Angry shopper points out Ontario produce costs more at Loblaws than in U.S.

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How can a bag of carrots packaged in Ontario cost less in Mississippi than your local grocery store?

That debate played out recently on TikTok.

Video shows a woman in Mississippi wondering how a large bag of Ontario carrots shipped from Canada cost her less than a dollar. That’s when another TikToker noted that the same bag of carrots from Hillside Gardens in Bradford costs about $3 in Ontario.

“It doesn’t make sense that that bag of carrots was 86 cents because that bag of carrots was grown and packaged here in Ontario,” Frank Domenic said in the video stitched with the original clip and shared on X.

“And when you buy that same bag of carrots in Southwestern Ontario, it will cost you $3,” he added.

“Which means that either in Mississippi, they are selling that bag of carrots at a loss, or grocery stores are taking advantage of our citizens, and they are price-gouging us.”

This Hillside Gardens carrots were not available on the Loblaws website, but a three-pound bag of Farmer’s Market carrots and a two-pound bag of organic are each listed for $3.99.

One user on X noted there’s a big difference in hourly minimum wages paid in Mssissippi ($9.82) and Ontario ($16.55), suggesting, “So maybe that accounts for the price difference.”

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There are many reasons for the price difference, Professor Sylvain Charlebois — senior director of the agri-food analytics lab at Dalhousie University — told The Toronto Sun.

“Firstly, grocers often adopt different pricing strategies based on factors like customer demand and inventory levels, which can lead to price variations,” Charlebois explained.

“Additionally, some grocers might use loss-leading tactics, especially during certain times of the year, to attract customers to their stores.”

Charlebois noted that we’re not seeing everything in the video, including items that may be more affordable in Canada, but he did explain that the significant factor influencing prices is the listing fees suppliers have to pay.

“These fees can be burdensome and may lead suppliers to increase prices to cover these expenses,” he said. “This issue is particularly prevalent in Canada, which is something Canadians know little about. This highlights the importance of implementing a grocer’s code of conduct to address this concern.”

Like with any other product, Charlebois suggested shopping around when looking to score deals.

“There’s a good chance that another grocer may offer the same product at a more reasonable price.”