Federal government pledges $3 billion to make food cheaper

Prime Minister Mark Carney announced Thursday a new $3-billion National Food Security Strategy designed to tackle rising food costs and reduce Canada's reliance on imported groceries.

The 10-year plan aims to "break open the market" for independent retailers, boost food production at home, and build a more self-sufficient food system. According to Dalhousie Agri-food Analytics Lab, food prices will rise four to six per cent in 2026, with an average family of four spending up to $17,571.79 next year — a nearly $1,000 increase compared to 2025.

Carney said Canada produces world-class food but too much is processed elsewhere and too many Canadians rely on imported food at higher prices. "Canadian farmers deserve more options to sell their produce, and Canadians deserve more options for where to buy their food," he stated.

The strategy focuses on several areas. Five companies — Loblaw, Metro, Empire (Sobeys), Walmart, and Costco — currently control 75 per cent of grocery sales. The government will expand food terminals and hubs so independent grocers can buy at lower prices without relying on large chains and crack down on unfair business practices.

Food businesses will get support to expand processing capacity. Small companies will have access to funds for equipment upgrades. The government will also invest in greenhouses, vertical farms, and other enclosed growing spaces to extend the short Canadian growing season and produce fruits and vegetables year-round.

The strategy includes modernizing rules to speed approvals for seeds, feed, fertilizers, and veterinary products while easing backlogs for farmers.

The Canada Groceries and Essentials Benefit will provide direct support to millions of Canadians, with a family of four receiving $1,890 this year and about $1,400 annually over the next four years.