Sunday, 15 January 2023

SOCIAL: CANADA'S GROCERY CODE OF CONDUCT

In Canada five of the largest chains of distributers control over 80% of the market of groceries.  These grocery chains have been known to price fix and have caused such staple goods as bread to have an increased price.  With a Grocery Code of Conduct, there are going to be new rules to the distribution and supply chain involving groceries.  The Grocery Code of Conduct promises an independent adjudication office to enforce new rules.  A draft proposal has already been sent to the government created by "industry groups representing farmers, food processors, independent grocers and national retail chains" (Financial Post 2023).  Before the years end expect the Grocery Code of Conduct to be ratified and put into practice.  There are other countries that have a Grocery Code of Conduct of which include the UK and Australia.  With this new framework, the open market is protected.  The above mentioned five retail chains have unreasonable demands as "$1,000 penalties for late deliveries and payments of more than $100,000 to list a new product on shelves" (Financial Post 2023).  With a Grocery Code of Conduct the adjudication office is going to absolve those demands and make fair rules.  

Work Cited

Financial Post.  (2023).  Grocery business to have first-ever code of conduct by end of 2023: Agriculture minister.  Retrieved from: https://financialpost.com/commodities/agriculture/grocery-code-of-conduct-end-of-2023-agriculture-minister

No comments:

Post a Comment