New Survey Shows Canadians are Willing to Pay a Significant Premium to Eat Local Food

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Author: Josie Di Felice

Posted: October 3, 2012

Categories: economic development / Food in the News / Food in the News / Local Procurement / News from Sustain Ontario / Nouvelles / Research

A recent Bank of Montreal survey found that local food is important to Canadians!

From BMO website:

As Canadians begin to bring in the fall harvest and prepare for Thanksgiving celebrations, a report from BMO Bank of Montreal underscores Canadians’ commitment to local food. The BMO study suggests that most Canadians try to buy local products when they shop for groceries and are willing to pay a premium to put local food on their kitchen tables. On average, Canadians are willing to pay 16 per cent more for domestic fruits and vegetables and 19 per cent more for Canadian meat products.

The study also revealed that:

  • Canadians are most likely to buy Canadian food products when grocery shopping for vegetables (91 per cent), fruit (86 per cent), poultry (84 per cent), cheese (81 per cent) and beef (78 per cent).
  • The number one benefit cited for buying Canadian food when grocery shopping is supporting Canadian producers (28 per cent). Freshness (14 per cent), the environment (10 per cent) and safety (9 per cent) are also recognized as top benefits.

“BMO research suggests that Canadians are becoming increasingly loyal to the notion of buying local food, particularly fruits and vegetables, cheese, beef and poultry. Consumers appreciate the quality of food produced by local farm families and recognize the importance of supporting an agricultural sector that accounts for one-in-eight jobs in Canada,” said David Rinneard, National Manager, Agriculture, BMO Bank of Montreal.

According to BMO Economics, food safety is a major issue for Canadian consumers and the ability to trace the source of their food to a trusted source is very important to them. Consumers are responding by purchasing produce and other food items from local producers, which is crucial to the health of the local economy as well.

Regional Trends

Canadians’ buy-local orientation is strongest for those food items for which their regions are renowned: in British Columbia, fruit and wine, beef in Alberta and the Prairies, fruits and vegetables in Ontario, cheese in Quebec and fish in Atlantic Canada.

  • Ontarians and British Columbians are willing to pay the highest premium for Canadian-made products, in particular fresh fruits and vegetables and meat products.
  • Atlantic Canadians are the most likely to buy Canadian food products when they shop for groceries. This local orientation is most pronounced when it comes to fish (Atlantic Canada: 60 per cent; Canada: 53 per cent).
  • Ontario and British Columbia residents are the most likely to buy Canadian when they shop for wine, reflecting the vibrant wine industries in those two provinces.
  • Albertans are the most likely to buy local when they shop for beef (83 per cent).
  • Quebeckers are the most likely to buy their local food from fruit and vegetable stands.

BMO’s roots in the Canadian agricultural sector date back to 1817, when it first began working with farmers. BMO Bank of Montreal provides customized loan and deposit solutions to Canada’s agri-business owners, the single largest core commercial sector that the bank serves. For Canadian businesses, including those in the agriculture and agri-food sectors, looking to innovate, enhance productivity, and grow their business, BMO Bank of Montreal recently announced a credit boost of $10 billion over the next three years.