Grocers’ code has broader benefits

Re: Grocers' code of conduct a flawed idea, Apr. 30:

This critique of the grocery industry code of conduct suggests that this initiative is not only flawed but also burdensome on taxpayers. This fails to tell the whole story.

First, the code aims to improve industry relationships by establishing clear principles and practices that promote fair and ethical dealings across the grocery supply chain. This includes provisions to prevent unilateral changes to contracts and mechanisms to ensure more predictable and transparent interactions between suppliers and retailers.

Moreover, concerns about the financial burden on taxpayers might be seen in a different light considering the broader benefits of the code. For instance, the code seeks to address contentious issues like arbitrary fees and late payments, which have been significant pain points for suppliers, particularly smaller players who lack the bargaining power of larger chains.

The comparisons with the U.K. and Australia, where industry codes are supported by levies on the industry rather than government funding, are valid. However, the implementation of the Canadian code still promises to bring significant structural benefits to the grocery sector by fostering a more balanced and fair marketplace. The ongoing development and refinement of the code, including the establishment of a dispute resolution mechanism, are steps toward a more equitable industry framework that could prevent the kind of supplier exploitation that has been highlighted in recent years.

Thus, while the funding mechanism for the arbitration office within the code is a point of contention, the potential for longterm industry improvements and direct benefits to the supply chain and, indirectly, to consumers should also be considered when evaluating the overall impact of the grocery code. Michael Graydon, CEO, Food, Health and Consumer Products of Canada