The fees associated with the simple act of placing products on a store shelf for consumers represent almost one-third of the cost of business for dairy processors. Sometimes these fees are anticipated, what is concerning are those fees and penalties that are levied arbitrarily or do not adhere to the terms of contracts. The high cost of doing business with Canada’s largest retailers is reducing investment and innovation in Canada’s agri-food sector.
Dairy Processors Association of Canada has joined others in the food and beverage sector to call on governments to implement a Grocery Code of Conduct to create a balanced, competitive environment that benefits everyone: grocery retailers, large and small, and their Canadian suppliers, and Canadian consumers.
A Grocery Code of Conduct would address the conduct of Canada’s large grocery retailers, review all current fees, penalties, and aftersale deductions, and to protect Canada’s agri-food sectors.
It is about ensuring that decisions made today do not undermine Canada’s ability to grow and process food at home in the future.