In Canada today, five large retailers control 80% of the grocery retail market. This concentration creates a power imbalance which allows retailers to unilaterally dictate the terms of business with their suppliers, including dairy processors.
The resulting use of arbitrary fees and deductions, and lack of adherence to terms of contracts by retailers increases the costs of getting products to Canadians and reduces Canada’s ability to have a strong domestic food processing sector.
This has created a climate that discourages investment in the Canadian Agri-food sector. Today, more than 80% of new products introduced in Canada are developed and manufactured outside of the country. Canadians want Canadian-made products.
How could a Grocery Code of Conduct help?
The introduction of grocery codes of conduct has helped other countries like the United Kingdom, Ireland, and Australia to create balanced, competitive environments which strengthen the domestic food supply.
Canadian food suppliers are seeking a similarly balanced and competitive grocery retail environment which benefits everyone in the food chain from the farm to the consumer.
A grocery code of conduct is not simply about investments and business practices. It is about ensuring that decisions made today do not undermine Canada’s ability to have secure access to food that is grown and processed at home in the future.
For more information :
- Joint Statement by Farming and Processing Associations: Arbitrary Fees Imposed by Large Grocery Retailers Will Cost Canadian Consumers and Impact Canada’s Food Security (August 6, 2020)
- Open letter to the Government of Canada by retail, farming and processing associations (August 26, 2020)
- Abacus Data polling conducted on behalf of Dairy Processors Association of Canada (September 2020)