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Nutrition North Canada

www.NutritionNorthCanada.ca

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Program Overview

Recipient Eligibility

The following applicants may be eligible to become Program recipients:

  • Northern Retailers: Retailers that operate stores located in eligible communities, where eligible items are available for purchase, that possess a Business Number issued by the Canada Revenue Agency, and that agree to the terms and conditions of the arrangements to be made with Aboriginal Affairs and Northern Development Canada (AANDC) to govern the transfer of funds (the subsidy).

  • Southern Suppliers: Retailers and wholesalers that operate a business located in Canada, where eligible items are available for purchase, that possess a Business Number issued by the Canada Revenue Agency, that sell eligible products to northern retailers, eligible social institutions, establishments and individuals, and that agree to the terms and conditions of the arrangements to be made with AANDC to govern the transfer of funds (the subsidy).

  • Northern Country Food Processors/Distributors: Federally regulated country food processors/distributors and/or approved-for-export, commercial plants located in the North that supply eligible items to eligible communities, that possess a Business Number issued by the Canada Revenue Agency, that meet the Program’s selection criteria, as set out by the Department, and that agree to the terms and conditions of the arrangements to be made with AANDC for the transfer of funds (the subsidy).

Program Supply Chain Model

  • The Canada Post Corporation does not play a role in the provision of transportation and logistics services under the new Program's supply chain model.

  • Food Mail Commercial Accounts with Canada Post were not transferred to Nutrition North Canada (NNC).

  • The concept of “entry points,” which was a feature of the Food Mail Program, no longer exists under the NNC Program. Arrangements to ship eligible items to isolated northern communities must be managed solely by Program recipients and their supply chain partners at their convenience and discretion.

  • Recipients are solely responsible for directly negotiating their own shipping arrangements and shipping rates with air carriers and other supply chain stakeholders.

Subsidy

  • Only eligible items shipped by air are eligible for a subsidy.

  • To receive a subsidy for eligible products, recipients are responsible for submitting claims to AANDC or its designated external party.

  • Claims submitted for reimbursement require supporting documents in accordance with the recipients’ agreement with AANDC.

  • AANDC may provide advance payments to recipients so that they are not required to provide upfront, ongoing funding for the transportation of eligible products while claims payments are being processed. Advance payments would be based on the recipients’ cash flow requirements and a risk assessment.

  • Northern retailers in eligible communities that may not have the capacity to manage claims and other requirements have the option of ordering eligible items from southern suppliers registered with the Program, who will claim the subsidy from AANDC and pass on the savings to their clients.

  • The provision for personal orders that was a feature of the Food Mail Program has been retained in the NNC Program. Individuals, social institutions (schools, daycares, etc.) and establishments (hotels, restaurants, etc.) located in eligible communities are able to access the subsidy for eligible items by ordering from southern suppliers registered with the Program, who will claim the subsidy from AANDC or its designated external party and pass on the savings to their clients.

Subsidy Rates / Item Eligibility

  • The flat shipping rates that were a feature of the Food Mail Program have been replaced by “subsidy rates” on a per kilogram basis for each category of eligible items, customized to every community to account for differences in transportation and operation costs. For example, the subsidy rate for Grise Fjord is higher than the rate for Iqaluit.

  • Subsidy rates will be re-evaluated periodically to maintain food prices as equitable as possible across eligible communities and to ensure the Program operates within its budget.

  • Eligible items are classified into six categories for reporting and data collection:

    • Foods in category 1, considered to be the most nutritious, receive a higher level of subsidy.

    • Foods in category 2 receive a lower level of subsidy than category 1 to reflect either their lower nutritional value or the fact that these foods may be shipped by more cost-effective modes of transportation.

    • Non-perishable foods in category 3 and non-food items in category 4 are eligible for all communities during a transition period that began on April 1, 2021 and ends on October 1, 2012. As of October 1, 2012, these products will be eligible only for communities without seasonal surface transportation such as winter roads or marine service (i.e., currently only Old Crow, Yukon). The lower level of subsidy applies to these categories.

    • Country foods supplied from Northern federally, provincially or territorially -regulated processors/distributors and/or approved-for-export, commercial plants make up category 5 of eligible items.

    • Category 6 includes other products that are eligible for all communities only during a transition period that began on April 1, 2021 and ends on October 1, 2012. The lower level of subsidy also applies to this category.

  • Subsidy rates

  • Item eligibility list

Community Eligibility

  • Communities that were considered extensive Food Mail Program users – in other words, communities that received over 15,000 kg (annualized) of perishable Food Mail shipments in 2009-2010 or for which the per capita subsidy was more than $4 per month – are eligible for a full subsidy under the new Program (according to the subsidy rate schedule).

  • Communities that were considered low Food Mail Program users – in other words, communities that received between 100 and 14,999 kg (annualized) of perishable Food Mail shipments in 2009-2010 and for which the per capita subsidy was less than $4 per month – are eligible for a partial subsidy of $0.05/kg under the new Program.

  • Community eligibility levels (full vs. partial) will be re-evaluated annually by AANDC based on analysis of food prices in the communities.

  • Communities that did not use the Food Mail Program in 2009-2010 (less than 100 kg annualized) are not eligible under the new Program.

  •  Community eligibility

Country Food

  • NNC provides a subsidy for the transportation of country foods (Arctic char, muskox, caribou, etc.) between northern country food processors/distributors (defined above) registered with the Program and eligible northern communities.

  • Only country foods processed in federally regulated and/or approved-for-export, commercial plants are eligible for the subsidy.

  • The subsidy for country foods can be claimed by northern retailers or by northern country food processors/distributors registered with the Program.

  • Subsidy rates for country food originating from the North

Recipient Requirements

AANDC requirements for recipients to ensure compliance with Program goals and objectives include, but are not limited to, the following:

  • Capacity to submit electronic claims on a community-by-community basis in an approved form and with supporting documentation;

  • Capacity to submit electronic itemized shipment information in an approved form on a community-by-community basis (for northern retailers and southern suppliers only);

  • Capacity to submit electronic food pricing reports in an approved form on a community-by-community basis for a pre-determined basket of foods (for northern retailers only);

  • Providing visibility for the Program and the subsidy through on-receipt messages and/or in-store signage and displays and/or by including communication material (provided by AANDC) with shipments;

  • Compliance with AANDC requirements to submit to audits as required.

 

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Date Modified:
2021-02-10