Question Period Note: GROCERY CODE OF CONDUCT

Q1 – When will the Grocery Code of Conduct be implemented?
Q2 – How will governments support the implementation of the Grocery Code?
Q3 - Will a grocery code of conduct impact food prices?
Q4. Will compliance with the Grocery Code be enforceable? Q5 – Why is the government not imposing a mandatory code of conduct?

R.1 - This is an industry-led process, and industry representatives have stated their intent for the Code to be fully implemented and enforceable by January 1, 2026. R.2 - Following agreement from all major retailers to participate in the industry-led Grocery Sector Code of Conduct, Ministers of Agriculture agreed to provide $1.2 million in short-term funding to support the Grocery Sector Code of Conduct Adjudication Office.
The principles and implementation details of the industry-led grocery Code of Conduct have been negotiated by industry separate from government.
However, the Federal Government will continue to monitor progress towards implementation of the Grocery Code, and actively engage with the provinces and territories. R.3 - Many factors influence the prices consumers pay for food, including the international trade environment, labour costs, transportation, climate change and supply chain inefficiencies.
This is why it is extremely difficult to draw a direct link between any grocery code of conduct and increases or decreases in the price of food.
While a Grocery Code will not directly affect food affordability, it will improve predictability, transparency, and fair dealing in supply chain relationships, ultimately benefitting consumers. R.4 - Industry will be responsible for the implementation of the Grocery Code, including the signing on of members, and the development of a dispute resolution mechanism. This will ensure that retailers and suppliers work together to promote fair and ethical trading and contractual certainty.
While participation is voluntary, we are encouraged by the commitment from all major retailers to join the Grocery Code.
The continued participation of all major grocers and suppliers is vital to its success. R.5 - We continue to believe that collaboration around an industry-led solution will yield the best outcome for the sector. The issues at stake are very complex and need to consider a wide variety of considerations and perspectives.
Experience in other countries demonstrates that the process takes time. The UK code began as a voluntary code before evolving into a mandatory code over 10 years.

In November 2020, FPT Agriculture Ministers agreed to create a federal-provincial-territorial (FPT) working group to clarify the impact of certain retail practices and explore potential solutions benefitting the entire food value chain. In July 2021, key findings of the FPT working group were presented to Ministers and released publicly. FPT Ministers called on industry to develop 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.
In August 2021, an Industry Steering Committee (ISC) comprised of key industry leaders was established and provided periodic updates to FPT Ministers. A draft proposal for a Grocery Code of Conduct with a supporting office became public in May 2023 and was used to conduct a broad industry consultation. A draft code was submitted to the government in December 2023, but industry was not able to achieve a consensus at that time.
On July 18, 2024, industry confirmed that organizations across the supply chain, including all key suppliers, many regional and local independent grocers, and Canada’s five largest grocery retailers committed to joining the Grocery Sector Code of Conduct. Industry is aiming to fully implement the Grocery Code by January 1, 2026.
Following agreement from all major retailers to participate in the industry-led code, Ministers agreed to provide $1.2 million in short-term funding to support the Grocery Sector Code of Conduct Adjudication Office.
On January 9, 2025, the Office of the Grocery Sector Code of Conduct announced the appointment of Karen Proud as the organization’s first President and Adjudicator, starting on March 17, 2025. Ms. Proud has extensive leadership experience in the retail and manufacturing sectors. She was President and CEO of Fertilizer Canada and previously held executive roles at Food, Health & Consumer Products of Canada and the Retail Council of Canada.
The Grocery Code is not expected to address concerns over rising food prices. However, it is expected to improve supply chain predictability, transparency and fair dealing.
Implementation of a code has been recommended in multiple Standing Committee reports since 2021 and the Competition Bureau Retail Grocery Market Study of 2023.

• Canada needs a grocery code of conduct to bring more fairness, transparency and stability to our grocery sector and supply chain.

• After years of work and unprecedented collaboration, I am pleased to see that the work to implement Canada’s first-ever Grocery Code continues to advance.

• The office supporting the Grocery Code is expected to be fully operational by June 2025 with full Code implementation and enforcement by January 1, 2026.

• Our government will continue to support industry’s efforts to implement the Grocery Code to ensure Canada has a resilient supply chain that benefits everyone.