Prime Minister Mark Carney has unveiled a new government multibillion-dollar plan to tackle the rising cost of food in Canada.
On Thursday, Carney said the federal government is rolling out its first-ever National Food Security Strategy, a 10-year plan backed by a $3-billion investment. The goal is to “break open the market” for independent retailers, boost food production in Canada, and build a more self-sufficient and affordable food system.
According to a report by Dalhousie Agri-food Analytics Lab, food prices will go up by four to six per cent in 2026, with an average family of four spending up to $17,571.79 next year in groceries, a nearly $1,000 increase compared to 2025.
The reasons behind these increases include global conflict, climate change, the impacts of tariffs, and an over-reliance on foreign suppliers.
“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 stated. “Canadian farmers deserve more options to sell their produce, and Canadians deserve more options for where to buy their food.”
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Here’s what the government plans to do to make food more affordable for Canadians.
Increase competition
Five companies dominate Canada’s grocery scene, with Loblaw, Metro, Empire (Sobeys), Walmart, and Costco making up 75 per cent of sales. The new government strategy would create more choices for Canadians as it improves and expands food terminals and hubs so independent grocers can buy at lower prices without relying on large retail chains.
A recent report by Dalhousie University shows that more Canadians are worried about rising food costs, but trust is improving, particularly for independent grocers. More people are choosing to shop local, with nearly 44 per cent saying they regularly buy local foods.
The government will also boost efforts to crack down on unfair business practices.
Boost domestic food production
Food businesses will get support to expand their processing capacity. Small companies will also have access to funds to upgrade equipment to expand the scope of food production in Canada.
Grow produce year-round
The food industry in Canada is limited by a short growing season, and the government wants to address that by investing in greenhouses, vertical farms, and other enclosed growing spaces so fruits and vegetables can grow year-round.
Cut the red tape across the agricultural supply chain
By modernizing existing rules, the government wants to speed up approvals for things like seeds, feed, fertilizers, and veterinary products, while also easing backlogs for farmers and producers. For businesses with provincial licenses, it also plans to simplify the process to meet federal requirements so their products can reach shelves across Canada.
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“Canada’s first-ever National Food Security Strategy will help grow and process more food here and put more Canada on Canadian plates — lowering costs, creating jobs, and building a food system that is more resilient, more competitive, and more our own,” stated Carney.
In addition, the Canada Groceries and Essentials Benefit will provide support to millions of Canadians, with a family of four receiving $1,890 this year (and about $1,400 annually over the next four years), and up to $950 this year (and about $700 a year for the next four years).