With the recession hitting families hard, a new report finds more and more people are in need of food banks, but the slumping economy also means less people are able to give this Thanksgiving.

A new report by the Ontario Association of Food Banks says 20 per cent more people are now turning to food banks each month versus this time last year. It says this "dire" situation means there are 350,000 needy people in Ontario.

Most of the new food bank users are people who only recently lost their jobs due the economy.

"Those are some people who have never been in a food bank in their life and never expected to be in a food bank," said Gail Nyberg, a spokesperson for the Daily Bread Food Bank.

Aggravating the situation is the rising cost of basic groceries like milk, baby food and pasta.

The report found that the average yearly grocery bill for a family of three has jumped an extra $432 since January 2008.

One in three Ontario food banks said it does not have enough food to feed everyone that knocks on its door. The report says food banks are being forced to stretch supplies thin, shrinking the amount of food they give to each person.

And users are being hit hard by the difference.

"You're not getting as much as you usually would," said Cliff, who uses the food bank.

"If you get a basket loaded with food, it'll only last you probably a day."

The Scott Mission, which provides warm meals to the needy every Thanksgiving has also seen a jump in the number of hungry people stopping by. Last year, the mission fed 300 people, but the demand has jumped to 400 people already fed this year.

"The need is really getting severe, and we're having a hard time coping," said David Smith, a Scott Mission spokesperson. "We don't want to turn anyone away."

"You've got to thank God every day you wake up -- and for free food -- thank Toronto," said Michael, who had a meal at the Scott Mission.

The Daily Bread Food Bank is halfway towards its goal of raising 200,000 kg of food, but it is far from its goal of raising $500,000 by the end of the week.