Canada’s proposed grocery code of conduct will usher in a new era of fairness and transparency and stabilize grower incomes, said the Fruit and Vegetable Growers of Canada (FVGC) in a statement Thursday.
“We are ensuring a fair and equitable environment for our growers, which is fundamental for the prosperity of the entire supply chain,” said FVGC in a news release.
FVGC’s executive director, Rebecca Lee, is listed as a member of the steering committee in charge of developing the code.
The industry-developed code, which proposes rules for fairness and transparency in the grocery sector, is expected to stabilize growers’ incomes, the FVGC said.
Read Also
World food prices dip in May as cereal, sugar and vegoils drop
Global food commodity prices declined in May, driven by marked drops in cereal, sugar, and vegetable oil prices, the United Nations’s Food and Agriculture Organization said on Friday.
“Canada’s Grocery Sector Code of Conduct acts as a protective measure for the entire supply chain,” it added. “It addresses longstanding issues such as payment terms and contract fairness, which are crucial for the viability and sustainability of Canadian growers.”
It isn’t expected to increase costs to consumers, the news release said.
The code has run into headwinds in recent days as two of Canada’s largest grocers expressed reluctance to sign on to it.
Last week, Loblaw executive chair Galen Weston told the standing agriculture committee the code as currently written would cause higher prices, and Walmart Canada chief executive officer Gonzalo Gebera expressed similar sentiments.
Weston said Loblaw takes issue with clauses that govern written contracts with suppliers, whether retailers can charge suppliers fees when orders aren’t fulfilled, and others.
Michael Medline, CEO of Empire Company Ltd., which owns Sobeys, supports the code.
“This code is not a document comprising overly prescriptive regulations, but simply a straightforward set of principles of good behaviour developed by industry itself. That’s it. It won’t increase food prices, as Loblaw has claimed,” said Gary Sands, senior vice-president of the Canadian Federation of Independent Grocers.
–with files from Karen Briere. Geralyn Wichers is associate digital editor of AGCanada.com.
