Carney unveils $1B fund to help independent grocers compete with big box stores

The Liberal government has announced a national food security strategy aimed at giving Canadians greater access to locally produced fruit, vegetables and other fresh items at lower prices.

That includes a $1 billion fund for infrastructure, including food terminal hubs, to help independent grocers compete with large retailers.

The plan also includes $750 million for greenhouses and hydroponics to grow more fruits and vegetables in the country year-round, and plans to remove expensive regulatory barriers.

WATCH MORE: Average monthly food spending up 4.6% as grocery inflation persists in Canada: report

Director of the Agri-Food Analytics Lab at Dalhousie University, Sylvain Charlebois, applauds the move to help out independent grocers, but questions if it will actually result in lower food prices for Canadians.

“Governments have a track record of not doing that,” said Charlebois. “They tend to subsidize food distribution really without having much of an impact market-wise. Nutrition North is a good example of that. Up north, we have spent billions of dollars in food distribution, but prices have remained quite high, so the devil is in the details for independent grocers, for sure.”

Thursday’s announcement also comes just after Carney’s government rolled out the updated Canada Groceries and Essentials Benefit to help low-income Canadians with the cost of living.

READ MORE: 12M Canadians to get one-time Grocery and Essentials Benefit