Ottawa, ON – May 19, 2026 – Food and Beverage Canada (FBC-ABC) has submitted its recommendations to the House of Commons Standing Committee on Finance as part of the 2026 pre-budget consultations, calling on the federal government to take targeted action to strengthen domestic food production, improve competitiveness, and addressing rising food costs.  

Representing Canada’s largest manufacturing employer, FBC-ABC’s submission outlines a series of measures aimed at lowering the cost of producing food in Canada, enabling large-scale investment in domestic processing capacity, and improving long-term food security and affordability. 

The submission emphasizes that Canada’s food and beverage manufacturing industry employs more than 318,000 Canadians, generates nearly $120B in annual revenues, exports approximately $60B in agri-food products annually, and produces roughly 80% of the processed food and beverage products consumed in Canada. 

FBC-ABC is urging the federal government to prioritize: 

• A large-scale Domestic Processing Fund to support modernization, automation, and expanded processing capacity; 

• Measures to reduce energy, fuel, and freight costs throughout the food supply chain; 

• A targeted initiative to remove outdated and non-value-added regulations that do not improve health or food safety outcomes; 

• Greater harmonization of Extended Producer Responsibility (EPR) systems across Canada;  

• Recognition of food and beverage manufacturing as critical infrastructure;  

• Labour and immigration policies that reflect the permanent workforce realities of the industry; and 

• A freeze on automatic inflation-based increases of alcohol excise duties. 

The association warned that rising costs driven by energy, labour shortages, regulatory burden, and fragmented systems are constraining investment, weakening competitiveness, and contributing to upward pressure on food prices. 

“The most effective way to improve food affordability is to lower the cost of producing more food in Canada,” said Kristina Farrell, CEO of Food and Beverage Canada. “That means supporting investment in domestic processing capacity, reducing unnecessary costs and administrative burden, and ensuring Canada remains an attractive place to manufacture food and beverage products.” 

Food and Beverage Canada’s full pre-budget submission can be found here. 

About Food and Beverage Canada (FBC-ABC): Food and Beverage Canada is the national industry association representing Canada’s domestic food and beverage manufacturers. FBC-ABC works with members, provincial and regional associations, and government to advance policies that support a competitive industry that provides safe, high-quality food for Canadians and global markets.