School Food Economy
New Report Finds School Meals Could Boost Ontario Agri-Food Sector by $200 Million Annually
School meals could unlock a $200 million annual market for Ontario farmers, according to a new report released June 4 during Ontario's Local Food Week. The report, by Sustain Ontario and Wilton Consulting Group and funded by the Schad and Greenbelt Foundations, finds that connecting schools directly with regional farmers could be a major economic driver for the province. Financial Post reported the findings.
Ontario's agri-food sector already contributes over $50 billion to the province's GDP and employs nearly 900,000 people. But schools have rarely been used as key customers for local food. The new report argues that changing this could reshape how the province feeds both its students and its farm economy.
A $200 Million Market Sitting on the Table
Ontario's Student Nutrition Programs already serve over 140 million meals and snacks each year to one million students, according to Fort Saskatchewan Record. The problem is that most of this food comes through global supply chains, not local farms. The report says that redirecting even a portion of this spending toward Ontario-grown food could open up a $200 million annual market.
Phil Mount, Chair of Sustain Ontario, says every dollar spent on local producers creates a "ripple effect" through the regional economy. The report recommends building partnerships between schools and nearby farmers, fishers, harvesters, and local food processors. The goal is to make local sourcing easier and more predictable for both sides.
The Greenbelt's Farm Economy Stands to Gain
The Ontario Greenbelt region generates $9.6 billion a year through its agricultural sector and supports 177,700 full-time jobs. It also protects 750,000 acres of highly productive farmland. Edward McDonnell, CEO of the Greenbelt Foundation, calls the Greenbelt a "strategic asset" for food security, according to Sault This Week.
The report argues that stable school food contracts could give small and medium-sized farms a reliable revenue stream. Many of these farms face a "succession crisis," meaning fewer young farmers are taking over. Predictable demand from schools could make farming more financially attractive for the next generation.
Federal Dollars Fuel the Push for Local School Food
In April 2024, the federal government committed $1 billion over five years to a National School Food Program. Ontario signed a bilateral agreement in July 2025, securing roughly $108.5 million over three years. Ontario Minister of Agriculture Trevor Jones has said: "When we choose to buy food grown and made in Ontario, we are helping to protect Ontario's food independence."
Toronto Mayor Olivia Chow announced on June 2 the expansion of the Toronto School Food Program to 77 more schools, with a target of reaching every school by 2030. Researchers at the University of Toronto warn, however, that success depends on "adequate funding and buy-in," and that local sourcing creates an extra administrative burden for program coordinators, according to Fairview Post.
Barriers Remain: Logistics, Politics, and Competing Priorities
The report calls for a Provincial School Food and Logistics Coordinator to bridge the gap between farms and school kitchens. It also recommends standardized data collection across school boards. But some boards worry that centralizing logistics could reduce their ability to honor the cultural food traditions of local students, according to Calgary Sun.
There are also political fault lines. When the National School Food Program framework passed in Parliament, 110 Conservative MPs voted against it, citing concerns about federal overreach into provincial territory. Some farming groups have also pushed back on plant-based food policies, arguing they could hurt Ontario's dairy and livestock farmers.
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