 $4.44 $4.54 $1.14 $3.29 $3.99 $2.00 Superstore $4.54 $4.54 $1.14 $3.35 $3.43 $1.72 Walmart $4.54 $4.54 $1.14 $3.45 $3.43 $1.72 Market Price Summary 2% Milk 2L $2.30 $1.90 $ June 2018

26 Kelowna, BC 7-Eleven $6.39 $6.39 $1.60 $4.09 $4.49 Costco $4.49 $4.47 $1.12 NA NA NA Extra Foods $4.56 $4.69 $1.17 $3.37 $3.49 $1.75 IGA Marketplace $4.69 $5.09 $1.27 $3.35 $3.79 $1.90 Mac's $5.29 $5.49 $1.37 $4.49 NA NA Safeway $4.89 $4.48 $1.12 $3.49 $3.54 $1.77 Save On Foods $4.89 $4.89 $1.22 $3.49 $3.73 $1.87 $4.59 $4.47 $1.12 $3.99 $3.99 $2.00 Superstore $4.48 $4.47 $1.12 $3.37 $3.43 $1.72 Market Price Summary 2% Milk 4L $1.60 $1.12 $1.23 Market Price Summary 2% Milk 2L $1.89 $ June 2018

27 Burnaby / Coquitlam, BC 7-Eleven $6.99 $5.99 $3.99 $3.99 $2.00 Costco $4.49 $4.47 $1.12 NA NA NA Extra Foods $4.89 $4.69 $1.17 $3.39 $3.49 $1.75 IGA Marketplace $5.65 $4.59 $1.15 $3.59 $3.53 $1.77 Mac's $5.29 $5.49 $1.37 NA $4.59 $2.30 No Frills $4.49 $4.47 $1.12 $3.37 $3.43 $1.72 Save On Foods $4.69 $4.59 $1.15 $3.39 $3.53 $1.77 $4.49 $4.47 $1.12 $3.79 $3.99 $2.00 Superstore $4.49 $4.47 $1.12 $3.37 $3.43 $1.72 Thrifty Foods $4.79 $4.59 $1.15 $3.79 $3.53 $1.77 Walmart $4.54 $4.47 $1.12 $3.37 $3.43 $1.72 Market Price Summary 2% Milk 4L $1.12 $1.19 Market Price Summary 2% Milk 2L $2.30 $1.72 $ June 2018

28 - Methodology Price audits were conducted using Field Agent Canada s panel of over 90,000 smartphone users who have downloaded our free app and conduct audits, mystery shops and shopper surveys from Coast-to-Coast. Data was collected in 171 stores from June 12th to 18th in 18 markets across Canada with at least one market in each of the ten provinces. We measured retail prices on 2% milk products which represent the largest segment of Canadian Fluid Milk sales. Agents collected the regular price point and any promotional price points available for 2% Milk including both 2L and 4L sizes, and carton, jug and bagged formats. The CURRENT PRICE reflected in this report is the retail shelf price excluding any current promotions. Prices recorded were the prices shown on shelf tags, on-pack price stickers or store signage. Where prices were not available the current price was sourced through the store clerk and recorded. When multiple offerings of 2% milk were present, the lowest priced 2% Milk in both the 2L and 4L segments was recorded. Prices are for base milk products. Value added products such as fine-filtered, organic or lactose free varieties were excluded. - June 2018