Provincial Codes must be harmonized by a federal framework.   Ottawa--The Dairy Processors Association of Canada (DPAC) has added its voice to calls from farm and processor groups for a Grocery Code of Conduct for the five large food retailers. DPAC Chair Michael Barett said mandatory and enforceable provincial Codes supported by a federal framework that harmonizes them are needed to halt the arbitrary fees and other costs on suppliers that largest retailers employ. The request came as a federal-provincial working group, which has been studying the issue since last fall, completes its proposals that are expected to be presented to the meeting of agriculture ministers in September. Barett said the dairy sector “believes that the current environment whereby retailers hold significant market power has limited investment in Canada's agrifood sector and instills a culture of distrust between retailers and suppliers, which ultimately hurts consumers.” Other countries including the United Kingdom, have seen positive results from such Codes. “Thus, the sector believes that mandatory codes are the only way to restore fairness and balance in Canada's food supply, for the benefit of the entire value chain, from farm to fork,” he said. In a letter to federal Agriculture Minister Marie-Claude Bibeau and Andre Lamontagne, Quebec Deputy Agriculture Minister, Barett said, “Retailers' use of arbitrary fees and deductions and lack of adherence to terms of contracts has created a climate of uncertainty which disincentivizes investment across Canada's agrifood sectors. “Retailer demands of suppliers increase the cost of getting products to consumers and, for Canada's dairy sector, undermine the principles which support the efficiency of Canada's supply management system. The arbitrary fees paid to retailers is money that is not being reinvested in dairy operations, in employees and their communities, or in product innovations that consumers want. This reduces the resiliency of Canada's dairy processors which in turn impacts the Canadian dairy farms reliant upon a strong domestic processing industry.” He said the high cost of doing business with major retailers limits the ability of small and medium-sized suppliers to get their products to consumers. “While the root of this problem is within our food supply chain, chronic underinvestment in processing capacity will ultimately harm Canadian consumers. The experience of other countries with legislated codes provides clear evidence that a mandatory grocery code is the best way to address these issues and create the transparent and collaborative environment required for a strong food supply chain.” To work, the Code must have a legal basis and set out mandatory and clearly articulated rights and obligations of parties; and mandatory and meaningful consequences for non-compliance, enforced by an independent and specialized body. 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.