Hutch Morton rises at 3 a.m. six days a week to transport his family’s wholesale business to the Ontario Food Terminal (OFT) in Etobicoke. Established almost 50 years ago by his father-in-law, the business focuses on berries and packaged salads and has always operated from the food terminal. Morton emphasized the critical role of the terminal not only for his business but for many others in the Toronto community.
Food terminals act as wholesale marketplaces for selling and purchasing fresh produce in large quantities. The OFT alone distributes nearly two billion pounds of fruits and vegetables annually throughout Canada. Recently, the federal government introduced Canada’s inaugural National Food Security Strategy, committing over $3 billion across a decade to enhance food production in Canada and increase affordability.
Under this strategy, $1 billion will be invested in expanding choices and fostering competition, with the creation of the Food Link Fund to support food terminals and hubs. Plans include expanding the OFT by year-end, opening two new food terminals, and establishing or expanding ten smaller food hubs by 2028.
Ontario growers are optimistic about the potential of the new food security strategy in reducing grocery prices. Morton highlighted the benefits of connecting growers with consumers through the terminal, emphasizing the importance of supporting local food consumption. Raymond Den Boer, a vegetable grower, expressed the positive impact an expansion would have on his business, ensuring fresher produce and a more favorable environment for customers.
Vicky Lee from Little Harvest Market shared how the store relies on the wide selection of produce available at the OFT to offer locally sourced goods without depending on competitors’ supply chains. She anticipates that expanding the terminal will bring in more suppliers, leading to greater variety and better prices for consumers.
Sylvain Charlebois, director of Dalhousie University’s Agri-Food Analytics Lab, noted that while the national food strategy may stabilize prices and reduce volatility, the expectation of significant price drops is unlikely due to food inflation. However, he emphasized the importance of food hubs and terminals in enhancing market access and fostering competition, which can lead to more stable prices and increased efficiency in the supply chain.
Charlebois also highlighted the need for better alignment between food production and consumer demand, pointing out the decline in food manufacturing in Canada and the necessity of strategies to boost production.