TORONTO — Prime Minister Mark Carney announced a new $3.2 billion national food security strategy Thursday, committing federal funding over the next decade to increase domestic food production, strengthen supply chains and improve affordability for Canadian consumers.

Speaking at the Ontario Food Terminal in Toronto, Carney said the strategy is designed to address long-term challenges in Canada's food system, including dependence on imports, rising grocery costs and limited competition among major retailers.

The plan includes $1 billion over 10 years for food infrastructure through a new Food Link Fund. The funding will support wholesale food terminals and regional food hubs that supply independent grocers, restaurants, hospitals and consumers with fresh produce.

Federal officials said the strategy sets several infrastructure targets, including an expansion of the Ontario Food Terminal by the end of 2026, the creation of two new food terminals and the establishment or expansion of 10 smaller food hubs by the end of 2028.

The announcement follows the federal government's rollout of grocery rebates for low- and middle-income Canadians, which are intended to provide short-term relief from high food prices. The new strategy focuses on longer-term measures aimed at improving food availability and reducing vulnerabilities within the supply chain.

Canada imports a significant share of its food supply, including 88 per cent of fresh fruits and nuts and 72 per cent of vegetables. Approximately half of all food imports originate in the United States.

Carney has previously linked food security to broader national resilience objectives.

“A country that can't feed itself, fuel itself or defend itself has few options,” he said earlier this year during remarks at the World Economic Forum in Davos, Switzerland.

The strategy also includes measures aimed at increasing competition within the grocery sector. According to federal figures, five major retailers — Loblaw, Metro, Empire (Sobeys), Walmart and Costco — account for roughly 75 per cent of Canada's grocery market.

To strengthen oversight, the government will increase annual funding for the Competition Bureau and Competition Tribunal by $12.9 million. Officials said the additional resources are intended to improve enforcement and monitoring across food retail supply chains.

The strategy provides further support for food processing businesses through programs administered by Farm Credit Canada. Small- and medium-sized processors will be eligible for assistance to modernize operations and increase productivity.

Another major component of the plan allocates $700 million over seven years for greenhouse and indoor food production projects. The funding is intended to help producers adopt new technologies and reduce energy and operating costs. Of that amount, $100 million will be directed toward rural and northern communities.

Federal officials said the investment is expected to increase year-round access to fruits and vegetables while reducing the impact of global supply disruptions on prices.

The strategy also includes measures aimed at improving the resilience of Canada's agricultural sector to climate-related challenges.

While the government has outlined spending commitments and infrastructure goals, officials acknowledged the strategy does not establish a specific target for grocery prices or define what constitutes affordable food.

The federal government said additional details on program implementation and funding allocations will be released in the coming months.

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