Food fight in Aisle 3: Grocers, suppliers clash over need for code of conduct in Canada
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The Australian Competition and Consumer Commission (ACCC), which oversees the code, found that by curtailing fees and penalties, the code drove supermarkets to work with suppliers to find ways to reduce waste and better manage their systems internally.
“It turned the focus to competing on the basis of their operations, rather than relying on squeezing suppliers to compete,” said Mick Keogh, deputy chair at the ACCC. “The code has basically said to them … if you want to compete, you better compete by getting your systems in order.”
FCPC and other industry advocates in Canada have been calling for a similar code here for several years, but have stepped things up after COVID-19 underscored the importance of a strong food supply chain. FCPC CEO Graydon said the government appears to be taking the request seriously.
“They’re certainly doing their homework,” he said, adding that he and two of his major manufacturing members met with Agriculture Minister Marie-Claude Bibeau this week. “COVID had a lot to do with changing the opinions.”
But it appears that despite heightened interest from the federal government in recent weeks, a Canadian version isn’t close at hand.
On Tuesday, Innovation, Science and Industry Minister Navdeep Bains’ office criticized the fees charged to suppliers, but then said the federal government isn’t planning on moving forward with a code.
“It is disappointing to see grocers impose these costly fees,” John Power, the minister’s spokesperson, said in an email. “However, we recognize that terms of sale are generally the exclusive domain between suppliers and buyers, and that these fall under areas of provincial jurisdiction.”
