This committee has heard extensive testimony about the grocery code of conduct. We understand from the testimony that this code is needed to govern the relationship between suppliers and grocers.
PIAC does not oppose a code. PIAC is supportive of a code, so far as it provides benefits to consumers, such as increased supply chain resiliency and, in the long run, more innovative products. What we are concerned with, however, are the new financial dynamics under a code that could impact consumer retail pricing.
Mike von Massow, an associate professor at the University of Guelph, described the pricing dynamics in the grocery code of conduct as a zero-sum game. That is, if suppliers make more money by facing either fewer fees or less price pressure, then either grocers will make less or consumers will pay more. Something has to give and it's not likely to be grocers' profits.
On March 8, Mr. Perron briefly questioned witnesses on the idea of a review of the code one year following implementation. PIAC is supportive of a post-implementation review and would add that any review should not only consider how the code has impacted industry relationships, but also consider whether the code has impacted retail prices for consumers. Innovative products are interesting, but food affordability must be prioritized.
Amy.