Cost of the Revised Northern Food Basket in 2015-2016

Overview

The tables below show the cost of the Revised Northern Food Basket (RNFB) in communities eligible for the Nutrition North Canada (NNC) program. The amounts are estimates of what it cost to feed a family of four a healthy diet for one week.

For comparison purposes, the tables also show the cost of the RNFB in March 2011 (under the Food Mail Program), and March of each fiscal year of NNC's operation. The tables also provide information for the 2015–2016 quarters, to help monitor trends over time.

• On average, in communities eligible for a full subsidy under Nutrition North Canada, the cost of the Revised Northern Food Basket (RNFB) in March 2016 was on average $8.53 (or 2.10%) higher than in March 2015 and still $11.90 (or 2.79%) lower than in March 2011, prior to the launch of the program.
• On average, in communities eligible for a partial subsidy, the cost of the Revised Northern Food Basket in March 2016 was $2.90 (or 0.66%) higher than in March 2015, and $24.30 (or 5.84%) higher than in March 2011.
• According to Statistics Canada, food prices elsewhere in Canada increased 3.6% between March 2015 and March 2016 (approximately 12.9% over five years).
• We noticed that 17 communities in the following regions of Newfoundland and Labrador, Nunavut, Ontario, the Northwest Territories, Quebec and Manitoba have had increases in the Revised Northern Food Basket (RNFB) which were higher than the Consumer Price Index (CPI) (higher than 3.6%) for the reference period between March 2015 and March 2016. In light of our analysis, there are several factors that can explain these increases which apply to certain Basket (RNFB) products. One of the factors is an increase of the cost of food (inflation), as is also reflected in Southern regions of the country. Another factor is that Retailers sometimes change the suppliers from which they buy their products. Other factors are linked to product substitutions, which can bring changes due to its size, and sometimes to its weight. Another factor is the cost of the products packaging, which can vary seasonally. Finally, seasonal changes can also contribute to price variations, for certain product types (such as for fruits and vegetables). These differences have been validated with the registered Northern Retailers, following product sampling. For the most part, these differences apply to a few of the products composing the RNFB.
• The cost of the Revised Northern Food Basket was reviewed for all fiscal years. A modification of the calculation methodology was made for the frozen apple juice concentrate and frozen orange juice concentrate to reflect quantity of serving of 33mL for frozen apple juice concentrate and 282mL for frozen orange juice concentrate instead of measuring the reconstituted weight for consumption of the Recommended Dietary Allowances (RDAs) or the Adequate Intakes (AIs).

Cost of the RNFB in communities eligible for a full subsidy

The cost of the basket was calculated using price data provided by the following retailers:

• Fédération des coopératives du Nouveau-Québec (FCNQ);
• Labrador Investments (Big Land Grocery);
• North West Company (NWCO);
• Rampart; and
• Stanton.

Cost of the RNFB in communities eligible for a partial subsidy

The cost of the basket was calculated using price data provided by the North West Company.