Canada unveils $3 billion plan to make groceries more affordable

If you’ve noticed your grocery bill climbing over the past few years, Ottawa says help could be on the way.

The federal government has unveiled Canada’s first-ever National Food Security Strategy, a plan backed by more than $3 billion in investments over the next decade aimed at making food more affordable, increasing competition in the grocery sector and growing more food here at home.

The announcement comes as many Canadians continue to feel the pinch at the checkout line, with food prices remaining a major concern for households across the country.

“Canada is one of the world’s great food producers. But too much of what we grow is processed elsewhere and too many Canadians still rely on imported food at higher prices,” Prime Minister Mark Carney said in a statement announcing the plan.

While Canada is considered one of the world’s largest food exporters, we still import a surprising amount of the food found in grocery stores—especially fruits, vegetables and many processed products.

The federal government says strengthening Canada’s domestic food system will help protect consumers from global supply chain disruptions while creating jobs and economic opportunities at home.

The strategy focuses on four key areas:

• Increasing grocery competition
• Expanding domestic food production
• Growing more fruits and vegetables year-round
• Reducing regulatory barriers for farmers and food businesses

One of the biggest commitments is a new $1 billion Food-Link Fund, which will help build and expand food terminals and regional food hubs across the country.

According to the government, these facilities will help independent grocers access competitively priced products without relying on supply chains controlled by major grocery retailers.

The plan also includes nearly $130 million in additional funding for the Competition Bureau and Competition Tribunal to investigate anti-competitive practices and strengthen enforcement.

According to the strategy document, five major grocery chains account for roughly 75% of grocery sales in Canada.

To increase food production and processing capacity, Ottawa is also creating a new $1 billion Agri-food Project Finance Fund through Farm Credit Canada.

The fund will help finance large-scale projects designed to process more Canadian-grown food domestically, rather than shipping products elsewhere for processing.

The government says increasing domestic processing capacity will reduce Canada’s dependence on foreign processors while keeping more jobs and economic activity in Canada.

Another major component of the strategy is a $750 million investment in controlled-environment agriculture, including greenhouses, vertical farms and other indoor growing operations.

According to the federal government, Canadians currently rely on imports for 88% of the fresh fruit and nuts they consume and 72% of vegetables, with a significant amount coming from the United States.

Officials hope the investment will increase year-round production of fresh produce while helping reduce labour and energy costs for growers.

The strategy sets a goal of doubling the value of controlled-environment agriculture production sold to the Canadian market by 2032 while reducing Canada’s reliance on imported crops that can be grown domestically.

The final part of the plan focuses on reducing red tape that the government says increases costs and slows innovation.

Ottawa says it will modernize regulations, speed up approvals for seeds, fertilizers, feed and veterinary products and work to reduce administrative burdens across the agricultural supply chain. It also plans to make it easier for food products made in one province or territory to be sold across Canada.

The strategy includes measures to help younger farmers enter the industry and make it easier for farms to be passed down to the next generation.

The federal government says the long-term goal is to make food more affordable while increasing Canada’s food self-sufficiency.

Among its targets, Ottawa aims to increase the share of healthy food available to Canadians that is produced domestically from 75% to 85% by 2032. 

The government also wants to increase the share of processed food consumed in Canada that is made domestically from 70% to 80%.

Whether Canadians ultimately see lower grocery prices remains to be seen, but Ottawa says the goal is simple as grow more food in Canada, process more food in Canada and give shoppers more affordable options at the grocery store.