AFGC welcomes review of essential industry code

The Australian Food and Grocery Council (AFGC) has welcomed the announcement from Assistant Minister for Competition, Charities and Treasury and Assistant Minister for Employment Dr Andrew Leigh of the second review of the Food and Grocery Code of Conduct (the Code).

As a voluntary code prescribed under the Competition and Consumer Act 2010, the Code was introduced to improve business behaviour standards in the food and grocery sector, including the conduct of retailers and wholesalers towards suppliers.

Tanya Barden, AFGC CEO, said the Code has been an essential element of how food and grocery manufacturers conduct their business with supermarket retailers since its inception in 2015.

Though the relationship between suppliers and retailers has improved since the Code came into effect, this review comes following years of industry disruption, at a time of increased pressure on margins and strained supply chains.

According to Barden, previous reviews of the Code have improved relationships, and industry expects the changes this time around to “reflect the current environment and the new challenges we face”.

“In some cases, manufacturers can be entirely reliant on one retailer as a customer. Having the Code to outline how both parties are to engage on things like price and listing of products is incredibly important,” Barden said.

“We look forward to engaging with government as they embark on this review and do so with the view of ensuring a competitive and productive environment for the food and grocery manufacturing sector in Australia,” Barden said.

The AFGC was a founding party in the development of the Code and has been a leading voice in its evolution over the years.

Image credit: iStock.com/Dan Dalton