Liberal Minority Government 2025 - ???

[Brad Sallows]

If we want government action on groceries, we need anti-trust action and blow up loblaws, empire, etc.

That would be counter-productive. Generally I find the smaller the retailer, the higher the grocery prices.

 

[MilEME09]

No one at Brookfield Corp. has spoken with Prime Minister Mark Carney about company business since he resigned earlier this year to run for the Liberal leadership, according to chief operating officer.

Nobody has met with Carney about Brookfield since his resignation, COO says

MPs at committee probe PM’s potential gain from role in US$15-billion fund

www.theglobeandmail.com

 

[PrairieFella]

That would be counter-productive. Generally I find the smaller the retailer, the higher the grocery prices.

Not necessarily. Im sure most of us here have been to the local chain or the local Chinese grocery where someproducts beat the wheels off of the major chains in terms of value. My favourite Asian grocery normally has 1.50 a lb pork and real cheap veggies usually for example.

All of major chains have monopolistic no compete policies with each other and have been found to price fix, as evidenced by the bread fixing scandal. Having more independent chains and suppliers would certainly inject some competition into the system. Id also love more Euro presence in the market but thats a different kettle of fish.

In terms of suppliers, here is a really good video that highlights part of the supplier consolidation problem. Sysco is a major player in the Canadian market, along with GFS who uses the same tactics. This is responsible for a lot of the price increases in restaurants.

If you think competition isnt the answer, what do you think is? Price ceilings?

 

[PPCLI Guy]

Past predictions of higher beef prices right now for exactly those (and other) causes were made, but I suspect most people tune out when farmers are interviewed and don't even bother to read the print/online articles.

Another example: predictions that retailers have been trying to hold status quo supply/price together just long enough to get consumers through Christmas have been made, with expectations there will be shake-ups in the new year. These are founded on practical analyses of inventory and what retailers were able to do to front-load as much as they could at mostly pre-tariff-world prices and compensate other ways, all through the past 8 months.

If adverse supply/price shocks do happen, people will still be surprised.

So....not a direct result of federal policies then? It is more complicated than that?

 

[Brad Sallows]

Not necessarily. Im sure most of us here have been to the local chain or the local Chinese grocery where someproducts beat the wheels off of the major chains in terms of value.

Over time I've had a succession of small green-grocers I favoured. In all cases, it was necessary to be choosy. Lower price is the consequence of not paying someone to pre-filter the lower quality produce out.

All of major chains have monopolistic no compete policies with each other and have been found to price fix, as evidenced by the bread fixing scandal.

That isn't evidence they do it routinely. Corporations are acutely aware of Canadian law governing anti-competitive practices. The reputational damage was worse than the financial penalty. That was their warning. If they get caught again, they're cooked. They reasonably know this.

Having more independent chains and suppliers would certainly inject some competition into the system. Id also love more Euro presence in the market but thats a different kettle of fish.

Absence of "enough" (whatever that is) competition generally means one of two things: the market is already highly competitive, or governments have created a regulatory regime that favours incumbents. But a promising market almost immediately invites competition without external intervention. So chances are high that if people want more competition, they should be marching on the legislatures and parliament to demand regulatory reform. Blackguarding "corporations" will get them nothing. It is one of the great tricks politicians have managed to pull, that they can whip up rhetoric against evil corporations when it is usually the politicians who are at fault.

 

[Brad Sallows]

So....not a direct result of federal policies then? It is more complicated than that?

Of course not. Also a direct result of provincial policies, and foreign policies.

 

[IKnowNothing]

Absence of "enough" (whatever that is) competition generally means one of two things: the market is already highly competitive, or governments have created a regulatory regime that favours incumbents. But a promising market almost immediately invites competition without external intervention.

A textbook example of textbook economic theory that ignores.. well, reality and businesses actually doing business things like successfully executing business strategies to build sustainable advantage and create non regulatory moats/ barriers to entry.

 

[Brad Sallows]

A textbook example of textbook economic theory that ignores.. well, reality and businesses actually doing business things like successfully executing business strategies to build sustainable advantage and create non regulatory moats/ barriers to entry.

To compete is to build sustainable advantage. Publicly owned companies in particular have an obligation to seek every possible advantage. They are constrained by law. Regulatory capture exists. Those who assess a market (conceive strategies) and decide they can't compete except at a loss decline to enter. If they think they can profit, they enter (execute on strategies). That is all reality.

As long as governments permit themselves to be lobbied with effect, they will be lobbied. That is on governments. They set the conditions for "fair" competition, and then create holes to serve the interests to which they are beholden. A major corporation with thousands of employees can afford 50 lawyers. A small corporation with 100 employees cannot.

There's nothing abstract or theoretical about any of it.

 

[Jarnhamar]

High beef prices are the result of drastic herd reductions by producers to staunch the losses from successive drought years out West. Without imports of frozen beef, prices would be even higher.

Yeah I don't know whether to blame the Liberlas, Conservatives, or homeless. I just think it's time we invade someone to get prices down.

Brazil seems like a great choice. Largest exporter of beef AND we can see how the Gripen holds up in combat.

 

[MilEME09]

Canada ranking second for perspective investment