FHCP applauds Standing Committee Report recognizing need to address negative retail practices to strengthen food processing sector.

Toronto, May 4, 2021 - Food, Health and Consumer Products of Canada (FHCP) today expressed overwhelming support for the unanimous recommendations made by the House of Commons Standing Committee on Agriculture and Agri-Food, on addressing the challenges that Canada’s concentrated grocery retail sector places on processors’ ability to innovate and grow.

Entitled Room to Grow: Strengthening Food Processing Capacity in Canada for Food Security and Exports, the report calls out for a clear leadership role for the federal government to support the provinces and territories in the development and implementation of a grocery code of conduct to stabilize the relationship between food suppliers and retailers. FHCP strongly endorses this recommendation and we encourage the Federal-Provincial-Territorial (FPT) working group currently examining the issue to echo this recommendation in its upcoming July report.

“We commend all political parties for recognizing the challenging retail landscape in Canada and for their commitment to advancing solutions to address these challenges facing food manufacturers and farmers,” Michael Graydon said. “FHCP is pleased to be part of the solution.  Together with Empire, we put forward a concrete proposal for a Grocery Supply Code of Practice for Canada.  The first of its kind in Canada, the draft Code aims to stabilize relations between retailers and suppliers by calling for fair and efficient handling of all negotiations and commercial agreements.”

The report considered testimony from 57 witnesses from across Canada’s agri-food chain including FHCP between November 2020 and March 2021. FHCP applauds the committee’s work and formally thanks the committee for its inclusion in the process. 

FHCP also thanks the committee for its recommendations addressing the broad scope of industry challenges that have dramatically impacted growth and innovation within Canada’s food processing sector. FHCP has long advocated for investments in trade infrastructure, modernized food regulations, and a range of policies to help address the growing labour and skills challenges facing the sector.  FHCP is pleased to see all of these issues addressed within the committee’s 18 recommendations.