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

Abstract

It is well known that many consumers believe local foods are more expensive than comparative products coming from other markets. The aim of this study was to measure the price competitiveness of products certified by the Aliments du Québec program, a well-known program in the Canadian province of Quebec. Using machine-learning, artificial intelligence and targeted data mining, the report identifies local products and comparator products, to consider whether locally certified products are more expensive than comparative products coming from outside Quebec. Uncertified products used as comparative products come from anywhere around the world, outside of the province of Quebec. For this study, a total of more than 350,000 discrete price data points were analyzed in the Winter 2022. Local product prices were examined relative to the prices of comparator products. In total, there were 48 subcategories considered. In 70.83% of the subcategories, the local product was either as expensive (similar price) or less expensive than the comparator product. Results challenge the popular belief that local food products are often more expensive. This study also provides limitation and future research paths.