Increased supply chain efficiency would help control food price increases.Ottawa-Work is continuing on drafting a grocer code of conduct as requested by the federal and provincial agriculture ministers and consultations on it will be launched, says Mathieu Frigon, President and CEO of the Dairy Processors Association of Canada (DPAC).The goal of an industry steering committee developing it is to reach a binding and enforceable Code to ensure its objectives are met, Frigon told the Commons agriculture committee.“We cannot overemphasize the importance of a Canadian Code of conduct to improve efficiency and collaboration throughout the supply chain. The Code will aim to bring transparency and greater contractual certainty to business relationships through clear terms and agreements between suppliers and retailers,” he said.It will ensure that agricultural producers, processors, wholesalers, and large and small retailers adhere to ethical standards and ensure fair transactions throughout the value chain.A dispute resolution process will be established “to allow for the quick and efficient resolution of commercial disputes between suppliers and retailers, if they cannot resolve these disputes on their own.”The Code will need to be business-friendly with clear and simple measures, rather than include overly rigid rules and cumbersome processes, he said. “The goal is to increase efficiency by reducing bureaucracy, certainly not the other way around.”DPAC wants a mandatory and enforceable Code that truly enhances the opportunity to achieve better collaboration between suppliers and retailers. “A Code will help make the grocery sector more efficient and resilient and therefore better equipped to meet the challenges that will undoubtedly arise in the future.”As for tackling food price inflation, the best way for governments to help is with measures to increase supply chain efficiency.In general, the relationship between grocery chains and suppliers is not good, Frigon said. “That's why we've been working for several years on a Code for grocery sector products - to improve the relationship between all the links in the chain.”A Code will not regulat prices in ther food system, he said. Its purpose is to establish contractual certainty, improve relationships and reduce bureaucracy, fees and arbitrary penalties in favour of contractual certainty.