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Federal food security plan backs independent grocers

$3 billion strategy aims to boost competition, local produce, affordability. Food hubs, terminals reduce middleman markup.

· 2 min read · HOC Newsroom
Federal food security plan backs independent grocers
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Independent grocers are welcoming the federal government's national food security strategy, which directs over $3 billion in investments over 10 years to boost competition and lower consumer prices.

The strategy includes $1 billion for infrastructure—food terminals and hubs—designed to help small retailers compete with large chains by buying directly from farmers and food processors instead of through middlemen like Sobeys and Loblaw.

Giancarlo Trimarchi, president of family-owned Vince's Market in southern Ontario, explained the current bottleneck: manufacturers rarely sell grocery essentials directly to smaller players, forcing them to buy from wholesalers at a markup. That markup gets passed to consumers. The government's plan to expand food hubs and terminals could cut out these intermediaries, making prices more competitive while improving product quality.

Gary Sands, a senior vice-president at the Canadian Federation of Independent Grocers, said having more food terminals improves accessibility for rural and remote independent grocers, who often face higher shipping costs and pay more for food compared with urban communities. "The announcement is a move in the right direction," Sands said, "and will help independent grocers compete."

The strategy also prioritizes growing local produce year-round, addressing food affordability across Canada. While major retailers dominate urban markets, independent grocers often serve neighborhood and rural communities—infrastructure investment directly benefits both those retailers and their customers.