Federal food strategy aims to lower prices, support local farmers

The federal government rolled out a $1.75 billion food strategy Thursday aimed at giving Canadians cheaper access to locally grown fruit, vegetables and other fresh items while supporting farmers and small food processors.

The plan attacks the centralized supply chain that currently favours large retailers. It includes $1 billion for infrastructure — food terminals and hubs — to help independent grocers buy directly from farmers and processors, cutting out middlemen and reducing costs.

Another $750 million goes toward greenhouses and hydroponics to expand year-round Canadian production, including in rural and northern communities where fresh food access is limited. The government is also streamlining approvals for seeds, feed, fertilizers and veterinary products to speed up a system that currently backs up agricultural operations.

The strategy includes support for small- and medium-sized food processors to modernize equipment and boost productivity so they can compete globally and attract major manufacturer investment.

The initiative marks a direct response to inflation pressures on grocery bills and supply-chain vulnerabilities exposed during the pandemic. It's part of the government's broader bid to strengthen domestic industries amid trade tensions with the United States.

Officials framed the strategy as a way to "change the way food is bought, sold, transported and distributed in Canada" to benefit consumers, farmers and independent retailers simultaneously — though savings at the checkout may take time to materialize as infrastructure builds out.