Along with other industry associations that have appeared before this committee, our association is part of the steering committee working on the development of a code of conduct for the grocery sector. 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. The code will ensure that agricultural producers, processors, wholesalers, and large and small retailers adhere to ethical standards and ensure fair transactions throughout the value chain.
The code will be more than a written document, because it will also aim to establish a dispute resolution process that will allow for the quick and efficient resolution of commercial disputes between suppliers and retailers, if they cannot resolve these disputes on their own.
It is important to note that the code will need to be business-friendly, which means that it will need to be clear and simple, rather than include overly rigid rules and cumbersome processes. The goal is to increase efficiency by reducing bureaucracy, certainly not the other way around.
My association believes that the code should be mandatory and enforceable so that it truly enhances the opportunity to achieve better collaboration between suppliers and retailers.
In conclusion, the dairy processing industry has been a strong contributor to the Canadian economy over the years and we believe that the inflationary pressures we have faced have been mitigated to the greatest extent possible through efficiency gains at the processing level. The implementation of a code of conduct for the grocery sector will help to make the sector more efficient and resilient, and therefore better equipped to meet the challenges that will undoubtedly arise in the future.
Thank you again for your time and consideration on this very important topic. We welcome any questions you may have.