2 October 2020

A better deal for food and grocery suppliers

From tomorrow, the Food and Grocery Code of Conduct (the Code) will be enhanced to strengthen commercial dealings between Code signatories and their suppliers.

The new changes promote fairer and more transparent dealings between suppliers and major supermarkets and wholesalers.

The changes to the Code clarify and enhance good faith obligations, prohibit retrospective variations to grocery supply agreements, as well as set limits on acceptable conduct to encourage streamlined price rise negotiations.

The Code also seeks to improve supply negotiation dispute resolution by requiring supermarkets or wholesalers, within two months, to appoint Code Arbiters with the authority and autonomy to efficiently resolve supplier complaints.

Work will now proceed on the appointment of an Independent Reviewer who will work with the industry to ensure suppliers are afforded due process during any dispute resolution. 

The Morrison Government welcomes the decision of Metcash, that support a major network of independent grocery stores, including IGA and Foodland, on its decision to sign up to the Code.

The Government thanks the Australian Food and Grocery Council, and Code signatories, Aldi, Woolworths, Coles and Metcash for their efforts in working together to strengthen and promote a vibrant and sustainable food and grocery industry in Australia.

For further information on the changes to the Code visit the Federal Register of Legislation website.