Ottawa targets grocery costs and food access
Canada’s Liberal government has introduced a national food security strategy designed to make locally produced fruit, vegetables and other fresh foods more affordable and easier to find.
The plan seeks to reshape how food moves from farms and processors to grocery stores, with a stronger focus on supporting independent retailers, smaller producers and communities with limited access to fresh products.
More than $3 billion over 10 years
The strategy is backed by more than $3 billion in federal investment over the next decade.
Ottawa says the money will be used to strengthen domestic production, modernize processing, improve food distribution and reduce Canada’s dependence on imported products.
$1 billion for terminals and food hubs
One of the largest commitments is $1 billion for new infrastructure, including food terminals and regional distribution hubs.
These facilities are intended to help independent grocers purchase products directly from farmers and food processors instead of relying on distribution systems controlled by their largest competitors.
Smaller grocers face structural disadvantages
The federal government says Canada’s grocery sector is heavily concentrated, with five large retailers controlling about 75% of the market and much of the country’s food distribution network.
Independent stores often struggle to compete because they depend on larger companies for supply. Some also face restrictions that limit where they can open or expand their operations.
More routes from farms to stores
The strategy aims to create additional markets for Canadian farmers while giving smaller grocers more places to source products.
By expanding the number of buyers and distribution channels, Ottawa hopes to increase competition and provide consumers with more affordable choices.
Support for food processors
The government also plans to help small and medium-sized food processors modernize their facilities and improve productivity.
The objective is to make Canadian businesses more competitive internationally while attracting investment from larger manufacturers.
Processing more food domestically could allow Canada to capture a greater share of the value generated by its agricultural production.
$750 million for year-round growing
Ottawa has allocated $750 million to greenhouses and hydroponic farming.
The funding is intended to increase year-round Canadian production of fruit and vegetables, particularly in rural, remote and northern communities where fresh food can be expensive or difficult to obtain.
Canada relies heavily on imports
Prime Minister Mark Carney said Canada imports nearly 90% of its fresh fruit and nuts and more than 70% of its vegetables.
The country’s short growing seasons make it difficult for domestic producers to meet demand throughout the year, leaving consumers exposed to international prices, transportation costs and supply disruptions.
Agricultural strength is not reaching shoppers
Canada is one of the world’s largest exporters of agricultural and food products. Its farmers, ranchers and producers ship about $100 billion worth of goods abroad annually.
Carney described the country as an agricultural superpower, but said that strength is not reflected in the prices Canadians see at grocery stores.
Grocery prices have climbed sharply
According to the prime minister, food prices have risen by nearly 35% since 2019.
The average Canadian household now spends approximately $10,000 a year on groceries, equivalent to more than $800 per month.
Carney said several factors are driving those costs, including Canada’s reliance on foreign processing and imported fresh products.
Processing remains a weak point
Although Canadian farms produce large volumes of food, much of it is sent abroad for processing before returning to the domestic market.
This arrangement can add transportation, manufacturing and distribution costs while leaving Canada dependent on foreign facilities for essential products.
Faster approval of agricultural products
The strategy also calls for quicker approvals of seeds, animal feed, fertilizers and veterinary products.
Ottawa plans to reduce regulatory backlogs that can delay the introduction of new technologies and prevent farmers from accessing tools already available in other countries.
Technology as part of the solution
The government wants Canada to use new agricultural technologies to grow foods that cannot currently be produced at scale throughout the year.
Greenhouses, hydroponics and controlled indoor farming could help expand domestic supply while reducing exposure to climate conditions and seasonal limitations.
Rural and northern communities remain a priority
The strategy places particular emphasis on areas where transportation costs and limited retail competition make fresh food considerably more expensive.
Ottawa says people in rural, remote and northern communities need more reliable access to produce at reasonable prices.
A broader effort to reshape the food system
The plan goes beyond direct support for farmers. It attempts to address weaknesses across the entire supply chain, from production and processing to transportation, wholesale distribution and retail competition.
The government’s goal is to keep more food production and economic value inside Canada while creating a system that offers consumers greater choice and more stable prices.
