Question Period Note: GROCERY RETAIL FEES

1. The issues at stake are very complex and need to take into account a wide variety of perspectives.
2. Following reception of the steering committee’s progress report, the Minister of Agriculture discussed the subject with her colleagues from the provinces and they invited the industry to present a concrete action plan at their next Ministers’ meeting in July.
3. We will continue to support the industry to identify lasting solutions so that all supply chain partners has the appropriate conditions to prosper.

BACKGROUND:
Following retail fee increases by select retailers (e.g. Walmart Canada and Loblaw Companies Limited) in summer/fall 2020, supplier stakeholder organizations, as well as independent grocery retailers lobbied federal and provincial governments for a Canadian Code of Conduct to ensure fair, transparent and predictable business practices for the agri-food industry.

In November 2020, FPT Agriculture Ministers agreed to create a federal-provincial-territorial working group (FPT WG) to explore potential solutions benefitting the entire food value chain. The FPT WG held over 60 stakeholder engagement sessions with approximately 45 industry representatives, domestic and international industry experts and academics.
On May 4, 2021, the Standing Committee on Agriculture and Agri-Food released its report, entitled “Room to Grow: Strengthening Food Processing Capacity in Canada for Food Security and Exports.” In it, the Committee recommended that “the Government of Canada support the provinces with the implementation of a grocery code of conduct and that it participate in collaboration with the provinces in its development in line with their respective jurisdiction and the Competition Bureau’s guidelines.”

On June 16, 2021 the Standing Committee on Industry, Science and Technology released a report recommending that the Government of Canada and the Competition Bureau support provinces and territories in the establishment of codes of conduct to address inequalities in bargaining power between food producers and grocers, including by hosting a first ministers’ meeting.

In July 2021, key findings of the FPT working group were presented to Ministers and released publically. FPT Ministers called on industry to develop industry consensus on a proposal for a code of conduct and an approach to dispute resolution to improve predictability, transparency and fair dealing in supplier-retailer relations.

A third party facilitator was retained to support the industry-led process. Industry representatives continue to cooperate and the process is progressing. A steering committee comprised of key industry associations has been established and an industry update on the progress to date was provided to FPT Ministers of Agriculture in December 2021 and again on April 4, 2022.

Further work and stakeholder engagement will be needed to develop a grocery code of conduct and a dispute resolution framework. Industry continues to advance work, and will hold working sessions in April and May, with companies beyond the steering committee members.

The co-chairs of the FPT Working Group, Minister of Agriculture and Agri-Food Canada and Minister de l’Agriculture, des Pêcheries et de l’Alimentation (MAPAQ) provided direction and guidance to the FPT WG as it developed and actioned a collaborative research agenda, coordinated and engaged stakeholders, established international linkages, analyzed legal frameworks and published key findings. The FPT WG continues to monitor and support the industry-led process by convening experts, providing facilitation and translation services.

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