Federal food strategy backs independent grocers with $1B infrastructure

Independent grocers are welcoming the federal government's national food security strategy, which aims to boost competition among retailers, grow local produce year-round, and improve consumer affordability.

The strategy is backed by more than $3 billion in investments over 10 years. A key component is $1 billion for infrastructure—including food terminals and hubs—to help independent grocers compete with large retailers by making it easier to buy directly from farmers and food processors.

Giancarlo Trimarchi, president of family-owned Vince's Market in southern Ontario, explained the current problem: manufacturers typically don't sell essentials directly to smaller players like him. Instead, he must buy items like milk and eggs from wholesalers such as Sobeys and Loblaw, which add markups to their prices. The government's plan to expand food hubs and terminals could allow small grocers to buy directly from manufacturers, removing middlemen and improving price competitiveness while boosting quality.

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