North West drops prices 5%

Starting April 1, Winnipeg’s North West Company announced price reductions of at least 5% at its stores that are eligible for Nutrition North Canada subsidies.

The total annual cost savings to northern consumers is estimated to be about $6 million in the first year for eligible communities—the most significant decrease in food costs in Northern Canada in recent history.

Last year, the federal government announced the Nutrition North Canada program, which replaced the old Canada Post-run food mail program.

Under the new program, northerners will see subsidies on a more restricted list of healthy foods, the elimination of mandatory entry points for subsidized food, while retailers will be allowed to negotiate their own freight rates with airlines.

Some however, fear that smaller independent retailers won’t be able to get rates as favourable as the North West Co.

By October 2012, the list of eligible products will be limited to mostly fresh meat and produce.