Federal government invests USD 1.2M to launch grocery code oversight office

CANADA – The Federal government announced a significant investment of USD 1.2 million to establish an office that will oversee the Grocery Code of Conduct.

This decision was revealed by Federal Agriculture Minister Lawrence MacAulay on what is also known as Grocery Heroes Day.

Michael Graydon, CEO of the Food, Health & Consumer Products of Canada association and chairman of the interim board for the Code, emphasized the substantial work ahead.

“We have a big job ahead with education for our stakeholders. We need to ensure they understand how it works and what it’s designed to do. We don’t want the adjudicator office to become a complaint office. Work will be about analyzing the performance of the Code,” Graydon said.

The allocated funds will support the establishment of the new office, including the hiring of an adjudicator. Graydon noted that finding the right person could take four to five months.

“We have selected a search firm to assist us with finding someone. We will do the work now to support the office prior to the arrival of the adjudicator so he or she will be in a better position and start running from the get-go,” he explained.

The Grocery Code of Conduct is a voluntary initiative aimed at fostering fair and ethical practices between grocery retailers and suppliers.

The Code seeks to achieve several key objectives: it aims to contribute to a thriving grocery industry, build reciprocal trust and collaboration, enable informed business decisions through clear agreements, and provide an effective mechanism for resolving disputes.

The Code is built on several core principles. It emphasizes transparency and certainty, ensuring clear agreements that define communication, payments, and obligations.

It also advocates for fair dealing across the value chain, requiring all supply chain participants to act in good faith. Additionally, it supports timely dispute resolution and favors simplicity over unnecessary complexity.

In the Canadian context, the Code includes principles, governance, and trade rule provisions. Due to legislative complexities, it is led by the industry rather than governed by a single entity. Any breaches of the Code may result in penalties, ensuring that suppliers are treated fairly.

This initiative is expected to bring greater clarity and fairness to the grocery industry, benefiting both retailers and suppliers.

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