Key Takeaways
- Canada is working to increase domestic food production and make its food system more resilient.
- The government is supporting greenhouse expansion and year-round fruit and vegetable production to reduce import dependence.
- Canada is also pursuing broader trade diversification as uncertainty affects its relationship with the United States.
Canada Wants More Food Produced at Home
The federal government's National Food Security Strategy sets a clear goal of increasing the share of healthy food available to Canadians that is produced domestically.
The government wants that share to rise from 75% to 85% by 2032.
The strategy also aims to increase the proportion of processed food consumed in Canada that is produced domestically, from 70% to 80%.
The objective is to make Canada's food system more resilient while giving consumers more opportunities to purchase Canadian-grown and Canadian-made products.
Greenhouses Are Becoming More Important
Fresh produce is one of the areas where Canada has historically depended heavily on imports.
Agriculture and Agri-Food Canada says the United States depends on imports considerably less than Canada to meet its vegetable supply needs.
Canada is therefore looking to expand year-round production through controlled-environment agriculture.
The government has announced $750 million over seven years for a Controlled Environment Agriculture Growth Pathway.
The programme includes $650 million for technology adoption and $100 million for expanding local food production in rural and northern communities.
The funding is intended to support technologies such as automation, robotics, lighting and digital growing systems.
Canadian Greenhouse Production Is Already Growing
Canada's greenhouse vegetable sector has expanded in recent years.
In 2024, Canada had 974 commercial greenhouse vegetable operations producing about 866,484 metric tonnes of vegetables and generating $2.7 billion in sales.
Production increased by 5% compared with 2023.
Ontario accounted for 72% of Canada's greenhouse vegetable production, followed by British Columbia and Quebec.
The government says greenhouse expansion can help increase domestic supplies of fresh fruits and vegetables and reduce dependence on imports.
Trade Diversification Is Also Becoming a Priority
Food production is only one part of Canada's response to changing trade conditions.
The federal government is also encouraging agricultural businesses to expand into markets outside the United States.
Agriculture and Agri-Food Canada's 2026-27 departmental plan identifies geopolitical and trade pressures, supply-chain disruptions and changing global market conditions as risks facing the agriculture sector.
The department says it will support efforts to diversify export markets and strengthen Canada's trade relationships.
Global Affairs Canada has also reported that Canada's trade with non-U.S. markets has continued to grow.
In 2025, Canadian goods and services exports to non-U.S. markets increased 11.2%, while exports to the United States declined 3.8%.
What This Means for Canadian Grocers
For retailers, a more diversified food system could mean sourcing products from a wider range of countries while increasing the availability of Canadian products.
Fresh produce is particularly sensitive to seasonal conditions because Canada's climate limits year-round outdoor production of many crops.
That makes greenhouses, controlled-environment agriculture and reliable international suppliers important parts of the food system.
Retailers also have to balance consumer preferences with price, availability and supply reliability.
Canada Is Investing in Food Processing Too
The government's strategy extends beyond farms and greenhouses.
Canada wants to increase domestic food processing capacity so more Canadian-grown products can be processed closer to where they are produced.
The National Food Security Strategy targets an increase in the share of processed food consumed in Canada that is domestically produced from 70% to 80%.
The government says stronger domestic processing could improve supply-chain resilience, create jobs and reduce unnecessary transportation and processing costs.
Food Security Is Becoming a Bigger Economic Issue
Food security is increasingly connected to trade policy, inflation, climate risks and geopolitical uncertainty.
Agriculture and Agri-Food Canada identifies tariffs, geopolitical conflicts, climate change and supply-chain disruptions among the factors that can affect food prices and availability.
That means Canada's food strategy is not simply about producing more food.
It is also about ensuring that the country has enough production capacity, processing infrastructure and alternative trading relationships to respond when global supply chains are disrupted.
What Could Change on Grocery Shelves?
Canadian shoppers could gradually see more locally produced fruits, vegetables and processed foods throughout the year as domestic production expands.
At the same time, retailers may continue looking beyond traditional suppliers when international trade conditions change.
That does not mean Canada will stop importing food from the United States.
Instead, the government's strategy points toward a food system with stronger domestic production and a broader mix of international suppliers.
The Bigger Picture
Canada's food sector is already a major part of the economy.
Agriculture and Agri-Food Canada estimates that the country's agriculture and agri-food system generated $149.2 billion in GDP in 2024 and supported approximately 2.3 million jobs.
Strengthening the sector therefore has implications well beyond grocery stores.
It affects farmers, processors, retailers, exporters, transportation companies and consumers.
TwikUp Insight
The biggest change may not be a sudden disappearance of American products from Canadian grocery stores.
Instead, Canada's response to trade uncertainty is increasingly focused on building a more resilient food system.
More greenhouse production, stronger domestic processing and wider international trade relationships could give Canadian consumers more options while reducing the country's exposure to disruptions in any single market.