Pilot project tests benefits of lower food mail prices

MONTREAL – Health Canada, Canada Post and the Department of Indian and Northern Development are conducting pilot projects in some northern communities to reduce the cost of nutritious food and help it stay fresher longer.

The project could result in important changes to the food mail program, a subsidy paid by the DIAND to Canada Post. The 30-year-old initiative offsets the cost of shipping food items and essential non-food items to 145 northern communities.

The goal in cutting the cost of nutritious foods is to help people turn away from junk foods – and stay healthier as a result.

It’s a win-win formula, at least that’s the opinion of Ed Miller, director of northern operations for Canada Post.

“Lowering the cost and upping the quality – it makes retailers and wholesalers look better,” Miller said.

Junk food not covered

In 1996, non-essential non-food items and most high-fat convenience perishable foods, such as fried chicken, were eliminated from the program.

Alcohol, and foods with little nutritional value, such as pop and chips, are also ineligible for the Food Mail Program.

Currently, about 85 per cent of the program’s funding goes toward nutritious perishable food, 10 per cent to non-perishable food and five per cent to essential non-food items such as clothing, household supplies and personal care products.

However, even with the current program in place, a family of four in the most isolated communities in Nunavut can spend between $250 and $300 a week for a basic healthy diet if the family relies only on store-bought food.

The same food basket generally costs about $220 in northern Quebec and between $135 and $155 in cities in southern Canada.

Late last year in Kugaaruk, the price of fruit, vegetables and dairy products fell dramatically as the town began the 18-month pilot project to see if lower prices will persuade people to eat more good food instead of junk food.

Instead of paying $4.99 for a litre of milk, people in Kugaaruk now pay only $2.49. This is because the cost of sending perishable food mail to Kugaaruk is 30¢ a kilogram, down from the regular cost of 80¢. The 75¢-a-parcel charge has not changed.

Koomiut co-op manager Emiliano Pangok said the project has made a difference because he has seen an increase in customers buying fresh produce, such as bananas and apples.

In addition, said Canada Post’s Ed Miller, the food mail program plans to make wholesalers and retail stores adopt new packaging to keep vegetables and fruit fresher.

The new packaging is expected to reduce the throw-away rate for perishable items sent through the mail, which can sometimes be as high as 25 per cent.

Keeping food fresher longer will also reduce the amount of perishable food that needs to be sent through the mail.

The pilot project won’t affect the cost of mailing non-perishable food and non-food items.