Grocery Code of Conduct development progressing but big steps remain

Governments may have to help align the Code.Ottawa-Key issues in the development of a Grocery Code of Conduct remain to be resolved by an industry steering committee and government intervention may be required to finish the process of getting suppliers and retailers onside with it, the federal and provincial agriculture ministers were told at their annual meeting in late July.The ministers want the Code completed by the end of November and thanked the steering committee for its significant effort in building a consensus on it. They asked the group to continue diligently including broader consultation with the full supply chain.The committee has been working since last November at the request of the ministers and is aiming for a Code that will “improve transparency, predictability and fairness between Canada's retail and supplier community. The complex negotiations moved from high level to detailed talks at the beginning of April, focusing primarily on the specific needs of a broad mix of industry and retail partners.”What it has achieved so far is “the framework for a collaborative and inclusive process through which industry stakeholders will design a Code of Practice and Oversight Framework that meets the unique needs of Canada's food system.”The Code must “promote and support good faith dealings and responsible commercial conduct along the food supply chain by:-Ensuring transparency and contractual certainty in all commercial transactions;-Ensuring best practice reciprocity throughout the supply chain;-Promoting fair and ethical dealings in contract negotiations, particularly where there is a significant disparity in negotiating power between the parties;-Ensuring equitable distribution of food supply;-Providing supports for small and mid-sized parties to commercial transactions;-Providing an effective, fair, and applicable dispute resolution process.The committee will proceed with a consultative approach to help ensure stakeholders have a forum to express their views and to build support through the development process. “In working together, stakeholders will identify, explore, and resolve issues jointly – ensuring a better end-product and helping to build understanding, collaboration, and compromise along the way.”While the committee found common ground on many key issues, it said it is still negotiating specifics tied to scope, what sorts of products and dealings should be covered by a code and payments, deductions, fines and fees.The complexity of developing the Code cannot be overstated. “It involves many constituents, representing a broad mix of industry and retail partners; each with diverse needs and concerns and this process takes time. We are hopeful that continued discussion regarding scope, payments, fees, fines, and deductions will bear positive results.”Upon resolution of outstanding issues, the Committee anticipates an additional phase that involves introducing the draft Code to a broader audience through a consultation process to inform and discuss key components. “It is crucial to seek input from many stakeholders and ensure a representative process of different interests has a voice in the Code development.”It wants to ensure the Code will “support the long-term sustainability and growth of this country's agricultural community, Canadian food, health and consumer goods manufacturing sectors and Canadian retailers of all sizes.“A strong food system is essential to Canadians. Our food system is the foundation of Canada's food sovereignty. It supports Canada's national, provincial, territorial, and regional economies and its international trade goals. It contributes to local production and food security, and it employs more workers than any other industry in the country. To ensure a robust food system, many stakeholders across the supply chain support the need for a code of practice for Canada.More information on the steering committee and its work can be found on the Canadian Produce Marketing Association website at https://cpma.ca/industry/canadian-food-industry-code