Liberals to unveil $1B fund to help ease costs for independent grocers

One senior source said the strategy is a comprehensive plan to address short, medium and long-term pressures on food costs in the country. The Liberal campaign platform promised such a plan, and the government’s spring economic update pledged to flesh out measures beyond last week’s increased GST/HST credit, the so-called “groceries and essentials benefit.” The spring update said the food security strategy would “strengthen domestic food production and improve access to affordable, nutritious food.”

A second source, whom the Star also agreed not to identify, to discuss details not yet public, said the $1 billion Carney is announcing is new money, and was not specified in the spring economic update. It will be used to address “gaps in food distribution systems,” namely tough retail competition, a lack of wholesale markets, and the need to expand options for refrigerated storage and transportation. The goal is to help independent grocers compete with the big retailers, and increased competition amongst grocers “will lower prices for Canadians,” the source said. 

It could be spent to expand existing terminals like the Ontario Food Terminal or to establish similar terminals in regions that lack such public infrastructure, including in areas with a growing urban population, the second source said.

The spring update already set aside $500 million from the Strategic Response Fund to help businesses address the costs of supply chain disruptions and pledged the creation of a $150 million Food Security Fund under the existing Regional Tariff Response Initiative for small- and medium-sized enterprises.

The first official linked it to steps the Carney government has already taken, such as last week’s newly increased groceries and essential benefits that Carney touted last week. The benefit payment to lower-income families is to increase by 25 per cent for five years as of July 2026. A one-time top-up payment equivalent to a 50 per cent increase in the 2025-26 annual value of the GST credit was distributed last week.

Carney has repeatedly said in speeches that a nation that cannot feed, fuel or defend itself “has few options” in a world where old alliances have ruptured.

The Liberal campaign platform said explicitly that a food security strategy was about facing the challenge posed by U.S. President Donald Trump’s tariff threats to the Canadian economy: “Food security is about more than just ensuring there is enough food on our plates, it’s also about protecting Canada’s economic sovereignty,” it read.

“When Canadians are worried about inflation and their financial security, it’s important that we make sure food prices are in reach for all,” said the platform document. “It’s about every family across Canada, including in the North, having confidence that they have access to fresh, nutritious, and affordable food. And making sure that, while America attempts to weaken our economy, Canadians can know that they are supporting our farmers, fishers, and food producers.”

The platform promised a suite of measures to protect Canadian farming, agri-food and seafood sectors, including:

• New spending on greenhouses, hydroponics, and other controlled environment agriculture to “allow us to grow more types of food here at home.”
• A directive to the Canadian Food Inspection Agency and the Pest Management Regulatory Agency to consider food security and the cost of food in regulatory decisions, without compromising on health and safety.
• A directive to the Canada Infrastructure Bank to prioritize investments in agriculture, fisheries, agri-food, and the food supply chain
• Measures to help Canadian farmers “get their goods to market at low cost, particularly in Alberta, Manitoba, and Saskatchewan with the extension of a railway pilot project, along with a promise to explore “all options to exclude non-Canadian railways from being included in this project.”