Quick Facts
- In 2022, five grocery retailers control almost 80% of the market share in Canada
- As of February 2023, grocery prices rose 10.6% year-over-year, more than double the overall inflation rate.
- A Grocery Code of Conduct promotes predictability, transparency, and fair dealing as ingredients and products make their way from suppliers to stores to Canadians’ homes.
- Grocery Codes of Conduct in other regions, such as the UK and Australia, have led to better dealing between suppliers and retailers, and have increased growth throughout their food supply chains.
Issue Overview
In 2021, the Federal, Provincial and Territorial Ministers of Agriculture provided the mandate to develop an industry-led Grocery Code of Conduct, which would increase transparency, predictability, and respect for the principles of fair dealing in supply chain relationships. CFA has been engaged in the development of the Code since its inception.
The Grocery Code of Conduct will enable the agri-food industry to provide solutions that would help support all supply chain partners in the grocery industry.
The entities and products covered are those normally associated with the production, processing, distribution and sale of a wide range of food and consumer packaged goods in the Canadian grocery industry that would be available to consumers in grocery stores.
The success of the Grocery Code of Conduct depends on the involvement and support of all major grocery retailers. There have been concerns about potential market imbalances if not all key players participate, a topic that was prominently discussed in recent House of Commons Agriculture Committee hearings.
Working Towards Solutions
CFA has been heavily involved since 2021 in the development of the Code as part of an industry-led steering committee comprised of farm, processing and retail associations.
This steering committee has now transitioned to an interim Board of Directors, representing a newly formed Office of the Adjudicator for the Grocery Code of Conduct.
In late 2023, the Board presented a Grocery Code and its governance framework to Federal, Provincial, and Territorial Ministers. This marked a key phase in an ongoing code development effort that began in Fall 2021.
The Board continues to work towards achieving consensus on the finer details of the Code with all involved parties and moving forward with implementation.
CFA Recommendations
- That all major retailers, suppliers and processors sign onto an industry-led Code voluntarily. If this is not possible, pathways to mandate participation from key players should be pursued.
- Ensure the code is supported by effective dispute resolution processes to ensure they are accessible, expedient, and meet the needs of producers of all sizes.