The recent updates reflect Canada’s ongoing effort to modernize food regulation, streamline compliance, and keep pace with new ingredients and processing technologies.

New rules for food additives, enzymes and supplements

As of December 2024, Health Canada consolidated the Lists of Permitted Food Additives into a single, more flexible food category system, making it easier to add or modify allowable ingredients.

Recent developments include:

• approval of new enzymes in bread and flour products (December 2025)
• authorization of silicon dioxide in modified sugar (February 2026).

Health Canada is also reviewing the Supplementary Ingredient List to potentially allow up to 30 per cent juice content in certain caffeinated beverages.

As reflected by these developments, Health Canada’s modernization project simplifies the process for introducing innovations into Canadian food systems.

Modern labelling and compositional standards

As of January 2026, prepackaged foods sold in Canada that are high in sodium, sugars or saturated fat must display the new front-of-package (FOP) nutritional symbol, a black-and-white magnifying glass icon that emphasizes key nutrient content. The FOP symbol is required on products that exceed critical thresholds (e.g., ≥15% daily value of sodium, saturated fat or sugar per serving). However, some foods remain conditionally exempt, including:

• plain milk and yogurt
• fresh fruits and vegetables
• raw, single-ingredient meats and poultry
• traditional cheeses and kefir (for certain nutrient categories).

The change is intended to improve public health outcomes by helping Canadian consumers make informed food choices. As a result, consumers may begin avoiding food products flagged with the FOP symbol, which could influence both ingredient sourcing and production techniques. Farmers producing raw or minimally processed foods may gain a marketing advantage.

The CFIA has also suggested updates to common names for dairy and modified dairy ingredients:

• The term “modified milk ingredients” is replaced with “milk-derived ingredients.”
• The French equivalents “substances laitières” and “substances laitières modifiées” become “ingrédients du lait” and “ingrédients dérivés du lait.”
• Eligibility rules for which ingredients can use the term “milk ingredients” and “milk-derived ingredients” have been revised. More information can be found on the CFIA website.

Industry will have until January 2030 to update labels to reflect the changes to dairy ingredient terms.

Why it matters: turning compliance into opportunity

These updates reflect a broader government shift toward a more flexible regulatory system that responds faster to market innovations. Canadian farmers supplying grain, fruit, dairy or plant ingredients stand to benefit as processors adapt formulations to meet new rules. Consider how you can strategically respond to these changes today:

• Manufacturers now need precise ingredient identity, so farmers should maintain clear records of production inputs.
• Farmers who produce low-sugar fruit varieties and high-fibre grains should stay up to date on consumer demand for these ingredients in response to FOP labelling.
• Dairy producers should review applicable labelling and ingredient name changes.
• Farmers selling direct to consumers should stay up to date on labelling requirements and exemptions. Whole products that do not require FOP labelling may become more appealing to consumers.

Ask a lawyer: If you have a topic or question you would like us to address in future issues, please email gholding@mltaikins.com.

Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.

The post What producers need to know about Health Canada’s latest food additive, enzyme and supplement updates appeared first on Country Guide.

Shares of Hellmann’s mayonnaise owner Unilever and Frank’s RedHot sauce maker McCormick fell on Tuesday following the announcement over concerns about the transaction’s structure, long path to closing and antitrust risks.

The top U.S. spice maker, home to more than 30 household brands, is playing the long game, some analysts said.

While many food companies are scrambling to reformulate products and resize portions as the surging popularity of GLP-1 weight-loss drugs reshapes eating habits, McCormick argues that flavor will remain essential even as calorie counts fall.

“We will continue to flavor calories while others compete for them,” McCormick CEO Brendan Foley, a packaged-food industry veteran, said on a call with investors on Tuesday.

“As consumers increasingly focus on cooking at home, adding more protein and produce, and pursuing healthier lifestyles, flavor plays a critical role in elevating those choices,” Foley said.

The GLP-1 bet

The surge in weight-loss drug use has consumers craving more flavor ‌in their food, leading to condiment and spice makers benefiting and attracting more interest in the M&A marketplace, dealmakers have said.

“Consumers shifting away from fatty, greasy, or overly sweet foods … creates a massive opportunity for flavor enhancers (spices and hot sauces) that provide sensory satisfaction without adding calories,” said Timothy Malefyt, professor of marketing at the Gabelli School of Business at Fordham University.

The deal will also help the U.S. company tap into Knorr stock cubes maker Unilever’s global scale and expertise, executives said on Tuesday’s investor call. Unilever executives highlighted its popular flavors such as Asian and Chinese.

“McCormick with this could be well-positioned to create the right nutritional functional benefit in food that is lacking in America right now,” said Mike Anstey, founder of Pilot Lite, a global CPG (consumer packaged goods) commercialization partner.

It would also open up key emerging markets such as Brazil, China and countries across Europe, the Middle East and Africa (EMEA).

“(The deal) represents a step-change in scale, broadening MKC’s exposure to faster-growing emerging markets and expanding opportunities for its foodservice platform,” Jefferies analyst Scott Marks said in a note.

Unkind market conditions

McCormick is seeking new markets and flavors against the backdrop of a tough U.S. market, where consumers are eating healthier and also looking for cheaper pantry alternatives and smaller pack sizes to stretch budgets hit by inflation.

“We’re certainly aware of the near-term pressures facing not just the food industry but broadly … the conflict in the Middle East and the broader CPG space. However, we continue to believe in just the long-term fundamentals that really underpin the confidence in this combination,” McCormick’s Foley said.

The company’s total volume growth has slowed over the last year, and was down 0.7 per cent in the most recently reported quarter, falling across both its consumer brands and flavor solutions segments.

“Despite the combination’s strategic merits, we think this may be a ploy to incite growth in an industry where gains have stagnated,” said Erin Lash, analyst at Morningstar Research.

Rival Kraft Heinz, which media reports said had explored a bid for Unilever’s food business, underscored the tougher U.S. market when it paused plans for a split.

“Investors should look at this transaction more optimistically than broken deals like Kraft Heinz because it creates value through greater depth in a single category, flavorings, rather than diversification,” said TD Cowen analyst Robert Moskow in a note.

The post McCormick bets on flavor in $65 billion Unilever merger appeared first on Country Guide.

The 2026 FCC Food and Beverage Report states sales among food and beverage manufacturers are predicted to rise by 0.8 per cent while volumes fall by 0.7 per cent, the fourth straight year of decline. It notes sales growth will likely be driven by higher prices, not higher consumption.

WHY IT MATTERS: With trade tensions still disrupting global supply, prices could fluctuate this year, affecting consumers’ choices.

FCC chief economist Craig Johnston said this disparity speaks to the issue of consumer purchasing power.

“Higher food prices over the past several years are really weighing on households’ budgets,” he said in an interview. “They’re making more cost-conscious decisions.”

“This is actually a headwind for consumption and a headwind for volumes.”

He said any upstream changes will no doubt filter down to Canadian producers. Some challenges are shared across sectors.

“When we think about common elements, you can think about the tariffs, the elevated input costs, generally,” he said.

Margins are tight across the sector, including for farmers.

“We’re not seeing massive improvements on margins within the food and beverage manufacturing sector to pre-COVID levels, and we’re not necessarily seeing that filter through to a broad-based increase in margins for primary ag.”

“The industry in general is still going through this adjustment period” he said, “and we do expect that to continue to 2026.”

Trade tensions still a factor

Canada will continue to grapple with trade uncertainty this year, including the recent instability caused by the conflict in the Middle East.

Forecasts for costs of goods in the Food and Beverage Report were made before the crisis, “meaning that if the commodity price surge persists beyond just a few months, there would be upside risks to those estimates.”

FCC had expected pressures on some inputs, such as cattle and hogs, to ease from 2025 highs, but surging energy prices due to the conflict make that less likely.

Costs of production up

Production costs for food and beverage manufacturers increased by two per cent in 2025, driven mostly by raw material costs.

“The increase in raw material costs was driven by disruptions that constrained availability and raised prices,” the report states.

“Some examples from 2025 include avian influenza impacts on poultry … tariffs that increased the cost of imported aluminum packaging and historically low cattle herd sizes across North America.”

Costs across sectors

The report also breaks down costs associated with sub-sectors of food and beverage processing.

In grain and oilseed milling, sales were uneven in 2025 but improved by the fourth quarter. 2026 shows signs of a rebound in sales and volumes.

Large carryover of canola stocks is expected to keep prices under pressure in 2026. Canola prices are expected to fall by 3.1 per cent in 2026.

The report suggested demand for Canadian maple syrup and honey has continued to increase in the global market.

In the dairy sector, 2026 will likely see a 3.6 per cent increase of product manufacturing sales over 2025. Processors are also expected to pass along costs from the producer price increase for unprocessed milk to consumers.

In the meat manufacturing sector, FCC forecasts sales up 1.6 per cent and volumes down by 5.6 per cent.

Tight supplies of live animals, due largely to disease outbreaks, drove prices up in 2025. According to the report, “2026 will likely see another year where price, not volume, drives sales upward.”

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Faced with higher living costs and changing lifestyles, consumers are eating out less, cooking more at home, replacing meals with snacks and putting a sharper focus on value and nutrition.

And for Canada’s farmers and agri-food sector, the changes bring both risks and opportunity.

Canada’s restaurant and food service sector is a $124-billion industry, which sources approximately 68 per cent of its food and beverage from domestic suppliers. When restaurant traffic slows, the impact is felt throughout the supply chain.

At the same time, experts say that evolving consumer habits are creating new demand for the products, production methods and innovation that the Canadian agri-food industry is uniquely positioned to offer.

Current trends

The most immediate change is happening in restaurants.

According to a recent report, three quarters of Canadians are eating out less often. The primary reason for this is economics, says Sara Hamdy, research analyst with Restaurants Canada.

“More than 40 per cent of Canadians just can’t afford to dine out month to month as much as they’d like to,” she says.

According to the same report, even higher-income households are cutting back.

“Canadians who are dining out once a week or more are shifting to … maybe two or three times a month rather than four times or more,” says Hamdy.

At the same time, restaurant operators are facing their own cost pressures, with food costs cited as a top concern for the year ahead, Hamdy says.

Another emerging trend for Canadian consumers is a rise in snacking. About 65 per cent of Canadians report replacing full meals with snacks at least once a month, according to the Restaurants Canada report — a trend driven by both rising food costs and busier lifestyles, says Hamdy.

“This is a trend that we noted in a way that Canadians are adjusting to the increase of cost. They’re just not able to afford a full meal anymore, so they’re cutting back into snacks.”

Younger consumers in particular are gravitating toward portable, lower-cost options that fit a “grab-and-go” routine, she says.

But these changing eating patterns have not affected consumers’ desire for value, which dominates Canadian food choices today, says Ashley Kanary, director of Global Agri-Food at Export Development Canada.

After the pandemic, many consumers returned to simpler eating habits and became more conscious of prices, he says.

“When people looked at ways to save money, food was one of the first things that came out pretty hot.”

However, at the same time, consumers didn’t want to cut back on quality or health, he says.

These factors combined helped fuel strong growth for private-label grocery products, which now rival or outperform national brands in quality while offering savings of 15-20 per cent.

“When I look at those trends, that has not slowed down at all,” Kanary says. “If anything, globally, private-label products are outpacing all branded product growth, no matter where you go.”

But value shopping also doesn’t mean consumers have stopped treating themselves, he says.

“Even as people tighten their budgets, the indulgence factor is still there. In private label, everybody’s raised their game, and those products are as good, or even sometimes better than the national brand themselves. People are saying: ‘If I can get something that tastes better for 20 per cent less, I’m absolutely okay with that.’”

Beyond affordability, nutrition trends also continue to shape consumer behaviour, he says, with one of the strongest long-term shifts favouring higher-protein foods.

The challenge now, he says, is raising the taste profile in high- and added-protein products. “The desire … is to get things to taste great,” Kanary says. “People have always struggled getting around the added taste and or bitterness that protein-added causes.”

One final trend with long-term implications is sustainability, Kanary says.

Retailers and food companies are increasingly expecting suppliers to meet environmental standards, from emissions reductions to compostable packaging, but without charging more for the associated products.

“Sustainability expectations are rising, but consumers aren’t willing to pay a premium for it,” he says.

“They’re actually saying: ‘I want you to become sustainable and don’t charge me extra for that. We just need you to get better and raise your game.’”

Canada’s advantages

Despite the constraints these evolving eating habits cause for food supplies and producers, Canada is well positioned to meet many evolving consumer expectations for food, specifically around protein, sustainability, value and convenience.

“We feel that protein overall is where it’s at and Canada has amazing strengths in protein,” Kanary says, mentioning Canada’s pulse, poultry, seafood and beef industry as examples of high-quality protein sources.

He also believes Canada could have a competitive advantage in terms of rising sustainability expectations — provided companies can deliver results without higher costs.

“There’s an opportunity for Canadian companies to be leaders in sustainability on a global scale and I believe Canada is really strong in this area,” he says. “The key is to keep that momentum going, but not at any cost.”

Changing eating habits are also driving demand for portable, convenient options that still deliver quality and nutrition, another area where Canada is gaining ground as our food manufacturing sector expands its role in value-added products.

Food and beverage processing is now Canada’s largest manufacturing industry, with shipments topping $156 billion in 2023, according to Statistics Canada. Much of that growth is coming from ready-to-eat and snack categories, while Agriculture and Agri-Food Canada reports rising exports of consumer-oriented products such as processed foods. This points to growing opportunity for Canada to capture more value beyond the farm gate while supplying the convenient, high-value foods today’s consumers want.

Going forward

Some of the current eating trends for Canadians — fewer restaurant visits and more snacking — may ease as household budgets recover.

But several underlying shifts appear more durable, including greater price sensitivity, demand for convenience and flexibility, stronger interest in protein and functional foods, and rising sustainability expectations.

For Canadian farmers and processors, the key takeaway is that demand is not shrinking, but it is changing. Growth opportunities are increasingly tied to value-added processing, efficient production. and the ability to supply ingredients that fit portable, affordable and nutritious food formats.

At the same time, Canada’s strengths in high-quality protein production, strong environmental performance and an expanding food manufacturing sector position the industry to compete in both domestic and export markets.

The pressure, however, will be on cost competitiveness. Consumers and retailers are expecting better performance on price, quality and sustainability at the same time, putting greater emphasis on efficiency and innovation throughout the supply chain.

The direction of demand may be shifting, but the long-term outlook for Canadian agriculture remains strong. The farms and agri-food businesses that succeed will be those that focus not only on production, but on understanding how and where their products fit into a food system that is becoming more value-driven, more convenience-focused and more closely tied to consumer expectations.

The post The changing landscape of Canadian food demand appeared first on Country Guide.

Such a move would mark an acceleration of efforts to reshape Unilever. More than one Unilever CEO has tried to refocus the company’s portfolio by expanding in personal care and beauty, and selling some food brands.

The food business came under the spotlight again when the Financial Times reported that Unilever might spin it off, and had held merger talks with Kraft Heinz, which ended.

Unilever’s shares, which were higher in early trade on Friday, had fallen to their lowest since July last year as investors and analysts worried that CEO Fernando Fernandez could be distracted from the day-to-day running of Unilever by the potential separation. And they questioned ‌the benefits of such an action so soon after Unilever’s protracted ice cream unit split.

How much is Unilever’s food business worth?

Unilever’s packaged food business accounts for more than a quarter of group sales, but faces pressures from a shift away from ultra‑processed products, competition from private label brands, and softer demand as the rise of weight‑loss drugs changes consumer buying habits.

Home to Knorr bouillon powders and Hellmann’s condiments, the division’s underlying operating margin – which excludes the impact of foreign currency exchange rates – was 22.6 per cent of revenue, outstripping the group’s 20 per cent margin last year.

The food business, which also makes Marmite spreads, reported an operating profit of 2.9 billion euros (C$4.6 billion) last year, giving it an enterprise value of roughly 30 billion euros (C$47.6 billion), according to Barclays estimates.

Slower to grow compared with the rest

The business, Unilever’s second largest by sales after personal care, grew at 2.5 per cent last year, more slowly than the rest of the group and well below the company’s own mid-term goal.

Underlying sales growth at Unilever’s foods division has lagged that of other units since the COVID-19 pandemic highs, repeatedly falling short of the company’s annual goal of sales growth of between four and six per cent.

Analysts and investors question the long-term prospects of the packaged food industry when politicians, including U.S. Health Secretary Robert F. Kennedy Jr, have highlighted the potential health risks of processed foods.

Developed markets have reached saturation

Part of the problem is that the business is operating in two contexts: developed and emerging markets. Unilever’s food business is growing more slowly in North America and Europe than in countries such as India and parts of Latin America, where the group has a stronghold in food and private label products are less sophisticated, meaning they offer less competition.

“There is more growth in emerging markets, which accounts for 55 per cent of food for Unilever, but it’s still not enough to make up for Europe and the U.S. where the market is saturated,” Barclays analyst Warren Ackerman said.

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Still-high inflation and rising cost-of-living has led Canadian consumers to try and tighten household budgets and save money, impacting their discretionary spending.

Quarterly same-store sales at Loblaw’s drug retail rose 3.9 per cent from a year ago, while in food retail segment they increased by 1.5 per cent.

However, sales in Canada in December saw a brief bump up due to the holiday season, as consumers increased their spending on food and beverages. Demand for value deals helped Loblaw’s discount banners such as No Frills and Maxi.

The company’s revenue came in at C$16.38 billion for the quarter ended January 3, compared with analysts’ estimates of $16.77 billion, according to data compiled by LSEG.

On an adjusted basis, Loblaw earned 67 cents per share in the reported quarter, slightly ahead of estimates of 66 cents.

Loblaw expects annual adjusted net earnings per share to grow in the high single-digits, compared with analysts’ expectations of a 7.9 per cent rise to $2.61.

— Reporting by Koyena Das in Bengaluru

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Shares of General Mills, which left its annual outlook unchanged in December, were down about three per cent in early trading. They have fallen nearly 19 per cent in the last 12 months.

General Mills and other packaged food companies are under pressure as lower-income shoppers, hit hardest by persistent inflation, trade down to value brands and private-label goods. At the same time, the industry is contending with evolving dietary preferences and a growing push toward healthier foods, accelerated by the broader adoption of GLP-1 weight‑loss drugs.

”Cost of living and housing pressures are reshaping spending patterns, and value is a core expectation that is here to stay,” CEO Jeffrey Harmening said at the Consumer Analyst Group of New York (CAGNY) conference on Tuesday.

Companies cut costs, lower forecasts

Executives said the company’s cereal business, its second biggest revenue generator, was under pressure from increased competition from protein offerings at breakfast.

Earlier this month, PepsiCo cut prices on core brands such as Lay’s and Doritos by up to 15 per cent following a consumer backlash against earlier price hikes, while Kraft Heinz last week paused its splitting plans and forecast weak annual earnings after missing quarterly results estimates on tepid demand.

General Mills now expects annual sales to be down 1.5 per cent to two per cent, compared with its previous range of down one per cent to an increase of one per cent.

“The previous forecast for sales to increase as much as one per cent seemed unrealistic to us. So, the updated guidance is more in line with the recent trends at the company. Moreover, the revision puts guidance more in line with the experiences at other food companies such as Kraft Heinz and Conagra,” said senior bond analyst Dave Novosel at GimmeCredit, an independent corporate bond research house.

It also sees annual adjusted operating profit and adjusted earnings per share down 16 per cent to 20 per cent in constant currency, compared with its previous range of down 10 per cent to 15 per cent in constant currency.

— Reporting by Koyena Das in Bengaluru

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This year marked the tenth anniversary of the event, held on Feb. 10, Canada’s Agriculture Day.

Farm Credit Canada CEO Justine Hendricks opened the packed conference by speaking to the need for unity in the sector.

“It’s been 10 years of working together to build a stronger industry, and we’ve been asking ourselves a really important question: how can we better feed our families, our communities? How can we better feed the world?” she said. “The theme of today’s conference is igniting the power of 10 and unleashing a new decade of action.”

Hendricks noted “2025 was a pretty unforgettable year, but sadly for all the wrong reasons.”

“[This year] is the year we must turn the page and make bold changes that respond to new global environment in which we find ourselves,” she said. “Each and every one of us in this room has a responsibility to do our unique part to drive this industry forward.”

“It’s doing it together,” Hendricks added. “That’s where we’re going to make a difference, because none of us can do it alone.”

Producer/business collaboration drives innovation

The theme of unity connected many of the day’s conversations.

In the morning’s first panel, investors and agribusiness leaders discussed the importance of collaboration for industry-wide success.

That collaboration must begin with understand the goals of four primary stakeholders in the agriculture system: farmers, tech startups, universities and nonprofits said Johnny Park, CEO of Wabash Heartland Innovation Network (WHIN), an American consortium dedicated to advancing tech adoption.

“The success of the ecosystem depends on how you align incentives for all those four stakeholders,” Park said.

Farmers often know they must adopt technology but don’t have the time or resources.

“The way we solve that is, as a nonprofit organization at WHIN, we do a very rigorous vetting process of all those technologies from around the world,” Park said. “That itself is very enticing for farmers to engage with us, because we are essentially becoming their R and D on their behalf.”

Technology companies want access to customers Park continued, “so, we enable that by having a network of farmers in our region who are incentivized to adopt their technology once they go through our vetting process.”

As for academics, Park said what they often want most is the ability to do research.

“The best way to do that is let the farmers use emerging technologies from around the world,” said Park.

This will raise problems for companies and farmers to solve with which universities can engage.

Park argued adoption, not invention, is what drives innovation. Policy should encourage farmers to take risks on tech.

“The farmer who adopts emerging technologies faster, judiciously, is going to win at the end.”

‘Unit economics’

Gustavo Bassetti, partner at investment service Just Climate, said his company often considers the whole food system when eyeing potential investments.

“We try to understand how the companies that we’re investing in are helping everyone succeed,” Bassetti said.

The firm looks at what Bassetti called “unit economics.”

“Can you do simple math and show to me this new technology or new product is going to make the farmer’s life better, and not necessarily add a line of cost that does not have a benefit?” he asked. “It sounds simple, but a lot of companies are unable to answer that question.”

Roger van Hoesel, Co-Founder and Managing Partner of Dutch company Ecosystem Navigators, said he has seen new technologies stagnate or fail to find adopters when farmers are not consulted and considered in the process.

“In the Netherlands, we have seen fantastic technology,” van Hoesel said. “Close to my office is this company has a completely robotized greenhouse. Not a single person in it anymore. Still, it’s not being adopted yet, and it has to do with the fact that it was developed by people who are not farmers themselves.”

Innovators need to find farmers in the community who are open to their technology and have influence in their communities, he said.

In a later panel, Ashley Nicholls, Founder of REACH Agriculture Strategies echoed the need for farmers to be active participants in partnerships.

“When we’re talking about innovation, we’re talking about collaboration and getting people involved, I think that it needs to come from both sides,” Nicholls said.

“We need to be really paying attention to boots on the ground. We can develop all the best protocols in the world, we can develop all the best financial programs, all these amazing products, but if the end user, if the producer that is in the pen, that is in the tractor, if they aren’t willing to use it … the innovation side of things just kind of falls flat.”

How collaboration can drive public trust

Lisa Bishop-Spencer, Executive Director of the Canadian Centre for Food Integrity (CCFI), said collaboration can help win back public trust in the Canadian agri-food sector.

According to CCFI public sentiment research, trust in Canada’s food system has been shifting.

“For the longest time, maybe for the last nine years, farmers have been at the top in terms of trust and transparency,” said Bishop-Spencer. “This is the first year that we’ve seen scientists overcome farmers.”

She said this is a good sign, as it means those who are trusted to talk about the food system are being treated as more reliable.

“The importance of collaboration is the fact that when people don’t trust the food system, it affects the entire system,” she said. “It affects affordability, it affects food security, it affects food sovereignty and it affects innovation.”

A record low of Canadians had a positive impression of the food system in 2024. Those numbers saw a sharp turnaround in 2025, which Bishop-Spencer attributed largely to unity in the face of threats from the U.S.

“The question is, how do we leverage that and make it last? Because during crisis, we’re great and we’re well trusted, but how do we maintain that in times when we’re not in crisis?”

The next step in collaboration is to get more people talking about Canadian food. Trusted industry voices who talk about what they do can address some of the myths out there.

“It’s as simple as going on a live and just walking your barn and showing people what you do and telling the stories of who you are,” Bishop-Spencer said. “If they trust you, then they’ll trust your neighbor.”

She noted the new Canada’s Food System initiative, which she said is “aimed at elevating the food system from farming, from before farming, to all the way to retail and food service.”

Collaboration for red tape reduction

Collaboration is also integral to getting a message to the government regarding the sector’s concerns about red tape said Pierre Petelle, president and CEO of CropLife Canada.

“CropLife Canada has always been a big proponent of working in collaboration with the whole value chain, so from farmers to input providers to exporters and processors,” he said.

CropLife has over 40 member organizations, including Bayer, Nutrien and SeCan. Petelle said they have had concerns about predictability and a buildup of regulatory barriers.

Last summer, that sector sent a letter to federal leaders asking to work together on ideas “to really unleash Canadian agriculture,” Petelle said.

Petelle said this type of collaborative approach is something he expects to see CropLife members continue with.

“We know that if our members are enabled, they bring better technology that helps the farmer be more productive, that then helps the exporter export what the consumers want in other countries.”

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Justine Hendricks, President and CEO of FCC unveiled the project Tuesday at the Future of Food conference in Ottawa.

The Let’s Grow Canada website’s stated purpose is “to shine a light on the people and stories behind Canada’s agriculture and food system and (grow) a national movement that invites Canadians and global partners to help shape our food future.”

The initiative has four main goals: Build pride, bring more talent to the sector, bring investment within Canada and grow trade.

Hendricks told media that one of the most consistent requests she gets in her role is “Justine, if you could only help tell the story,” of Canadian agri-food.

She described Let’s Grow Canada as “a movement, not a marketing campaign.”

“If you do a campaign, you set a budget, you say, we’re going to spend X amount, we’re going to blast as much as we can and see what you generate,” Hendricks said. “With the movement being more grassroots, we’re going to build it up over time.”

Strengths and challenges

In building the initiative, FCC identified eight major strengths in the Canadian food system, including food security diversity and sustainable practices.

“We said, okay, well, if Canada’s ag and food industry was a brand, what type of brand would it be? (And) what’s the challenge with the brand?” Hendricks said.

Challenges included fragmentation and the reliance on the U.S. as a trading partner.

“If Canada wants to show up differently, how should we show up?” Hendricks said. “We said, you know, we should be proud to be kind of the superhero of food for around the world.”

“We can still be humble (and) kind, but we’ve got the ingenuity to lead, the creativity to make something happen, and we should stand up and do that.”

FCC touts unified approach

The platform is also intended to become a resource for those seeking more information about topics like food sources, new agricultural technologies, or careers.

Hendricks said the unified approach will help the involved organizations get their message out.

“You will not see the FCC logo on any of this,” she said. “We’re kind of creating the environment so that the industry can come together and we can really amplify our message and what we do, but from a unified voice.”

She said she is confident in this approach because it will tell the story of Canadian agriculture “with those that do it every day.”

“Instead of trying to replace some of the great work that’s out there, we’re creating this platform for people to come and showcase what they do,” she said. “We really want to create that buzz out there, so that people have a new energy around the sector.”

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Among Group of Seven countries, Canada recorded the highest rate of food inflation in December, according to government data. Food prices rose by 6.2 per cent in December, double the rate in the U.S., and more than three times the rates in France and Germany.

Carney leads a minority government and relies on support from other parties to pass legislation and stay in power. While Canadians have consistently rated Carney as the best leader to deal with threats from U.S. President Donald Trump, voter sentiment could change quickly if concerns about American aggression lessen — and cost-of-living issues become more urgent, as they have in Britain, the U.S. and elsewhere.

A statement from the Bank of Canada this week noted that grocery prices jumped by 22 per cent in the last three years, compared to 13 per cent for other consumer prices. The central bank said last year’s food inflation was mostly driven by imported foods, supply shortages caused by extreme weather and the significant depreciation of the Canadian dollar in 2024.

Carney announced last week that the country’s poorest 12 million people will get a tax credit for the next five years, “to make sure Canadians have the support they need now.” The government is also taking other measures, like setting aside C$500 million to help businesses deal with supply chain disruptions and allowing producers to write off greenhouse expenses.

Tax credits and supply chain support

But the measures do little to lower food prices in Canada, which is now the biggest driver of inflation, according to Jeremy Kronick, director of the Centre on Financial and Monetary Policy at the C.D. Howe Institute think tank in Toronto.

“This will mostly provide relief to people who are choosing between paying rent or buying food, but it is not going to bring food prices down,” said Michael von Massow, a professor at the University of Guelph who specializes in food economics.

John Fragos, press secretary for Finance Minister Francois-Philippe Champagne, said the new government initiatives were only a first step towards curbing food costs.

“We’ve bridged the food inflation gap as it exists now and we’re taking aim at structural issues that will, over the medium and long term, bring down the price of groceries,” said Fragos.

In late 2024, ex-Prime Minister Justin Trudeau also announced a two-month suspension of a sales tax on selected goods “to give Canadians more money in their pockets.” It had mixed results, with some sectors like restaurants reporting increased sales while other businesses did not see an impact.

Canada’s unique grocery market problems

Academics point to entrenched issues including the dominance of just five companies in the grocery sector, a shorter growing season for produce in Canada, and a reliance on the U.S. that has resulted in higher prices via supply chain disruptions.

“There are some uniquely Canadian problems that make the cost of food here so very expensive,” said Michael Widener, who studies food systems at the University of Toronto.

“Labour and transportation costs are higher, and geographically, we are not close to many other markets,” he said, adding that the dependence on produce from the U.S. and Mexico made Canada extremely vulnerable.

Sylvain Charlebois, an expert in food distribution at Dalhousie University in Nova Scotia, said the government should focus on efforts like eliminating high transportation costs between provinces, addressing the high internal costs of production due to labour laws and the industrial carbon tax among other constraints, and increasing competition within the grocery sector. Canada is a major producer of canola, wheat, dairy and meat but is almost entirely dependent on imports of fresh produce during the winter.

Fresh fruit and vegetables routinely cost at least twice as much in Canada as they do in Britain and elsewhere in Europe; a two-pound bag of carrots in Canada costs $2.21, compared to $0.95 in Britain and $1.18 in Germany, according to online retailers.

Food prices ‘not a voting issue’

Conservative leader Pierre Poilievre has long railed against the high cost of food for Canadians, but that has not translated into increased support. He still trails Carney by double digits in opinion polls — and Carney’s approval has risen since his widely praised Davos speech that openly called out the world’s superpowers for using “economic integration as weapons,” according to several polls.

A poll by Nanos on January 30 showed 54 per cent of Canadians approved of Carney but also noted that 11.4 per cent said inflation was their biggest concern, up from 9.3 per cent a month earlier.

The Conservatives’ co-deputy leader Melissa Lantsman told reporters on Monday that “no amount of tax rebates” will solve the problem of food inflation, adding that more than 2 million Canadians, or about five per cent of the population, now rely on food banks, the highest-ever recorded number.

Shachi Kurl, president of the non-profit pollster Angus Reid, said despite food costs consistently ranking among Canadians’ top concerns, Trump’s repeated threats to annex the country have translated into a bigger issue for voters.

“For the time being, food prices are not a voting issue,” Kurl said. “But if Canadians think that is something they can hold their leader accountable for, it may yet become one.”

Ashton Arsenault, who was an aide to a Conservative minister under previous leader Stephen Harper, said exorbitant food costs should present an opportunity for Conservatives to win more public support, but that a steady rise in prices over the years have largely left most Canadians resigned to the inflation.

“Even when things get really bad, we are still very Canadian and polite about it and don’t take to the streets to protest,” he said. “This is a very tough problem to fix and it will take political courage to do it.”

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