A code of conduct for grocers will increase consumer choice, competition, and stability in food costs.

A code of conduct  After months of circulating rumors, Loblaw has officially supported the grocery code of behavior, choosing to act morally.

Given that every major grocery store in Canada has now committed to the code, its action represents a critical turning point for the industry. It has been highlighted by Metro, Sobeys, Costco, and Loblaw that compliance with the new rules is a prerequisite for the grocer code of conduct to be effective.

They are correct, too. All grocery stores must take part in order to address supply chain violations that affect customers’ daily lives despite frequently being unseen by them. Regretfully, Walmart Canada is still the only one holding out.

A code of conduct for grocers will increase consumer choice, competition, and stability in food costs.

A code of conduct  Galen Weston’s deceptive statement to lawmakers last autumn that the supermarket code of conduct would drive up food prices and affect all consumers was probably the turning point for Loblaw. On Christmas Eve, when most Canadians were busy celebrating the holidays, Weston was forced to apologize to Ottawa since prices are not directly impacted by an industry-led, voluntary code of conduct.

But the food business was watching closely and becoming more and more irritated by the day.

Loblaw’s resolve to abide by the code is welcome news for consumers for two major reasons.

A code of conduct  Initially, the grocery code of conduct aims to stop the so-called supply chain bullying, which is mostly done by Walmart and Loblaw, in order to stabilize food costs. Grocers have a great deal of leverage over suppliers in the food industry since suppliers frequently have to pay grocers various fees in order to do business. For a single product, listing fees can go from $50,000 to millions of dollars.

A code of conduct for grocers will increase consumer choice, competition, and stability in food costs.

A code of conduct  There was instability and higher food prices for consumers as a result of suppliers having to raise prices to cover the costs whenever these levies increased. In the past, when grocery stores unilaterally raised prices, food prices at retail have historically been more erratic, with Loblaw and Walmart frequently leading the push.

Second, the entire supply chain will be more transparent thanks to the coding. Every year, a report describing supply chain disputes and their remedies will be released by the secretariat set up to support the code. The public will be able to see for the first time which corporations are misusing their influence to drive up food prices. The public will hold the entire sector more accountable as a result of this transparency.

A code of conduct  Independent grocers and small food manufacturers will benefit most from the code’s level playing field for suppliers and grocers. Growing listing and marketing fees have sometimes dashed the hopes of numerous small producers who want to sell their distinctive, creative items. Many businesses that could not handle the financial load have been destroyed by these supermarkets’ unilateral decisions, which have also stifled competition across the food chain.

A code of conduct for grocers will increase consumer choice, competition, and stability in food costs.

A code of conduct  The guideline should aid in the survival of numerous little food producers by giving them the chance to market distinctive goods that bigger chains could pass over. For customers, this will mean more options, competition, chances, and stable food costs.

It is possible that some Canadians will find the idea of enforcing a code offensive. But the code does not advocate for supply management or government involvement. Rather, it is about opening up the market to additional players, which is just what we require. In other nations where the food industry is structured similarly, a code of conduct has shown to be successful.

The Canadian food business will be well on its way to becoming more equal and competitive if we can get Walmart to support the code.

A code of conduct  Dr. Sylvain Charlevoix teaches food distribution and policy at Dalhousie University and serves as senior director of the agri-food analytics lab.

Article Source troy media

About Arthur

Leave a Reply

Your email address will not be published. Required fields are marked *