Description: Oh no – food prices are heading up. A family of four is predicted to have to spend an additional $500 on their food purchases in 2020. Unpredictable weather is the culprit, creating uncertainty in food production for farmers in Canada and elsewhere.

Date:  December 5, 2019

Source:  cbc.ca

Link: https://www.cbc.ca/news/business/climate-change-food-price-increase-report-1.5383507

Discussion points:

1) How much do you budget for food as part of your student costs?

2) What do you think this price uncertainty will do to the Canadian economy?

3) Wiley’s Financial Accounting: Tools for Business Decision-Making, has an appendix containing a specimen set of financial statements for Sobeys Inc., a major Canadian food retailer. What lines of the financial statements are most likely to be impacted by the rising prices in 2020?