Indian and Northern Affairs Canada (INAC) makes payments to Canada Post to subsidize the transportation of food and essential non-food items by air to northern communities in Nunavut, the Northwest Territories, Yukon, Labrador, Quebec, Ontario, Manitoba, Saskatchewan and Alberta. In 2001-2002, INAC paid approximately $25 million to Canada Post for Food Mail service provided to the 60 communities, with 46,000 people, that use this program extensively.

Since July 1993, the postage rate has been $0.80 per kilogram plus $0.75 per parcel for nutritious perishable food. Higher rates are charged for non-perishable food and non-food items: $1.00 per kilogram in the provinces (in effect since January 1994) and $2.15 per kilogram in the territories (in effect since 1990), plus $0.75 per parcel.

In partnership with the Air Cargo Transportation Research Group of Laval University, Canada Post and INAC have launched the Food Mail Quality Assurance Initiative. New guidelines for facilities, handling, packaging, sanitation and inspection are being phased in across the Food Mail network to ensure that northerners using the Food Mail Program have access to safe and nutritious perishable food.

Three pilot projects are also underway which are designed to reduce the cost of nutritious food and promote healthy eating habits. Specifically, the pilot projects involve:

• a postage rate reduction of $0.50 per kilogram for "Priority Perishable Foods";
  
• an intensive nutrition education program; and
  
• retail promotion of healthy foods.

Priority perishable foods include fresh and frozen fruit and vegetables, frozen juice concentrate, most dairy products, and eggs. Throughout these pilot projects, the cost of shipping these foods to these communities has been reduced from $0.80 per kilogram to $0.30 per kilogram plus $0.75 per parcel.

The first pilot project was launched in December 2001 in Kugaaruk, Nunavut followed by a second one in Kangiqsujuaq, Quebec which began July 1, 2002. The third pilot project began January 1, 2003 in Fort Severn, Ontario.

In all of these communities, surveys to collect baseline information about current food consumption habits, food purchasing, and food security were conducted. The impact of these projects on food prices, consumption, nutrition and food security will be evaluated over the next 18 months.

Kugaaruk, formerly Pelly Bay, is a community of about 600 people in Nunavut.

Kangiqsujuaq, formerly Wakeham Bay, is a community of about 540 people in Nunavik, approximately 1500 kilometres north of Val-d'Or.

Fort Severn is a Reserve community with approximately 450 residents. It is located about 530 kilometres north of Pickle Lake.

March 2003

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