Federal government to provide $1.2M to establish grocery code of conduct

Federal Agriculture Minister Lawrence MacAulay says the government, along with its provincial and territorial counterparts, will provide $1.2 million in one-time funding to support the creation of the office that will oversee the grocery code of conduct.

MacAulay made the announcement one day after news that all of Canada’s major grocers had agreed to sign on to the voluntary code.

The industry-led code is meant to set out guidelines for fair dealings between grocery retailers and suppliers.

For months, it appeared unclear whether all the major grocers would sign on, raising concern that the government might have to step in.

Michael Graydon, CEO of the Food, Health & Consumer Products of Canada association and chairman of the interim board for the code, says there’s lots of work to be done before the code comes into effect next year.

He says the funding will support the work of setting up the office that will oversee the code, including hiring an adjudicator.