LOAVES & FISHES FOOD BANK SQUEEZED

 

Rising Need, Falling Resources — And a Big Build in the Middle

Opinion — Voice of Nanaimo

November 7, 2025

Nanaimo’s Loaves & Fishes is caught in a vise: demand is up, resources are down, and a 24,000‑sq‑ft regional warehouse is rising on East Wellington just as the fuel (cash and food) to run it sputters.

On the demand side, they’re serving more people than ever—while donations slide. Over the past year, cash giving is down roughly 20%, and the organization says it’s now carrying an ~$35,000 monthly operating deficit, even trimming its Christmas program to gift cards only. That’s not “nice‑to‑have” funding evaporating; that’s core operations under strain.

On the capital side, the warehouse is meant to make the whole Island’s food‑recovery system work better—more storage, better logistics, less waste. The Province put in $7 million expressly for construction; Ottawa promised $5 million (through PacifiCan in the 2024 Fall Economic Statement); the City bought the land (~$1.3M) and is leasing it for 30 years at a nominal rate. As of late 2024, Loaves & Fishes still projected a ~$2.2M shortfall to finish. In other words, the build is largely government‑backed, but capital dollars don’t buy diesel, wages, or utilities.

That’s the paradox: expanding capacity precisely when the inputs are shrinking. Grocery “good food” recoveries have also dipped at points this year—partly a function of leaner retail inventories and inflation squeezing surplus. Fewer recoverable cartons + fewer donor dollars = the worst possible timing for operations.

What Nanaimo should ask for—right now

Absolute clarity on dollars. A simple public dashboard should separate capital (the building) from operations (everything it takes to move food). Show: (a) capital budget vs. commitments vs. cash in bank; (b) operating revenue vs. expenses, monthly; (c) volumes (kg) in and out; (d) people served. If federal money is delayed, say so plainly and quantify the carrying cost if bridge financing is required (the org has warned a mortgage in the ~$30k/month range would bite into services).

A community plan to stabilize operations through 2026. Short term, this is about cash flow. Food drives help, but cash buys exactly what’s missing, when it’s missing, at the best price. Publish a three‑line “keep the doors open” budget target to year‑end (e.g., fuel, wages, utilities) and ask the public and businesses to underwrite specific months or line items. Tie gifts to outcomes (“$X keeps trucks rolling for Y weeks”).

Governments: finish what you started. The $5M federal commitment should move from promise to payment. If installments were scheduled over two fiscal years, tell the community when and how much; if timelines have slipped, explain why—and what interim financing looks like. The City and RDN, already key partners (land purchase; early‑phase support), could consider temporary interest‑cost relief or a bridge‑support backstop only if federal funds are delayed—time‑limited, transparent, and tied to metrics.

Value‑for‑money vigilance—without conspiracy. People are right to ask: is the build cost reasonable? At a headline ~$14M for ~24,000 sq ft (≈ $583/ft²), it’s high for a bare “box,” but within striking distance for a distribution facility with food‑safe fit‑out, cold‑storage, docks, heavy MEP and siteworks. The remedy isn’t outrage; it’s line‑item transparency: shell vs. MEP vs. cold rooms vs. siteworks vs. soft costs. Publish the breakdown and benchmark each bucket.

Metrics that matter. Every month: kilograms recovered, kilograms distributed, people served, operating burn rate, and average cost per kilogram moved. If inputs (from grocers) keep falling, say whether the new building changes that math (e.g., can you capture seasonal gluts Island‑wide that you couldn’t before?).

This isn’t just a Nanaimo story; it’s a 2025 story. Inflation, donor fatigue, and thinner retail surpluses are colliding with rising need. Capital solves capacity; it doesn’t solve cash‑flow. If we want the trucks rolling and shelves stocked, we need operating dollars now and predictable capital flow to finish the build. Anything less is a warehouse with the lights off.

Call to action. If you can give, give cash. If you’re a grocer or distributor, pick up the phone about regular recoveries. If you’re in government, expedite the capital you’ve already announced and help neutralize any short‑term financing costs tied to any delay. And to Loaves & Fishes: publish the dashboard, own the numbers, and keep this community in the loop—good, bad, or ugly.