Nutrition North subsidy needs a revamp, says ITK president Obed
As the federal government considers ways to improve a funding program to make food more accessible in remote northern communities, Inuit Tapiriit Kanatami president Natan Obed says his organization is looking for a new model for Nutrition North's much-criticized subsidy component, which received $160-million last fiscal year and is targeted to grocery stores with the goal of lowering retail prices for specific food and non-food items.
“The rebate retail model is not producing the [intended] results. … We would welcome the development of an alternative to the rebate retail model that is more explicitly focused on those in greatest need of the food, and that is accountable and transparent,” Obed told The Hill Times.
The need is great, Obed emphasized, adding that upwards of 70 per cent of individuals in Arctic communities are food insecure, and the median income for Inuit living in Nunangat communities is $32,000 in comparison to $100,000 for non-Inuit people.
The retail subsidy is one component of the broader Nutrition North program, which uses federal money to help with food prices and access to food for those in communities where their remote locations, insufficient transportation infrastructure, and harsh climates add to the cost of bringing food to local stores. The subsidy, also referred to as a rebate, is typically the program's most criticized component. The government provides funding to grocers to help with high transport and storage costs connected to bringing products into these communities. The grocers are expected to pass on these savings through lower retail prices.
Other more recently implemented aspects of the program include a grant to support food gathering through traditional hunting and harvesting, and funding for community food programs, both of which emphasize the traditions and production of local country food.
This is unlike the retail subsidy which focuses on making it easier to bring food from outside these communities and also allows the federal government to designate which food and non-food items are eligible.
Concerns have been raised for many years—recently reflected in a 2021 study by the House Indigenous and Northern Affairs Committee—that there's a lack of transparency in whether subsidy funding is actually applied to retail grocery prices.
A delayed third-party report, produced by Aluki Kotierk, who was appointed by the previous Liberal government in February 2025, touches on the retail subsidy. Kotierk suggests that reducing the administrative burden connected to the subsidy could encourage more and smaller vendors to apply to be a part of the program, thereby increasing retail choices for consumers.
Kotierk’s 26-page report was submitted to Northern and Arctic Affairs Minister Rebecca Chartrand’s (Churchill—Keewatinook Aski, Man.) office on May 25, according to the minister’s office. The report was originally due on March 31.
In response to questions about the report and Kotierk’s fees from The Hill Times, Chartrand’s office said travel expenses—slightly less than $15,000—were paid out, but that Kotierk will not receive any other payments.
The Hill Times originally asked Chartrand’s office for an interview about Kotierk’s report, but the minister was unable to speak before deadline as she has been busy responding to flooding in her riding. The office agreed to respond to questions in writing.
Kotierk’s report includes a heavy focus on personal stories, with Kotierk—who was once a bureaucrat for the Nunavut government—communicating the importance of food and community in Indigenous cultures.
“As we sat around the big communal pot of cooked caribou meat, there would be a sense of joy and excitement. This was not only about nutrition and filling our bellies. It was about the camaraderie, the connection, the togetherness as chunks of meat were being placed into toddler mouths and ulus and knives glistened in the sun,” Kotierk wrote, recounting a childhood memory.
There are recommendations and suggestions weaved throughout the document, but unlike many typical government-commissioned reports, it does not include a formal list of recommendations.
Obed said he appreciates that Kotierk “created a first-person account and one that was people-focused and on Indigenous Peoples of the Arctic and the North, and really brought out a lot of the fundamental concepts around the appreciation and joy in food as the counter to food policy per se.”
ITK calls for new food security program to replace Nutrition North
ITK recently issued its own report about the need to revamp Nutrition North. On June 9, it released a framework of recommendations as an accompanying document to a broader poverty reduction strategy, also announced that day. The framework states that solutions for Nutrition North problems must prioritize Inuit self-determination and local decision-making and control.
ITK’s framework cites seven recommendations, including that the current Nutrition North program be “replaced by a new, evidence-based food security program” that veers away from the program’s original intent of economic development and towards a policy more focused on social outcomes.
The retail subsidy’s original intent was that competition between grocers would reduce prices and consumers would go to the store with the lowest prices. But that hasn’t come to fruition, according to Obed.
“The reality is, in most of the Nutrition North-eligible communities, there are no more than two major grocery stores, and usually there's just one. There isn't enough competition to ensure that the program works as a lever for competition, and therefore it becomes a lever for private business,” he said.
ITK wants to see funding targeted to the individuals who are the most food-insecure, and not the companies that sell food, according to Obed. He noted that all customers at a Nutrition North-affiliated grocery store have access to any reduced pricing resulting from the subsidy.
“If you're a company that's doing a big military contract in Iqaluit in the coming years, that subcontractor could go to the store and buy all the food that they need for the people who are working on their sites, and that's Nutrition North as well,” he said.
Other components of Nutrition North include the Harvester's Support Grant, which helps fund food gathering through traditional hunting and harvesting, and the Community Food Programs Fund for food-sharing activities, such as for school meals or elders' gatherings.
Obed said his organization supports both. ITK’s framework recommends that the federal government “expand support” for the two initiatives.
Picking up on an observation from Kotierk’s report, Obed said infrastructure deficits—connected to roads and runways, but also in food storage—in Northern communities also need to be addressed.
“If there aren't secure refrigerator and freezer spaces for those foods almost within 10 to 15 minutes, there can be huge challenges for the integrity of those foods and getting to the stores,” said Obed, referring to the challenges of moving and storing food in Arctic temperatures.
Chartrand’s office ‘looking at’ expanding hunting and harvesting grant
In an interview with The Hill Times this past May, Chartrand described the Harvester’s Support Grant and the Community Food Programs Fund as "successful," but she has heard “loud and clear” through her own consultations about the problems with the retail subsidy.
Obed said “it’s good to hear” from the minister that she sees the value in community-based solutions, and he has observed “an openness from the Government of Canada to to think differently about this program.”
Kotierk’s report is one aspect of a multi-pronged review to understand how to fix the program. The subsidy alone received more than $160-million in the 2025-26 year, according to a Government of Canada explainer.
Obed said the program overall receives upwards of $200-million annually.
Chartrand told The Hill Times back in May that she has hosted virtual meetings with representatives from industry, academia, and communities eligible for Nutrition North. She also hosted a food sovereignty summit in Ottawa this past March.
Her office's statement to The Hill Times on July 8 did not respond to questions about whether the government planned to take any recommendations from Kotierk’s report, or would replace the current Nutrition North program, as recommended by ITK and promised in the federal Liberals’ own 2025 election platform. It also did not provide examples of any actions taken on Nutrition North since Chartrand’s May interview with The Hill Times.
“Several options for reforms are being considered, but one of the biggest wins in the program that we heard was the positive impact of the Harvester’s Support Grant on communities, so one thing we're looking at is expanding that program. We have heard clearly that some things are working and others need to evolve,” said the statement, adding that work on the program continues and it will be guided by those who use Nutrition North.
Obed said he has heard that decisions about changes could be made by this fall.
“The stakes are very high at this moment in time to get this review right,” he said.
tsanci@hilltimes.com
The Hill Times