The Foodstuffs Co-ops support efforts to ensure a grocery market that works well for all New Zealanders.
The Commerce Commission’s work on both the Grocery Supply Code and the regulated wholesale market is an important part of this.
"We will take time to review the draft report and preliminary findings and recommendations in detail and, as always, remain committed to engaging constructively and providing meaningful input through the consultation process," said the co-ops.
"Our focus continues to be on delivering value to Kiwi consumers by buying well for them, strong relationships with our suppliers, and contributing to a competitive, sustainable grocery sector."
Foodstuffs North Island works with more than 2,000 suppliers - more than any other grocery retailer in New Zealand - and much of its product range is sourced locally. A well-functioning market must support efficient, productive outcomes – and that includes ensuring retailers can negotiate fairly to deliver value at the checkout.
In its view, the current Code has already effectively set the ‘rules of engagement’ with suppliers.
"We regularly survey our suppliers to ensure we are working as partners, listening, and constantly improving. We take our obligations under the Code seriously. Any supplier who has an issue should raise it through the appropriate channel – either with us directly or through the Commerce Commission."
The co-ops support the existing intent of the Code and the dispute resolution process. They are open to working with the Commission on ideas to lift awareness and understanding of the Code, particularly among smaller suppliers who may need additional support.
FSSI said supplier relationships are a critically important part of this. The strong partnerships with suppliers are something it is proud of.
It acknowledged the results of the Commerce Commission’s survey and the work that has gone into producing it. In the South Island, approximately a quarter of the products sold come from small and emerging suppliers.
They said it was encouraging to see that, while there was a relatively consistent experience rating across suppliers of all sizes, FSSI ranked number one for overall experience with smaller suppliers.
FSSI has recognised the Grocery Commissioner’s desire to simplify the Grocery Supply Code and welcomes this opportunity. The draft Grocery Supply Code report released contains a great deal of detail, and FSSI will take the time to review and understand the implications for its business, suppliers, and customers.
It will also review the preliminary Wholesale Supply enquiry paper in detail and engage constructively through the consultation process. FSSI's focus will continue to remain on feeding the South Island and supporting its customers and communities.
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