Ottawa, Ont. (Rural Roots Canada) – Prime Minister Mark Carney has launched Canada’s first National Food Security Strategy, a federal plan backed by more than $3 billion over 10 years, aimed at strengthening domestic food production, increasing competition in the grocery sector, and reducing regulatory barriers across the agricultural supply chain.
The strategy comes as the federal government cites growing pressures on food and energy systems from trade and tariff concerns, global conflicts, and climate change.
The strategy outlines four main objectives: increasing grocery competition, boosting domestic food production, expanding year-round fruit and vegetable production, and reducing regulatory barriers affecting farmers and food businesses.
Canada is one of the world’s largest exporters of agri-food products, yet Canadians continue to face some of the highest grocery costs among G7 countries. The government says grocery retail competition remains limited, technology adoption in the agri-food sector needs improvement, and food supply chains rely too heavily on foreign suppliers.
To increase competition in the grocery sector, the government will invest $1 billion in food infrastructure to support the construction and expansion of food terminals and hubs. The funding is intended to help independent grocers access competitively priced products without relying on major retail chains.
The federal government will also provide nearly $130 million to the Competition Bureau and Competition Tribunal to investigate and address anti-competitive business practices.
A significant portion of the strategy focuses on expanding Canada’s food production and processing capacity.
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The government will establish a $1-billion Agri-food Project Finance Fund through Farm Credit Canada to provide seed capital financing for businesses seeking to expand food processing capacity.
An additional $150 million Food Security Fund will help small and medium-sized businesses upgrade equipment used to grow, produce and process food in Canada.
The strategy also includes a $100-million Collaborative Food Innovation Fund designed to help producers expand agri-food processing.
To increase domestic fruit and vegetable production, the government will invest $750 million in greenhouses, vertical farms and other enclosed growing facilities to support year-round production.
The government also plans to modernize regulations affecting agriculture and food production by accelerating approvals for seeds, feed, fertilizers and veterinary products and reducing regulatory backlogs.
Federal officials say they will also work to help provincially licensed food businesses meet federal requirements, making it easier for products produced in one province or territory to be sold in another.
In a statement, Carney said Canada produces significant amounts of food but continues to process too much of it outside the country.
“Canada is one of the world’s great food producers. But too much of what we grow is processed elsewhere, and too many Canadians still rely on imported food at higher prices, he said. “Canadian farmers deserve more options to sell their produce, and Canadians deserve more options for where to buy their food.”
Agriculture and Agri-Food Minister Heath MacDonald said the strategy is intended to increase access to affordable, locally produced food while creating new opportunities for farmers, food processors and agri-food businesses.
“Through this made-in-Canada approach, we will process more of what our farmers grow here at home, creating jobs, driving economic growth, and strengthening Canada’s food self-sufficiency,” MacDonald added.
The strategy builds on existing federal affordability measures, including the National School Food Program, the Canada Groceries and Essentials Benefit and the cancellation of the federal consumer carbon price.
The government also announced related commitments to support food security and domestic production, including $20 million for food banks and community food organizations through the Local Food Infrastructure Fund’s Community Support Stream.
Additional measures include immediate expensing for new or expanded greenhouse construction, a two-stage call for proposals through the Strategic Response Fund beginning in June 2026, renewed Fisheries Funds in partnership with provinces and territories, and reforms to the Nutrition North Canada program aimed at improving food access and affordability in northern communities.
