Good afternoon.
The Conseil de la transformation alimentaire du Québec, CTAQ, which has over 650 members, is the primary industry association for food manufacturing businesses in Quebec. It is a founding member of Food and Beverage Canada.
For several years now, CTAQ, alongside Food and Beverage Canada and other partners, has been advocating for a grocery code of conduct to place reasonable limits on the actions of major retailers in Canada. The catalyst for this was the negotiating power imbalance that exists because Canada's retail grocery sector is highly concentrated compared to the many small and medium-sized Canadian food and beverage manufacturers.
The code is being developed jointly by food and beverage industry players, retailers and food distributors. It would ensure that retailers can no longer unilaterally impose fees on our food and beverage manufacturers. That kind of thing directly influences prices because it increases suppliers' operating costs.
We firmly believe that a code of conduct would slow rising food costs and improve competition in the Canadian food sector. Data from the United Kingdom and Australia are encouraging because they suggest that, where mandatory codes are in place, retail prices have fallen. Food producers can also implement measures that will enable them to better predict inflationary crises like the one we're experiencing now.
Such measures might include diversifying raw ingredient sources to reduce vulnerability to price fluctuations, reducing transportation costs, improving logistical efficiency and minimizing losses throughout the supply chain.
Using traceability technology can also contribute to more precise and efficient management. Automating production processes can help reduce costs, address labour shortage issues and improve operational efficiency. Regularly reviewing and optimizing production processes can reveal inefficiencies. Businesses need to identify where they can improve and implement changes to improve efficiency, which is why innovation is so important.
Reducing energy consumption can save businesses a lot of money. Food businesses can invest in energy-efficient equipment, implement sustainable waste management practices and explore renewable energy to reduce their operating costs.
Thank you for your attention.
We're ready to answer questions.