The peak body for Australia’s largest manufacturing sector has welcomed the announcement from the 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).
“Since its inception in 2015, the Code has been an essential element of how food and grocery manufacturers conduct their business with supermarket retailers,” said AFGC CEO Tanya Barden.
“While the relationship between suppliers and retailers has improved since the Code came into effect, this review comes at a time of increased pressure on margins, strained supply chains and follows years of industry disruption.”
As a voluntary code prescribed under the Competition and Consumer Act 2010, the Code was introduced to improve standards of business behaviour in the food and grocery sector, including the conduct of retailers and wholesalers towards suppliers.
Barden said that previous reviews had improved the relationship between suppliers and retailers, and the industry expects the changes it pursues this time will reflect the current environment and the new challenges the industry faces.
In some cases, manufacturers can entirely rely on one retailer as a customer. Having the Code outline how both parties engage on things like price and listing of products is incredibly important.
“We look forward to engaging with the government as they embark on this review and do so to ensure a competitive and productive environment for the food and grocery manufacturing sector in Australia.”
The AFGC was a founding party in the development of the Code and has been a leading voice in its evolution over the years.
