Canada’s new government is moving to strengthen domestic food production, processing and distribution with the launch of the country’s first National Food Security Strategy.
Prime Minister Mark Carney announced the strategy Thursday, saying it is aimed at building a more resilient and affordable food system at a time when trade shifts, global conflict and climate change are putting pressure on food and energy supplies.
Backed by more than $3 billion in investments over 10 years, the plan is intended to increase grocery competition, expand Canadian food processing, support year-round fruit and vegetable production, and reduce regulatory barriers across the agricultural supply chain.
Although Canada is one of the world’s largest exporters of agri-food products, the federal government said many Canadian consumers continue to face high grocery costs, while too much of the country’s agricultural production is processed outside Canada.
A central piece of the plan is a $1-billion investment in food infrastructure, including new and expanded food terminals and hubs. The government said the funding will help independent grocers buy and move competitively priced products without relying as heavily on large retail chains.
The Competition Bureau and Competition Tribunal will also receive nearly $130 million to investigate and combat anti-competitive practices.
To expand domestic production and processing, the strategy includes a new $1-billion Agri-food Project Finance Fund through Farm Credit Canada. FCC said the fund will help finance projects that expand processing capacity, strengthen supply chains and support long-term food security.
The fund is aimed at small- and medium-sized strategic agri-food projects that may be too complex or difficult to finance through conventional lending alone. FCC said further details on eligibility, proposals, and timelines will be announced in the coming weeks.
The strategy also includes a $150-million Food Security Fund to help small and medium-sized businesses upgrade equipment, along with a $100-million Collaborative Food Innovation Fund to support expanded agri-food processing.
Another $750 million will be directed toward year-round Canadian fruit and vegetable production, including greenhouses, vertical farms and other enclosed growing systems.
The government also promised to modernize regulations, speed approvals for seeds, feed, fertilizer and veterinary products, and reduce backlogs that slow the system. It said the strategy will also help provincially licensed food businesses meet federal requirements, so products can move more easily between provinces and territories.
Agriculture Minister Heath MacDonald said the strategy is designed to give Canadians more choice and better access to affordable, locally produced food while creating new opportunities for farmers, processors and agri-food entrepreneurs.
