New federal food strategy aims to break up Canada's grocery monopoly

Prime Minister Mark Carney announced a $3.2-billion food security strategy Thursday targeting Canada's concentrated grocery market, where five major grocers control 75 per cent of the industry.

The strategy includes a $1-billion investment to create and expand food terminals and hubs—like Toronto's Ontario Food Terminal—to help independent grocers access competitive produce pricing. The government plans to expand the Ontario Food Terminal by year's end, and by 2028, aims to start construction on two new terminals and establish or expand 10 additional food hubs.

Gary Sands, senior vice-president of the Canadian Federation of Independent Grocers, called the measures "good news" for independent grocers and consumers. "Some of these will help with affordability and could definitely help strengthen the independent grocer's ability to compete," he said.

The Ontario Food Terminal operates like a farmers market on an industrial scale, with hundreds of fresh fruit and vegetable producers in one place. Grocers can bargain directly with producers rather than relying on one or two suppliers. "There's just more opportunities," said Christy McMullen, chair of the Ontario terminal's board. "You're in there, you're bargaining … compared to, you know, just a traditional supplier that you call up and say, 'Can I get 10 cases of cherries?' And you don't really have a choice."

Munther Zeid, owner of independent grocer Food Fare in Winnipeg, saves 15 to 20 per cent on produce by buying from the Ontario terminal rather than local wholesalers—though he still relies on Sobeys and Loblaw wholesalers for packaged goods. Additional terminals could help most with canned and dry goods, where he sees the least competition.

The strategy also dedicates $12.9 million annually to the Competition Bureau to identify and enforce against anticompetitive conduct, and includes funding for domestic food processing and Canadian greenhouse expansion.