New $1B fund targets food distribution and market access across Canada

Getting food from the farm gate to the end buyer isn’t always straightforward, especially in areas where storage, processing or transportation options are limited.

A new federal funding program aims to address some of those gaps by supporting food hubs, wholesale terminals and other infrastructure designed to move food more efficiently through the supply chain.

The $1-billion Food-Link Fund will open for applications Oct. 14, with intake running until Dec. 11. The program is part of Canada’s National Food Security Strategy and will fund projects intended to improve food distribution and strengthen connections between producers and markets.

The fund is divided into two streams.

The first, the Food Terminal Fund, will support the development or expansion of wholesale food terminals and distribution centres. These facilities act as centralized marketplaces where producers, wholesalers, food businesses and retailers can buy and sell products.

The second stream, the Food Hub Program, focuses on regional infrastructure that helps aggregate, store, process and distribute food. Eligible projects could include cold storage facilities, transportation equipment, processing and packaging infrastructure, logistics systems and facilitity upgrades.

For producers, the potential value lies in improving access to infrastructure that can help products move through the supply chain. In regions where processing capacity, storage space or distribution networks are limited, those investments could help create additional marketing opportunities and improve access to buyers.

The federal government says the Food Hub Program is intended to address regional gaps in food aggregation, processing and distribution, particularly in underserved areas.

Applications will begin with an expression of interest process. Projects that meet program objectives will be invited to submit a full proposal.

Details on individual projects will become available once funding is awarded.