Is Buying Local Less Expensive? Debunking a Myth-Assessing the Price Competitiveness of Local Food Products in Canada

Area of Science:

• Agricultural Economics
• Consumer Behavior Studies
• Food Supply Chain Analysis

Background:

• Consumer perception often associates local foods with higher prices compared to international products.
• The Aliments du Québec program certifies local food products within the Canadian province of Quebec.
• Understanding the price competitiveness of certified local foods is crucial for consumer trust and market dynamics.

Purpose of the Study:

• To quantitatively assess the price competitiveness of Aliments du Québec certified products against non-Quebecois and international comparators.
• To challenge the prevalent notion that local food options are consistently more expensive.
• To provide data-driven insights into the economic viability of local food systems.

Main Methods:

• Utilized machine learning, artificial intelligence, and data mining to identify and compare local and comparator products.
• Analyzed a dataset exceeding 350,000 discrete price points collected during Winter 2022.
• Examined price relativity across 48 distinct food subcategories.

Main Results:

• In 70.83% of the analyzed subcategories, Aliments du Québec certified products were found to be equal in price or less expensive than comparator products.
• The study identified specific subcategories where local products demonstrated significant price competitiveness.
• Results directly contradict the widespread assumption of higher local food pricing.

Conclusions:

• The study's findings challenge the popular belief that local food products are inherently more expensive.
• Certified local foods, such as those under the Aliments du Québec program, can be price-competitive with imported alternatives.
• Further research is recommended to explore limitations and expand the scope of price competitiveness analysis.