How Municipal Food Policy Can Rebuild the Missing Middle in Canada’s Food System
By Leni Spooner, creator of Between the Lines.
Why our grocery aisles look imported, even when our fields are full
Walk into any Canadian grocery store and you’ll see bins of fresh local produce—Ontario apples, Quebec carrots, P.E.I. potatoes. But one aisle over, the narrative shifts. Imported sauces, frozen meals, juices, baked goods, and snacks dominate. Even when made with Canadian ingredients, they’re often processed abroad. The result: billions in imports, lost local jobs, and farmers cut out of the value-added economy.
Canada suffers from an “hourglass” in food supply chains: many small farms at the base, a few massive multinational processors at the top, and a hollow middle of regional processors, packers, and distributors. Without that missing middle, we export raw commodities and import back finished products—at a premium.
Rebuilding that “missing middle” is not just a food story. It’s an economic development story—and municipalities are where it starts.
Municipal food policy: the hidden tools councils already control
You might think food is managed at the provincial or federal level. In fact, municipalities hold potent levers: land, zoning, procurement, permits, financing vehicles—and connections to anchor institutions that feed thousands daily.
Here are five concrete steps municipal governments can act on right now:
1. Zone for food.
Allocate light-industrial land specifically for food hubs, co-packing kitchens, cold storage, and distribution nodes. Without affordable space, SMEs can’t scale.
Example: B.C.’s Food Hub Network includes municipally supported shared HACCP facilities across the province.
2. Build community cold storage and distribution.
Cold storage is a major bottleneck. Municipalities can co-finance cooperative or “condo-style” facilities where producers own or lease sections, lowering their individual cost.
Example: The Ontario Agri-Food Venture Centre offers shared storage and loading docks enabling supply to hospitals and schools.
3. Anchor demand through procurement.
Set a measurable local procurement target—for example, 20–30% within three years—for schools, hospitals, and long-term care. Combine with vendor-enablement programs so SMEs can qualify.
Example: Feed BC helped health institutions reach nearly one-third local food by matching SMEs with buyers.
4. Support financing for SMEs.
Food processing requires expensive equipment and certification. Municipal loan guarantees, community bonds, or revolving funds can unlock private financing.
Example: Ontario’s Greenbelt Fund reported a 13:1 return on every dollar invested in local food.
5. Convene a Regional Food Chamber.
Be the connector. Councils can bring farmers, processors, distributors, and buyers together to align demand forecasting, logistics, and risk.
Model: Quebec’s agri-food cluster systems demonstrate how such coordination builds regional value chains.
Why local food processing and the missing middle matter
Without regional food hubs and mid-sized processing, the supply chain remains fragile—small farms can’t meet institutional standards, and multinationals or imports fill the gap.
Rebuilding the missing middle can:
- Create jobs where people live.
- Keep food dollars in community.
- Deliver fresher, adaptive food.
This isn’t charity—it’s smart, resilient economic development.
Scaling local food systems beyond the community level
Local initiatives don’t have to stay small. The phased model looks like this:
- Incubate locally via hubs and procurement.
- Prove demand with stable orders and credibility.
- Scale regionally to serve retailers, food service, and even export.
When municipalities and provinces align, local SMEs can grow to compete at scale—reducing import reliance and building resilient regional food systems.
The resistance is real
Progress isn’t easy. Pushback often comes from institutions focused on cost, not quality or resilience. Consider St. Joseph’s long-term care in Guelph. It once prioritized local sourcing but switched to cheaper imports to reduce per-diem costs. Residents lost quality; management was rewarded.
Cheapest isn’t always best—but without clear municipal food policies and citizen pressure, it wins by default. Elected leaders must anticipate this and hold a longer-term vision.
The bigger picture: municipal food policy builds resilience
Canada imports over $40 billion in processed food annually—even with strong farms at home. While municipalities can’t solve inspection or interprovincial regulatory challenges alone, they can act now: zoning, procurement, finance, and coordination.
Choosing to rebuild the missing middle isn’t abstract—it’s a choice that builds local economies. If we want Canadian food on Canadian plates, we must start at the municipal level—right now.
What ordinary citizens can do
Public support matters. You can:
- Attend council meetings and support local procurement goals.
- Back food hubs when they come up in budget discussions.
- Demand transparency: ask for published sourcing and quality metrics—not just price.
Even small pressure shifts the balance toward long-term resilience.
Talking Points for Your Council or School Board
1. Zone for food infrastructure
“Reserve light-industrial land for food hubs and cold storage — it’s essential infrastructure, not an afterthought.”
👉 Suggested reading: BC Food Hub Network
2. Build community cold storage and distribution
“Support co-op or shared cold storage so local producers can meet institutional needs.”
👉 Suggested reading: Ontario Agri-Food Venture Centre (OAFVC)
3. Anchor demand through procurement
“Set a target of 20–30% local food in schools, hospitals, and long-term care within three years.”
👉 Suggested reading: Feed BC Reports
4. Support financing for SMEs
“Offer loan guarantees or community bonds to help SMEs afford upgrades.”
👉 Suggested reading: Greenbelt Fund – Northumberland Project ROI
5. Convene a Regional Food Chamber
“Host a roundtable bringing farmers, processors, distributors, and institutional buyers together to coordinate demand and logistics.”
👉 Suggested reading: Scaling Up Local Food Systems in Quebec and Ontario (Équiterre/CTPL report, PDF)
The bigger picture
Canada imports over $40 billion in processed food annually—even with strong farms at home. While municipalities can’t solve inspection or interprovincial regulatory challenges alone, they can act now: zoning, procurement, finance, and coordination. Choosing the missing middle isn’t abstract—it’s a choice that builds local economies. If we want Canadian food on Canadian plates, we must start at the municipal level—right now.
Resources for Action: Draft Memos You Can Adapt
Feel free to copy, paste, and adapt these templates when reaching out to your own council, school board, service club, or chamber.
Version 1: Formal / Policy Memo
(For Mayor, Council, Economic Development staff)
Memo: Establishing a Regional Agrifood Business Development Association
To: [Mayor / Council / Economic Development Office]
From: [Your Name / Organization]
Date: [Insert date]
Subject: Proposal to Establish a Regional Agrifood Business Development Association
Purpose
To propose the creation of a Regional Agrifood Business Development Association (ABDA) — a sector-specific body, equivalent to a chamber of commerce, dedicated to strengthening the agrifood economy and addressing the “missing middle” in our local food system.
Background
Canada’s mid-sized food processors, packers, aggregators, and distributors have largely disappeared, leaving an “hourglass economy”:
- Thousands of producers at the farm gate
- Four to five dominant national processors
- Millions of end consumers
This concentration has created fragile bottlenecks in meat packing, cold storage, and produce processing. Value-added jobs and food dollars have left our region. Municipalities are increasingly called on to lead in economic diversification, climate resilience, and food security, but lack a dedicated institutional vehicle.
Proposal: Agrifood Business Development Association (ABDA)
The ABDA would:
- Convene stakeholders: farmers, processors, retailers, chambers, school boards, service clubs, and government representatives.
- Attract investment: package and promote shovel-ready food projects (shared kitchens, cold storage, meat plants, co-packing).
- Provide services: HACCP training, business planning, product development, and access to shared equipment.
- Advocate: for zoning reforms, procurement levers, and funding eligibility.
- Build networks: connect entrepreneurs to impact lenders, co-ops, and federal/provincial programs.
Benefits
- Jobs & Growth: Diversify the regional economy through mid-sized agrifood operations.
- Resilience: Local cold storage and processing mitigate disruption risks.
- Attractive to Investment: Provides a clear entry point for external funders.
- Community Alignment: Bridges farm, business, and social service sectors.
Next Steps
- Convene a roundtable within 60 days of municipal support.
- Commission a gap scan to map current and missing food infrastructure.
- Seed funding (municipal staff time, modest budget) to incorporate the ABDA.
- Match with programs: Sustainable CAP, Federal Local Food Infrastructure Fund, provincial food hub models.
Action Requested
Approval to initiate a stakeholder roundtable and commission a preliminary capacity and gap analysis (with a modest planning allocation).
Tagline: “Our municipality has chambers for business, industry, and tourism. It’s time to build one for food — the sector none of us can live without.”
Version 2: Community / Kitchen-Table Memo
(For Rotary, Kiwanis, chambers, school boards, markets, local media, and citizen advocates)
Let’s Build a Food Chamber for Our Region
We’ve built chambers of commerce for retail, tourism, and industry. But for food — the system that feeds every one of us — we’ve left a gap.
The “missing middle” in Canada’s food system is glaring. Farmers can grow more, and consumers want more local food — but the mid-sized processors, packers, and distributors who connect the two are missing. That’s why local beef is trucked across provinces for packing. That’s why small farms can’t get salad mixes into schools or daycares. That’s why shelves empty in a storm or a strike.
It doesn’t have to stay this way.
Here’s the idea: let’s build an Agrifood Business Development Association — a kind of chamber of commerce just for food. It would:
- Bring farmers, chefs, schools, service clubs, and processors to the same table.
- Attract investment for missing pieces — cold storage, shared kitchens, an abattoir, or a soup-making facility.
- Help small processors get compliant with training and equipment.
- Push for zoning and procurement policies that make local food a priority.
- Keep food dollars, jobs, and resilience right here at home.
This isn’t nostalgia. It’s community-building. It’s making sure our food is secure, our farms are viable, our kids eat local food at school, and our entrepreneurs can grow businesses that stay rooted in our region.
Next Step: Your Seat at the Table
We’re calling on:
- Municipality: to host a roundtable and help seed a business scan.
- Service Clubs: to fund the small hinges (blast chiller, delivery van, walk-in cooler).
- Chambers & Boards: to recruit investors and buyers.
- Schools, hospitals, markets: to align procurement with local processors.
Kitchen-table call to action: “If we can build chambers for industry, surely we can build one for food. Let’s stop exporting value and resilience — and keep it here where it belongs.”
Talking Points: Building a Local Agrifood Business Development Association
What’s the Problem? The “Missing Middle” in Our Food System
- Canada has thousands of farmers and millions of consumers—but only a handful of mid-sized processors and distributors left in between.
- Local food grown here often leaves the region for packing or storage, then comes back as processed imports, costing us jobs and food resilience.
- Our region is vulnerable: empty store shelves during supply chain shocks, lost farm dollars, missed chance to feed institutions (schools, hospitals) locally.
Why an “Agrifood Chamber” Approach?
- Other sectors have dedicated bodies—chambers of commerce, development boards—to build capacity and seize investment.
- Food needs its own sector champion: A regional Agrifood Business Development Association (ABDA) can fill this role.
- The ABDA would act as a hub, bringing together growers, processors, buyers, funders, and policy leaders for collective action.
What Would the ABDA Do?
- Convene stakeholders: Gather farmers, processors, retailers, service clubs, school boards, NGOs, and local government to identify shared gaps and goals.
- Attract investment: Pull funding for missing infrastructure—cold storage, shared kitchens, small abattoirs, logistics support.
- Provide services: Offer food safety/HACCP training, business planning help, equipment access, and navigation for new processors.
- Advocate: Push for zoning, procurement, and funding policies that support local food, not just big national players.
- Build networks: Connect entrepreneurs to lenders, co-op tools, mentors, and provincial/federal programs.
Why It Matters for Residents
- Job Creation: Each new processor or hub means stable, skilled jobs—kept in our community.
- Food Security: Local cold storage and processing keep food flowing even during crises.
- Economic Resilience: More money, skills, and value stay in the region rather than leaking away.
- Community Engagement: Everyone—schools, markets, clubs—can help shape a better food future.
What To Ask Council/NGOs To Do
- Host a roundtable within 60 days to scope regional needs and allies.
- Commission a simple scan of existing food infrastructure and missing links.
- Provide modest seed support (staff time, meeting space, small grant) to kick-start an Agrifood Business Development Association.
- Align early projects with provincial/federal programs (e.g., Sustainable CAP, Food Hub grants) for leverage.
Key Takeaway:
“If we can build chambers for industry, let’s build one for food—the sector no one can live without. Don’t let value and resilience leave the region. Start the conversation, build the team, and take action now.”
Bring this to your municipal council, local NGO, or service club and spark the next phase of our regional food economy.
Memos and Talking Points available in downloadable PDF:
Download Memos and Talking Points PDF
Glossary of Terms
Missing Middle
The gap in Canada’s food system where mid-sized processors, packers, and distributors have disappeared. Farmers grow plenty, consumers want local food, but without that middle layer, value is lost and imports dominate.
Food Hub
A shared-use facility that aggregates, processes, and distributes local food. Food hubs reduce costs for small businesses and give them access to larger markets.
Cold Storage
Refrigerated or frozen warehouse space that keeps food fresh as it moves from farm to market. Lack of affordable regional cold storage is one of the biggest bottlenecks in Canada’s local food economy.
Procurement
How institutions like schools, hospitals, and long-term care facilities purchase food. Local procurement policies ensure some of that purchasing power goes to regional farmers and processors.
SMEs (Small and Medium-Sized Enterprises)
Independent businesses that make up most of Canada’s food processors. They face steep barriers in equipment, certification, and distribution costs.
HACCP (Hazard Analysis and Critical Control Points)
A recognized food safety standard required for suppliers to sell into hospitals, schools, and retailers. Shared HACCP-certified kitchens and hubs help smaller processors qualify.
Regional Food Chamber / Agrifood Business Development Association (ABDA)
A proposed model, similar to a chamber of commerce, focused solely on food. It would convene stakeholders, attract investment, offer training and shared equipment, and advocate for supportive municipal food policy.
Further Reading & Links
Return on Investment: Ontario Greenbelt Fund – Local Food Investment Fund (Northumberland project)
Working Food Hubs:
- BC Food Hub Network (13 regional shared-use facilities)
- North Coast Food Hub (Prince Rupert, BC – school-based, Indigenous-led food hub)
- Halifax Food Hub (East Coast – aggregating and distributing local food across HRM)
Broader Atlantic Food Systems Network: Atlantic Food Action Coalition
Agriculture & Trade Context: Greenbelt Fund Archive, Feed BC Progress Reports, Competition Bureau on retail concentration
Équiterre & Centre for Trade Policy and Law. Scaling Up Local Food Systems in Quebec and Ontario: Actors, Institutions, and Change in Governance (2010). [Download PDF]
Shareable Action Checklist
“5 Things Your Council Can Do to Rebuild the Missing Middle”
- Zone land for food: co-packing, hubs, storage.
- Invest in shared cold storage and distribution.
- Set and support local procurement targets (20–30%).
- Launch financing programs for SME food processing.
- Host a regional Food Chamber for collaboration and coordination.
This checklist works great as a sidebar, handout, or PDF to bring to a council meeting!
About the Author
Leni Spooner is a Canadian writer, researcher, and civic storyteller. She is the founder of Between the Lines | Kitchen Table Politics, a longform publication exploring how policy, economics, food systems, and everyday life intersect. Her work blends historical context with present-day analysis, helping readers see the deeper patterns that shape Canada’s choices — and the lives built around them.
If you enjoy thoughtful, independent writing, you can:
👉 Subscribe to Between the Lines to receive updates and new essays
👉 Buy Leni a coffee to support this work
About the Author
Leni Spooner is a Canadian writer, researcher, and civic storyteller. She is the founder of Between the Lines | Kitchen Table Politics, a longform publication exploring how policy, economics, food systems, and everyday life intersect. Her work blends historical context with present-day analysis, helping readers see the deeper patterns that shape Canada’s choices — and the lives built around them.
If you enjoy thoughtful, independent writing, you can:
👉 Subscribe to Between the Lines to receive updates and new essays
👉 Buy Leni a coffee to support this work
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