Bibeau hopes agriculture ministers will reach a solution in July.
Ottawa—Six associations have formed an alliance to develop a grocery code of conduct to achieve a balanced relationship between food suppliers and the largest grocery chains.
The move came as Agriculture Minister Marie-Claude Bibeau said a grocery code of conduct could be agreed to during the federal-provincial agriculture ministers meeting in Guelph in July.
Bibeau told the Commons agriculture committee in late May that the federal working group, cochaired by Ottawa and Quebec, has been working since last November with the other provinces on a proposal to present to the ministers this summer. “We hope to have the best solution by then.” The group was formed in response to complaints from farm groups and food processors about fee increases imposed on suppliers by the five largest grocery store chains.
The Canadian Food Industry Collaborative Alliance (CFICA) said it has developed a framework that proposes a transparent, consultative, and collaborative process for food industry leaders to develop a Canadian Food Industry Code of Practice.
CFICA wants government aid in developing the Code to “reflect and respect the unique elements of Canada's food supply chain and federated system of government.”
The Code must be administered uniformly to ensure consistency otherwise there will be a series of provincial ones, which would impose increased costs and complexity throughout the supply chain, it said. While the Code requires a strong oversight framework that ensures accountability of the participants, it should not be embedded in regulation so it has the flexibility to solve problems.
With a framework in place, CFICA said industry stakeholders will design the Code and an Oversight Framework suited to the domestic food system.
Its members are the Canadian Federation of Independent Grocers, Canadian Produce Marketing Association, Food and Beverage Canada, the Quebec Food Processing Council, Quebec Food Retailers Association and the Retail Council of Canada. A wide array of farm organizations including the Canadian Federation of Agriculture support the Code's development.
CFICA said that to promote good faith dealings in the food supply chain, the Code will have to include a series of principles “including transparency and contractual certainty in all commercial transactions and best practice reciprocity throughout the supply chain.”
It will also need to promote fair and ethical dealings in contract negotiations, ensure equitable distribution of food supply, provide supports for small and mid-sized parties to commercial transactions and include an effective, fair and applicable dispute resolution process.
A consultative approach to developing the Code “will help ensure stakeholders have a forum to express their views and to build support through the development process. In working together, we can develop the terms of a Code of Practice, design the implementation and enforcement framework, and ensure broad industry participation and support.”
CFICA said it was inspired by the agriculture ministers' request for industry collaboration and leadership in developing the Code. The ministers should establish a Secretariat to manage day-to-day implementation of the Code. It could be set up in a government department or an arms-length body such as the Canadian Agri-Food Policy Institute.
The goal to present the governments with detailed plans for the Code and its operation starting by the end of this year with further details coming during 2022.
Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.