Toronto’s Spirit Drives Produce

Diversity, distribution, and power of the Ontario Food Terminal fuel the region.

Toronto is a vibrant, multicultural city where an extraordinary range of cuisines coexist. North African flavors mingle with Indian fare, while lovers of Mediterranean food can savor authentic Greek, Italian and Portuguese dishes. The Far East is equally well represented, with bustling enclaves like Chinatown and Koreatown offering rich culinary traditions. Underpinning this dynamic food scene is a strong emphasis on fresh produce, much of it sourced from the Ontario Food Terminal, the beating heart of Toronto’s thriving produce industry.

This ethnic variety is one of the city’s most distinctive features. An official 2024 survey put the population in the Greater Toronto metro region in excess of 7.1 million — outpacing growth in Canada as a whole — of which more than 50% came from one or more of the metropolis’ ethnic minorities.

That diversity directly shapes produce demand. As Sean Balog director of sales and marketing for Hillside Gardens, a grower based in the Holland Marsh just north of the city, explains, “Toronto is one of most dynamic produce markets in North America. It’s a large, diverse and highly food-focused city where consumers cook across a wide range of cuisines and expect a broad, high-quality produce offering.”

Although Canadian grocers Loblaw and Sobeys dominate alongside regional chain Metro, U.S. retailers Walmart and Costco maintain a sizable market share. At the same time, retailers appear to be placing an increasing focus on expanding their own discount banners, including Loblaw’s No Frills banner, as revealed by the JLL 2026 Grocery Report.

Much of the fresh food needs of Toronto’s population are served by the Ontario Food Terminal in Etobicoke, a location that handles over 2 billion pounds of both imported and domestically sourced produce every year. It accounts for a large share of the more than $7 billion worth of fruits and vegetables imported annually into the province, according to the Ontario Produce Association.

The wholesale-only site, which also contains a farmers market, is home to 20 warehouse tenants who supply the Greater Toronto region, and Ontario as a whole, with a huge variety of imported fruits and vegetables.

WHAT MAKES TORONTO UNIQUE

One such wholesaler is J.E. Russell Produce, a company that began life as a “berry and lettuce house” before evolving to cover a huge range of produce, among them pineapples, avocados, mangos, kiwifruit and limes.

“We have grown and succeeded in categories where we have strong relationships with our grower/shipper partners,” says Senior Vice President Hutch Morton. “Operating where we are in the supply chain, we need to work with partners who value the work that we do, marketing their products and connecting them to markets and customers that they could never do themselves.”

Newer to Russell’s offering are table grapes, plus a summer U.S. watermelon program. “The list keeps growing so long as we continue to find new opportunities to surprise and delight our customers,” adds Morton.

As a major, multicultural metropolis, Toronto presents a “unique and truly a vibrant market” for the food terminal’s companies, thanks to a high presence of independent retailers, according to Morton.

“In some ways, it is very much akin to a city like New York City, where there are street vendors, produce carts, and many ethnic independent markets,” he says. “These smaller independent produce outlets add a unique sense of community to a big city of small communities.”

“In some ways, it is very much akin to a city like New York City, where there are street vendors, produce carts, and many ethnic independent markets. These smaller independent produce outlets add a unique sense of community to a big city of small communities.”
— Hutch Morton, J.E. Russell Produce, Toronto

Another terminal mainstay, Stronach & Sons, has supplied leafy greens, wet vegetables, apples, cherries, broccoli, asparagus and squash to retail and foodservice providers for many years. Following a change of ownership in 2020, the company has been targeting new markets for its core items by pricing more aggressively, according to Stronach’s Jonathan Morano.

Morano says Toronto’s produce needs are always evolving to reflect the changing population makeup. At the same time, he says Stronach was recently impacted by the politically engaged population of the city, who were very cautious about product country of origin.

That same diversity is driving demand for more differentiated products. “We continue to see interest in items, such as colored heirloom carrots, each variety with its own flavor profile and usage, enabling us to supply the growing ethnic consumer demand for that ‘taste of home,’” explains Balog.

THE WHOLESALE ROLE

According to Morano, retail consolidation has significantly impacted wholesale markets. At the same time, he says wholesale markets are now significantly more adaptable to innovation and new product ideas, including changes to pack sizes, when compared with the large supply chains set up by major retailers.

Morano believes the role of Toronto’s many independent grocers is key to the well-being of the food terminal and its tenants. “Independent retailers are of huge importance to the Toronto wholesalers, as they make up a significant portion of our sales, and the terminal staying open prevents major issues for both local Canadian farmers and consumers in terms of produce pricing.”

One of the largest Canadian importers of Chilean produce, North American Produce Buyers is a major supplier of stone fruit, table grapes, and citrus from its location at the terminal. Currently in the middle of its offshore season from Chile, Peru and South Africa, the company is continuing its focus on maintaining a consistent and high-quality supply of fruit year-round, according to Vice President of Finance Steven Moffat.

As with other wholesalers, Moffat highlights Toronto’s size and large, diverse population, but he also singles out the strategic location of the food terminal in the midst of the city, a location that enables easy access, and allows North American to provide quality produce to retailers on demand.

“Independent retailers come to the market every day,” says Moffatt. “They are connected to the nuances of the market and can manage day-to-day changes in the supply environment. Being nimble and able to adjust quickly to any adverse conditions gives them an advantage.”

According to Morton at J.E. Russell, a key advantage for Ontario Food Terminal’s businesses is the site’s proximity to customers in downtown Toronto.

The facility, he says, also benefits from having the scale of a major terminal market — the third biggest in North America — where Russell is able to sell to smaller wholesalers who go on to service markets to the west, north and east of Toronto.

“We have customers who go to the maritime provinces, as well as northern Ontario,” he says. “These are markets that rely on a highly functional produce supply to get fresh and healthy food.”

Moffat expresses a similar viewpoint, explaining that Toronto benefits from the relatively close presence of Eastern U.S. ports, where most produce arrivals pass through in transit to Canada.

“This logistical advantage allows us to operate as a hub in Toronto, distributing across the entire country,” he says. “The location of the Ontario Food Terminal is a major logistical advantage to the supply chain for the city, province and entire country.”

For Morano, a major advantage of being located at the terminal is the ability to act rapidly on deals coming out of major growing regions. “With our daily access to thousands of customers seeing new product arrivals, we can often help growers push significant volume when needed.”

Morton also notes the presence of the food terminal encourages competitive pricing across all of its tenants, thanks to the transparent pricing of the companies.

MARKET RISKS

According to Morton, the biggest risk to Toronto’s supply chain is the uncertainty surrounding the 2026 renegotiation of the United States-Mexico-Canada Agreement (USMCA). “In a world where many household budgets are already stretched because of the inflationary pressures of the past few years, we know that any additional costs brought on by a change to the free trade of fresh produce will be a major pain point, and potentially an existential threat.”

Citing the short-lived tariffs of 2025, Morton believes any new tariffs or non-tariff barriers would cause stress across the supply chain. “A single item, like American watermelons, which had a 25% tariff last summer, added hundreds of thousands of dollars in costs that were ultimately the pain borne by the end consumer.”

More recently, Morano says the stability of the supply chain has “taken a drastic turn” with the increase in gas prices. “Freight has spiked, as there is a lot of uncertainty in gas prices as we move forward.”

Despite this, Morano reveals that Stronach & Sons moved toward becoming a larger volume house on the market by carrying more products, which are competitively priced.

ONTARIO’S GREENHOUSE GROWERS

The Ontario Food Terminal is only one side of the province’s produce story. An equally important part can be found in Ontario’s southernmost municipality, where much of Canada’s greenhouse industry can be found concentrated between the towns of Kingsville and Leamington.

Family-owned greenhouse grower Del Fresco Pure has been producing for 70 years, specializing in conventional and organic cucumbers, peppers, and tomatoes with a focus on year-round availability, consistent quality, and sustainable growing practices.

Ray Mastronardi, the company’s vice president of sales, says Del Fresco Pure benefits from its proximity to Toronto, a market he believes offers growth opportunities and rewards innovation.

“Toronto is a highly sophisticated produce market driven by cultural diversity and strong consumer expectations for flavor, transparency, and sustainability,” Mastronardi explains. “Greenhouse-grown produce aligns well with these preferences by delivering consistent quality and year-round availability.”

“Toronto is a highly sophisticated produce market driven by cultural diversity and strong consumer expectations for flavor, transparency, and sustainability.”
— Ray Mastronardi, Del Fresco Pure, Kingsville

At the same time, he says Toronto is a market where high consumer expectations drive demand for quality and differentiated products. “Challenges include competitive pricing and evolving shopper preferences, making operational efficiency and value-­added solutions critical to success.”

According to Mastronardi, Ontario’s greenhouse production provides the Toronto region with a level of food stability by enabling year-round output and reducing reliance on seasonal variables.

“Toronto’s proximity to growing regions enhances supply chain efficiency and product freshness by reducing transit time and preserving quality,” he continues. “It also enables closer collaboration between production and distribution, allowing for faster responses to market trends and retailer needs.”

Mastronardi says the city’s independent retailers remain essential partners because they respond to local consumer preferences and provide curated assortments. “This dynamic creates opportunities for collaboration and tailored solutions that strengthen category performance.”