Canada's Competition Bureau is launching a probe into the country's food supply chain, as it looks for solutions to rising grocery prices. 

According to a June 16 release, the bureau will conduct a "broad examination" of Canada's food supply chain beyond retail grocery stores, including harvesting, production, processing, logistics and transportation.

"Food prices have risen sharply in recent years, putting pressure on Canadians’ wallets," the bureau said. "Competition throughout the food supply chain can play an important role in keeping prices in check."

The probe will also build on a report released in 2023, which detailed how Canada's grocery industry has become highly concentrated among three companies, as a result of recent industry consolidation. According to Competition Bureau Canada, the five largest Canadian retail grocers (Loblaw, Sobeys, Metro, Walmart and Costco) now account for approximately 80% of total Canadian retail grocery sales, creating a landscape where it's become difficult and expensive for new retailers to enter, expand and compete effectively in the industry. 

At the time, the Competition Bureau recommended that Canada develop a national strategy to support the emergence of new grocery businesses, introduce provincial and territorial pricing requirements for certain food products at stores, and limit property controls that ban grocery stores in some areas. Although the bureau said that it's seen some progress since its 2023 report was published, "much work remains" to address the country's larger food supply chain issues.