B.C. Premier David Eby announces plan to cap grocery prices ahead of election
The premier said a 'price guard' on staples like milk and eggs could save residents roughly $700 a year, but critics question its effectiveness.
British Columbia Premier David Eby has announced a plan to cap grocery prices in the province, which he said could save residents roughly $700 a year.
The measures, announced Oct. 2, centre on a "price guard" that would limit retail profit margins on common grocery staples such as milk, eggs, cheese, butter and poultry.
"We’ve all seen our grocery bills go up and up while the profits of grocery giants soar," said Eby. "That’s why we’ll protect working families with new measures to cap unfair increases on grocery staples and protect you from rising prices every time you shop."
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The plan also proposes caps on corporate retailer markups for food essentials, an end to anti-competitive real estate contracts and measures to tackle shrinkflation.
Eby said the goal is to reduce the more than $17,500 a family of four spends per year on groceries in the province.
The announcement comes with B.C. voters going to the polls this October, and the premier is leaning into concerns about the rising cost of living.
Opposition and industry groups immediately questioned how effective the measures would be.
Gavin Dew, Conservative Party of BC candidate for Kelowna-Mission, likened Eby's plans to that of an "arsonist offering to put out the fire."
"David Eby promised every family $1,000 for groceries last election and cancelled it before his first budget. Life has only gotten more expensive under the NDP, and families know he’ll break this promise, too," he said in a statement.
The Retail Council of Canada said in a statement that while the announcement "promises savings," it overlooks the factors that drive grocery prices and would instead increase prices.
"The proposed 'Price Guard' targets milk, eggs, cheese, butter and poultry, all supply-managed products where the initial price is set by marketing boards," the RCC said. "Canada is in a trade war to preserve our supply-managed system and to protect Canadian farmers. Capping retail margins won’t address the underlying costs of getting food to shelves."
The council added that the government should address rising costs across the supply chain, particularly transportation, organized retail crime and other cost increases resulting from government regulation.
Some of Canada's grocers have previously addressed rising grocery costs.
In January 2025, Per Bank, CEO and president of Loblaw Companies, wrote an open letter arguing that excess profit and lack of competition were not to blame for higher prices.
"Grocery profit margins have remained stable from pre-pandemic levels, averaging around 3% to 4%, with the remaining 96% going to food manufacturers, growers, wages, store operations and taxes," Bank said.
He said high food prices are a global phenomenon driven by suppliers suffering from supply chain disruptions, geopolitical turmoil, climate change and increased ingredient costs.
Canadian Grocer reported it reached out to several major grocery chain operators in British Columbia for comment on Eby’s proposals but did not hear back from them at the time of publication.
With files from Canadian Grocer
Renée Bouchard writes about food, restaurants and grocery prices across Canada for Novello Desserts.