Canada strengthens food sovereignty programs in response to Inuit nutrition crisis

The Inuit in northern Canada are urging their government to investigate grocers accused of inflating costs despite receiving federal subsidies. The indigenous communities say they are facing soaring costs and worsening food insecurity.

Nutrition Insight speaks to Eric Head, spokesperson for Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC), who responds: “The Government of Canada is addressing high food prices during a period when Northerners need it most.”  

“Everyone deserves access to healthy, affordable food, no matter where they live. Rising costs and consumer prices are a reality for people across Canada and around the world. This is especially true in isolated northern communities, where food and essential items must be transported long distances.”

Understanding NNC

Those in Nunavut and northern Labrador, part of the Inuit region of Nunatsiavut, have been emailing government officials about the Nutrition North Canada (NNC) subsidy program. Head explains that the program “is a retail subsidy program to provide savings on healthy food and essential items.” The program is intended to boost food and nutrition security in isolated communities.

Despite its intent, challenges persist. According to Food Banks Canada, Nunavut has a food insecurity rate of 57% — more than quadruple the national average of 12.7%. One in four households in Nunavut faces severe food insecurity. 

Findings from the Canadian Income Survey show similar disparities. In the provinces, 22.9% of households report food insecurity, a rate that is even higher in the Northern Territories.

Head acknowledges the complexity of the issue: “Food insecurity in isolated Indigenous and northern communities is driven by interconnected factors, including poverty and socio-economic gaps. The challenges that isolated northern communities face are very complex and require shared commitments that help build local capacity.”

“No single department, organization or initiative has the capacity to address the issue of food security on its own. As such, we work closely with Indigenous partners to support Indigenous self-determined approaches and with other levels of government and partners.”

Northern Affairs Minister Dan Vandal recognized the issue in April: “More work is needed to optimize the subsidy for Northerners to ensure 100% of the subsidy is passed on directly to consumers.” 

Resident complaints and rising prices

Emails received by the Canadian Press from the Department of Northern Affairs reveal frustration among residents about rising costs despite subsidies provided to grocery companies in remote areas to offset transport costs and make food affordable. 

Federal programs often include on-the-land skills development, community gardens, cooking classes, community kitchens, food box programs and school food program support, says Head.According to the news agency, the funding arrived earlier this year via Jordan’s Principle, a federal program that improves food and education access for children. People complained about high prices in the summer, when prices drop as food can be transported by ferry rather than expensive air freight.

Residents also reported incidents of stores discarding unsold and rotting food due to high prices, leaving people without affordable options.

According to Lori Idlout, the New Democrat MP for Nunavut, who is quoted by the Canadian Press, Liberals are not interested in reducing poverty that Indigenous communities face, so there has to be a way corporations can be held accountable through the NNC.

A study by the University of Toronto and Toronto Metropolitan University last year on the NNC found that “retailers with market power can capture a substantial share of government funds intended for marginalized populations.”

Price hike

Main stores in Nunavut are run by Arctic Co-operatives, while North West Company runs 118 Northern stores in remote communities, shares the Canadian Press.

Arctic Co-operatives’ VP of stakeholder relations, Duane Wilson, said there is no reason to unfairly hike prices since the company’s shareholders are its customers.

Darryl Martin, speaking for the North West Company, said the business is working with communities to deliver gift cards to the North using Jordan’s Principle funding.

However, the company reported a 7.8% increase in gross profits this year (Q2).

Head explains that the government tries to ensure that subsidies are delivered transparently since “registered retailers and suppliers submit monthly claims outlining how many kilograms of eligible items they shipped to eligible communities.” 

Head explains NNC subsidizes perishable foods and essential items flown in by air and non-perishable foods and essential items brought in by seasonal sealift, barge or winter road.“Each year, samples of registered retailers and suppliers are chosen to undergo a compliance review by an independent third-party auditor. This process helps determine whether they are complying with the terms and conditions of the funding agreement they signed with CIRNAC and are transferring the subsidy to customers.”

NNC funding and investigation

Head tells us that the government has expanded programs developed with Indigenous and Northern partners this year to better support Northerners’ food priorities and improve their conditions for food sovereignty.

He stresses the government has allocated “CA$23.2 million [US$16.5 million) in 2024–25 to CIRNAC for NNC’s subsidy program to lower the cost of nutritious food and other essential household items.” 

“And CA$101.1 million [US$72 million] over three years starting in 2024–25, to support the Harvesters Support Grant and Community Food Program Fund and promote Indigenous communities in implementing culturally appropriate, local solutions to address food insecurity with the sustained investments equal to a total budget of CA$40.26 million per year.”

“NNC is currently working on program improvements to enhance the subsidy component,” says Head. “These policy options will be informed by the research findings of the five ongoing Indigenous-led research projects funded by the NNC Food Security Research Grant, as well as the engagements and recommendations of academic and Indigenous partners.”

CIRNAC also announced the government will launch an external, independent review of the NNC subsidy program early next year, with a report expected in 2026.