Today at The Historic Forks Market, Keystone Agricultural Producers (KAP), Manitoba’s largest general farm organization, released its study on farmer income in relation to what consumers spend on groceries. The Farmer’s Share research project was commissioned by KAP, the Agricultural Producers Association of Saskatchewan, and Wild Rose Agricultural Producers of Alberta.
Researcher Dr. Alma Kennedy has conducted the study for the groups since 2008. This year, Dr. Kennedy developed a new Farmer’s Share calculation to specifically reflect Prairie province farm produce and to include consumer costs at three grocery store chains, up from one chain surveyed previously.
“We are pleased to continue this project and we are eager to use this information to explain the farmer’s share of the cost of food paid by Manitoba consumers,” said Doug Chorney, KAP President. “The hope is that they will become more aware about the farmer’s share in the value chain and the need to improve the portion which is returned to the farm gate.”
The Farmer’s Share is a snapshot of what consumers pay for products such as vegetables, grains, dairy products and meat as well as what the farmer receives from products when they leave the farm. The study tracked prices for items such as carrots, potatoes, cereal, bread, yogurt, eggs, pork and chicken. With a total grocery bill of $90.10 for the products studied, the 2011 farmer’s share for different food groups was as follows: Vegetables 28 per cent, Grain 5 per cent, Dairy 55 per cent and Meat and Meat Alternatives 41 per cent. The overall farmer’s share for 2011 was 39 per cent, which was slightly higher than in previous years. This reflected the addition of the two grocery chains to the study.
“This year we focused in on specific food items that most consumers buy each week and we eliminated items that were produced outside of the Prairie provinces, such as in the US,” said Dr. Alma Kennedy. “The results show that little has changed since 2010 regarding the cost of groceries and the share the farmer receives, and we believe it was the right time to make changes to the study.”
Project data shows that the farmer’s share for vegetables has been declining gradually for three years with the shares for grain and dairy showing slight increases. The farmer’s share for meat and meat alternatives has risen steadily over the years reflecting a gradual rise in the farm price while the consumer cost remained fairly stable.
In most cases, the farmer’s share of the consumer’s food dollar is relatively small. Devastating weather events such as the 2011 Flood, the rising cost of inputs, and other increasing farm expenses put a strain on farmers’ bottom lines. KAP believes an increase in the farmer’s share would make a significant difference to family farm incomes. KAP is encouraging awareness about the share farmers receive from the products they grow and raise and is now promoting The Farmer’s Share through a Winnipeg Transit advertising campaign which runs to September 15, 2011.
