With grocery bills continuing to climb across the country, Prime Minister Mark Carney has announced a major new initiative aimed at helping Canadians put food on the table at a lower cost.
On Thursday, Carney introduced Canada’s first-ever National Food Security Strategy, a 10-year plan backed by a $3 billion federal investment. The strategy is designed to strengthen Canada’s food supply chain, increase competition in the grocery sector, support local food production, and reduce the country’s dependence on imported goods.
The announcement comes as food prices are expected to keep rising. According to the Dalhousie Agri-Food Analytics Lab, grocery costs could increase by four to six per cent in 2026, pushing the average annual food bill for a family of four to as much as $17,571. That’s nearly $1,000 more than what families are expected to spend in 2025.
Carney said several factors are contributing to higher food prices, including global conflicts, climate-related challenges, trade tariffs, and Canada’s reliance on foreign food suppliers.
“Canada is one of the world’s great food producers,” Carney said. “But too much of what we grow is processed elsewhere, and too many Canadians still rely on imported food at higher prices.”
So, what exactly does the government’s plan involve?
More Competition in the Grocery Industry
One of the biggest goals of the strategy is to increase competition in Canada’s grocery market.
Currently, five major companies — Loblaw, Metro, Empire (Sobeys), Walmart, and Costco — account for roughly 75 per cent of grocery sales across the country.
The government plans to invest in food terminals, distribution hubs, and supply networks that will help independent grocery stores access products at lower costs without relying heavily on large retail chains. The hope is that more competition will lead to better prices and more choice for consumers.
The government also says it will strengthen efforts to address unfair business practices within the grocery sector.
The move comes as more Canadians are showing interest in supporting local businesses. A recent Dalhousie University report found that nearly 44 per cent of Canadians regularly purchase locally produced food, while trust in independent grocers continues to grow.
Supporting Canadian Food Production
Another major pillar of the strategy focuses on producing and processing more food within Canada.
Food manufacturers and processors will receive support to expand their operations, while smaller businesses will be able to access funding to upgrade equipment and increase production capacity.
The goal is to keep more of Canada’s food supply chain at home, creating jobs while reducing reliance on imports.
Canada’s short growing season can make it difficult to consistently produce fresh fruits and vegetables domestically.
Growing Food All Year Long
To address this challenge, the government plans to invest in greenhouses, vertical farms, and other controlled-environment growing systems that allow crops to be produced year-round.
Officials say this could improve food security while helping stabilize prices over time.
Cutting Red Tape for Farmers and Producers
The strategy also includes measures aimed at simplifying regulations across the agricultural sector.
The government wants to speed up approvals for seeds, fertilizers, animal feed, and veterinary products while reducing administrative delays that can slow down food production.
In addition, businesses that already meet provincial standards could face fewer hurdles when trying to obtain federal approvals, making it easier to sell products across Canada.
Financial Support for Canadians
Alongside the food security strategy, the federal government highlighted the Canada Groceries and Essentials Benefit, which is intended to provide direct financial support to households struggling with rising living costs.
Under the program, a family of four could receive up to $1,890 in 2026, followed by approximately $1,400 annually over the next four years. Single Canadians could receive up to $950 this year, with roughly $700 per year available over the following four years.
With food prices expected to continue rising, the federal government is betting that a stronger domestic food system can help ease pressure on Canadian households in the years ahead.
By increasing competition, supporting local producers, investing in year-round food production, and streamlining regulations, Ottawa hopes to create a food system that is more affordable, more resilient, and less dependent on foreign suppliers.
Whether the strategy succeeds in lowering grocery bills remains to be seen, but for many Canadians feeling the pinch at the checkout line, it’s a plan that could have a significant impact in the years ahead.
Harnaik Singh Rathor is the Founder, Publisher, and Editor-in-Chief of StudioX News Canada, Canada's multilingual digital news network serving diaspora communities across 44 languages. With a background in media production, public relations, and multicultural communications, he founded StudioX Film and TV Corporation to bridge the gap between mainstream Canadian media and the country's diverse immigrant communities. He is a member of the Canadian Association of Journalists (CAJ), RTDNA Canada, CPRS Vancouver, Unifor, NEPMCC, and the Canada Freelance Union. Based in Surrey, British Columbia. | LinkedIn: https://www.linkedin.com/in/harnaiksinghrathor/ | Muck Rack: https://muckrack.com/harnaiksinghrathor | Email: editor@studioxnews.ca
