Source: Dairy Processors Association of Canada
DPAC has joined other organizations to call on governments to lead the creation of a Grocery Code of Conduct to address the unfair business practices of Canada’s major grocers.
The Canadian retail market is incredibly concentrated with just five retailers controlling 80% of the market share. As it currently stands, this allows retailers the ability to dictate the terms of business.
And it isn’t benefiting farmers, food processors or Canadian consumers.
Arbitrary fees and penalties, on top of long-standing practices of listing and product placement fees, reduce investments by processors and farmers, which mean that Canadians will ultimately be paying more than they should.
For dairy, these practices threaten the long-term viability of the dairy industry.
It doesn’t have to be this way. Dairy processors, like all others calling for a Grocery Code of Conduct, are not seeking a business advantage. What they are seeking is a fair, level playing field. A balanced competitive environment that benefits grocery retailers, large and small, and their Canadian suppliers. This environment will ultimately benefit Canadian consumers through more product innovation and a larger variety of local products to choose.
More on DPAC’s call for a Grocery Code of Conduct