Federal strategy aims to boost Canadian food production and reduce dependence on imports
As Canadians continue to grapple with high grocery prices and affordability pressures, the federal government has announced a sweeping $3.2-billion food security strategy designed to strengthen domestic food production, increase competition in the grocery sector and reduce reliance on imported food products.
The multi-year initiative, titled More Choice. More Control. More Canada., was unveiled Thursday in Toronto by Prime Minister Mark Carney. Ottawa says the plan is intended to improve long-term food affordability while making Canada’s supply chain more resilient to global disruptions.
“A country that can’t feed itself or fuel itself or defend itself isn’t truly sovereign,” Carney said during the announcement. “To protect our sovereignty and truly take control of our future, we have to take control of our food system.”
New food hubs and support for independent grocers
A major component of the strategy is the creation of a new Food-Link Fund, which will receive $1 billion over the next decade.
The funding will be used to expand the Ontario Food Terminal — one of the country’s largest wholesale produce distribution centres — and establish regional food hubs across Canada. The government says these hubs will help independent grocery stores, farmers and smaller suppliers access distribution networks outside the country’s dominant grocery chains.
Federal officials argue Canada’s grocery market remains highly concentrated, with the so-called “Big Five” retailers controlling roughly 75 per cent of national grocery sales.
“We are trying to inject some competition and provide alternatives,” a government official said during a technical briefing with reporters.
The hubs are also expected to help restaurants, institutions and community food programs source locally grown products more efficiently.
Rising food inflation driving political pressure
The strategy comes amid persistent concerns over food affordability. According to Ottawa, grocery prices in Canada have climbed 31 per cent since 2020, placing growing pressure on households already dealing with high housing and transportation costs.
The federal government says many of the increases were driven by international factors, including supply chain disruptions, the war in Ukraine and instability in the Middle East, all of which pushed up fuel and fertilizer prices.
Still, opposition parties have accused the Liberals of worsening inflation through government spending and taxation policies.
Conservative deputy leader Melissa Lantsman criticized the plan in a social media post shared by Conservative Leader Pierre Poilievre, arguing that carbon pricing and federal spending contributed to higher food costs.
“It’s time to reverse the spending and taxes that drove food prices up and paycheques down so Canadians can afford to eat,” she said.
Statistics Canada recently reported that food inflation slowed to 3.5 per cent in April, though Canada remained among the highest in the G7 behind the United Kingdom.
Ottawa targets more Canadian-grown food
The federal government says the strategy will focus heavily on expanding domestic food production.
Ottawa has set a goal of increasing the share of healthy food produced in Canada from 75 per cent to 85 per cent by 2032.
“We are an agricultural superpower,” Carney said. “Yet for most Canadians it doesn’t feel like that at the checkout counter.”
A significant portion of the funding — $750 million over seven years — will support controlled-environment agriculture, including greenhouses and vertical farms capable of producing food year-round.
The government hopes this investment will reduce Canada’s reliance on imported fruits and vegetables, particularly during winter months. Officials say Canada currently imports 88 per cent of its fresh fruit and 72 per cent of its vegetables.
Products such as lettuce, strawberries and greenhouse vegetables are expected to be key targets for expanded domestic production.
More investment in food processing
The strategy also aims to address a long-standing imbalance in Canada’s agri-food sector, where raw agricultural products are often exported and later re-imported as processed foods.
To encourage more domestic food processing, Ottawa will provide $1 billion through Farm Credit Canada for large-scale processing projects.
Government officials pointed to the tomato industry as an example: Canada exported hundreds of millions of dollars worth of fresh tomatoes in 2025 while still importing large amounts of processed tomato products.
The strategy document states the goal is to ensure more food sold on Canadian shelves is grown and processed domestically.
Competition reforms and support for livestock producers
Ottawa is also increasing funding for the Competition Bureau by $12.9 million annually to strengthen investigations into anti-competitive practices in the grocery sector.
The government says the bureau will focus in part on “property controls,” where large grocery chains use lease agreements to block competitors from opening nearby stores.
The strategy includes temporary exemptions allowing fresh meat processed in provincial abattoirs to be sold across provincial borders in areas facing slaughterhouse shortages. Officials say the measure could lower transportation costs and improve access to locally sourced meat products.
Measures aimed at helping farmers
Several initiatives in the strategy are designed to support Canadian farmers directly and encourage younger producers to enter the sector.
The measures include:
Higher tax exemptions for farm transfers
The Lifetime Capital Gains Exemption for farm succession planning will increase to $1.25 million.
Expanded financing for young farmers
Ottawa plans to double guaranteed loan limits and extend repayment periods to make farming more accessible for younger Canadians entering agriculture.
Continued interest-free support
The government will maintain the interest-free limit on the Advance Payment Program at $250,000 for the 2026 program year.
Regulatory reforms are also planned to speed up approvals for seeds, fertilizers and veterinary biologics.
The proposed changes would require regulators to consider food affordability and national food security when making decisions under the Canadian Food Inspection Agency Act and the Pest Control Products Act, provided health and safety standards remain protected.
The plan also includes a controversial provision that could temporarily allow certain pesticides if deemed necessary for national food or economic security.
Industry groups cautiously optimistic
The Canadian Federation of Agriculture welcomed several parts of the strategy but said implementation will be critical.
“We’re seeing some really positive developments in this strategy, but success will depend on how it is implemented,” federation president Keith Currie said in a statement.
The organization said ongoing concerns around labour shortages and rising production costs must still be addressed if the strategy is to improve affordability and strengthen Canada’s food supply system over the long term.
Conclusion
Ottawa’s food security strategy represents one of the federal government’s largest recent investments in Canada’s agri-food sector. While the plan aims to reduce grocery costs and strengthen domestic supply chains, its long-term success will likely depend on how quickly projects are implemented and whether Canadians ultimately see lower prices at the checkout counter.
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