The federal government’s first-ever National Food Security Strategy includes targeted investments to strengthen wholesale produce markets, with Ottawa promising more than $3 billion over 10 years and a dedicated $1-billion Food Link Fund to support food terminals and hubs.
What the plan includes
Under the strategy, the Ontario Food Terminal (OFT) — which distributes nearly two billion pounds of fruits and vegetables annually across Canada — is slated for expansion by the end of this year. The government also says it will open two new food terminals and establish or expand 10 smaller food hubs by the end of 2028.
- Federal investment: more than $3 billion over 10 years.
- Food Link Fund: $1 billion to support terminals and food hubs.
- Infrastructure timeline: OFT expansion by year-end; two new terminals and 10 hubs by 2028.
Voices from the terminal
Operators who rely on the OFT say the wholesale marketplace is central to their businesses and to food distribution in the region. The terminal, located in Etobicoke, is the primary hub for many wholesalers and retailers across Ontario.
"It's the lifeblood of what our business does and I think the lifeblood of what a lot of businesses in the Toronto community depend on,"
That comment came from Hutch Morton, whose family’s wholesale firm — specialising in berries and packaged salads — has operated at the OFT for nearly five decades. Morton rises for work at 3 a.m. six days a week to serve the terminal.
Policy intent and immediate aims
Ottawa frames the strategy as an effort to produce more food in Canada and make it more affordable. Part of that approach is to increase choice and competition in food distribution, a goal the Food Link Fund is designed to support by financing terminal and hub projects.
For growers and wholesalers, stronger terminal capacity can mean improved market access and potentially lower costs through more efficient logistics and increased competition among buyers. The OFT’s role as a central distributing point for almost two billion pounds of produce underscores why the government is prioritising its expansion.
Possible economic effects
While the federal funding and infrastructure targets are explicit, the effect on grocery prices will depend on how the expanded capacity changes competition, supply chains and distribution efficiencies. Market participants say incremental changes at the wholesale level can compound to reduce pressure on household food costs.
| Commitment | Detail |
|---|---|
| Overall fund | More than $3 billion over 10 years |
| Food Link Fund | $1 billion for terminals and hubs |
| OFT expansion | Planned by end of this year |
| New infrastructure | Two new terminals; 10 hubs by end of 2028 |
Growers and wholesale operators are cautiously optimistic. They see government support for terminal infrastructure as a concrete step toward lowering the cost of doing business in the produce sector and, ultimately, bringing greater affordability to consumers.
But the translation of capital spending into lower retail grocery prices is not automatic. It will require that investments improve competition, reduce bottlenecks in distribution and connect more Canadian production to buyers efficiently. The federal strategy signals intent and funding; its impact will be judged by how the new and expanded facilities change wholesale dynamics on the ground over the coming years.
The plan adds a significant federal lever to food-system policy: by directing capital toward marketplaces and logistics, Ottawa is attempting to influence the upstream mechanics of grocery supply, not just downstream price supports. For businesses operating out of the OFT and similar hubs, the next phases will be about access to the new funds and the speed with which projects move from announcement to operation.
As the expansion proceeds, market participants and policymakers will be watching for evidence that the investments increase choice, spur competition and ease grocery bills for Canadian households.
