Small grocers embrace Ottawa’s national food security strategy

Independent grocers and industry stakeholders are welcoming the federal government’s national food security strategy, aimed at boosting competition among grocers, growing local produce year-round and improving consumer affordability.

Ottawa says the strategy is backed by more than $3 billion in investments over 10 years. That includes $1 billion for infrastructure — including food terminals and hubs — to help independent grocers compete with large retailers by making it easier for them to buy from farmers and food processors.

Giancarlo Trimarchi, president of family-owned grocery chain Vince’s Market in southern Ontario, says manufacturers don’t often sell grocery essentials directly to smaller players like him. That means he has to buy items like milk and eggs from wholesalers, such as Sobeys and Loblaw, which come with a price markup.

“Independents and small grocers have lost the ability to buy direct from the producers,” he said. “We have to go through a middle person.”

That means paying 18 to 20 per cent more for the in-between costs, he said in an interview on Friday.

Trimarchi said more food hubs and terminals could remove middlemen, making prices more competitive while improving quality.

“We see that as definitely bringing more players together, dropping the cost of the supply chain, which should lower costs,” he said. That, in turn, could lower prices for consumers and make independent grocers more competitive.

The plan published by the federal government on Thursday acknowledged many independent grocers have to rely on major chains — also their competitors — for both supply and distribution.

It also said weaknesses in Canada’s food distribution systems — limited retail grocery competition, a lack of wholesale market alternatives, fewer regional distributors and gaps in refrigerated storage and transportation — have raised costs for consumers while increasing spoilage.

Ottawa proposed building more food terminals, similar to the Ontario Food Terminal in Etobicoke, Ont., which could offer independent grocers an alternative to a supply chain dominated by a handful of large-scale companies. The food terminal is the only such large-scale wholesale produce facility in Canada.

Where full-scale terminals won’t be viable, food hubs would bridge the gap and serve as a distribution link, consolidating local supply and lowering shipping costs, the plan promised.

Food hubs are especially important in rural and remote areas, including northern and Arctic communities, in reducing long distances and high transportation costs, it added. The funding is expected to support 20 to 40 hubs.

Gary Sands, a senior vice-president at the Canadian Federation of Independent Grocers, said having more food terminals can improve accessibility for rural and remote independent grocers, who often face higher shipping costs and pay more for food compared with urban communities, while limiting access to fresh fruits and vegetables. The federation represents more than 6,900 independent grocers across the country.

“The cost of transporting produce and other products to those communities always has been higher than in other urban areas of the country,” Sands said in an interview.

Tariffs and higher gas prices have also increased the cost of shipping food to rural and northern communities over the past 18 months, he said. “That’s a big concern.”

He said the investment comes as trust in the north-south supply chain has weakened and more retailers look outside of the United States to diversify their supply chain.

“We would prefer that we strengthen our east-west supply chain within Canada and build up our own infrastructure,” Sands said.

Sands said the locations of hubs and terminals haven’t been decided yet.

Empire Co. Ltd. supported the government initiative on food security.

“We are especially pleased to see (the) government’s investment in local growers, food innovation and domestic food processing,” said Empire spokesperson Karen White-Boswell in an emailed response on Friday.

Metro Inc. declined to comment on the initiative, while Loblaw Cos. Ltd. directed the request for comment to the Retail Council of Canada.

Supporting greenhouses and growing produce year-round is also part of the strategy. Ottawa has earmarked $750 million for greenhouses and hydroponics to expand year-round Canadian production of fruits and vegetables, including in rural and northern communities.

Erik Nielsen, director of government relations at Fruit and Vegetable Growers of Canada, said the strategy recognizes that food security depends on strong domestic production.

“For growers, the key will be whether it leads to practical action on production pressures, including rising input costs, labour availability, extreme weather, pests and disease, crop inputs and regulatory decisions that reflect the realities of growing food in Canada,” he said in an emailed response.

Nielsen said the announcement is a first step and that the association would judge the strategy by its execution and whether it delivers what it promises.

“More work is needed to ensure a food lens is embedded across federal decision-making,” he said.

This report by The Canadian Press was first published June 12, 2026.

Ritika Dubey, The Canadian Press